Sides study Carter's Venezuela plans - Proposals differ on how strike crisis would end

www.cnn.com Wednesday, January 22, 2003 Posted: 10:05 AM EST (1505 GMT)

CARACAS, Venezuela (AP) -- Rivals in Venezuela's bitter political standoff studied proposals made by former President Jimmy Carter to end the dispute that has dramatically cut oil production in the world' s No. 5 exporting country.

The Nobel Peace Prize laureate proposed two plans Tuesday. The first entails elections and the end to a 51-day-old national strike. The second proposal calls for both sides to prepare for a binding referendum on President Hugo Chavez's presidency in August, the midpoint of his six-year term.

Both supporters and foes of Chavez expressed doubt their opponents would respect a democratic solution to the bitter stalemate.

"As democrats we move along an electoral and peaceful path. They aren't democrats and they don't believe in this possibility," said strike leader Carlos Ortega, president of country's largest labor union.

Juan Barreto, a ruling party member, expressed doubt opposition leaders have "the capacity and patience to move forth" with the proposals.

The first plan would amend Venezuela's constitution to shorten presidential and legislative terms of office and stage early elections.

It calls for the opposition to end the strike and for the government, which has a congressional majority, to move quickly on changing the constitution. Amending the constitution requires the approval of congress and a popular referendum.

Carter said that if both sides agreed on the amendment proposal, there "would be no delays" in implementing it because international mediators would "guarantee the integrity of the agreement."

A so-called "Group of Friends of Venezuela," a forum of six countries including the United States, Mexico, Brazil, Chile, Spain and Portugal, has been formed to help end the standoff. Diplomats involved in the initiative will hold their first meeting at the Organization of American States in Washington on Friday.

'Nobody imagined the strike would last for 50 days'

The proposals, added Carter, have taken into account the basic demands of both sides but "difficult details" will have to be worked out in negotiations.

Members of a women's opposition protest shout slogans against the president in Caracas on Tuesday.

Before leaving Venezuela Tuesday, Carter was optimistic opponents would make concessions in order to end the political impasse and ongoing work stoppage.

"Nobody imagined the strike would last for 50 days and no one wants it to last for 70 or 100 days," he said.

The government has acknowledged the strike has reduced oil production and cost $4 billion so far.

Oil provides 70 percent of export earnings and a third of Venezuela's $100 billion gross domestic product. Output stands at about 660,000 barrels a day, compared to 3 million before the strike, according to strike leaders. The government claims production is at least 800,000 barrels a day.

A key point is the fate of workers at Venezuela's state owned oil monopoly. Some 30,000 of 40,000 workers are striking. Chavez has fired more than 1,000.

Carter said his proposal would have strikers return to work but allow the government to prosecute anyone accused of sabotaging the industry. Chavez accuses "fascist, coup-plotting" oil executives of using sabotage to prevent the government from jump-starting the oil industry.

Arguing that Venezuelans cannot wait until August to cast ballots given the deepening crisis and political upheaval, opposition leaders called the strike on Dec. 2 to force Chavez from power.

Chavez was elected in 1998 and re-elected in 2000 on promises to help the country's poor majority, but he has failed to remedy the nation's economic ills.

Political unrest has contributed to 17 percent unemployment, 30 percent inflation and a weakening currency, which reached a record low of 1,853 to the dollar Tuesday.