abc.net.au Thursday, January  16, 2003. Posted: 13:11:18 (AEDT)

Venezuelan President Hugo Chavez has sought backing from fellow Latin American leaders to resolve a six-week-old opposition strike that has crippled his country's vital oil exports. Arriving in Ecuador's capital for the inauguration of President Lucio Gutierrez, the populist Venezuelan leader branded his opponents "fascists" and "terrorists" and said he was fighting the same campaign that Jesus Christ had. "The whole world is divided," the embattled leader told a reporter in Quito. "Why do you think that Christ came to the world 2,000 years ago to fight for the poor against the powerful? We are waging this battle." Mr Chavez said he would discuss Venezuela's conflict with the region's presidents later in the day. Venezuela's opposition strike, which began on December 2, has threatened to engulf the world's number five petroleum exporter in economic turmoil and pushed up global oil prices to two-year highs. Strikers, including rebel state oil firm managers, have vowed to keep up the stoppage until Mr Chavez quits. Venezuela usually supplies about one sixth of US oil imports. Latin American leaders, including the presidents of Brazil, Peru and Chile, plan a battery of sideline meetings on Venezuela after Mr Gutierrez is sworn in. They are expected to discuss an initiative to set up a so-called "friends of Venezuela" group of regional nations to help broker an end to the standoff. The diplomatic effort aims to complement so-far fruitless talks in Venezuela by the head of the Organisation of American States, former Colombian president Cesar Gaviria, who is also in Quito and will be attending some of the meetings. "The goal of the countries grouped as 'friends of Venezuela' is to find a calm, peaceful solution which would above all satisfy the people of Venezuela," Brazil's President, Luiz Inacio Lula da Silva, said. Sympathy Mr Chavez can expect ideological sympathy from several of the presidents, including Lula - a former metalworker who is Brazil's first democratically elected leftist leader. Left-leaning Mr Gutierrez, the son of an Amazon riverboat salesman, has assured investors that he is far more financially and politically orthodox than Mr Chavez, whose foes accuse him of ruling like a dictator and of driving Venezuela into chaos. The Venezuelan opposition has cautiously accepted the "friendly nations" initiative as long as it supports the OAS negotiations. But it remains unclear which nations would be acceptable to both the Government and the Opposition. Nobel Peace Prize winner and former US president Jimmy Carter has arrived in Venezuela, where he plans to hold talks with both sides next week. Venezuela's opposition leaders, anticipating the Supreme Court will block their proposed non-binding February 2 referendum on whether Mr Chavez should quit, have started to examine alternatives in their campaign for elections. Venezuela's Supreme Court is still studying the legality of the referendum on whether Mr Chavez should step down. The Government has dismissed the poll plan as unconstitutional. Mr Chavez, who was elected in 1998 and survived a coup in April, has said he will ignore the referendum if it goes ahead. It was unclear when the court would hand down a ruling. While a consultative referendum could not force Mr Chavez from power, the Opposition hopes that a decisive rejection of his Government would strengthen their legitimacy. Mr Chavez, whose reforms aim to ease poverty, accuses his opponents of trying to illegal topple him by destroying the oil sector.

asia.reuters.com Wed January 15, 2003 08:54 PM ET By Phil Stewart and Patrick Markey

QUITO/CARACAS (Reuters) - A coalition including the United States and Brazil pledged on Wednesday to help Venezuela negotiate an end its political crisis and a six-week-old strike against President Hugo Chavez that has choked-off vital oil exports.

Latin American presidents meeting in Quito for the inauguration of President Lucio Gutierrez approved the creation of the "group of friends," which will sit at the negotiating table to aid so-far fruitless talks led by the head of the Organization of American States, Cesar Gaviria.

"We're looking for solution that is peaceful, constitutional, democratic," Gaviria said.

But Brazil, spearheading the group, said there was no quick fix to the bitter standoff and warned that clashes between the Venezuelan opposition and pro-Chavez militants could easily escalate without the right accord.

"There are no magic solutions. On the contrary, aiming for magic solutions could lead to more violent conflicts," said Brazil's Foreign Minister Celso Amorim.

Venezuela's opposition strike, which began Dec. 2, has threatened to plunge the world's No. 5 petroleum exporter into economic turmoil and helped push global oil prices to two-year highs. Strikers, including rebel state oil firm managers, have vowed to keep up the stoppage until Chavez quits.

U.S. oil futures on Wednesday settled up 84 cents at $33.21 as energy markets were rattled by the strike and fears of an attack on Iraq. Venezuela usually supplies about one sixth of U.S. oil imports.

Venezuela's bolivar currency, battered by political and economic uncertainty, fell 6.1 percent on Wednesday against the dollar. The economy was mired in recession even before the strike, which has cost Venezuela about $4 billion so far.

The industrial shut-down has intensified the bitter feuding between Chavez and his foes, who accuse him of driving Venezuela into economic and political turmoil with his reforms aimed at easing poverty. The opposition has stepped up its campaign since Chavez survived a brief coup in April.

BRAZIL'S DARING DIPLOMACY

The "group of friends," which will also include Mexico, Chile, Spain and Portugal, is the brainchild of Brazil's first leftist leader -- Luiz Inacio Lula da Silva, who took office just two weeks ago.

Lula, as the former union leader is universally known, had pitched the "group of friends" to Chavez during a breakfast on the Brazilian's first working day as president, the Venezuelan leader told reporters.

"Lula and Brazil should assume and are assuming the prominent role in the leadership of Latin America," Chavez said shortly before a closed-door meeting with the Brazilian president in Quito. "Brazil's initiative is positive, and we completely agree with it," he said.

At the same time, Chavez left little hope for negotiation. He branded his opponents "fascists" and "terrorists" and said he was fighting the same campaign that Jesus Christ had.

"The whole world is divided," the embattled leader told a reporter in Quito. "Why do you think that Christ came to the world 2,000 years ago to fight for the poor against the powerful? We are waging this battle."

Lula told reporters that his main objective wasn't to please Chavez, but to end the conflict.

"The goal of the countries grouped as 'friends of Venezuela,' is to find a calm, peaceful solution which would above all satisfy the people of Venezuela," Lula said.

The Venezuelan opposition has cautiously accepted the "friendly nations" initiative as long as it supports the OAS talks. But opposition negotiator, Timoteo Zambrano, told Reuters Monday that he rejected Brazil as part of the group.

Brazil angered strikers recently when it sent gasoline to Venezuela to help offset fuel shortages caused by the shutdown. The opposition described the move as "unfriendly."

Nobel Peace Prize winner and former U.S. president Jimmy Carter arrived Wednesday in Venezuela, where he plans to hold talks with both sides next week.

Venezuela's opposition leaders, anticipating the Supreme Court will block their proposed nonbinding Feb. 2 referendum on whether Chavez should quit, on Wednesday started to examine alternatives in their campaign for elections.

While a consultative referendum could not force Chavez from power, the opposition hopes that a decisive rejection of his government would strengthen their legitimacy.

news.bbc.co.uk Thursday, 16 January, 2003, 02:06 GMT Venezuelans now have to queue days for gas

The United States is joining a diplomatic initiative involving five other countries to find a solution to Venezuela's seven-week political and economic crisis.

Along with Brazil, Chile, Spain, Mexico and Portugal, it has set up a group called "Friends of Venezuela" to help end the country's escalating chaos.

The group will develop a proposal for early elections and back existing negotiations sponsored by the Organization of American States (OAS).

US-Venezuelan relations soured following a failed coup against Chavez

A 46-day general strike called by opponents of President Hugo Chavez seeking his resignation is threatening the country's crucial oil industry.

But our correspondent says although the country is heading towards economic collapse, Mr Chavez is refusing to give in to the opposition's demands.

A new wave of demonstrations this week involving tens of thousands of people led the president to say he would fire or jail striking teachers and take over banks if they remain closed.

Until now the US has been reluctant to get too involved in Venezuela's political turmoil.

US embarrassment

In April last year the Bush administration had its fingers burned when it appeared to accept what turned out to be a short-lived coup against President Chavez.

The coup failed, and relations between Mr Chavez and Washington - which were uncomfortable at the best of times - never recovered.

But Venezuela is becoming hard to ignore.

It is the largest foreign oil supplier to the US, and the bitter hostility between government and opposition supporters has led to talk of civil war.

washingtontimes.com

     QUITO, Ecuador, Jan. 15 (UPI) -- Brazil's president Wednesday called for a diplomatic solution to the general strike crippling neighboring Venezuela, which has endured more than a month of unrest.

     While attending the inauguration of Ecuador's new President Lucio Gutierrez in the capital, Quito, Brazil's own newly anointed leader, Luiz Inacio Lula da Silva, stressed Venezuela's importance to the continent's largest country and economy.

     "We want Venezuela to find its way in the most tranquil and peaceful manner possible," said Lula. "What we really want is to help Venezuela find a way peacefully and for the Venezuelan people to be happy."

     While finding a peaceful end to the now 45-day strike may be a tall order, the Brazilian leader went to Quito on Wednesday with an agenda that included a brainstorming session with other Latin American leaders about how to end the strike.

     Lula brought with him the idea of creating a regional, multi-national "Friends of Venezuela Group" -- Grupo de Paises Amigos da Venezuela -- to help bring a peaceful end to the strike, as well as daily protests and clashes between supporters and detractors of Venezuelan President Hugo Chavez.

     A leftist with an inclination toward social reform, Lula has strong ties to Chavez, also from the left. Opponents of the Venezuelan president allege he has taken the nation too far to the left at the expense of the economy.

     Chavez -- who also attended the inauguration -- heaped praise on Lula for calling the meeting of president to help thrash out a solution to the strike.

     "It is extraordinary, because Lula and Brazil should assume, as they are already doing, the role of protagonists in leading the new South America," Chavez asserted.

     Not all Venezuelans shared their president's enthusiasm for Brazilian intervention in ending the strike. Protestors Tuesday gathered outside the Brazilian Embassy in the Venezuelan capital, Caracas, chanting and waving signs denouncing Brazil's intended role in their country's affairs.

     "We like samba -- we don't like intromission," read one sign, referring to the popular Brazilian dance.

     The Lula-led meeting of regional leaders has also drawn the ire of Washington, who had hoped to form its own "Friends of Venezuela" group to end strike that has severely handicapped Venezuela's oil production capabilities.

     A Washington Post article last week noted that the President Bush's administration was hoping to head off the left-leaning Lula government's initiative, adding that U.S. and foreign diplomatic sources were concerned that the effort would ultimately be counterproductive.

     The U.S.-led effort would include Brazil, as well as the United States, Mexico, Chile and possibly Spain, and a representative of U.N. Secretary-General Kofi Annan, according to the Post.

     U.S. State Department spokesman Richard Boucher recently explained the Bush administration's position on regional intervention in Venezuela, simply stating, "We don't think there needs to be some separate group of friends formed."

     Lula has maintained a non-adversarial, diplomatic position on the U.S. stance while moving ahead with the proposed meeting. His presidential spokesman, Andre Singer, said Tuesday that the Friends of Venezuela Group "would be to support the negotiation effort by Organization of American States Secretary-General Cesar Gaviria, to resolve the crisis in that country."

     Gaviria had been mediating talks between the government and opposition leaders in recent weeks with little success. The effort is currently at a standstill due to a disagreement regarding the possible ouster of Chavez. The OAS secretary-general also attended Wednesday's meeting of regional leaders.

     Singer said that Brazil's new Foreign Relations Minister Celso Amorim had spoken to U.S. Secretary of State Colin Powell about the upcoming meeting, though he didn't expand on the specifics of the leaders' discussion.

     "There is a convergence of opinion concerning the need to overcome the crisis in Venezuela," he said somewhat elusively.

     The Bush administration initially appeared apprehensive about interfering in the Venezuela crisis. Last spring, Washington came out in support of Chavez's ouster, only to have the Venezuelan president return to power a few days later.

     But now it appears the U.S. president is becomingly increasingly interested in ending a strike that has denied the United States the more than 1 million barrels of oil a day it was receiving from Venezuela.

     -0-      (Reported by Carmen Gentile, UPI Latin America correspondent,

www.voanews.com VOA News 16 Jan 2003, 00:18 UTC

Venezuelan President Hugo Chavez meets Thursday in New York with U.N. Secretary General Kofi Annan as six countries launch a joint effort to help end Venezuela's political crisis and crippling general strike.

Secretary-General Annan says he hopes all parties in Venezuela will use democratic and constitutional means to resolve their differences.

Meanwhile, Brazil, Chile, Mexico, Portugal, Spain and the United States have officially launched what they call the "Friends of Venezuela" group. Brazilian President Luiz Inacio Lula da Silva proposed the group. It will complement efforts by the Organization of American States to help Venezuela solve its problems.

President Chavez opposes U.S. participation in the Friends group unless President Bush personally takes part in its meetings.

A State Department spokesman, Richard Boucher, said Wednesday the United States has been and will continue to be very active with both the government and the opposition in seeking a political solution in Venezuela.

Venezuela is in the seventh week of a general strike that has shut down oil production, sending world oil prices climbing.

Opposition leaders have demanded that leftist President Chavez resign, saying his economic policies are destroying the country. Both sides are waiting for Venezuela's Supreme Court to decide the legality of a proposed February second referendum on whether Mr. Chavez should resign.

The government calls the referendum unconstitutional. The opposition hopes it could lead to early elections. Some observers say despite Mr. Chavez's widespread unpopularity, he would likely win re-election.

Some information for this report provided by AFP and Reuters.