Troops Raid Coca-Cola Plant In Venezuela

www.wset.com Saturday January 18, 2003 1:19pm

Caracas (AP) - President Hugo Chavez on Saturday defended raids of two bottling plants, saying the companies that owned them denied Venezuelans food and drink in a seven-week strike that has hobbled the nation.

Fighting their way through protesters, Venezuelan troops raided a Coca-Cola bottling plant Friday night and seized soda, bottled water and other drinks. Soldiers also raided a plant owned by Polar, the country's largest brewer and food producer.

"Those that are hoarding food will have to be raided," Chavez said in a telephone interview broadcast on Venezuelan state television. "The private companies ... are violating Venezuelans' rights." Chavez spoke before arriving in the Brazilian capital early Saturday to discuss an initiative by several countries to join forces and help solve Venezuela's ongoing crisis.

Chavez met with Brazilian President Luiz Inacio Lula da Silva about the so-called "Group of Friends of Venezuela." Brazil, the United States, Mexico, Chile, Portugal and Spain form part of the group.

Chavez said he was not worried about the U.S. involvement even though Washington has indicated it believes the best way out of Venezuela's crisis is new elections.

"I am not afraid of the opinions of the United States in the negotiations of the Group of Friends, because the United States is also a friend of Venezuela," Chavez said.

Protesters tried to block the raids of the bottling plants, but the National Guard used tear gas to push past them.

One soldier grabbed a woman by the hair and threw her backward onto the street. Another protester grabbed a National Guardsman by the lapels as other soldiers tried to pull her away.

Troops cut through chains at the gate and drove away Coca-Cola trucks filled with drinks as a protester shouted, "Thieves! Thieves!" National Guard Gen. Felipe Acosta, a close ally of Chavez, said the drinks would be distributed to Venezuelans.

"It's for the people," Acosta said, and grabbed a malt drink. He drank it and belched loudly in front of television cameras.

The action outraged business owners and the Venezuelan American Chamber of Commerce and Industry, or VenAmCham. "VenAmCham denounces the abuse of power ... violation of (the company's) property, intimidation of its employees, and removal of its goods without due process," the group said in a written statement.

In December, Chavez issued a presidential decree authorizing the military to "temporarily" confiscate private property to guarantee the distribution of basic food staples. He had warned food producers he would send soldiers to raid plants and warehouses hoarding supplies.

Both Polar and Panamco, the owner of the Coca-Cola plant, claim they haven't been able to distribute products due to fuel shortages and worker absences.

Opposition leaders said the raid set a dangerous precedent. "There are private property rights here, rights of all Venezuelans and we will not permit them to be violated," said opposition leader Rafael Alfonzo.

The strike, called on Dec. 2 by opposition groups to force Chavez from office, has caused severe food and fuel shortages throughout this oil-rich yet poverty-stricken South American country of 24 million.

The strike has hobbled Venezuela's oil industry, the fourth-largest supplier to the United States, and cost the nation at least $4 billion. Chavez insisted his government was reviving oil production.

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 production stands at 890,000 barrels. About 35,000 oil workers, including executives, have joined the strike.

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 U.S., gasoline prices have risen to an average $1.50 a gallon.