Chavez: Venezuela Oil Will Be Restored

abcnews.go.com Venezuela's Chavez Says 'Friends' Group Must Recognize Legitimacy of His Government, Vows Oil Will Be Restored The Associated Press CARACAS, Venezuela Jan. 17 —

President Hugo Chavez welcomed foreign help to end a crippling seven-week strike but said Friday his government won't be forced into negotiating with what he called a "coup-plotting, fascist" opposition.

Several countries, including the United States, Mexico, Brazil and Spain, agreed to create a "Group of Friends of Venezuela" this week to seek solutions to the work stoppage that has brought the country's economy to a standstill.

Chavez cautioned, however, that his government "won't accept any restrictions from the Friends" group and warned other nations not to legitimize the opposition.

"Each country must make a great effort to understand what is happening in Venezuela," Chavez said in his annual state of the nation address to Congress. "This is a democratic government, a democratic republic, confronting fascists, confronting terrorists, confronting coup plotters."

Chavez announced he was traveling to Brazil late Friday to meet with Brazilian President Luiz Inacio Lula da Silva to discuss the "Friends" initiative.

Opposition leaders accuse Chavez of amassing too much power and ruining the economy. They called the strike Dec. 2 to urge Chavez to back a nonbinding referendum on his presidency Feb. 2.

Chavez says Venezuela's constitution allows only a binding referendum halfway into a six-year presidential term. In Chavez's case, that will be in August.

Chavez said if a majority of Venezuelans vote to shorten his presidential term in August, he will respect the outcome.

The strike has punished Venezuela's oil industry, cost the nation at least $4 billion and led to food and gasoline shortages. Chavez called the strike leaders were "cruel" for inflicting pain on Venezuelans.

He insisted his government was reviving petroleum production in what was the world's fifth-largest oil exporter and the No. 4 crude exporter to the United States.

Venezuela produced 3 million barrels a day of crude before the strike.

The country's crude oil output was 512,000 barrels Friday, up from 484,000 barrels Thursday, according to striking employees of the state-owned oil monopoly Petroleos de Venezuela S.A.

However, Energy and Mines Minister Rafael Ramirez has said daily crude production stands at 890,000 barrels. About 35,000 oil workers, including executives, have joined the strike.

Domestic gasoline supply still depends mostly on imports because only one refinery is operating. Motorists wait hours in line to fill up.

The Paris-based International Energy Agency said it could take months before Venezuela returns to its pre-strike production. The crisis has caused international prices to rise. In the United States, gasoline prices have risen to an average $1.50 a gallon.

Venezuela's central bank reported the currency closed Friday at a record low of 1,756.75 to the dollar. The bolivar has lost more than 20 percent of its value this year, and thousands of Venezuelans lined up Friday at banks to withdraw deposits and purchase dollars.

"The dollars I'm going to buy will be worth much more," said Seferino Guitian, a 39-year-old store clerk.

Chavez accused the news media of conspiring to oust him, something he said they failed to do during a brief April coup. Again, he threatened to yank broadcast licenses of stations broadcasting "propaganda" against his government, he said.

He referred to four opposition TV stations as "the four horsemen of the Apocalypse."

In eastern Caracas, Venezuela's opposition staged an anti-Chavez rally and awaited a strategy from the "Friends of Venezuela."

"We have to wait (to see) what the plan of action this group is going to put together," a key opposition negotiator, Timoteo Zambrano, told Union Radio.