asia.cnn.com Sunday, January 12, 2003 Posted: 6:35 AM HKT (2235 GMT)

Colombian drivers waits in a long line to fill up at a gas station in Cucuta, located on the northeastern border with Venezuela.

CARACAS, Venezuela (AP) -- Lack of funding and disorganization in Venezuela's elections council could thwart opposition hopes to weaken Hugo Chavez's presidency in a referendum set for next month.

Chavez is opposed to holding the vote, arguing it's illegal, and the Chavez-dominated Congress has yet to authorize $22 million required for balloting.

Alfredo Avella, president of the National Elections Council, said Friday the vote may be postponed to "a later date that permits the viability of the process."

Venezuela's opposition launched a strike December 2 to pressure Chavez, who was elected in 1998 and re-elected two years later, to resign and call elections if he loses the nonbinding referendum on his rule.

Chavez insists Venezuela's constitution only permits recall referendum on his presidency halfway into his six-year term, or this August.

The strike has paralyzed the world's fifth largest oil exporter and caused fuel shortages while opponents stage daily street marches and urge tax evasion to force Chavez from office.

Chavez has refused to give in to opposition demands. He threatened Friday to deploy soldiers to seize control of food-production facilities to deal with domestic food shortages.

The former paratroop commander told troops to be ready "to militarily seize the food production plants." He asked state governors belonging to his political coalition to be ready to cooperate.

"This is an economic coup. They are trying to deny the people food, medicine and even water," Chavez told thousands of supporters in western Cojedes state. "They won't succeed."

The Venezuelan-American Chamber of Commerce repudiated the president's statements and told its members that seizures of food plants would be illegal.

The president also said he fired 1,000 workers from the state oil monopoly Petroleos de Venezuela S.A., or PDVSA. An estimated 30,000 of the company's 40,000 employees have joined the strike.

Thousands of anti-Chavez protesters fought through tear gas and gunfire from pro-Chavez street thugs on November 4 to deliver 2 million signatures to convoke the February 2 plebiscite. Venezuelan law requires at least 10 percent of its 12 million registered voters to call a referendum.

Opposition leaders say if they have to, they'll pay for the February referendum themselves. But many Venezuelans won't pay to vote during the nation's worst recession in decades.

"The politicians asking for money are the same ones who robbed the country, and they are responsible for the economic crisis. Why should I give them any money?" said Manuel Arteaga, 45, who sells cigarettes on the sidewalks of downtown Caracas.

Other potential delays include organizing 180,000 volunteers to monitor voting booths, printing 12 million ballots, and protecting voting centers and materials.

While citizens opposed to Chavez wait to go to the ballot, the South American nation of 24 million is gripped with unrest.

Police used tear gas Friday to prevent pro- and anti-Chavez protesters from clashing in Venezuela's Margarita Island. Several children inside a nearby daycare were hospitalized for asphyxiation, a local civil defense spokesman said.

Five people have died in protests since the strike began.

Negotiations to end the stalemate, led by Cesar Gaviria, secretary-general of the Organization of American States, have made little progress.

"There's no exit from this crisis without an agreement," Gaviria said after Friday's round of talks.

In Washington, the Bush administration was talking with OAS-member nations on ways to end the strike, White House spokesman Ari Fleischer said Friday.

"We remain deeply concerned about the deteriorating situation in Venezuela," Fleischer said. Asked about a possible U.S. role in a breakthrough, he said, "An electoral solution is the direction the United States sees."

www.northjersey.com Saturday, January 11, 2003 By PETE CALDERA Staff Writer

PORT ST. LUCIE, Fla. - Tyler Walker still appreciates the fierce passion of Venezuelans, who take their baseball seriously. That passion extends to politics, and Walker was far too close to the action.

From his hotel room, Walker watched protesters being halted by tear gas and rubber bullets.

When the political climate between forces loyal to, and against, President Hugo Chavez led to extreme violence, the Mets' minor league pitcher was forced to leave the country.

Walker, 26, departed Venezuela on Dec. 10 without having thrown a pitch. Political unrest that sprouted a massive labor strike led to cancellation of the winter league season, and Walker barely left his hotel in nearly two weeks.

"I felt safe in the hotel, but it was definitely a scary situation," he said. "Basically, we were like hostages in our hotel rooms."

Walker's window at the Best Western was in view of the National Guard headquarters across the street. When protesters came too close, Walker could see the bullets and tear gas canisters fly.

"If you opened your window, you could smell it," he said.

Stir crazy, Walker ventured out with fellow players to a restaurant. That night, he saw a group of screaming people scatter. Later, he learned that farther down the street a protester had been shot to death at point-blank range.

"That's when I knew we had to get out of there," said Walker, who went home to Northern California.

The Mets had five other prospects in Venezuela who played until the season's abrupt end in late November, including pitcher Jae Seo (3-2, .398 ERA), who made seven starts.

Roger Cedeno's mother and brother remain in Venezuela. "I would rather have them here [in the United States]," Cedeno said. "But it's tough for them to leave their lives and their home."

Two months ago, Cedeno became a U.S. resident, and proudly flashed his card to John Franco at a nearby locker. Cedeno would like to become a U.S. citizen, a process he said would take another four-to-six years.

METS BRIEFS: Tsuyoshi Shinjo has agreed to the structure of a one-year deal, with a base salary of $600,000. But the outfielder has requested a full no-trade clause, and his U.S.-based representatives were waiting to hear the Mets' response as of Friday night. Shinjo is expected to battle for the everyday center fielder's job, or could platoon with Cedeno ... . Mets' four-day minicamp concludes today. Pitchers and catchers officially report Feb. 13.

sg.biz.yahoo.com Saturday January 11, 8:01 PM By Fred Pals Of DOW JONES NEWSWIRES

VIENNA (Dow Jones)--At OPEC's extraordinary meeting this Sunday in Vienna, troubled Venezuela can only sit tight and nod in agreement with OPEC's decision to boost oil production in an effort to ease world oil prices.

But by sending both Oil Minister Rafael Ramirez and the president of state-owned oil monopoly Petroleos de Venezuela (E.PVZ), or PdVSA, Ali Rodriguez - a former OPEC Secretary General - to the meeting, President Hugo Chavez wants to make sure the country gets its share eventually, oil ministry sources say.

The two top officials want OPEC to get the message that Venezuela will return to its production levels of around 3 million barrels a day pumped before a general strike began 42 days ago. "We don't see the need for much new oil. But we want to make sure that part of the barrels now being put on to the market by other members to make up for our shortfall eventually will get back to us," an oil ministry source, who declined to be named, said Saturday.

In telephone talks with Iran's President Mohammed Khatami, Chavez Friday voiced concern about measures taken by some OPEC members to raise their output ceiling. There are signals OPEC will agree on the usual increase shared equally across its members, excluding Iraq. A temporary allocation of the extra barrels may also be agreed. The reality, however, is likely to see OPEC's kingpin Saudi Arabia make up for most of Venezuela's shortfall. "It may be difficult, but we need to convince OPEC we're able to get back to our usual production levels," said another Venezuelan government source, who also declined to be named.

Indeed, Venezuela's plea may fall on deaf ears as most industry observers question the country's ability to bring state-owned oil giant PdVSA back to its feet anytime soon.

Analysts agree it will take the company months to bring output capacity back to slightly more than 3 million b/d.

The nationwide strike that started Dec. 2 has crippled the vital oil industry and slashed production and exports to less than 20% of their usual level.

Production is seen at only around 400,000 b/d or less. Exports remain marginal. Refinery activities also are paralyzed, with some refining taking place at the 100,000 b/d Puerto la Cruz refinery in eastern Venezuela.

OPEC is gathering Sunday to discuss the volatile world oil markets that has driven the oil price up to around $30/bbl. Apart from the Venezuelan shortfall, OPEC also has to deal with the prospect of a war between the U.S. and Iraq and a seasonal downturn in consumption starting in the second quarter.

The International Energy Agency, the energy watchdog of the world's richest nations, said Friday that OPEC needs to increase oil output by more than 2 million b/d to offset the loss of Venezuelan oil. OPEC members have said a boost of 1 million-1.5 million b/d is being discussed. A 2 million b/d boost is seen as too much.

Chavez Continues PdVSA Purge; Referendum May Be Postponed

Meanwhile, Chavez's efforts to continue his purge at PdVSA won't help to convince OPEC the company will soon recover. Chavez announced Friday that he had sacked 1,000 employees since the strike started. "The revolutionary government is standing firm," Chavez said. "An oligarchy ... has reared like a poisonous serpent to destroy the path of justice that we are paving. The people and our morals won't let them." At least 30,000 of the company's 40,000 workers are participating in the strike.

Chavez said the government would have to invest "thousands of millions of dollars" if the oil industry is to recuperate. He urged Venezuela's attorney general to imprison strikers, whom he called "criminals" and "traitors to the country." Analysts, however, question the government's ability to keep PdVSA running with untrained personnel and replacement crews.

Early last week, Oil Minister Rafael Ramirez announced PdVSA will eventually have two centers of operation, in the east and west of the country, adding that much of its headquarters in Caracas will be dismantled. He didn't say how many of the 7,000 employed at the Caracas HQ will lose their jobs. A majority, however, are on strike and the government has vowed to dismiss those who are on strike.

The strikers, backed by a range of business, labor and political leaders, want Chavez to resign and early elections to follow.

Chavez, however, has refused to give in. A referendum on his rule scheduled for Feb. 2 may be postponed. Chavez says Venezuela's constitution only permits such a referendum halfway into his six-year term, or in August.

-By Fred Pals, Dow Jones Newswires;0043-664-5446851; fred.pals.dowjones.com

Oil shortages from strike could raise the cost of a war www.sfgate.com James Dao, Neela Banerjee, New York Times Saturday, January 11, 2003

Washington -- The crisis in Venezuela is creating major new complications for the Bush administration's campaign to oust Saddam Hussein, causing oil shortages that would probably make a Persian Gulf war more costly to the economy than once anticipated, American officials and industry experts said.

The 40-day strike aimed at ousting President Hugo Chavez has virtually shut down Venezuela's oil industry, the fifth-largest in the world, and proven more difficult to resolve than the administration expected, the officials said.

Venezuela has for decades been one of the most dependable sources of petroleum for the United States, where industry analysts say the strike has already hurt some refineries and driven up the retail price of gasoline by at least a dime a gallon.

Those shortages will only worsen, and prices continue to rise, if the United States attacks Iraq, they predicted. That means that war in the Persian Gulf could prove more costly to an already uncertain U.S. economy than had been projected if the Venezuelan standoff is not ended soon.

For that reason the Bush administration has been debating plans to release oil from the Strategic Petroleum Reserve, which contains nearly 600 million gallons of crude. For now, though, the White House has decided to defer those plans, mainly to keep oil available in case of war in Iraq, administration officials said.

"A few months ago everybody thought that if we went to war in Iraq, oil wouldn't be a major problem, because there was enough spare capacity to make up for lost Iraqi oil," said Larry Goldstein, president of the Petroleum Industry Research Foundation Inc., a research organization. "But no one then was contemplating lost Venezuelan oil."

"Now," he said, "we won't have enough spare capacity to take care of both those events."

The crisis could be compounded if Chavez follows through on a proposal to split the government-owned oil company, Petroleos de Venezuela S.A., into two parts and restructure its central offices.

American officials say Chavez's true goal is to install political loyalists in place of the union leaders and senior managers at the oil company, known as PDVSA, who have joined the strike.

The result could be a more pliable but less efficient company that produces less oil than the roughly 3 million barrels a day that Venezuela produced before the strike, officials and experts said. That could leave the United States even more dependent on Middle Eastern oil.

"Petroleos is one of the few state-owned oil companies in the OPEC group that approximates a normal integrated major oil company," said Leonidas Drollas, chief economist with the Center for Global Energy Studies in London. Echoing other industry analysts, Drollas added, "To break it up into anything sounds obviously politically motivated."

On Friday, Chavez threatened to send soldiers to seize control of food- production facilities and also fired 700 workers from the oil monopoly, hoping to break the strike.

Chavez, a former paratroop commander, told soldiers to be ready "to militarily seize the food production plants" that joined the strike. He asked state governors belonging to his political coalition to be ready to cooperate.

Rafael Alfonzo, president of Venezuela's food producers chamber, blamed the shortages on Chavez for refusing to cede to opposition demands. He insisted food makers were producing staples but said fuel shortages had hampered deliveries.

The Bush administration, acknowledging the growing danger from the Venezuelan strike, has stepped up its efforts to calm the oil markets, lobbying major oil exporters to increase production. At a meeting in Vienna this weekend, the Organization of the Petroleum Exporting Countries is expected to vote to increase production by 8.7 percent, or nearly 2 million barrels a day, officials said.

The United States is also working with Mexico, Brazil and the Organization of American States to cobble together a coalition of South American governments to broker a truce. Diplomats working on the crisis are worried that the OAS, which has spearheaded negotiations, lacks the influence to persuade Chavez to consider concessions.

www.iranmania.com Saturday, January 11, 2003 - 2002 IranMania.com

TEHRAN, Jan 10 (AFP) - Venezuelan President Hugo Chavez is "concerned" about apparent plans by OPEC nations and other oil producers to raise crude output, Iranian television reported Friday.

Chavez, in a telephone call to President Mohammad Khatami, said he was "concerned by an increase in production by OPEC and by certain (other) producing countries," the report said.

There was no indication of when the telephone call was made, or exactly what Chavez's concerns were.

Both Venezuela and Iran are members of the Organization of Petroleum Exporting Countries.

For his part, Khatami was quoted as insisting on the need for "cooperation among OPEC countries to ameliorate the sistuation in the oil market."

He added that "producers, whether OPEC members or not, should cooperate" and that "any disagreement would be prejudicial" to them.

OPEC members are to hold an extraordinary meeting in Vienna on Sunday and are widely expected to raise output by between one and two million barrels per day.

The markets have been squeezed in recent weeks by a strike in Venezuela and by fears of a war on Iraq.