www.vheadline.com Posted: Wednesday, February 19, 2003 By: Robert Rudnicki

The government and the opposition have signed a declaration condemning the use of violence in Venezuela's ongoing political crisis following a successful proposal by Organization of American States (OAS) secretary general Cesar Gaviria, who is facilitating the talks.

The agreement sees both sides rejecting aggressive rhetoric and acts of violence and vandalism, as well as acknowledging the role the media has been playing in the conflict. This is the first formal agreement that has resulted from the talks which have now been going for 100 days.

Both the government and the opposition have agreed to respect articles 57 and 58 of the Constitution, which guarantees Venezuelans the right to freedom of speech and to impartial sources of information. The agreement also provides for the setting up of a Commission to help facilitate peace and will be made up of both opposition and government representatives.

www.vheadline.com Posted: Wednesday, February 19, 2003 By: Robert Rudnicki

According to Currency Administration Commission (Cadavi) president Edgar Hernandez, once Venezuela resumes the sale of foreign currency it will be initially only done through state-owned banks. "The objective is to open currency operations as quickly as possible."

• The two banks that will initially make foreign currency one again available are Banco Industrial (BIV) and Banfoandes.

This follows the signing of agreements with the two banks and Hernandez says similar agreements are expected to be signed with privately-owned banks some time next week.

Trading is expected to resume this week, with the bolivar pegged to the US dollar at Bs.1,600.00 / Bs.1,596.00. To obtain large amounts of foreign currency businesses will have to apply to Cadavi and application processing times are expected to be around three to four days. 

www.falkland-malvinas.com Wednesday, 19 February

Venezuela’s president Hugo Chavez administration and the opposition signed a non aggression pact aimed at defusing tensions, according to the Organisation of American States, OAS, that has been mediating in the increasingly violent and acrimonious conflict.

OAS Secretary General Cesar Gaviria who has been at the head of the negotiations, backed by a six nations group including United States and Spain said the document is a foundation for a confidence building process.

Venezuelan opposition, mainly middle class, have been demanding president Chavez’s resignation alleging the current administration is leading the country to a Cuban style authoritarian regime. Mr. Chavez, the father of the poor, as he’s called by supporters, and a close friend of Mr. Fidel Castro, was re-elected in 2000 and refuses to consider calling a referendum on his rule until next August, as constitutionally viable.

“With the declaration we hope to bring a climate of understanding between all Venezuelans”, said Mr. Gaviria.

The seven point declaration rejects “verbal intemperance, mutual recrimination, verbal attacks and any rhetoric aimed at confrontation”, and calls on all political and social factions “to create a climate of peace and calm in the country”.

Opponents call Mr. Chavez a “tyrant” and “monkey commander”, while the president describes opponents as “fascist coup-plotters”.

An ongoing national strike and a wave of demonstrations by both sides have paralyzed the country, led to killings and shootings, and endangered the country’s oil production, one of the main United States suppliers.

Mr. Chavez, who last April survived a two days coup, has used troops and foreign replacement crews to restart the oil sector after the unions of Petróleos de Venezuela, the government managed company, went on indefinite strike.

Oil represents 80% of the country’s exports and 60% of government revenue.

news.bbc.co.uk

The world's largest pension fund, US-based Calpers, has ruled out investing in some of the world's main emerging economies, citing worries over stability and business ethics.

Among the countries rejected by Calpers are China, India, Indonesia and Russia, and the fund also dashed hopes that it might begin putting money into Malaysia and Thailand.

Calpers, which manages the retirement funds of Californian public employees, has some $133bn in assets, including some $1.8bn in emerging markets.

It has traditionally taken a lead in ethical investments, and is highly influential within the US fund management industry.

In and out

In all, Calpers has rejected 12 major developing economies, also including Morocco, Sri Lanka, Egypt, Pakistan, Colombia and Venezuela.

Pakistan is off the list...

Last year, Calpers stunned investors in Malaysia, the Philippines and Thailand by deciding to pull out pending this latest decision.

Some had expected it to move cautiously back into south-east Asia, but the Calpers board has now voted to tighten its investment criteria.

At the same time, Calpers gave the green light to 14 countries, chiefly in Eastern Europe and Latin America.

Informed decisions

Calpers last year began to consider civil liberties, press freedom and political risk in making investments, after deciding that stable, liberal countries would yield better long-term returns.

To this end, it has hired California-based Wilshire Consulting to draw up a scoring system for target countries.

In this decision, the fund has actually exceeded the severity of Wilshire's recommendations.

Aside from pure moral criteria, Calpers is also especially interested in accounting transparency, traditionally a major headache for investors in countries such as Russia or China.

The policy has occasionally gone awry - after ruling out investment in the Philippines last year, Calpers had to backtrack, admitting the decision had been made on the basis of mistaken information.

Ups and downs

Nor is the policy yet proven in terms of investment success.

The 14 markets Calpers has cleared for investment have lost some 8% in dollar terms since end-2001, against an average gain of more than 13% from the countries excluded.

Pakistan and Russia, for example, have been especially strong performers in the past couple of years.

Among the countries given the green light, only the Czech Republic, with a 46% stock market gain since the end of 2001, has delivered really impressive returns.

Others, such as Brazil, Argentina and Turkey, have fared disastrously.

icnewcastle.icnetwork.co.uk Feb 19 2003 By The Journal   Tony Blair yesterday put his leadership on the line over Iraq by declaring he would do "what is right" irrespective of the political risk to himself.

The Prime Minister staged his monthly press conference yesterday in the wake of new polls showing 52pc of people opposed to war and his own personal ratings on the slide.

But he faced down mounting public pressure by insisting he was willing to take military action against Saddam Hussein even if it costs him his job.

Asked about the threat to his own leadership, he declared: "There are certain situations in which you've got to say to people this is what I believe and this is what is right." Mr Blair's defiant comments followed remarks by his Chief Whip, Durham North West MP Hilary Armstrong, that he was "aware of the risks" to his position.

Senior North-East MP and former armed forces minister Doug Henderson warned Mr Blair his stance on Iraq could cost him the premiership.

"I think he possibly is putting his leadership on the line but I think he is very wrong to do so," the Newcastle North MP told The Journal. "He has failed to take account of Labour Party opinion and the leader of the party should do that. If he does not, they won't support him," he added.

Mr Blair's speech came the morning after an inconclusive EU summit in which France demanded UN weapons inspectors be given more time.

In a careful performance he sought to keep up pressure on Saddam while still saying there was "no rush to war". But his attempt to reassure the public was last night undermined by news the US administration is drawing up a fresh UN resolution authorising military action.

Yesterday's polls showed only 35pc of the public is satisifed with Mr Blair's performance, compared to 49pc a month ago.

Celebrity support for the anti-war movement was further boosted by designer Katherine Hamnett, with t-shirts bearing the slogan "Stop War".

Mr Blair said anti-war protesters should listen to the testimony of Iraqi exiles on the horrors of life under Saddam.

In an attack on French leader Jacques Chirac Mr Blair warned a split between America and Europe would endanger world security. Mr Blair reaffirmed his backing for a UN resolution but refused to be drawn on a timetable for one.

Newcastle Central MP Jim Cousins last night praised Mr Blair's courage. "Whatever view I take of the Prime Minister's position, I recognise it as an honourable one he is prepared to see through, and I respect that," he said.

But Lib Dem leader Charles Kennedy said: "Mr Blair implies anyone not yet persuaded of the need for war is somehow less moral than he is. A lot of people will resent that."

Council set to oppose war

Tony Blair will this week face fresh opposition to his stance on Iraq from one of his own flagship North-East councils.

Labour members of Gateshead Council will be tabling a tough anti-war motion to Friday's council meeting.

It will say a pre-emptive attack on Iraq is "neither necessary or justified and would produce incalculable risks to international peace and stability".

And it will call on the Government not to commit British forces to a pre-emptive attack on Iraq unless proof of weapons of mass destruction exists and the full support of the United Nations and Nato is forthcoming.

Labour member of the council's ruling cabinet Peter Mole said: "Participation in such an attack would be likely to have serious damaging effects on Gateshead's social and economic welfare and endanger the safety of its citizens."

Energy 'vital strategic concern'

A conflict with Iraq was partly about oil supply, a leading industry figure suggested yesterday.

David O'Reilly, chairman and chief executive of Chevron Texaco, said there was a view among some sections of the public the conflict was about nothing but oil and that was not a good enough reason to go to war.

But he said the diversity and continuity of the world's energy supply were vital strategic concerns.

"National security and energy security are not one and the same thing but they are clearly intertwined.

"It's hardly surprising that current events have put our industry in the spotlight," he told the Institute of Petroleum annual lunch at the Dorchester Hotel in London.

It was not unexpected that the Iraq conflict should be used by some as a vehicle to attack the industry.

"I am talking about the protests that say `no blood for oil'," he said.

"The slogan rests on two assumptions, first that the conflict with Iraq is about nothing but oil and second that energy security is not a legitimate reason - even as one among many - to go to war."

Mr O'Reilly said a recent Gallup poll showed that almost two-thirds of Europeans saw Iraq as a threat to world peace, and a "shocking" 70pc believe that oil is the main reason the US wants to intervene in Iraq. "You saw the many millions of people who protested around the world this past weekend and some of them surely hold that view.

"I would argue that `no blood for oil' has caught on partly because our industry's reputation is so impaired that the protesters can discredit action in Iraq simply by associating it with us."

He urged oil companies to boost their reputations and said the challenge would be with them regardless of whether there was a peaceful outcome to events in Iraq, crisis-wracked Venezuela or North Korea.

"If we don't act together to address this challenge our prformance will be impaired and our basic mission imperilled," he added.