US urges world's help in restoring stability in Venezuela

www.boston.com By Associated Press, 1/11/2003

WASHINGTON - The Bush administration called on the international community yesterday for help in resolving the five-week strike in Venezuela that is crippling oil exports, promoting violence, and threatening the stability of the government of President Hugo Chavez.

''The severe damage being caused to Venezuela's economy, as well as the increasing likelihood of violence and civil conflict, requires a solution,'' said White House press secretary Ari Fleischer.

He said the United States continued to support mediation efforts by Cesar Gaviria, secretary general of the Organization of American States, ''to facilitate a dialogue between both sides that leads to a peaceful, democratic, constitutional and electoral solution to Venezuela's crisis.''

Meanwhile in Venezuela, Chavez fired 700 workers from the state oil monopoly, hoping to break the strike, which has paralyzed the world's fifth-largest oil exporter.

At least 30,000 of the 40,000 workers at Petroleos de Venezuela S.A. are participating in the strike to demand early presidential elections. Chavez already had sacked 300 managers of the company.

''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.''

The firings inflamed an already unstable situation. Chavez's opponents took to the streets yesterday. Bank workers and other opposition sympathizers were rallying in Caracas and 11 other cities yesterday, a day after violence broke out at similar protests. Hundreds gathered in Caracas to march on the Melia hotel, where Gaviria is staying.

The Central Bank suspended dollar auctions for a second day after the currency, the bolivar, dropped to a record low of 1,593 to the dollar Thursday, 5 percent weaker than Wednesday and down 12 percent this month.

Analysts speculated that Chavez's government may have to devalue the bolivar to balance its budget. Most government income is in dollars, and a weaker bolivar would increase its domestic spending power.

The Bush administration is working with the Organization of American States and member nations to peacefully end the standoff between the Chavez government and its opponents, Fleischer said. He pointed out that Gaviria has been quietly discussing options with other OAS states, including formation of a ''Friends of Venezuela'' group ''to help the Venezuelans find a solution.''

The Washington Post reported yesterday that the United States was putting aside its reluctance to get involved in Venezuela's internal affairs and readying an initiative to form a group of nations to try to end the deadlock.

The initiative may be rolled out next week, the newspaper said. It said the proposal's immediate goal would be to end the strike. The group would seek to develop a compromise calling for early Venezuelan elections and building on OAS mediation efforts already under way, the newspaper said.

This story ran on page A14 of the Boston Globe on 1/11/2003.