news.ft.com By Andy Webb-Vidal in Caracas Published: February 20 2003 19:01 | Last Updated: February 20 2003 19:01

Venezuelan government and opposition representatives on Tuesday signed a pact condemning political violence - the first breakthrough in three months of internationally backed talks aimed at finding an electoral solution to the country's political deadlock.

The agreement, brokered by César Gaviria, secretary-general of the Organisation of American States (OAS), should ease tensions between the government of President Hugo Chávez and the alliance of opposition interest groups ranged against him, analysts said.

Venezuela has been marked by rising levels of street violence, including several deaths in recent months, as timid efforts at dialogue collapsed between Mr Chávez and his foes in the wake of last April's coup attempt prompting the involvement of the OAS.

Opponents say Mr Chávez, although democratically elected four years ago, is bent on abolishing democracy in favour of an autocratic leftist government modelled on that of Cuba's Fidel Castro.

In turn, the populist Mr Chávez, who led a failed military coup in 1992, brands the opponents of his self-styled "Bolivarian revolution" as "coup-plotters".

Among his opponents are more than 12,000 workers who have been fired from Petróleos de Venezuela (PDVSA), the state oil company, following an ongoing strike that began in December and has slashed output in what was the world's fifth-largest oil producer with crippling results for the economy.

Analysts said the non-violence agreement suggested some kind of election could be in the offing in the months ahead. "The pact demonstrates that it is possible to reach agreements, and if that is possible, then anything is," said Alfredo Keller, a political consultant.

"However, the impression I have is that Chávez is not interested in an election in which he participates. He is not going to permit that the only visible head of the 'revolution' runs the risk of an electoral defeat," said Mr Keller.

Mr Chávez has in the past two weeks stepped up measures apparently aimed at shoring up his base support among the poor, a move designed to prepare for polls in which regional governors and mayors participate.

But, within the opposition camp, hopes of an early ballot, this year are being pinned on a presidential election with conspicuous signs that Manuel Cova, secretary-general of the Venezuelan Workers Confederation, is being groomed by some groups as a potential single candidate.

athena.tbwt.com By Peter  Richards IPS Article Dated 2/20/2003

PORT OF SPAIN - Keenly aware of the slow pace of their progress towards a single market and economy (CSME) and buffeted by the ill economic winds swirling around the globe, Caribbean Community (CARICOM) leaders have agreed to a work programme to implement the agreement by 2005.

''The present global economic liberalisation and the proliferation of regional economic and trading blocs demand that we implement the CSME as a matter of urgent priority,'' said Trinidad and Tobago Prime Minister Patrick Manning at the leaders' summit last weekend.

It is ''more than time'' for the CSME, first conceived in 1989, ''to see the light of day'', added his Jamaican counterpart, P.J. Patterson.

''We dare not concede to other countries rights of access for the procurement of goods and services which are not available to us,'' he warned.

The CSME, which will remove all existing restrictions on the free movement of goods, services, capital and labour flowing between the 15 member countries, was supposed to start operating this year but delays in adapting national laws coupled with bad economic news, like a drop in tourism following the Sep. 11, 2001 terrorist attacks on the United States and the impact of the recent hike in oil prices, retarded progress, said the leaders.

They agreed that countries in positions to become ''CSME-ready'' before 2005 should do so; Jamaica, Barbados and Trinidad and Tobago signalled their intention to do so next year.

While the countries continue to push economic union, they were lukewarm to a proposal advanced by Manning for political union, many hinting that they feared having to give up political sovereignty.

Barbados Prime Minister Owen Arthur, who has lead responsibility for the CSME within CARICOM said the agreement would require ''heightened and deepened'' cooperation between nations in key areas of the economy, as well as a massive undertaking to harmonise policies and laws.

The implementation process calls for at least 400 legal enactments in member countries, he added.

Comparing the process to the creation of the European Union (EU), Arthur said the Caribbean arrangement is more challenging since the region lacks a super-national institution that can issue directives and has to wait for each country to translate its obligations into its domestic laws.

The Barbados leader said special attention should be paid to those countries lagging behind because, ''in the final analysis, the creation of a single market and single economy will depend upon the readiness of the least-ready member''.

Antigua and Barbuda Prime Minister Lester Bird urged his colleagues to move as quickly as possible.

”Conditions in several of our countries are at the worst they have been for some time. Economic growth has slowed, private investment, both local and foreign, has dwindled, meaningful aid has virtually disappeared, preferential markets for commodities have gone, tourism has declined and unemployment has risen.''

''These conditions are, at one and the same time, the motivation for completing the CSME quickly, and the cause of the process slowing down,” added Bird.

The region's economic problems do not appear set to end any time soon.

Oil-rich Trinidad and Tobago recently turned down a request by CARICOM states to provide a cushion against substantial increases in the price of crude oil and petroleum products as a result of a strike in oil producer Venezuela, which supplies many Caribbean nations at preferential rates, and possible war in Iraq.

They wanted Port of Spain to guarantee a ''pre-Iraq war oil price'' but Manning said that was impossible because his country has ''been experiencing difficulties of our own''.

The leaders' statement issued at the end of the two-day summit noted that at least five Caribbean states had failed to achieve positive gross domestic product (GDP) growth in 2002 and were unexpected to do so this year.

Leaders did have some positive news: they gave the green light for the establishment of a stabilisation fund with initial capital of 60 million U.S. dollars, rising to 180 million dollars within five years.

It will serve as a buffer for countries experiencing financial difficulties, such as Dominica, which has approached the International Monetary Fund (IMF) for assistance.

The move to establish the CSME comes at a time when the region is also engaged in a series of external economic negotiations, including for the Free Trade Area of the Americas (FTAA), which leaders say places significant strain on their resources.

They called for ''a high level meeting in the hemisphere to take stock and to review the scope and pace of the negotiations'' towards the FTAA, which would establish the world's largest trading bloc, grouping the nations of North, South and Central America along with the Caribbean.

CARICOM countries are also involved in challenges at the World Trade Organization (WTO) against EU sugar subsidies that, if successful, could also end an agreement that they enjoy as members of the African, Caribbean and Pacific (ACP) group of nations.

The region is also moving to enhance trade arrangements with Costa Rica and Canada while exploring an offer of a partial trade agreement with the member countries of MERCOSUR - Argentina, Brazil, Paraguay, Uruguay.

Experts at the University of the West Indies (UWI) have recommended also that the Caribbean conclude a customs union agreement with the Central American Common Market (CACM) - Guatemala, Honduras, Nicaragua, El Salvador, and Costa Rica - as soon as possible and before the implementation of the FTAA.

''The time frame should be no more than one year to coincide with the CSME coming into force,'' said their report, noting that the goal should be free trade between CACM and CARICOM ''with a limited list of exemptions on both sides.'' For more discussion on this article and to see what others have to say click on the link below to go to discussion forums.

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www.usatoday.com Posted 2/20/2003 12:23 PM     Updated 2/20/2003 9:15 PM By James R. Healey, USA TODAY

The USA had more crude oil on hand last week than the week before, the government reported Thursday, an unexpected development that clubbed oil prices down from what had begun to seem like unassailable heights.

West Texas Intermediate (WTI) crude for March delivery slid 37 cents from a 29-month high to $36.79 at the end of trading Thursday in New York. That was the first decline in seven sessions.

March oil contracts expired Thursday. April crude closed at $34.74, down 92 cents.

The record closing price for WTI futures is $40.42 on Oct. 10, 1990, equivalent to $55.64 today because of inflation.

In London, benchmark Brent crude fell 77 cents to $31.56.

Behind the hubbub:

The Energy Information Administration said 272.9 million barrels of crude were available in the USA, not counting the 599.3 million locked in the Strategic Petroleum Reserve. That was a slight improvement from 269.8 million the previous week, which was lowest since 1975.

The gain, from rising imports, was 3.1 million barrels, leaving inventories close to the 270 million barrels considered necessary to prevent refinery interruptions.

"It does indicate a tight market," said Rayola Dougher at the American Petroleum Institute, an oil industry trade organization.

API's weekly report, which coincides with EIA's, uses different methods and showed crude-oil inventories down to 268.3 million barrels from 271.6 million a week earlier. The differences with EIA are insignificant, she said.

Dougher said the 270 million was calculated in the 1980s and probably is less important now. "That 270 figure is not a magic number. Since then, the industry's much better at inventory control and computerization. We don't know how low it could go" without interruption nowadays.

Regardless, the inventories are about 50 million barrels lower than a year ago, EIA said, cautioning that the situation is acute in the Midwest, where oil inventories are "the lowest ever."

Average pump price for regular is $1.665, up from $1.661 overnight, motorists club AAA reported Thursday. Diesel is $1.751, off its record high of $1.755 Tuesday.

Concern that the EIA report was a blip instead of the start of a trend toward higher inventories prompted price rebounds overnight in foreign markets, the Oil Price Information Service reported.

www.latintrade.com 02/20/2003 - Source: Latin American Newsletters

The Venezuelan authorities have issued an arrest warrant for the trade union leader Carlos Ortega, who helped lead a nine-week business strike against the government. The move follows the arrest of Venezuela's top business leader Carlos Fernández in the early hours of this morning.

Both men have been accused of 'civil rebellion, treason, incitement to crime, conspiracy and devastation', in a court summons issued at the request of the public prosecutor yesterday.

Carlos Fernández, the president of the business federation, Fedecámaras, was arrested by the intelligence services (Disip) leaving a restaurant in Caracas last night. He is being held in the police headquarters and has been seen by lawyers and his wife, who says he is physically well. Under Venezuelan law, he must appear in court within 48 hours.

Ortega, the president of Colombia's largest trade union confederation, the CTV, declared today that he would not hand himself in to the authorities, but would instead go into hiding. Ortega told 'Unión Radio' that the opposition would call an urgent meeting to discuss how to respond to 'this terrorist escalation by the government'. He said the opposition would call street demonstrations and appeal to the international community.

www.voanews.com Phil Gunson Caracas 20 Feb 2003, 16:26 UTC

Listen to Phil Gunson's report (RealAudio)   Gunson report - Download 224k (RealAudio)  

Venezuelan opposition leader Carlos Fernandez has been detained by armed men believed to be secret police. Opposition leaders called for protests in support of Mr. Fernandez, one of the organizers of a two-month anti-government strike. Mr. Fernandez is charged with treason and criminal conspiracy.

Carlos Fernandez, president of Venezuela's main business organization, Fedecamaras, was one of three main leaders of the two-month-long strike against the government of President Hugo Chavez.

Mr. Chavez has accused the leaders of the strike - which remains in effect in the economically crucial oil industry - of sabotage and of seeking to overthrow his government by force.

AP Opposition members waving national flags yell "Freedom for Carlos Fernandez" while blocking a street in Caracas, Venezuela, Thursday, Feb. 20, 2003During his regular Sunday morning television and radio program this week, the president exhorted judges and public prosecutors to take action against the organizers of the work stoppage.

Two other strike leaders, Carlos Ortega of the main trade union confederation, the CTV, and former oil industry executive Juan Fernandez, have been warned to turn themselves in, or face arrest in similar circumstances.

Although government officials were slow to comment, the judge who claims to have issued the arrest warrant for Carlos Fernandez listed a series of charges against him. These include treason, rebellion and criminal conspiracy.

According to spokesmen for Fedecamaras, the armed men who detained the business leader presented neither identification nor an arrest warrant. They fired into the air to disperse a small crowd, before taking Mr. Fernandez away.

Leaders of the opposition umbrella group, the Democratic Coordinator, were quick to condemn the reported arrest as arbitrary and illegal.

The seizure of Carlos Fernandez comes just days after the torture and murder of three soldiers and a young woman involved in a four-month-old anti-government protest by military officers in a Caracas square. The circumstances of those murders have yet to be clarified.

The Washington-based organization, Human Rights Watch, has called on the government to carry out a full and impartial investigation of the murders, and to protect a teenage witness who was also seriously injured.