abcnews.go.com — By Patrick Markey

CARACAS, Venezuela (Reuters) - Nobel Peace Prize winner Jimmy Carter tried on Monday to salvage faltering peace talks between Venezuelan President Hugo Chavez and foes staging a seven-week-old strike to bring down the leftist leader.

Former U.S. president Carter, on his second visit to Caracas in less than a year, planned to hold meetings with Chavez and the opposition, who have been locked in a political standoff since April when the Venezuelan leader survived a short-lived coup.

"There is always hope for a resolution and I hope that will be soon," Carter told reporters as he arrived in Caracas to meet with Organization of American States head Cesar Gaviria, who brokered the peace talks.

Carter, who carries out international peace work through his Atlanta-based Carter Center, has been in Venezuela for about a week on a fishing trip.

Negotiations between Chavez and his foes were thrown into doubt at the weekend after the populist leader threatened to quit the talks even as the international community stepped up support for OAS mediation.

The talks have been stalled over the timing of elections and how to end the opposition strike that has cut oil output and severely disrupted fuel and food supplies in the world's fifth largest petroleum exporter.

Chavez, who was elected in 1998 six years after leading a botched coup, has dismissed his foes as "fascist terrorists" plotting to overthrow him. But his critics, who say Chavez has wielded power like a corrupt, inept dictator, have vowed to keep up the strike until he steps down. Chavez rejects their calls for immediate elections.

The strike deadlock has raised international concern over global oil supplies at a time when energy markets are already jittery over a possible U.S.-led war against Iraq. Venezuela usually supplies about one sixth of U.S. oil imports.

Oil prices crept higher Monday after Washington said time was running out for Baghdad to prove its compliance with United Nations disarmament resolutions. Benchmark Brent crude oil prices were up 21 cents at $30.57 a barrel. U.S. crude oil prices closed Friday at a fresh two-year high of $34 a barrel.

OVERSEAS FRIENDS

Oil supply fears have intensified diplomatic efforts to end the Venezuelan crisis. The United States, Brazil and other governments have agreed to form a group of six nations to lend weight to mediation efforts by OAS chief Gaviria.

United Nations Secretary-General Kofi Annan plans to send an envoy to Venezuela to take part in the initiative, which also includes Spain, Portugal, Chile and Mexico.

But Chavez cast doubt on the plan by threatening to pull out of OAS talks and insisting that other countries, such as Russia, Cuba and France, also be included.

Hoping to build pressure on Chavez, opposition leaders are planning to hold a nonbinding referendum on his rule on Feb. 2. The Supreme Court has yet to decide on the legality of that poll. Chavez insists a binding referendum can only be held after Aug. 19, halfway through his current term.

The Venezuelan leader said on Sunday he was restarting the strike-bound oil industry, which accounts for about half of the government's revenues. He has fired 2,000 employees from state oil firm PDVSA and ordered troops to take control of production installations and refineries.

"We are winning the oil war," Chavez said.

But rebel oil executives said production was still at about only 650,000 barrels per day -- about half of the government estimates. Venezuela produced about 3 million barrels per day before the strike in November.

The president has also ordered troops to raid factories, banks and schools joining the strike, as well as food and drink manufacturers he accuses of hoarding supplies. National Guard troops sparked opposition outrage and international concern on Friday after they broke into a local bottling affiliate of Cola-Cola Co. to take away crates of drinks.

sg.biz.yahoo.com Monday January 20, 10:43 PM

CARACAS (Dow Jones)--The planned restart over the weekend of the 335,000 barrels per day La Isla refinery at Curacao has failed due to technical glitches, a refinery spokeswoman said Monday.

"We have tried to restart several units, but technical problems have forced us to delay plans to bring the plant back on line," the spokeswoman said. She added that due to the technical problems certain parts of the units have to be flown in from abroad. She couldn't say by how long the planned startup has been delayed. The plant was scheduled to be back at full capacity within two weeks.

An attempt to restart a crude distillation unit that didn't suffer from technical problems will be made later Monday, she said.

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AdultsStorage facilities have been drawn down sufficiently enough to restart the processing of around 200,000 b/d of gasoline. The plant was forced to shut down after an oil strike hit production and exports of Venezuela's state-owned oil monopoly Petroleos de Venezuela SA (E.PVZ) and storage facilities were full.

The production and exporting of around 200,000 b/d of gasoline are crucial for the gasoline supply in Venezuela, hit by an oil strike which entered its eighth week Monday. The La Isla refinery is leased by PdVSA.

The Venezuelan government still depends mostly on gasoline imports to fight a gasoline shortage. Only its 200,000 b/d Puerto La Cruz refinery is functioning. It's producing around 75,000 b/d.

By Fred Pals, Dow Jones Newswires; 58212-5641339; fred.palsdowjones.com;

www.globeandmail.com By VLADIMIR TORRES

Monday, January 20, 2003 – Page A13

It was easier during the Cold War. You chose a side; all that was needed to understand any crisis or conflict anywhere was to figure out which side was your side -- and the arguments to support that position were already at hand. Old habits die hard, and so in this era of sound bites, whoever says anything that vaguely resembles what seems to be your position must be supported.

Case in point: Venezuela. The world's fifth-largest oil producer is in the seventh week of a crippling national strike, led by business and union leaders who want to force President Hugo Chavez to call new elections. Outside the country, "progressive left" thinkers and media have made Mr. Chavez a newfound champion. Their analysis is oversimplified, to say the least.

Mr. Chavez was democratically elected with an overwhelming majority in 1998. This mandate allowed him -- through several referendums -- to dissolve Congress, create a Constitutional Assembly that drafted the current constitution, and to be elected once again -- as first president of the newly christened "Bolivarian Republic of Venezuela."

But democratic legitimacy demands consistently playing by the rules. And once re-elected, Mr. Chavez revealed his true nature: the former paratrooper head of the failed military coup d'état of 1992. Soon showing a total disregard for democratic institutions, he moved to gain a stronghold on the country's legislative and judicial systems, and to involve the military in a myriad of civilian affairs, even selling food at cost on the streets.

The President has systematically harassed the media, intimidated his opposition, and alienated critical sectors of Venezuelan society, such as the Church, businesses, the middle class, civilian organizations and NGOs -- those who now march in the streets calling for his ouster. His violent speeches are loaded with diatribes against "them." Anyone who is not a loyal supporter is accused of being a fascist, sometimes in scatological terms. (Despite his claims, Mr. Chavez's "little blue book," as he calls the constitution, does allow for civil disobedience; Article 350 should grant the general strike legitimacy.)

Mr. Chavez likes to paint the strike as a "class confrontation." That's debatable. The President still draws his core support from among the millions of Venezuelans who live in poverty. But now that more than 60 per cent of the population finds itself in that bracket, and the impoverished middle classes make up for most of the rest, his poor-versus-rich scenario makes little sense.

Venezuela used to have one of the highest crime rates in the hemisphere. Now that problem is compounded by the activities of Mr. Chavez's "Bolivarian Circles." These armed bands -- responsible among other things for vandalism against media facilities -- are organized and financed through government agencies. Although inspired by Cuba's "Committees of Defence of the Revolution," they are, in fact, nothing but fascist-like intimidation squads that operate with total impunity.

Ever since the events of April, 2002, when Mr. Chavez was ousted from office for 48 hours, the government has claimed that all opposition is right-wing and antidemocratic. This overlooks the fact that it was only thanks to the deeply rooted democratic sentiments of the vast majority of Venezuelans that Mr. Chavez was reinstated. In fact, those opposing Mr. Chavez include business and labour groups, and social movements spanning political parties and classes. Clearly, it is a genuine democratic movement.

Then there is the oil issue. When Venezuela nationalized its oil industry in 1975, a strong core of Venezuelan managers, engineers and technical personnel -- employees of the foreign oil companies, trained locally and abroad -- took over key positions. Ever since, the industry has prided itself on making promotions and appointments right up to the board of directors based on merit. Not even the most corrupt of the pre-Chavez administrations dared to interfere with that sacred rule. After all, Petroleos de Venezuela (PDVSA), a world-class corporation, is Venezuela's main provider.

But Mr. Chavez, determined to take control of the industry, has been appointing his supporters to key positions. Now, facing the strike, he has decided to "cleanse" PDVSA. The government has already fired 2,000 employees and plans to run the industry with a few unskilled non-striking workers, the military, and technical personnel brought in from other countries. Mr. Chavez calls this "true nationalization."

To supporting such actions, the government argues that the current management wants to "privatize" the company to preserve its privileges. "Privatize" refers to the joint ventures and alternative deals -- already in place or planned -- that enable PDVSA to continue to be a world leader in the oil industry beyond crude oil extraction. "Privileges" refers to the fact that oil-sector wages are above those of most public servants (which makes sense if one considers their technical expertise and the need to prevent a brain drain).

Despite all this, leftists continue to defend Mr. Chavez, and cite his stance in many international forums, where he has come out against neoliberalism, free trade and globalization. What does that mean? He hasn't defined "Bolivarianism"; he improvises as he goes along, and has plunged Venezuela's economy into a deep hole.

Last year, the inflation rate was more than 30 per cent and the GDP was decreasing by about 10 per cent. That was before the strike.

Why do progressives outside Venezuela continue to support Mr. Chavez? It's a nice illusion to believe that with Lula (Luiz Inacio "Lula" da Silva) as President in Brazil, Lucio Gutierrez in Ecuador and Mr. Chavez in Venezuela, the winds of social change are blowing in South America.

But Mr. Chavez is nothing more than another megalomaniac colonel.

Vladimir Torres, a Venezuelan-Canadian, works as an interpreter and Latin America current affairs analyst.

www.afxpress.com Page Last update 01:05:02 GMT

CARACAS (AFX) - Daily crude production has risen to 2 mln barrels and the government has regained control of the country's main oil installations, said Ali Rodriguez, president of state-owned Petroleos de Venezuela SA.

New managers, supervisors and workers are now in place to run the sites, daily El Nacional quoted him as saying on its website.

President Hugo Chavez said Friday that production would be ramped up to 2 mln bpd within a month.

Venezuelan oil output, normally around 2.8 mln bpd, has been brought close to standstill in recent weeks by a long-running strike.

Strike organisers have consistently estimated daily production levels at far below the figures the government has claimed.

newsdesk@afxnews.com

www.voanews.com VOA News 20 Jan 2003, 08:06 UTC

Venezuela's President Hugo Chavez has threatened to order more raids on private food producers taking part in a seven-week-old strike aimed at driving him from power.

The strike has created severe shortages of many necessities in Venezuela, including milk, bottled water, flour, and gasoline.

On Friday, government troops seized bottles of water and soft drinks from two bottling plants and distributed them to the public. And Mr. Chavez warned Sunday he will again send soldiers to raid the warehouses of private companies refusing to distribute their goods to the public.

President Chavez also said the government is winning what he called the oil war with striking workers, which has crippled the country's oil industry. He said output was recovering, but a strike leader said the industry remains paralyzed. Prior to the strike Venezuela was the world's fifth-largest oil exporter.

Meanwhile, Mr. Chavez has suggested the government might leave talks sponsored by the Organization of American States, if the opposition continues to seek his ouster through what he calls unconstitutional means.

Opposition leaders accuse Mr. Chavez of leading Venezuela to ruin with leftist economic policies that mirror the Cuban system.

In another development, President Chavez named two generals to key posts. He appointed General Jorge Garcia Carneiro, a close ally, to command the country's army and General Lucas Rincon as his new interior minister.