<a href=www.vheadline.com>Venezuela's Electronic News Posted: Sunday, May 11, 2003 By: David Coleman

President Hugo Chavez Frias has denounced a fresh attempt to destabilize his government in an opposition ploy to claim scarcities of basic foods and medicines ... he says it's complete and utter rubbish, they are trying to make out that because we have a foreign exchange control regime that it is suddenly impossible to maintain food and medical supplies. "Of course, there are difficulties, nobody is going to deny that ... but it is mostly down the fact of unscrupulous businessmen who have been hoarding massive food supplies in warehouse that are presently bursting at the seams!"

Venezuela's abortive national strike/stoppage December thru January didn't help the supply situation any, but President Chavez Frias says strong legal measures will be taken against hoarders and points to last week's successful action by the consumer protection agency INDECU to seize more than 100 tonnes of frozen chicken from a warehouse in Valencia (Carabobo). Similar illegal cases of illegally hoarded foodstuffs are being detected daily as INDECU officials comb the country, following up complaints from worried consumers.

"The opposition wants to cause as many problems as possible and to attempt to show that the government has lost control of the country," Chavez Frias says. "But they will not succeed!" He says the opposition should abandon its policy of government sabotage and concentrate on dealing with the political-economic situation by democratic means. "The government is dealing with a rash of economic problems ... all with the commonality that the problems were caused by those personalities in the opposition who have not fled the country leaving decent hard-working Venezuelans behind to face the dilemma they caused by their criminal acts."

The President was referring to Confederation of Venezuelan Trade Unions (CTV) union boss Carlos Ortega (who fled the country to political asylum in Costa Rica) and Fedecamaras business leader Carlos Fernandez, who escaped to the United States after being released from luxury house arrest on the pretext of seeking medical attention for a heart condition. Fernandez' predecessor as president of the Federation of Chambers of Commerce & Industry (Fedecamaras), Pedro Carmona Estanga had illegally assumed the Presidency of the Republic after the USA-abetted coup d'etat against democratically-elected President Hugo Chavez Frias in April 2002. Carmona Estanga had also fled the country and is now enjoying political asylum in Bogota (Colombia) where he has extensive business interests.

Chavez Frias has foiled the latest destabilization attempts by entering into a strategic alliance with neighboring Brazil which, besides a cross-border joint venture between both nations' oil companies (PDVSA and Petrobras) will ensure critical food supplies during any upcoming crisis period. Brazil's new President, Luiz Ignacio Lula da Silva is due to visit Caracas in July to ink bilateral agreements already entered into last April 25 when he (Chavez) visited Brazil.

By Elizabeth Bryant <a href=www.upi.com>United Press International From the International Desk Published 5/11/2003 4:26 PM

PARIS, May 11 (UPI) -- It sounds like a John Le Carre novel: Spies and Swiss bank accounts; envelopes full of cash handed out to politicians regardless of creed or political color; luxury Paris apartments, and mansions in Corsica; bribes in Africa, and treachery in France.

But it's real enough. For the uninitiated, it's the sprawling, four-month trial of ex-heads and associates of the former French oil parastatal Elf Aquitaine.

This week the trial produced a new sensation: Alfred Sirven directly accused former Elf head Loik Le Floch-Prigent of pocketing some $2.5 million related to business dealings in Venezuela a decade ago. Sirven was Le Floch-Prigent's one-time right hand man.

"I'm going to say something very important ... more than important, serious," Sirven told the Paris court Wednesday, detailing the Venezuela side deal. Sirven also admitted that another $2.5 million found its way to his own Swiss account.

So goes France's largest corruption case in recent history. The trial debuted in March and runs through early July. It took two investigative magistrates eight years of pre-trial work to detail charges in a 657-page report.

When the trial finally got under way the French knew what to expect: this was in effect Elf II. The sensational, and separate Elf I trial in 2001 riveted the nation. It involved company executives, former French Foreign Minister Roland Dumas and his ex-mistress, Christine Deviers-Joncour.

The defendants in the first trial were all given prison sentences and hefty fines, though an appeals court later acquitted Dumas. But the notoriety had payoffs for Deviers-Joncour -- a former lingerie model-turned-author, who published several books detailing her dealings with Elf and the French government, including one called "The Whore of the Republic."

That the latest court proceedings are again making press headlines offers at least one indication that life is returning to normal in France, after weeks of coverage monopolized by the Iraq war and deteriorating relations with the United States.

Other political scandals are again offering fodder for the French press as well. Among them: the ongoing saga related to tens of thousands of dollars allegedly spent on food and wine when President Jacques Chirac was mayor of Paris.

But critics see the Elf trial as perhaps best illustrating the political excesses and illicit deals between government and private sector in France, during the late 1980s and early

'90s.

A total of 37 people are on trial, for alleged payoffs and illicit funding involving tens of millions of dollars.

Elf was later privatized, merging into Total-Fina-Elf. And this week, the company announced it was now simply called, "Total."

The trial's highlights include a former French secret service agent. Pierre Lethier was wanted for years in connection with bribes allegedly paid to acquire an eastern German oil refinery in 1992. Lethier finally turned himself in last month, after hiding out in Switzerland and Britain.

Then there is former Elf energy director, Andre Tarallo. Nicknamed "Mr. Africa" because he directed many of the company's extensive dealings on the continent -- including alleged payoffs to African leaders such as Gabon's Omar Bongo. Tarallo bought a mansion in Corsica with $11 million, allegedly skimmed from Elf profits.

Perhaps most inflammatory are unfolding stories of the tight relationship between Elf executives and top French politicians. In early April, Le Foch-Prigent detailed how top members from several parties regularly picked up cashed-stuffed envelopes as "campaign contributions."

For a while, the former Elf head said, the largest slice of the $5 million annual political cake went to Chirac's former Rally for the Republic party. But that changed, he said, after then French President Francois Mitterrand ordered a more balanced distribution of the spoils.

For his part, Sirven admitted to paying off former French Prime Minister Edith Cresson, along with two former German ministers, for the acquisition of the eastern German Leuna oil refinery, more than a decade ago. At the time, Cresson said her payment was for work done by a business she managed.

There have been scattered apologies for the excesses.

Le Floch-Prigent admitted been swept away by "the folly of grandeur," underscored by his luxurious, $9.3 million apartment in Paris' elegant 16th arrondissement. An apartment, again allegedly bought with funds skimmed from Elf.

"I'm ashamed of participating in this trial," Elf's refinery director, Alain Guillon, said this week.

But there have also been colorful excuses. Asked to explain some $100,000 spent to equip Le Floch-Prigent's kitchen, his former wife Fatima Belaid shrugged. "My ex-husband loved cooking," she told the court.

The Christian Science Monitor from the May 12, 2003 edition

Consumers may pay an average of $1.46 at the pump over the summer, freeing up money to be spent elsewhere.

By Ron Scherer | Staff writer of The Christian Science Monitor

NEW YORK – After rising all winter, gasoline prices are ratcheting lower. Since the start of the Iraq war, prices at the pump have fallen about 21 cents a gallon. For Americans who drive, this is the equivalent of getting a tax cut of about $200, assuming that gasoline prices don't go back up again. The lower prices have arrived just before the official start of the driving season - Memorial Day weekend.

Lower energy prices are one of the bright spots in the economy. Economists believe the combination of lower mortgage rates and cheaper gasoline could increase consumer spending by as much as 1 percent over the next six months.

The good news will help the balance sheets of the beleaguered airline and trucking industries, both of which are large consumers of fuel. And, it will help the Federal Reserve keep a handle on interest rates since it reduces the US spending on imported oil by about $40 billion - part of the trade deficit that won't need to be financed.

"This is good news for gasoline consumers, they can spend the money on something else," says John Felmy, chief economist for the American Petroleum Institute in Washington. "It's good news overall for the economy."

Although gasoline prices vary around the nation, as of Tuesday, the Energy Information Administration found the average price for unleaded gasoline was $1.51. However, prices are in the region of $1.20 in Georgia; in California they are as high as $1.93 a gallon.

Even so, these prices are well off the highs set in March, when the national average for gasoline was $1.73 and was well over $2.00 a gallon in California.

Prices have retreated despite the fact inventories - both crude and refined - are lower than normal. This is the result of the cold winter and the supply cut offs from Venezuela, Nigeria, and Iraq.

Now, Venezuelan production is heading back toward capacity and there are efforts to resolve disputes in Nigeria between the oil companies and its workers. Last week, a government report showed US crude inventories lower than expected - something that helped prices rise.

Because there have been so many disruptions, energy price forecasters are leery about how much further prices can fall.

"There could still be some problems with refineries or some kind of pipeline disruptions that could cause prices to go back up again," says Dave Costello, a forecaster at the US Energy Information Administration (EIA).

In fact, last month the EIA said consumers could expect "limited" price relief this summer. Since then, however, gasoline prices have declined for seven consecutive weeks. On Thursday, this prolonged drop prompted the government agency to revise its forecast. It now expects gasoline prices to average $1.46 during the summer season. This would be less than 10 cents a gallon higher than last year but well below the summer of 2000 and 2001.

Behind some of the uncertainties over price are questions about crude-oil supplies. Before the Iraq war, Saudi Arabia increased production to stabilize soaring prices.

Now, the Saudis as well as the rest of OPEC, are talking about cutting back. OPEC will meet in Doha on June 11 to discuss production quotas. On Friday, oil prices rose slightly after an OPEC official told the French daily Le Monde that there might be a need to cut output further in June.

Oil analysts are also uncertain about the timing of production from Iraq. Before the war, Iraq was producing about 2.5 million barrels per day. Now, the US is pressing the United Nations to allow Iraq to start up production again.

"This would have a negative impact on prices because it would be seen as additional supply," says Mike Fitzpatrick of Fimat USA, an energy trading group.

Most Americans are just glad to see prices fall. So far, demand for gasoline has been very brisk, despite the fact that the economy is sluggish and the vacation season has not started yet.

This is partially because of the increased use of SUVs and light trucks, which get a lower gasoline mileage.

But it's also because gasoline has become an indispensable commodity for many Americans. Last month, the American Automobile Association conducted a survey asking if consumers adjusted their driving based on price.

"About 75 percent said they had not changed a thing," says Geoff Sundstrom, a spokesman for the Heathrow, Fla.-based organization. "For many Americans you either drive the car or you don't go."

That's the case in Boise, Idaho, where people drive long distances every day. "Gas prices hit working families really hard because there aren't any alternatives," says Mary Smith a homemaker in Boise, Idaho. "It is a big deal to poor or working-class families. They have to commute to work."

One of those families is Heather and Matthew Longhurst, an electrician, and their eight-month-old daughter. They had budgeted $100 a month for gasoline for their two cars. In January, they actually spent $138.

Last month, they noticed the price had come down. "It will help - we're saving up for a million things," says Ms. Longhurst, a property manager.

• Stacey Vanek Smith contributed to this article.

Reuters, 05.11.03, 2:13 PM ET

CARACAS, Venezuela, May 11 (Reuters) - French engineering group Alstom <ALSO.PA> and Venezuela's government Sunday signed a contract to complete a $160 million hydro power project in the southwest of the oil-rich South American country.

The agreement to finish the third stage of the 514 MW La Vueltosa hydroelectric plant in Venezuela's Tachira state was signed by senior executives of Alstom Power Hydro and Nervis Villalobos, president of the Venezuelan state electricity company Cadafe.

Venezuela's President Hugo Chavez witnessed the signing of the contract, which was broadcast live on his weekly "Hello President" radio and television show.

"The construction of the La Vueltosa hydroelectric plant is starting up," Chavez said. He added the total investment would be $160 million and that financing would be provided by European and Brazilian banks.

Chavez said the plant, which would come online in mid-2006, would supply power to the southwest of Venezuela.

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Sunday, May 11, 2003 By: Paul Graham Stanley

Date: Sun, 11 May 2003 13:35:38 -0400 From: Paul Graham Stanley stanley@angel-ecotours.com To: Editor@VHeadline.com Subject: Safety - Venezuela Travel

Dear Editor: (and travelers) ... Put your mind at rest. Venezuela has stabilized dramatically since the strike/stoppage that crippled general transportation and movement in December 2002 through the beginning of February 2003. Occasional non-violent demonstrations may still take place in a certain section of Caracas ... but far away from anywhere Angel-Eco takes its tourism clients.

The following statement was issued to us directly by the Venezuelan Deputy Minister of Tourism’s office in Caracas, to announce at a travel show at which we exhibited jointly with INATUR in Chicago recently.

“The Viceministerio of Tourism and the Instituto Autonomo Fondo Nacional de Promocion y Capacitacion para la Participacion Turistica INATUR, (a federal Agency dedicated to the promotion and social participation in the tourist activity) make public, specially to foreign tourism companies and all other individuals interested in coming to the country, that the Venezuelan government guarantees to protect the physical integrity of tourists that visit our country."

Aware of the socio-political reality ... this not being in any way exclusive to Venezuela ... extra mechanisms are being implemented to assure the normal development of activities in all sectors, with a united effort by all public and private parties in the Venezuelan tourism industry. In that sense, through a series of encounters sponsored by the Deputy Minister of Tourism, meetings have been held with tourist operators, airlines and hotel representatives, as well as service providers and tourism industry worker nationwide to regain confidence in Venezuela as the Caribbean tourist destination of excellence.

Among various measures adopted has been the writing of a document addressed to the members of the Organization of American States (OAS) “Dialogue, Negotiation & Agreements Table” ... established between the government and the opposition to resolve problems that have overshadowed the nation in an effort lead by OAS Secretary General Cesar Gaviria. A declaration of designated "no-conflict zones" has been requested, exempt from all political confrontation: Nueva Esparta, Paria, Mochima, Los Roques, La Gran Sabana and the Canaima National Park ... and all such positive action as will guarantee security, freedom of direct or indirect commerce and freedom of transit in a way that will serve the best interests of tourists throughout Venezuela ... "the Venezuelan government qualifies its invitation to all travelers to enjoy the diversity that Venezuela offers to the world.”

As the statement holds, a document has been passed to all authorities to give visitors greater peace of mind and a greater sense of security when traveling to the interior of Venezuela. Fellow tour operators, camps and services want to see the unfair severity of the US governments’ travel advisory redefined. We believe from our personal experience that it is absolutely safe to travel when one makes a booking through a reputable company which accompanies clients on arrival to Caracas.

For our part, Angel-Eco Tours has been able to conduct tours virtually issue-free during the extensive time frame of the recent troubles ... like everyone else in the Venezuelan tourism industry we have suffered from serious cancellations ... but not a single one of our passenger/clients has been inconvenienced in any significant manner other than occasional and simple re-routing necessary for them to “live” the experiences our adventure trips continue to offer.

Meanwhile, spare a thought for our Pemon and Warao indian partners who have suffered extensively through the unfortunate lack of sustainable tourism ... like other small groups throughout Venezuela's exotic natural wonderland, they have little comprehension of anything is happening outside of their exclusive communities in the rainforests and the jungles ... "War, demonstrations, strikes ... what's that? Where have all the people all gone?” they ask us.

Paul G Stanley stanley@angel-ecotours.com President, Angel-Eco Tours, Inc 53 Remsen Street, Suite 6 Brooklyn, NY 11201 - USA Tel/fax: +1 (212) 656-1240 Toll free US: 888 475-0873/4/5 www.angel-ecotours.com