Venezuela Talks Stall Over Plan for Chavez Referendum (Update1)

By Peter Wilson

Caracas, April 25 (<a href=quote.bloomberg.com>Bloomberg) -- Talks between Venezuela's government and the opposition for a referendum on President Hugo Chavez have stalled, Organization of American States Secretary General Cesar Gaviria said.

A tentative agreement reached April 11 is no longer valid, and will have to be renegotiated, Gaviria told reporters last night.

``There are major differences between the two sides,'' Gaviria said. He gave no indication when talks would resume. They started eight months ago.

A referendum may end two years of protests and strikes by the opposition demanding that Chavez, a former army lieutenant colonel, resign or call early elections. Opponents agreed to a binding referendum to be held after August, the midpoint of Chavez's six-year term, after a two-month national strike failed.

Chavez's Fifth Republic Movement political party said earlier this week it had at least six objections to the 22-point election accord, which calls for a referendum by Nov. 19. to force a non- binding vote in February. Among the objections was the use of international observers to oversee the vote.

``What happened with the agreement is just another heightening of the confrontation between those who want an electoral resolution, and the government that doesn't,'' opposition negotiator Alejandro Armas told reporters. The opposition will review the government objections and present their response to Gaviria later today, he said.

Venezuela's dollar bond due 2027 fell 0.35 cents on the dollar to 63.75, pushing the yield up to 14.77 percent, according to J.P. Morgan Chase & Co. at 10:50 a.m. in New York.

The Caracas Stock Exchange's general index fell 0.1 percent to 8423.95. Last Updated: April 25, 2003 11:08 EDT