Caracas, May 8 (<a href=quote.bloomberg.com>Bloomberg) -- The U.S., Brazil and Spain are among the countries seeking to pressure Venezuela's government and opposition to reach agreement on a referendum on President Hugo Chavez's rule and end a yearlong impasse.

Representatives of the Group of Friends, as the negotiators from six countries that also include Portugal, Mexico and Chile are known, declined comment after meeting with members of the opposition this morning. They were slated to meet with government negotiators later this afternoon and may meet with Chavez.

There's definitely going to be an attempt to pressure the government,'' said Vitali Meschoulam, an analyst with political risk research company Eurasia Group in New York. But I doubt it will go beyond rhetoric.''

The Group of Friends is counting on a referendum to end more than a year of political strife in Venezuela, South America's largest oil producer. Chavez, who was deposed in April 2002 for two days in a coup, has faced repeated demands that he step down or submit to a referendum.

The two sides reached a tentative agreement brokered by the Organization of American States to hold a referendum. The accord was subsequently found lacking by Chavez's political party.

It's clear that Chavez is trying to delay the holding of a vote,'' Meschoulam said. There's no doubt about that.''

Polls show that Chavez would lose by a large majority if a referendum were held. Under Venezuela's constitution, a referendum can be held any time after Aug. 19, when Chavez passes the mid-point of his six-year term in office.

Venezuela's dollar bond due 2027 jumped for a third day, rising 0.25 cents on the dollar to 66.25, pushing the yield down to 14.22 percent, according to J.P. Morgan Chase & Co. at 2:10 p.m. in New York.

The Caracas Stock Exchange's general index rose for the first day in three, jumping 2.7 percent to 8783.69. Last Updated: May 8, 2003 15:03 EDT

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Thursday, May 08, 2003 By: Patrick J. O'Donoghue

Brazil's Six-nation Group of Friends representative and general sub-secretary of the Brazil-Venezuela bi-lateral relations policy, Gilberto Saboia says the undertaking of the recall referendum depends on the will of the Venezuelan people. 

Speaking after meeting Venezuelan Executive Vice President, Jose Vicente Rangel, Saboia has made the comment that from the very start it was understood by all members of the Group of Friends that it was a process Venezuelans have to pursue themselves. 

• Saboia says he believes that the way forward depends on the sovereign will of Venezuelan People in compliance with the Constitution and the response must be democratic. 

"The Group of Friends are ready to help wherever necessary and that is why we are meeting here in Caracas for two days to see how we can help."

<a href=www.vheadline.com>venezuela's Electronic News Posted: Thursday, May 08, 2003 By: Patrick J. O'Donoghue

Movimiento Quinta Republica (MVR) leader and parliamentarian, Cilia Flores  has been doing a spot of PR work to match that of the opposition Coordinadora Democratica (CD) to convince visiting six-nation Group of Friends delegates that President Hugo Chavez Frias does not have to sign any negotiated agreement regarding the recall referendum. 

"The Group of Friends must understand that the figure of the recall referendum as stipulated in the Bolivarian Constitution is a conquest of the revolution ... it's all there and therefore the President is not obliged to sign anything." 

Following the party line, Ms. Flores, who heads the pro-government parliamentary group, calls on the opposition negotiating team to show "political openness ... the best way to showing plurality is to transfer the forum to the National Assembly." 

Flores has praised Organization of American States (OAS)  general secretary, Cesar Gaviria, the Carter Center and the UN for their role in helping things along and says that even though their work is done, they should continue as facilitators.

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Thursday, May 08, 2003 By: David Coleman

The Group of Friends of Venezuela created last January from Brazil, Chile, Mexico, Portugal, Spain and the United States to attempt to help the Organization of American States (OAS) arrive at a solution to Venezuela's political crisis has brokered an agreement only to end political violence and verbal insults from both sides of the political divide.

The Chavez Frias government has put OAS Secretary General Cesar Gaviria in something of an embarrassing situation by appearing to back out of an April 11 deal for a revocatory referendum on the Presidency with government negotiators saying that opposition delegates don't represent all sectors opposing Chavez and suggesting that OAS-mediated talks should more properly be replaced by democratic debate in Venezuela's own National Assembly (AN).

Legislators say parliament is better equipped for the assignment since they task since its representatives were democratically elected by the Venezuelan people, while OAS delegates are political party appointees.

Meanwhile, Interior & Justice (MIJ) Minister, General Lucas Rincon has described opposition leaders as being "brain-damaged'' since they have "excessive expectations on fighting crime."  He added that exiled CTV union leader  Carlos Ortega is "not well in the head'' while the President consistently speaks of the opposition as fascists, terrorists and coup-plotters after a 2-month labor/employer stoppage which crippled the nation's oil production and cost $6 billion. Vice President Jose Vicente Rangel has blamed the opposition saying they're "obsessed with necrophilia" latching onto violent deaths in the criminal underworld as a pretext to blame the government as "perpetrators of evil."

President Hugo Chavez Frias says that "a reckless opposition" is more interested in anti-government hatred and his unconstitutional ouster than helping any efforts to govern the country under its new-found participative democracy ... his most rabid opponents vociferously accuse him of mismanaging the economy, dividing the country along class lines and increasing authoritarianism.

By CHRISTOPHER TOOTHAKER rockymounttelegram.com-Associated Press Writer

CARACAS, Venezuela (AP)--After months of talks, diplomats trying to broker a peaceful end to Venezuela's political troubles have little to show for their efforts--save for a moribund accord to end verbal insults.

The so-called Group of Friends of Venezuela made up of diplomats from six countries was created in January to help the Organization of American States broker a solution to Venezuela's crisis.

But Chavez's government embarrassed OAS Secretary General Cesar Gaviria by backing out of an April 11 deal for a referendum on Chavez's presidency.

It was a blow as well to the efforts of the six Friends _ Brazil, Chile, Mexico, Portugal, Spain and the United States.

Government negotiators now say that opposition delegates at the OAS talks don't represent all sectors opposing Chavez and suggest the OAS-mediated talks be replaced by debate in the Chavez-dominated National Assembly.

Lawmakers, they say, are better suited for the task because they were elected by the people, while the delegates at the OAS talks are chosen by political parties.

The six months of talks between Chavez's government and Venezuela's opposition have produced just an agreement in February to end verbal insults and political violence.

And even that pact has been forgotten.

The mudslinging reached a new low after an opposition general strike curbed Venezuelan oil production and cost the economy $6 billion but failed to oust Chavez.

When a protester was slain during an opposition May Day march, Vice President Jose Vicente Rangel blamed the opposition and said that government adversaries were obsessed with ``necrophilia.''

Interior Minister Gen. Lucas Rincon told cadets at a police academy graduation that opposition leaders were ``brain-damaged'' because of excessive expectations on fighting crime.

Carlos Ortega, a labor boss granted asylum in Costa Rica after leading the general strike, said Chavez was ``not well in the head.''

Chavez routinely assails what he calls a fascist,'' terrorist'' and ``coup-plotting'' opposition.

Chavez, a former paratrooper who led a failed 1992 coup attempt, was elected president in 1998 and re-elected to a six-year term in 2000. His opponents accuse him of mismanaging the economy, dividing the country along class lines and becoming increasingly authoritarian.

The president says a reckless opposition is more interested in his unconstitutional ouster than helping govern.