Jimmy Carter Joins Venezuelan Peace Bid

abcnews.go.com — By Patrick Markey

CARACAS, Venezuela (Reuters) - Nobel Peace Prize winner Jimmy Carter tried on Monday to salvage faltering peace talks between Venezuelan President Hugo Chavez and foes staging a seven-week-old strike to bring down the leftist leader.

Former U.S. president Carter, on his second visit to Caracas in less than a year, planned to hold meetings with Chavez and the opposition, who have been locked in a political standoff since April when the Venezuelan leader survived a short-lived coup.

"There is always hope for a resolution and I hope that will be soon," Carter told reporters as he arrived in Caracas to meet with Organization of American States head Cesar Gaviria, who brokered the peace talks.

Carter, who carries out international peace work through his Atlanta-based Carter Center, has been in Venezuela for about a week on a fishing trip.

Negotiations between Chavez and his foes were thrown into doubt at the weekend after the populist leader threatened to quit the talks even as the international community stepped up support for OAS mediation.

The talks have been stalled over the timing of elections and how to end the opposition strike that has cut oil output and severely disrupted fuel and food supplies in the world's fifth largest petroleum exporter.

Chavez, who was elected in 1998 six years after leading a botched coup, has dismissed his foes as "fascist terrorists" plotting to overthrow him. But his critics, who say Chavez has wielded power like a corrupt, inept dictator, have vowed to keep up the strike until he steps down. Chavez rejects their calls for immediate elections.

The strike deadlock has raised international concern over global oil supplies at a time when energy markets are already jittery over a possible U.S.-led war against Iraq. Venezuela usually supplies about one sixth of U.S. oil imports.

Oil prices crept higher Monday after Washington said time was running out for Baghdad to prove its compliance with United Nations disarmament resolutions. Benchmark Brent crude oil prices were up 21 cents at $30.57 a barrel. U.S. crude oil prices closed Friday at a fresh two-year high of $34 a barrel.

OVERSEAS FRIENDS

Oil supply fears have intensified diplomatic efforts to end the Venezuelan crisis. The United States, Brazil and other governments have agreed to form a group of six nations to lend weight to mediation efforts by OAS chief Gaviria.

United Nations Secretary-General Kofi Annan plans to send an envoy to Venezuela to take part in the initiative, which also includes Spain, Portugal, Chile and Mexico.

But Chavez cast doubt on the plan by threatening to pull out of OAS talks and insisting that other countries, such as Russia, Cuba and France, also be included.

Hoping to build pressure on Chavez, opposition leaders are planning to hold a nonbinding referendum on his rule on Feb. 2. The Supreme Court has yet to decide on the legality of that poll. Chavez insists a binding referendum can only be held after Aug. 19, halfway through his current term.

The Venezuelan leader said on Sunday he was restarting the strike-bound oil industry, which accounts for about half of the government's revenues. He has fired 2,000 employees from state oil firm PDVSA and ordered troops to take control of production installations and refineries.

"We are winning the oil war," Chavez said.

But rebel oil executives said production was still at about only 650,000 barrels per day -- about half of the government estimates. Venezuela produced about 3 million barrels per day before the strike in November.

The president has also ordered troops to raid factories, banks and schools joining the strike, as well as food and drink manufacturers he accuses of hoarding supplies. National Guard troops sparked opposition outrage and international concern on Friday after they broke into a local bottling affiliate of Cola-Cola Co. to take away crates of drinks.