Latin America : Venezuela Talks Stall Over Plan for Chavez Referendum (Update2)

By Peter Wilson

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

A tentative agreement reached on April 11 is no longer valid, its terms will have to be renegotiated, Gaviria told reporters last night.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. Among the objections was the use of international observers to oversee the vote.

The opposition plans to march to the National Electoral Council on Aug. 20 to deliver petitions calling for a referendum on Chavez, said opposition negotiator Rafael Alfonzo.

``This year we are going to have a referendum, with or without the signing of an agreement, whether the government wants it or not,'' said Alfonzo.

Venezuela's dollar bond due 2027 fell 0.20 cents on the dollar to 63.90, pushing the yield up to 14.74 percent, according to J.P. Morgan Chase & Co. at 3:30 p.m. in New York.

The Caracas Stock Exchange's general index fell 0.4 percent to 8403.50.