Venezuelan opposition leaders agree to ease strike

www.cnn.com Saturday, February 1, 2003 Posted: 8:35 PM EST (0135 GMT)

CARACAS, Venezuela (AP) -- Leaders of a two-month-old strike called to force President Hugo Chavez from power said they would ease the work stoppage next week to protect businesses against bankruptcy.

The decision was prompted Friday by pressure from the "Group of Friends," a forum made up of the United States and five other nations who are supporting efforts by the Organization of American States to broker an end to Venezuela's bitter political stalemate.

"We aren't going to let the government destroy the business sector and increase unemployment, then build a totalitarian model over the ashes," strike leader Carlos Fernandez said.

The decision to ease the 62-day work stoppage, however, won't affect striking workers at the state-run oil monopoly Petroleos de Venezuela S.A.

The strike has stifled oil production in Venezuela, the world's fifth-largest exporter.

The government has managed to raise oil production beyond 1 million barrels a day -- a third of normal levels -- signaling that Chavez was regaining control of the state oil company, where the walkout has been most effective. Oil provides 70 percent of export revenue and half of government earnings.

Abdullah bin Hamad al-Attiayh, president of the Organization of Petroleum Exporting Countries, said Saturday he welcomed Venezuela's increasing oil production as a factor that will bring more stability to the oil market.

Global oil prices shot over $30 a barrel this year because of lower exports from Venezuela and fear of a conflict with Iraq. Venezuela is a founding member of the oil cartel and, under Chavez, a leading proponent of production quotas.

Strike leaders made the announcement after a meeting with envoys from countries involved in the "Friends" initiative -- the United States, Mexico, Brazil, Chile, Spain and Portugal.

The envoys were in Caracas to persuade rivals to agree on a proposal calling for an amendment to the constitution, which would shorten Chavez's six-year term to four and open the way for a new election this year.

Venezuela's constitution allows opponents to request the amendment by gathering signatures from 15 percent of the country's 12 million registered voters. The opposition is organizing a nationwide petition drive to gather signatures on February 2.

The Bush administration has promoted early elections as a solution to the crisis.

But government representatives said they wouldn't agree to a proposal that could put an end to Chavez's "revolutionary" government.

"The government has no interest in doing away with itself," said Foreign Minister Roy Chaderton.

Another proposal calls on Venezuelans opposed to Chavez to prepare for a recall referendum on the president's rule, which is possible in August.

That proposal also met resistance.

"The government isn't interested in convoking a recall referendum," said Chaderton.

While foreign diplomats met with the two sides, tens of thousands of Chavez opponents staged a march to protest government investigations into three private television stations. Through the proceedings the government could fine or revoke the broadcast licenses of the stations -- or even close them.

Chavez repeatedly has clashed with the news media. He accuses newspapers, radio station and TV channels of joining an alleged conspiracy to overthrow him.

Media owners accuse Chavez of trying to censor his critics. Chavez's fiery rhetoric, they argue, encourages his most radical supporters to attack reporters and photographers.

The government's hard-line stance against proposals aimed at unseating Chavez, who was elected in 1998 and re-elected two years later, comes while support for the strike wanes and oil production increases.

In another sign the strike was weakening, banks, schools, shopping malls and franchise restaurants announced plans to open next week.

The strike has crippled the economy. Private economists warn the economy could shrink 25 percent in the first three months of the year -- after already contracting an estimated 8 percent last year.