www.vheadline.com Posted: Wednesday, January 29, 2003 - 1:39:14 PM By: Patrick J. O'Donoghue

Petroleos de Venezuela (PDVSA) executives & managers trade union (Unapetrol) adviser, Edgar Quijano says the association is lodging a formal complaint at the International Labor Organization (ILO) HQ in Geneva over the dismissal of 4,500 oil workers, who downed tools to join the national stoppage in December.

“4,500 of 38,500 oil sector workers were given the sack illegally and in an arbitrary fashion, violating a government decree prohibiting employers from laying off workers.”

Quijano, who was himself given the boot, says the Chavez Frias government has violated PDVSA staff’s right to strike … “70% of those sacked belonged to the so-called major payroll including secretaries, operational and administrative staff and only 20% were top management.”

Quijano rejects charges of sabotage and challenges President Chavez Frias to provide evidence … “we handed over all oil industry installations in perfect conditions, as state prosecutors and judges can testify.”

www.vheadline.com Posted: Monday, January 27, 2003 - 3:01:12 AM By: Hector Dauphin-Gloire

Date: Sun, 26 Jan 2003 17:23:24 -0500 From: Hector Dauphin-Gloire montonero22@hotmail.com To: Editor@vheadline.com Subject: Thank you for your service to the truth!

Dear Editor: I wish to thank you immensely for the service you are doing the whole world by courageously reporting a balanced viewpoint about the Venezuelan situation.

• In the barrage of half-truths and misrepresentations that come from the private media we seem to hear all manners of petulant complaints by an oligarchy intent on preserving its power.

Domestic readers can at least hear from the government and community media (thank God that they exist) but as far as I know there is no English-language service which provides a point of view sympathetic to the government, besides your own. *

But we should not be so hard on the Venezuelan private media. Sure, they are a corrupt oligarchy, but so is the private media in most countries throughout the world.

In the United States, too, the mainstream media is in the pocket of big corporations and you will rarely hear a word critical of neo-liberalism, capitalism, or other features of US society come out of their mouths.

Consider, too, the history of other countries in Latin America.

The press in Chile was solidly against Salvador Allende, and in favor of the right-wing Allessandri ... we saw what happened three years later.

The press in Brazil, today, savages the Landless Workers' Movement, accusing them of being Marxist, terrorist, brigands ... and they have the gall to say this at a time when these peaceful, Catholic, cooperative rural activists are being murdered by the landlords.

The press in Argentina was solidly against Peron, and many of them backed the 1976 anti-Peronist coup by three generals called "the Gentlemen" who proceeded to impale their prisoners on cattle prods, throw them from airplanes, and other "gentlemanly" behavior.

The private media in country after country has this stellar record of behavior.

Now the Venezuelan media wants to pretend that they are something different, heroic partisans of democracy ... their hypocrisy and mendacity is shining bright.

Hector Dauphin-Gloire montonero22@hotmail.com Environmental Technician

• Editor's note: Hector, let's get this straight.  VHeadline.com is in full support of the Venezuelan Constitution and democracy expressed by the Venezuelan people at the ballot box.  They happened to elect President Hugo Chavez Frias as Head of State of the Bolivarian Republic of Venezuela under the full terms and expression of the 1999 Constitution which was itself enacted by elected representatives of the people and ratified by a majority of those selfsame Venezuelan citizens on December 15, 1999.  If/when another President is elected under democratic forms by a majority of the Venezuelan people we will also observe traditional forms of democratic and constitutional expression under the law.

www.vheadline.com Posted: Wednesday, January 29, 2003 - 3:13:07 AM By: Almira Atencio

The message he used to win his first election was to fight corruption

Date: Tue, 28 Jan 2003 21:39:17 -0400 From: Almira Atencio atencioalmira@hotmail.com To: editor@vheadline.com Subject: Comments

Dear Editor: commenting on a letter from Hector Dauphin-Gloire dated:26-10-2003.  Sure, the President was elected two times by the people of Venezuela: First without a national project ... the message he used to win his first election was the promise to fight corruption left in this country as a tradition that had destroyed democratic institutions.

When he won, he summoned Venezuelans to organize a national referendum, as an essential requirement for his government plan and organization of Venezuela's institutions, so damaged by democratic governors during the past forty years. People were  happy, accepted and believed absolutely in the President's plans.

After the referendum, which took two years in his first mandate, he found it necessary to legitimate his elections, so he organized more elections. Before this time, he did not have a majority in the National Assembly but this second election gave him more deputies than he had had before and he commenced to dominate the legislative power.

Meanwhile he also organized the domination  of the executive power upon the legislative power and decided that there was no President of the National Assembly, due to the referendum, giving to Miquelena, the first commander of his party, to be the authority of a similar creation of a legislative power called "el congresillo" (arbitrary and due to discretional power) whose mission was to control power, prepare  laws for his national plan and to approve them with new deputies after elections where he would legitimate his power with his own organization (new Assembly with absolute control of votes  by deputies of Chavez' political party would vote for the representatives of the Supreme court). All these  lawyers  elected by the National Assembly were to be the judges of the court (all of Chavez -- so he dominated the Supreme Court).

After he had absolutely all the power in his hands he went to elections and, since he had not yet governed, people voted again for him, so he could rule against demagogy and corruption. He won. People wanted him to win. There were no other candidates because he had not governed yet, nobody really new what he was preparing.

When he won the second elections, he had all power in his hands for the country, we would notice how this absolute power given and organized by him in a Machiavellian way would rest justice, respect for human rights and the rule for democratic system: the balance between power. After he had all this power he began to act in a arbitrary way, he never worked or presented an economic plan, the social security plan just approved in 1997 with resources of the Inter American Development Bank was eliminated by a new plan were radicalism and pragmatism were its entitle, as for the medias, there were object of violence, as for the court, justice was manipulated by politics.

So now that we know what he wants for Venezuela, now, that we are suffering totalitarianism, now that many people have died because of his cruelty with the opposition  and now that Venezuela's "technicians" that work in the petroleum industry do not want to let the President ruin our economy, the only thing we had left.

We are suffering radicalism just as you commenced to have signals of communist when Joseph McCarthy fought against violence born from these socialist or left intellectual's new raise in life.

Pray for Venezuela. Please.

Almira Atencio atencioalmira@hotmail.com

www.wtev.com

The Federal Reserve's rate-setting panel is not expected to announce a reduction of short-term interest rates when it ends a second day of meetings today, but the nation's top monetary officials have had much to talk about.

Adding to the specter of war with Iraq and a general strike in Venezuela that cut oil production and caused world crude prices to rise, the Conference Board in New York reported yesterday that US consumer confidence fell this month to its lowest levels in nine years. Orders for durable goods rose in December, though not by enough to lift a moribund manufacturing industry burdened by excess capacity.

Other economic data argue against an interest rate cut by the Fed, economists said, including a housing market that was strong in December and prospects that some portion of the $670 billion tax-cut package by President Bush, if passed by Congress, would spur the economy later this year.

The Fed's open market committee is expected to hold the federal funds rate at 1.25 percent. With rates already low, the Fed wants "to keep some bullets in the gun" for use when they may need them more, said Brian Horrigan, chief economist in Boston for Loomis Sayles & Co.

But few economists predict that officials who set monetary policy in Washington will change the wording of their statement to reflect the rising uncertainty in the economy. The US will release its fourth-quarter estimate of growth tomorrow, and analysts expect it to show the economy slowed dramatically, or even contracted. While most economists forecast a turnaround later this year, they warn of many risks. The Fed "won't do anything unless they have to," Horrigan said. "The next meeting is March. If we're in a situation where bombs are dropping, they might decide to give us one more ease. They also could do it in the interim."

Conflicting signals from the economy caused confusion in the markets.

Yesterday, optimistic investors pushed up stocks in reaction to positive earnings reports by various companies and in anticipation of the president's State of the Union message last night and higher orders for durable goods. The Dow, which has trended downward for more than a week, rose 99.28 points, or 1.2 percent, to 8,088.84. The Nasdaq Composite index gained 16.91 points, or 1.3 percent, to close at 1,342.18.

Speaking yesterday at his confirmation hearing before the Senate Finance Committee, Treasury secretary nominee John Snow, the chief executive of CSX Corp., said about President Bush's sweeping tax-cut proposal, which would cut taxes on stock dividends, "I do know, and I believe this deeply, [that] this is a well-conceived growth package . . .that the country needs."

But economists say a tax package tilted toward wealthy investors may do little to stimulate economic activity at a time when consumer spending may be trailing off and consumer confidence is at its lowest level since November 1993. The Conference Board's monthly index dropped nearly two points, to 79.0 in January, from 80.7 in December. The index does not necessarily portend a decline in actual spending, however, and a closer look revealed mixed sentiment: Consumers said their present situation has improved, but they are pessimistic about the future.

Orders for durable goods rose by 0.2 percent in December, a more sluggish pace than many expected. Excluding defense orders, total orders would have fallen. One surprise was a 3.2 percent surge in December orders for computers and electronics, which matched the pace in July 2002, said Jeoff Hall, economist for Thomson Financial IFR, a financial markets advisory firm in Boston.

In making their decisions about rates, Fed officials must weigh data from the consumer sector against manufacturing activity, Hall said.

While the manufacturing sector has barely responded to low interest rates, another rate cut might encourage consumers to continue the questionable practice of building up debt by tapping into home equity to finance discretionary purchases, such as cars.

"It's not that the Fed doesn't want to see consumer spending continue, but I think they are concerned about how that spending is coming about," he said.

To see more of The Boston Globe, or to subscribe to the newspaper, go to www.boston.com

(c) 2003, The Boston Globe. Distributed by Knight Ridder/Tribune Business News.

abcnews.go.com The Associated Press CARACAS, Venezuela Jan. 29 —

In Another Sign Venezuela Strike May Be Weakening, Private Banks Agree to Normal Hours

President Hugo Chavez appeared to be winning the battle for control of Venezuela's oil industry, overcoming efforts by workers at the state oil company to strangle it with a 58-day-old strike.

In another sign the strike is weakening, private banks agreed Wednesday to restore normal banking hours next week, said Central Bank president Diego Luis Castellanos. Banks and many exchange houses had opened only three hours a day to support the strike.

The decision came after Chavez had threatened to fine banks, suspend their directors and withdraw military deposits from striking institutions.

Even as the government boosted oil production beyond the million-barrel benchmark, the work stoppage has had devastating effects on the country's recession-ridden economy.

Production reached 1 million barrels a day Tuesday one-third of pre-strike levels, according to striking executives at state oil monopoly Petroleos de Venezuela S.A. It had slipped as low as 200,000 barrels per day in December.

Output is rising because the government is focusing on newer oil fields, where crude is easier to extract. But the recovery should slow when the government is forced to reactivate old wells that have sat idle for nearly two months, making their crude sticky and difficult to pump.

"They are going for the lowest hanging fruit on the tree, the easiest to grab," said Ed Silliere, vice president of risk management at Energy Merchant LLC in New York. "In a few weeks, it is going to be a struggle."

Silliere said he expects difficulties to begin when output reaches 1.2 million to 1.4 million barrels per day.

In an effort to regain control of the oil monopoly, Chavez has sacked more than 5,000 of its 40,000 workers. State oil company executives warn the firings will make it even more difficult to reach full production capacity.

"That's what happens when unprepared personnel are put to work," Juan Fernandez, the leading spokesmen for dissident state oil workers, told a press conference.

Opposition leaders insist the strike will continue. But a public backlash over food, gasoline and medicine shortages has prompted some workers to consider easing the stoppage in certain areas.

Concerns about a public backlash over food, gasoline and medicine shortages has prompted some strike leaders to consider easing the stoppage in certain areas.

Shopping malls, restaurants and schools may reopen next week, at least part-time, said Julio Brazon, president of the Consecomercio business chamber. Some small businesses have reopened, and others never closed.

"The lifting of the strike is not being proposed now," said Carlos Ortega, president of the nation's largest labor union. "What is being proposed are some strategies that correspond to sectors involved in the strike." He did not elaborate.

Venezuelans must wait for hours in miles-long lines outside service stations. To ease the inconvenience, the government will impose limits on daily gas sales, said Luis Vierma, director of hydrocarbons at the Energy and Mines Ministry.

Although Chavez has had some success in reviving oil production, which provides half of Venezuela's government revenue and 70 percent of export earnings, he faces a daunting task in recuperating the country's economy.

Capital flight, stalled investment and strike damage led Santander Central Hispano investment bank to forecast a 40 percent contraction in the first quarter of 2003. Unemployment stands at 17 percent.

A freeze on foreign currency sales to protect the bolivar, which has lost 25 percent of its value this year, was extended Tuesday. The bolivar traded at 2,300 to the dollar Tuesday in secondary markets between private parties, bankers said. It was 1,853 to the dollar before the suspension started last week.

Limits on the amount of foreign currency Venezuelans can buy go into effect next week. The measure has been severely criticized by executives who say it could hurt businesses that depend on U.S. dollars to import goods.

"Chavez many have the initial advantage, but over the long term, he's going to have a much more difficult path," said Steve Johnson, senior policy analyst for Latin America at the Washington-based Heritage Foundation.

www.prnewswire.com Financial Services News

ANNAPOLIS, Md., Jan. 29 /PRNewswire/ -- Colombian and Venezuelan mines could produce 65.1 million tonnes of coal by 2006, according to Export Coal Supplies in Colombia and Venezuela, the 2002 edition of a series of multi-client studies by Hill & Associates, Inc, on the Colombian and Venezuela export coal industry.

The conclusion is dependent upon numerous conditions and assumptions made and which are explained in the study.

"We believe by 2006 Colombia will have the capability to produce 53.9 million tonnes of coal with Venezuela producing the 11.9 million tonnes balance," Jaime Correal, the author of the study, said.

The study includes a discussion of likely new developments in mines, transportation and port infrastructure in Colombia and Venezuela.

"Transportation and port infrastructure are key to the growth of the coal industry in both countries," Correal said, "especially in Venezuela where a railroad and port project are an absolute necessity before any significant export expansion can take place in the Guasare Basin."

Export Coal Supplies in Colombia and Venezuela provides a complete analysis of geology, reserves, mine ownership, quality and production.  It takes a serious look at production capacity in Colombia and Venezuela and offers a complete picture of main export mines.

"The coal industry in Colombia and Venezuela will definitely influence the global export market in the future," Correal said.  "In Export Coal Supplies in Colombia and Venezuela we offer a comprehensive, intense look at the market possibilities."

An analysis of current FOBT cash costs for each producer, and the manner  in which Colombian and Venezuelan prices might react in the international markets in the future are other important aspects of the study.

Export Coal Supplies in Colombia and Venezuela includes detailed information on the following topics:

-- Overview of Colombia and its coal industry: This section includes an in-depth description of the Colombian geography, its economy, the latest developments in governmental institutions, and a realistic perspective of the country's public order situation. The section also includes a summary of country coal reserves and locations, and a summary of the coal production and export history of major producers. Coal production and export projections for the next five years are included, based on current capacity factors and the expansion and investment plans of the producing companies.

-- Colombia's transport and port infrastructure: This chapter describes the transport and port infrastructure used by coal suppliers to export coal. It includes a review of the existing railroad capacity and the available rolling stock in each of the operating railroads as well as the projected spur lines to join coal production areas to main lines and ports. The section also includes the main roads and distances used for transporting the mineral to ports from the main coal supply areas. A review of the main exporting coal terminals includes aspects such as annual export capacity, storage capacity, maximum allowed draft, and maximum and minimum vessels sizes. The projected two new terminals in the Atlantic coast are also discussed.

-- The study dedicates a section for each main Colombian coal supplier making a description of the location in relation to port and to main Colombian cities. It includes a description of the coalfields, reviews of the coal reserves in the concession areas, characteristics of the shareholders, production capacities, coal qualities, and history of coal exports. In addition, it looks inside the mine operation, transportation systems to ports and the required support and administration for each of the following mines:

       * Cerrejon Coal Company
       * Cerrejon Central Caypa mine - Colombianos del Cerrejon
       * La Jagua - Carbones del Caribe
       * La Jagua - Carboandes
       * Drummond - La Loma Project
       * El Paso mine - La Loma
       * Calenturitas - Prodeco
       * El Hatillo - Emcarbon

-- Venezuela overview: As in the Colombian section, the study reviews the Venezuela coal industry including a summary of country coal reserves and location, and a summary of the coal production, coal qualities and export history.

-- Venezuelan transport and port infrastructure Most Venezuelan coal exports are shipped from three main terminals located in the west shore of Maracaibo Lake, which are described in this chapter.

-- The study also describes the coalfields, coal reserves in the concession areas, characteristics of the shareholders, production capacities, coal qualities, and history of coal exports. It also reviews the mine operations, transportation systems to ports and the required support and administration for the main exporting mines in Venezuela, such as:

       * Paso Diablo mine and Socuy Project - Carbones del Guasare
       * Mina Norte
       * Cosila's project - Las Carmelitas

-- Colombia and Venezuela estimated costs and market outlook: This chapter presents the estimated FOBT cash cost for each of the exporting coalmines in Colombia and Venezuela. The cost analysis includes all costs, such as waste removal, coal mining and handling, pit services, restoration, and environmental control, mine services, transportation to port, port operations, administration, and royalties and taxes. The study also discusses how this low cost production affects the market. The section also includes thermal coal price projections for 2002-2011.

Export Coal Supplies in Colombia and Venezuela is now available.  The price is $6,500.

For additional information, contact Jeff Watkins or Daniel Walton at 410-263-6616 ext. 110 /111, respectively, or Jaime Correal in Bogota at 57-1-623-7647 or at j.correal@hillandassoc.com .