www.japantoday.com Friday, March 14, 2003 at 09:20 JST

CARACAS — Venezuela's polarized political crisis does not need a binding mediation by the OAS secretary general, the Chavez administration said Thursday.

"We consider him (OAS chief Cesar Gaviria) a facilitator, not a mediator. Mediation introduces a binding element which we believe Venezuela's situation does not warrant," said Vice President Jose Vicente Rangel.

Rangel told journalists that an eventual change in Gaviria's functions - which the opposition proposed during the last meeting of the Friends of Venezuela group - would introduce "an element of binding international mediation," that is it would obligate the parties to accept the Organization of American States' head's decisions.

Gaviria has been sponsoring a dialogue between President Hugo Chavez's administration and the opposition since Nov 8 to seek an electoral, democratic, constitutional and peaceful solution to the ongoing political conflict between government supporters and opponents.

Rangel said that the opposition's efforts during the second Friends of Venezuela meeting that took place in Brasilia last Monday failed because its proposal to have Gaviria mediate in the conflict, instead of merely facilitating the talks, was rejected.

Administration and opposition representatives at the negotiating table are presently discussing two proposals tendered last January by former U.S. President Jimmy Carter.

Carter's first proposal calls for a constitutional amendment to reduce the presidential term from six to four years, the institution of a runoff presidential election and a number of other changes.

The second proposal calls for a referendum to be held on Aug 19 - which is the midway point in Chavez's presidential term - to determine whether the Venezuelan leader should step down. Although the opposition prefers the constitutional amendment, the administration reiterated Tuesday in a written document its desire that a referendum be called on Aug 19 as the Constitution currently establishes.

If the administration's option wins out, the opposition would need only to file a formal request to set the referendum process into motion.

Rangel noted that any electoral option would be the exclusive concern of the National Electoral Council, "which is an autonomous and independent power." But "in order for any electoral process to take place in Venezuela, the National Electoral Council must first be formed," Rangel said. (EFE News)

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

www.vheadline.com Posted: Monday, March 10, 2003 By: Robert Rudnicki

Movimiento Quinta Republica (MVR) deputy Calixto Ortega, a member of the National Assembly Energy & Mines Committee is urging rebel Petroleos de Venezuela (PDVSA) executive Juan Fernandez to turn himself in to the police and to end his current "cowardice."

An arrest warrant was issued for Fernandez last week for his role in the opposition's national work stoppage which brought Venezuela's petroleum production to a virtual standstill.

• Fernandez addressed an opposition rally in Caracas on Saturday, but was whisked away before security police could capture the fugitive.

Ortega also denied Fernandez' claims that he was being politically persecuted, "in Venezuela there is no political persecution.

www.vheadline.com Posted: Monday, March 10, 2003 By: Robert Rudnicki

Speaking during his weekly "Alo Presidente" radio show, President Hugo Chavez Frias has announced the creation of a national rural defense force that will help farmers to defend themselves.

The Venezuelan leader called on the National Armed Forces (FAN), the police and security forces to work together and coordinate the program and train farmers to defend themselves to avoid possible massacres.

"Together we will coordinate these forces with the aim of guaranteeing the lives of farming families and avoiding massacres."

"This revolution is peaceful, but it will not allow massacres, we have to use our weapons against terrorists and assassins ... to defend the interests of the Republic and the people."

www.vheadline.com Posted: Sunday, March 09, 2003 By: Patrick J. O'Donoghue

Police Detective Branch (CICPC) has announced that a retired State Political & Security (DISIP) Police commissioner, currently part of Plaza Francia (Altamira) rebel security apparatus, is being investigated for his alleged role in the death of the three rebel army privates and a girl on February 16.

The police allege that the former DISIP agent and Tayro Robinson Aristiguieta planned the soldiers’ death, hiring four men to do the job.

The motive, the police claims, is related to possible vengeance involved in drug dealing and car theft … the murdered soldiers were allegedly recruited by a gang involved in the illegal activities in Caracas.

Aristiguieta’s brother was killed in a shootout with the CICPC in San Diego, Carabobo on February 5 … the police is working on the hunch that the three soldiers were murdered for “grassing” on the organization.

Altamira rebel supreme, General Medina Gomez denies CICPC allegations saying the soldiers were dissidents and not criminals … “the case is being fixed … there was a political motive behind the killings.”