www.latimes.com By T. Christian Miller, Times Staff Writer

CARACAS, Venezuela -- As this nation's seemingly implacable strike grinds through its ninth week, the Supreme Court has emerged as a third axis of power in the dispute that pits President Hugo Chavez against a determined opposition.

Until last fall, the court, like the National Assembly, was assumed to be under Chavez's control because a former ally handpicked most of the court's 20 judges for their 12-year terms.        But in the last few months, as Chavez and his critics have clashed over legal matters, the court has become increasingly unpredictable, issuing some rulings for the president and others for the opposition.

"The picture has changed," said Luis Miquilena, an enigmatic and aging powerbroker believed to have the most influence over the court through a web of political contacts. "The people in the court have realized that we can't have a court that is allied with the president. That would be perverse."

Venezuela's power poles have long been clear: Chavez, a former coup leader, in control of every branch of government, versus his opponents, a patchwork coalition that includes powerful business and union leaders, housewives, dissident military officers and rival politicians.

The opposition accuses Chavez of driving the country into social and financial chaos. They have waged the strike since Dec. 2 to force him from power. The protest has crippled petroleum production and made life miserable for millions of Venezuelans. Gas lines are long and milk and flour scarce.

The first sign that the court was no longer under Chavez's control came in August, when justices issued an 11-8 ruling, with one abstention, that absolved four military officers who participated in a coup against the president in April. Chavez was returned to power 48 hours later by loyal military officers and other supporters.

The stunning decision, which found that the four officers had not participated in an active "military rebellion" because at the time Chavez reportedly had resigned, continues to be a source of deep anger for the president and his supporters.

In the months that followed, however, the court made it clear that the ruling against Chavez was not exactly a change of heart. The court issued a temporary injunction ordering all striking oil workers back to their jobs. The employees ignored the order and are awaiting a final ruling.

But the judges also issued an order forcing Chavez to return control of the Caracas Police Department to a political enemy. The regime took over the force after complaining that police were being used to crush demonstrations by the president's supporters.

Last week, the court suspended a referendum on Chavez's rule scheduled for Feb. 2. The opposition had made the measure the focus of all its recent efforts to oust Chavez. They had collected 2 million signatures, delivered them to election authorities under a hail of rocks and bullets, and battled a series of legal challenges to be able to hold the nonbinding vote.

"I don't know what's going on with the court these days," said Anibal Romero, a political analyst aligned with the opposition.

The court's independence -- or perhaps its willful balancing act between the two sides -- will become more important as the strike continues because nearly any solution to the crisis could wind up before the justices.

Several key opposition figures have proposed a constitutional amendment that would cut Chavez's term short and set immediate elections. But the president has vowed to challenge that effort in court -- and if the fight over the nonbinding referendum is any indication, such a maneuver could wrap up the proposed amendment bid for months, if not years.

A second proposal, favored by Chavez, is to hold a recall election in August. The constitution permits such an election halfway through the president's term. Even in that scenario, the court plays a role.

Previously, the court ruled that the halfway point of Chavez's term would be in January 2004, three years after he was last sworn in. But after that ruling, Chavez made a casual announcement on his weekly radio and television show that the halfway point was really August 2003 -- three years after he was elected in July 2000 to a six-year term.

As a result, opponents fear that the date could become the source of another protracted court dispute. The date is now set to become part of the negotiations.

Former President Carter, acting as a conciliator in the crisis, has suggested that the court issue a second ruling backing the August date before any accord is signed.

All that has led both sides to develop a deep distrust of the court and its motives -- further imperiling the separation of powers in a country that has long had weak public institutions.

"Its decisions are questionable because they are based on political motives," said Juan Barretto, a lawmaker with Chavez's party, the Fifth Republic Movement. "The legitimacy of the institution is in doubt."

Two justices contacted by The Times declined to be interviewed.

The court has a less than stellar reputation. Since the beginning of the modern Venezuelan democracy in 1958, its justices have been handpicked by the two political parties that long dominated the country's electoral landscape.

When Chavez took office, he vowed to change that practice. Instead, in the confusing time surrounding Chavez's 1999 moves to install a new constitution, Miquilena named each of the new judges. Most of them were later confirmed by the National Assembly.

Miquilena, who broke with Chavez a year ago, insisted in an interview that he no longer has any hold over the judges. But several lawyers and former judicial officials who follow the court said he has great influence on at least eight of the 20 judges, either through old political alliances or leverage

A Miquilena ally, Justice Franklin Arrieche, who wrote the decision absolving the four generals, is in the running to be president of the court, though sources believe the position will go to a Chavez ally, Omar Mora.

Still, others argue that while Miquilena controls a number of justices, he doesn't control the right ones. The court is made up of six judicial chambers, handling everything from family law to elections to constitutional issues. All 20 judges meet in session only in rare cases, such as trials involving military and political representatives.

In practice, the constitutional chamber, made up of five judges, winds up hearing the most important cases. Chavez still has heavy influence over three of those justices, sources said. Ivan Rincon, current president of the full court, is a Chavez ally, as are Jesus Eduardo Cabrera and Jose Delgado.

"The government has control of the constitutional chamber," said Gustavo Linares, a constitutional lawyer with one of Caracas' most elite legal firms. "That's the most important."

Finally, some observers believe that the court is simply playing a political game. With the future of the country in doubt, justices may be issuing rulings to please both sides as a way of ingratiating themselves with whomever eventually wins.

"They are watching out for their own reputations. It's a perversion of justice," said Asdrubal Aguiar, the country's former interior minister and a current opposition member.

Whatever the truth behind the court's actions, Chavez supporters and opponents agree that, barring a negotiated solution, the court will play a key role in ending the conflict.

But if the court continues to be seen as a political tool that bounces between loyalties, its decisions will be in doubt. Either side might ignore a ruling -- and that would only prolong the country's agony.

"When you have a tree with bad roots, the more it grows the more afraid you are," said Javier Elechiguerra, a former Chavez ally who served as his attorney general.

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www.nytimes.com By JUAN FORERO

CARACAS, Venezuela, Jan. 30 — With a punishing antigovernment strike two months old, representatives from the United States and five other countries arrived here today to help President Hugo Chávez's government and its foes come up with a plan that would end the walkout and lead to presidential elections, thereby easing Venezuela's political turmoil. Advertisement

Both sides have said they are ready to discuss two proposals, made last week by former President Jimmy Carter, that would lead to elections this year.

But serious obstacles remain, and government officials — feeling they are besting their opponents as the strike has begun to lose public support — have been defiant in their public comments.

That has raised concerns that an accord remains distant, even though representatives of the six countries — the so-called Group of Friends — have convened to help bolster talks. In addition to the United States, the countries are Brazil, Mexico, Chile, Spain and Portugal.

"I cannot work with terrorists and coup mongers," Mr. Chávez, a former army paratrooper who has vowed to overturn the old social order, said Wednesday. The flagging support for the strike has made the search for a solution more urgent for the opposition, which has been using the walkout to press the government at the negotiating table. The opposition favors a constitutional amendment to cut Mr. Chávez's term and bring about new elections. Government foes are also open to discussing a recall referendum on the president's rule that could take place in August, a proposal the government has long supported as legal.

www.nytimes.com By JUAN FORERO

CARACAS, Venezuela, Jan. 30 — They are the stressed and the nervous, the phobic and depressed, and on this day they filled the waiting room of Edmundo Chirinos, a psychiatrist well known here for having provided advice to President Hugo Chávez.

Under soft lighting and surrounded by the gentle gurgling of a miniature fountain, they sit shoulder to shoulder — an octogenarian nervous about the future, a young political aide worried about violence, an elderly couple concerned about their dwindling finances. Advertisement

"I am very depressed," Elena Dorante, 62, said. "That is why I'm here."

It may all seem normal for the office of a psychoanalyst. But these are not normal times in Venezuela. The streets are often filled with protesters, many businesses remain shuttered from a two-month general strike, the government is defiant and opposition leaders warn of an impending apocalypse.

Perfect conditions, in other words, for mental traumas of all kinds, Dr. Chirinos acknowledges with a smile, noting that business is booming.

"I do not think there is a country in the world that has so much stress, and so many neurotics, than Venezuela has today," he said, while adding that President Chávez himself did not appear to be showing signs of wear.

"I have doubled, tripled the number of patients," he said. "I do not know what to do with them."

This is Venezuela on the verge of a nervous breakdown, or at the very least a country gripped by confusion and gloom.

Psychoanalysts have long thrived in this sophisticated but chaotic and stressful city, offering soothing words to people dealing with troubled relationships, problems at work and repressed childhoods.

"But now we are seeing things that are completely different — anxiety disorders, panic disorders, post-traumatic stress," said Dr. Edgar Belfort, a leading psychiatrist here. "People are depressed more. We are seeing people depressed in ways that we cannot explain, even in a scientific way."

The reason for the high anxiety, analysts say, is deep uncertainty about the future. Daily, Venezuelans hear high-octane rhetoric from both sides in the lingering political standoff. Government opponents warn of massacres and the impending installment of Cuban-style Communism; Mr. Chávez pledges to defeat what he calls fascists arrayed against him.

All of it is replayed hour upon hour on an array of antigovernment television stations, leaving people unhinged.

"There is like a collective schizophrenia," said Cristel Lusverti, a psychologist. "People do not know what to believe. People feel bombarded from all sides, and that gives you all kinds of stress."

If that were not enough, a fraying economy marked by high unemployment, failing businesses and a falling currency adds to the angst.

"We are seeing an immense proportion of depression," said Dr. Chirinos, who wears a white doctor's smock and oversize tie. "We have people with insomnia, anguish, apathy, lack of interest. People who feel they can do nothing, who have a sense of depression and resignation."

Since not everyone can afford therapy, Venezuelans are increasingly seeking answers and advice wherever they can get them. Neighborhood groups in which people share their problems have sprung up. Others have found solace in the church, Afro-Caribbean religions or with astrologers.

"They pray more and take refuge in God, who is the friend of the sufferer," said the Rev. Adán Ramírez, a Catholic priest. "We are seeing — and other priests have told me the same thing — more people coming to Mass."

Others have turned increasingly to stress remedies or natural medicines, "even when nobody around here has much spare money," said Jorge Luis Hernández, a pharmacy employee.

The symptoms of the ailing are myriad: panic attacks are up, while sexual encounters are way down, psychiatrists say. Health problems seem to be on the rise, said some doctors, with an increase in hospital visits for everything from heart attacks to unexplained rashes. In serious cases, Venezuelans suffer all manner of phobias, often of public places where violence can erupt.

"There is an attitude of paranoia I have noticed, where people think they are being chased," Dr. Álvaro Requena said. "They feel that waves and waves of people are going to come rob them."

Dr. Requena said that the constant street protests and the growing participation of Venezuelans in politics had helped relieve stress for many people. Yet he and other psychiatrists said even those who suffered nothing serious were still affected.

María Cabrera, a physician, said she noticed that she had trouble concentrating. "If I am at home and doing three or four things, I cannot do something that requires concentration," she said.

Milagros Torres, a lawyer who makes it a point to talk with her sister, a psychologist, to relieve stress, said, "I never took a pill in my life, a tranquilizer, but now I am taking them."

In Dr. Chirinos's office, on a faux leather couch, Ms. Dorante explained how she was "terrorized and confused," and fearful that the poor masses that support Mr. Chávez would overrun her neighborhood. "I cannot sleep, and every time I hear a firecracker I think there is an uprising," she said in a low voice.

Dr. Chirinos, nodding as she spoke, cut in, "This is what we call xenophobia."

"It is a form of ethnic phobia," he went on. "And yes, I'm seeing more of that, too."

www.forbes.com Reuters, 01.31.03, 2:10 AM ET By Bill Tarrant

SINGAPORE, Jan 31 (Reuters) - The dollar was steady, Asian stocks drifted following a mauling on Wall Street and safe-haven gold and oil were firm on Friday, after President George W. Bush said he would give diplomacy just weeks to avert a war with Iraq. Japanese stocks fell broadly amid fresh signs of sluggishness in the global economy, while other key Asian markets were shut ahead of Lunar New Year holidays.

Gold was trading at around $370 an ounce, up 25 cents from New York's last quoted price, while crude oil futures held steady as the market paused for breath after three days of gains.

The dollar stood its ground versus the euro and yen in Asia but mounting war fears and the latest slide in U.S. share prices cast a shadow over the greenback.

"As long as people fret over a U.S. war, it's difficult to buy the dollar," said Itochu Corp chief economist Seiya Nakajima.

Bush on Thursday welcomed the idea of exile for Iraqi President Saddam Hussein and said he would give diplomacy "weeks not months" to end the showdown over disarming Baghdad. That reinforced views in the market that the United States may start a war in late February, when U.S. forces in the Middle East are expected to be ready for combat.

NORTH KOREA NUCLEAR STOCKPILE A New York Times report on Friday, saying American satellites over North Korea had detected what appeared to be trucks moving the country's stockpile of nuclear fuel rods out of storage, rippled through markets as well.

Intelligence analysts have seen activity around the Yongbyon nuclear complex throughout January, prompting fears within the Bush administration that North Korea is preparing to produce a half dozen nuclear weapons.

Japanese technology and telecom stocks fell, but the tech-sensitive Nikkei average <.N225> staged a last-minute rally to close 0.28 percent higher at 8,339.94. The broader TOPIX index <.TOPX> lost 0.48 percent at 821.18.

Telephone giant NTT DoCoMo <9437.T> fell 2.9 percent and Sony Corp <6758.T> lost 1.3 percent. But Pioneer <6773.T> surged 9.3 percent after the world's biggest maker of car audio equipment raised its 2002/03 net profit forecast and Fuji Photo <4901.T> rose 3.7 percent on encouraging third-quarter results.

"The market is basically directionless," said Masaru Kazama, head of equities at Nissan Securities.

Australian shares <.AXJO> fell 0.25 percent, down for a third straight day, with News Corp <NCP.AX> off 1.65 percent following the drubbing that AOL Time Warner (nyse: AOL - news - people) took on Wall Street.

Singapore shares <.STI> dropped 0.3 percent to close at a fresh 16-month low. Markets in Hong Kong, Taiwan, China, South Korea and Malaysia were closed for the Lunar New Year holidays.

U.S. GDP STALLS A report showing U.S. economic growth had stalled in the final quarter of 2002 hit stocks in the world's biggest economy and added fuel to a rally in U.S. Treasuries.

But after-hours trading pushed up U.S. stock futures by 0630 GMT, indicating a stronger start on Wall Street later.

The blue-chip Dow Jones Industrial average <.DJI> fell 2.04 percent to 7,945 on Thursday, finishing below the psychological 8,000 level for the second time this week. The Standard & Poor's 500 index <.SPX> fell 2.29 percent to 844.57. The tech-loaded Nasdaq Composite <.IXIC> ended down 2.65 percent at 1,322.11.

U.S. investors have yet to see solid evidence of a healthy recovery in corporate profits at the height of the fourth-quarter reporting season. AOL Time Warner's stock fell 14 percent after the company posted a 2002 net loss of nearly $100 billion -- the largest in U.S. corporate history.

Gross domestic product, a broad measure of economic activity within U.S. borders, crept ahead at a 0.7 percent annual rate in the October-December quarter, well off the four percent of the prior quarter but in line with expectations.

Front-month March crude stood at $33.84 a barrel at 0630 GMT, almost unchanged from Thursday's close in New York, where the contract settled 22 cents higher at $33.85.

Venezuela's two-month oil strike seemed to falter as the government said output was now up to 1.4 million barrels per day (bpd), recovering steadily from lows of 150,000 bpd in December. Currency traders said the market would look ahead to Bush's meeting with British Prime Minister Tony Blair later in the day to see if any timeframe emerged for a possible attack.

As of 0650 GMT, the dollar was at 119.13 yen <JPY=> compared with 119.02 in late U.S. trade. The euro was at $1.0809 <EUR=> against 1.0815 and 128.67 yen <EURJPY=R> versus 128.71.

The euro withstood comments from European central bank council member Ernst Welteke, who reiterated on Thursday the pace of the euro's rise, if maintained, could hamper euro zone growth.

In Asian trade on Friday, U.S. Treasury prices trimmed gains made overnight on slumping stock prices and the worrisome GDP growth report. Two-year notes <US2YT=RR> were at 99-28/32, yielding 1.70 percent, flat from its late New York levels.

www.pilotonline.com By CHRISTOPHER DINSMORE, The Virginian-Pilot © January 31, 2003

NORFOLK -- Hampton Roads, you've come a long way.

``You have indeed made a name for yourself,'' said Kate McEnroe, a leading national site selection consultant.

McEnroe, who advises companies on relocation and expansion, spoke Thursday to the annual meeting of the Hampton Roads Economic Development Alliance, a public-private partnership charged with marketing the region.

As familiar as the name Hampton Roads is to you, it is not to the rest of the world,'' McEnroe said. But now Hampton Roads does evoke a place.''

McEnroe credits Hampton Roads' growing name recognition to the marketing efforts of the alliance.

Email this Page Print this Page Newsletter Sign-up Get Wireless Pilot Subscriptions Her firm -- Kate McEnroe Consulting -- is based in Atlanta. She played a role in bringing Towers Perrin to Chesapeake, where the firm now employs about 1,000 workers.

After the luncheon, McEnroe explained that the average person outside the region still may not be able to identify Hampton Roads, but among the alliance's base of prospects, it has become a known name brand.

A name like Hampton Roads is a political expediency in markets without a clearly dominant city or with competing municipalities, she said.

It's good locally, but harder to market,'' McEnroe said. If you were starting over, I'd say you were setting a very high hurdle. But it doesn't matter anymore because you're over the hurdle.''

McEnroe praised Hampton Roads for several attributes that will help it in economic development, including decent airline service, a better cultural scene than some larger cities, moderate costs and a young, growing population.

She also said she was especially impressed by downtown Norfolk's residential nature, which she called unusual for small cities.

After a couple of slow years, corporate expansion and relocation should begin to pick up in the second half of 2003, she said, citing three caveats: Venezuela, North Korea and Iraq.

Whereas several years ago the fastest-expanding companies were telecommunications firms, active industries today include security and insurance, particularly health insurance, McEnroe said.

Long a low-cost haven for call centers, Hampton Roads can expect increasingly global competition for such centers, she said. India and the Philippines are aggressively seeking such businesses.

And call centers do not necessarily mean low-skill, low-wage jobs. Insurers, for example, are seeking medical professionals to staff call centers where they might make as much as $50,000 a year, she said.

To be successful, regional economic development efforts can't just seek ``high-technology'' jobs anymore, because the term doesn't mean anything, she said.

``The way to compete is to have tightly defined niche strategies, which I think I have seen in your plans,'' she told the alliance meeting.

Such plans play to a region's strengths and needs.

``You've made a name for yourself because you've stayed consistent, you've stayed out there,'' she said.

Thursday's meeting marked the end of Franklin ``Lin'' Earley's three-year reign as the alliance's chairman. Earley, Bank of America's Hampton Roadspresident, passed the reins to Donald V. Jellig, president of Sentara Enterprises, which oversees outpatient services, real estate and new market development for Sentara Healthcare.

Both men praised the alliance as the best example of regional cooperation they've seen.

The alliance distributed its annual report at the meeting, highlighting its successes and some of its misses. Successes this year include Target Corp.'s huge East Coast distribution center in Suffolk, Visteon Corp.'s fuel tank plant in Chesapeake and SafeCard ID Systems' production facility in Virginia Beach.

Among the misses this year was Project Inbound Financial, a deal involving the Navy Federal Credit Union. The credit union considered bringing 350 jobs to Suffolk but instead opted for Pensacola, Fla., citing that city's lower wages and the perceived terrorism threat in Hampton Roads.

``That's the first time that one had come up,'' said C. Jones Hooks, the alliance president.

Reach Christopher Dinsmore at 446-2271 or dins@pilotonline.com