www.cnn.com From Diana Muriel CNN Tuesday, January 21, 2003 Posted: 2:20 PM EST (1920 GMT)

A strike in its eighth week is crippling the economy of Venezuela, once the world's fifth-largest exporter of oil. CNN's Diana Muriel reports. (January 21)

CARACAS, Venezuela (CNN) -- Former U.S. President Carter has proposed two alternatives to end a strike that has crippled Venezuela's economy and damaged the world oil market: hold new presidential elections or agree to wait for a binding referendum in August.

Carter has been in Venezuela trying to mediate the crisis between President Hugo Chavez and opposition leaders.

Speaking Tuesday, Carter said the two sides have welcomed the proposals for consideration and "want to reach an agreement."

In its eighth week, the strike has put pressure on Chavez to step down and hold early elections. Opposition leaders accuse him of operating an undemocratic regime that hurts the people.

The presidential term is six years. Under the Venezuelan Constitution, a referendum is held midway through the term. If the president loses, new elections are held. The referendum on Chavez is scheduled for August 19, but opposition leaders have insisted that time frame is too long to wait.

The opposition has pushed for a nonbinding referendum in February, which could help build international pressure for elections sooner. The opposition collected the necessary number of signatures required under Venezuelan law to hold a nonbinding referendum, but the government refused to acknowledge the petition. The opposition then appealed to the Supreme Court, which has yet to rule.

Carter said the strike could come to an end if the two sides agree to either of his proposals.

He did not say how long the presidential term would become if the country's constitution was amended to allow for early general elections.

A student walks past soldiers guarding the palace Tuesday in Caracas.

Carter, last year's winner of the Nobel Peace Prize, often has monitored elections around the world. When asked Tuesday whether he would be willing to monitor elections in Venezuela, Carter said his foundation has been invited to assist and will do what it can. But, he said, the decision belongs to Venezuela's people.

Carter said he would speak Friday with the Group of Friends of Venezuela at a meeting in Washington. The group, which includes the United States, Spain, Portugal, Mexico, Chile and Brazil, was created last week in Quito, Ecuador, at the suggestion of Brazil's new president, Luiz Inacio Lula da Silva.

Carter also has met with leaders of the Organization of American States, which has been brokering talks.

Carter said that no one thought the strike would last 50 days, and no one wants to see it go on weeks longer.

The strike has crippled oil exports in Venezuela, which was the world's fifth-largest exporter, and cost the country billions of dollars.

Fighting between protesters and government troops has turned violent at times.

www.cnn.com From Diana Muriel CNN Tuesday, January 21, 2003 Posted: 2:20 PM EST (1920 GMT)

A strike in its eighth week is crippling the economy of Venezuela, once the world's fifth-largest exporter of oil. CNN's Diana Muriel reports. (January 21)

CARACAS, Venezuela (CNN) -- Former U.S. President Carter has proposed two alternatives to end a strike that has crippled Venezuela's economy and damaged the world oil market: hold new presidential elections or agree to wait for a binding referendum in August.

Carter has been in Venezuela trying to mediate the crisis between President Hugo Chavez and opposition leaders.

Speaking Tuesday, Carter said the two sides have welcomed the proposals for consideration and "want to reach an agreement."

In its eighth week, the strike has put pressure on Chavez to step down and hold early elections. Opposition leaders accuse him of operating an undemocratic regime that hurts the people.

The presidential term is six years. Under the Venezuelan Constitution, a referendum is held midway through the term. If the president loses, new elections are held. The referendum on Chavez is scheduled for August 19, but opposition leaders have insisted that time frame is too long to wait.

The opposition has pushed for a nonbinding referendum in February, which could help build international pressure for elections sooner. The opposition collected the necessary number of signatures required under Venezuelan law to hold a nonbinding referendum, but the government refused to acknowledge the petition. The opposition then appealed to the Supreme Court, which has yet to rule.

Carter said the strike could come to an end if the two sides agree to either of his proposals.

He did not say how long the presidential term would become if the country's constitution was amended to allow for early general elections.

A student walks past soldiers guarding the palace Tuesday in Caracas.

Carter, last year's winner of the Nobel Peace Prize, often has monitored elections around the world. When asked Tuesday whether he would be willing to monitor elections in Venezuela, Carter said his foundation has been invited to assist and will do what it can. But, he said, the decision belongs to Venezuela's people.

Carter said he would speak Friday with the Group of Friends of Venezuela at a meeting in Washington. The group, which includes the United States, Spain, Portugal, Mexico, Chile and Brazil, was created last week in Quito, Ecuador, at the suggestion of Brazil's new president, Luiz Inacio Lula da Silva.

Carter also has met with leaders of the Organization of American States, which has been brokering talks.

Carter said that no one thought the strike would last 50 days, and no one wants to see it go on weeks longer.

The strike has crippled oil exports in Venezuela, which was the world's fifth-largest exporter, and cost the country billions of dollars.

Fighting between protesters and government troops has turned violent at times.

www.sun-sentinel.com By ALEXANDRA OLSON Associated Press Posted January 21 2003, 2:16 PM EST

CARACAS, Venezuela -- Former President Carter said Tuesday he drafted two proposals for leading Venezuela toward elections and ending a deadly 51-day-old strike intended to force President Hugo Chavez from office.

Carter made his proposals after attending negotiations between the government and opposition and meeting separately with Chavez and strike leaders. His Atlanta-based Carter Center, the Organization of American States and the United Nations are sponsoring the talks.

One proposal would amend Venezuela's constitution to allow for early general elections and to cut terms in office, Carter said. The amendment would have to be approved by Congress and voters.

Venezuela's opposition would call off the strike and, in return, the government _ which has a majority in Congress _ would agree to move quickly to adopt the amendment and organize early elections, Carter said.

Carter's second proposal calls for both sides to wait for a recall referendum on Chavez's rule, which the constitution says can happen halfway into the president's six-year term. In Chavez's case, that is August.

The Nobel Peace Prize winner said before leaving Venezuela that the government and opposition would receive his proposals later Tuesday.

We've been pleased with the reception we've had from both the government and the opposition,'' Carter said. My opinion is that both sides want to end an impasse that is destroying the economy.''

Business leaders, labor unions and opposition parties launched the strike Dec. 2 to demand that Chavez resign or call early elections.

Chavez said Tuesday he told Carter he would abide by any constitutional changes.

``If the people were to decide it should be four years ... I have no problem with that,'' Chavez said.

Strike leader Carlos Ortega, president of the 1 million-member Confederation of Venezuelan Workers, said earlier that Chavez never would accept a vote on his rule.

The strike has crippled Venezuela's oil industry, which was the world's fifth-largest exporter and a major supplier to the United States.

The strike has slashed production by more than two-thirds and caused domestic shortages of gasoline, food and drinking water. It has cost Venezuela $4 billion, according to the government, and contributed to the plummeting of the bolivar currency.

The Organization of Petroleum Exporting Countries said it will be difficult to make up for shortages of Venezuelan oil in the United States because many U.S. refineries are geared to process heavier Venezuelan crude.

After an early surge Tuesday, European Brent crude fell to $30 a barrel after Venezuelan tanker pilots announced they would resume work _ which could convince foreign tanker companies to dock at Venezuelan ports. Foreign companies refused to do so during the strike for security and insurance reasons.

At least six people have died in political violence since the strike began, including a man killed Monday in clashes between Chavez supporters and opposition marchers. The violence in Charallave, 20 miles south of Caracas, also injured dozens.

Six countries _ Brazil, Chile, Mexico, Portugal, Spain and the United States _ have begun an initiative called ``Friends of Venezuela'' to help end the crisis. Diplomats from the six nations will meet at OAS headquarters in Washington on Friday.

The National Elections Council, accepting an opposition petition, agreed to organize a Feb. 2 nonbinding referendum asking citizens whether Chavez should step down.

Chavez says the vote would be unconstitutional and his supporters have challenged it in the Supreme Court. But the president has welcomed a possible binding referendum halfway through his term.

The 48-year-old Chavez was elected in 1998 and re-elected in 2000 on promises to redistribute the country's vast oil wealth among the poor majority.

His opponents accusing him of steering the economy into recession with leftist policies and running roughshod over democratic institutions.

news.ft.com By Andy Webb-Vidal in Caracas Published: January 21 2003 19:58 | Last Updated: January 21 2003 19:58

A seven-week oil workers' strike in Venezuela appeared to be weakening on Tuesday, although industry experts said it would be many weeks before the government of President Hugo Chávez was able to ramp up oil exports to anything close to pre-strike levels.

Tanker pilots in Lake Maracaibo, in the west of the country, were returning to work, shipping sources said. This development will allow employees at Petróleos de Venezuela (PDVSA), the state oil company to move several strike-bound vessels.

Since December, Venezuela, previously the world's fifth-largest oil exporter, has been shipping about a tenth of its pre-strike volume of 2.4m barrels per day, helping send oil prices to their highest level in two years.

Shipping sources said 70 per cent of pilots were now set to return to work, a move that was likely to lead to the normalisation of shipping activities in the crucial Lake Maracaibo area within the next week.

Horacio Medina, leader of the Unapetrol oil workers' union, which is aligned with the opposition-led drive aimed at forcing Mr Chávez to resign and call early elections, said the pilots had received a generous "offer" from the government.

The pilots' return is likely to prompt other dissident PDVSA employees, particularly blue-collar oilfield workers, to follow suit as morale weakens.

"This is the government's way of dividing and ruling, breaking up and paying off components that are critical to getting some of the crude exported," said Fareed Mohamedi of PFC Energy, a Washington-based consultancy.

The return of tanker pilots was a critical step that would allow non-PDVSA vessels to dock and load with crude oil, Mr Mohamedi said. "It would be a good start for the government. It needs to export anything it can."

But it was unclear on Tuesday how quickly the government would be able to break the strike in other sectors of the oil industry, and in turn lift crude oil output and exports.

Venezuela is currently producing 660,000 b/d of crude oil, according to dissident PDVSA managers, barely a fifth of the 3m b/d it was producing in November.

Permanent damage to as many as 20 per cent of the country's oil wells, a lack of experienced management and a cashflow crisis in PDVSA will render it impossible for the government to raise crude output above 1.5m b/d in less than three months, industry sources have warned.

www.voanews.com VOA News 21 Jan 2003, 19:14 UTC

Venezuela's government has told two private television stations they are under investigation and face possible fines for airing commercials in support of the long-running general strike.

Officials in President Hugo Chavez's government informed Globovision and Radio Caracas Television Monday of the decision to open the inquiry.

The two stations responded by condemning the inquiry as an attack on press freedom. The development comes three days after Vice President Jose Vicente Rangel said the government was not considering shutting down the two media organizations.

President Chavez has long waged a bitter war of words against private local broadcast media and newspapers that have criticized his policies. He has accused media owners of being part of the opposition conspiring to overthrow his government.

Last September, two international media watchdog groups working in Venezuela said journalists there face a tough time because of verbal and physical attacks by supporters of President Chavez.

The Inter-American Press Association and International Press Institute gave that assessment, saying Venezuelan journalists are in danger of retaliation because they have been critical of the president's policies.

Some information for this report provided by Reuters and AP.