Venezuela Braces for Price, Currency Controls

www.voanews.com VOA News 27 Jan 2003, 23:02 UTC

Venezuela's long-running general strike may be weakening as President Hugo Chavez announces plans for price and currency controls to keep the economy from collapsing.

Some business owners have returned to work because the walkout has cost them thousands of dollars in lost income. Reports also say the opposition may allow other businesses to re-open to avoid bankruptcy.

The labor action began December second to force President Chavez to resign and call early elections. He refuses to step down and has vowed to break the strike now in its ninth week.

On Sunday, the Venezuelan leader announced he would impose price controls on medicine and food to rescue the oil-reliant economy. Mr. Chavez said the measures would also prevent capital flight.

Last week, the president called for a five-day suspension of currency trading.

Venezuela's economy relies heavily on the oil industry, but the strike has disrupted the sector, forcing the government to import fuel. Severe fuel shortages, coupled with disruptions in food supplies, have triggered tensions.

The Chavez government has fought back by firing an estimated three-thousand dissident state oil workers and deploying troops to oil installations to restart operations.