Chavez brands strikers as 'terrorists'

europe.cnn.com Sunday, January 12, 2003 Posted: 0906 GMT

CARACAS, Venezuela (Reuters) -- Venezuelan President Hugo Chavez, already fighting to restart an oil sector crippled by an opposition strike, Saturday threatened to take over banks which joined the six-week shutdown.

In two national broadcasts Saturday, leftist Chavez lashed out at foes he branded "terrorists" and hardened a stance that seemed certain to further inflame the political conflict over his rule in world's No. 5 oil exporter.

"They will not defeat us on any battlefield," said Chavez, his face flushed as he lambasted foes in a speech peppered with revolutionary rhetoric and threats.

The opposition strike, started on December 2, has stoked tensions between Chavez and opponents, who are demanding that he resign and call immediate elections. Chavez, who survived a brief coup in April, has rejected their demands for an early vote.

Striking oil workers have joined bankers, some teachers and many private businesses in the shutdown that has caused fuel shortages, food supply disruptions and long lines outside banks which are open only limited hours. Bank worker unions earlier this week went on full strike, but just for 48 hours.

Chavez, who has already sent troops to take over oil installations, warned that the government could fire or even jail striking teachers and take over banks joining the strike. He said he could withhold funding against closed universities.

"They say they want to shut the banks, well, we'll apply the law ... and if they resist we will remove their directors or we will intervene," the president bellowed.

Chavez, elected in 1998 on a populist platform of social reform, portrays himself as a champion of the poor abandoned by corrupt elites. Most Venezuelans still live in poverty in spite of their nation's huge oil wealth.

But his opposition say Chavez, rather than live up to his election promises to ease poverty, has driven Venezuela toward economic and political chaos through mismanagement corruption and dictatorial rule.

Opposition leaders, an alliance of political parties, unions and business groups, Saturday sought to shore up international support for their campaign. They welcomed U.S. backing for a proposal that would involve other nations in efforts to break the tense stalemate.

Chavez

International concern sharpened after the strike helped push oil prices to two-year highs of over $30 a barrel at a time when the United States is preparing for a possible attack on Iraq. Venezuela usually supplies more than 13 percent of U.S. oil imports.

Opposition negotiator Timoteo Zambrano and union boss Carlos Ortega, a bitter Chavez foe, planned to travel to the United States Saturday for meetings with United Nations Secretary-General Kofi Annan and the U.S. State Department.

"This is to explain the Venezuelan conflict, to intensify our international actions, and to make sure there is more attention to the Venezuelan problem from the international community," Zambrano told Reuters by telephone from Caracas airport before leaving.

The United States said Friday it supports forming a group of key regional nations who could nudge both sides to an electoral solution to end their bitter impasse. U.S. officials said they hoped to bolster talks brokered by the Organization of American States that have so far failed to reach an accord.

Chavez said he had also spoken with the U.N. chief to explain he was fighting against "coup mongers and fascists."

The opposition wants Chavez to accept elections within the next three months and agree to a nonbinding referendum on his rule in February. But the combative president refuses and has challenged the poll in the supreme court. He says the constitution only allows a binding referendum in August.

"If we want to go to the vote, it's because we want to fight the poverty and misery that this regime forces us to live with," said anti-Chavez business leader Carlos Fernandez.

Fernandez urged opposition sympathizers to take to the streets Sunday for a march in Caracas near the capital's military headquarters. Two people were killed and dozens wounded by gunfire in a similar march earlier this month during clashes involving rival protesters, police and troops.

The strike has now become a war over the oil industry, which provides for about half of the government's revenues.

Crude and product exports have fallen to less than a fifth of the 2.7 million barrels per day sold before the shutdown and production has dropped to about 450,000 bpd from 3.1 million bpd in November, officials said.

Chavez has fired more than 2,000 workers at state oil firm PDVSA and started to restructuring the company to try and break the strike. But strike leaders say returning operations to normal would take months.