Venezuela: Paper Imports For Books Not Newspapers -Report

sg.biz.yahoo.com Thursday March 13, 11:00 PM

CARACAS -(Dow Jones)- Venezuelan Trade Minister Ramon Rosales said a recently published list of "importable" items included paper only for text books and not for newspapers, which are a lower priority, local daily El Nacional reported Thursday.

Paper for newspapers may be included in future lists, and newspaper owners needing to import paper can file a request for "reconsideration," Rosales was quoted as saying.

Rosales couldn't be reached for further comment.

Newsprint isn't manufactured in Venezuela and many local newspapers have said they only have paper to last them through about April.

Opponents of President Hugo Chavez warn he'll likely use the new rules to close newspapers critical of his administration, which they say is becoming increasingly dictatorial.

Chavez often accuses some newspapers, along with television and radio stations, of unfair coverage.

As reported, Venezuela earlier this week published a list of some 6,000 items deemed essential imports by the government, which imposed foreign exchange controls last month in a bid to protect international reserves which stood at $12.4 billion on March 11, according to the central bank.

Reserves were severely affected by a two-month general strike that began Dec. 2, which all but shut down Venezuela's vital oil industry, among many other sectors.

Opposition leaders are demanding Chavez agree to early elections, blaming his left-leaning policies for the country's deepening economic crisis.

The economy contracted 8.9% in 2002, amid 17% unemployment, and 32% annualized inflation sparked by a 46% devaluation of the bolivar. The currency lost a further 25% this year before currency sales were halted Jan. 21. Meanwhile, an unofficial parallel market has developed, with the bolivar trading at between VEB2300 and VEB2800 per dollar versus VEB1598 set by the government.

Chavez has said the problems are due to an "economic coup" led by his opponents.

El Nacional Web site: www.el-nacional.com

-By Jehan Senaratna, Dow Jones Newswires; 58212 564 1339; jehan.senaratna@dowjones.com