www.voanews.com VOA News 14 Jan 2003, 09:01 UTC

Venezuela's long-running general strike has contributed to a rise in global oil prices as the political strife in the South American nation enters its seventh week.

Crude oil on the New York Mercantile Exchange climbed to $32 per barrel Monday. In London, Brent crude was selling for more than $30 per barrel. Last week, prices reached $33 per barrel before OPEC announced its decision to boost production.

Analysts say the Venezuela unrest and the threat of a U.S. war with Iraq are contributing factors. Both nations are OPEC members.

On Monday, Venezuela's military fired rubber bullets and tear gas to disperse pro-government demonstrators in downtown Caracas. Similar incidents were reported in western Zulia state. Venezuela's opposition called the strike to force President Hugo Chavez to resign and call early elections. He refuses to give in to their demands.

Venezuela's energy minister said Monday the strike has cost the country four billion dollars. Venezuela is the world's fifth largest oil exporter. Meanwhile, President Chavez is expected to meet with U.N. Secretary-General Kofi Annan Thursday in New York to discuss Venezuela's political crisis.

International pressure is building for a solution to the conflict in Venezuela, which usually provides 13 percent of U.S. oil imports. South American leaders are preparing a compromise plan they hope to present to Venezuela to end the crisis. Brazil's new leftist President Luiz Inacio Lula da Silva and the secretary-general of the Organization of American States, Cesar Gaviria, are expected to discuss the plan Wednesday in Quito, at the inauguration of Ecuador's new president, Lucio Gutierrez.

Some information for this report provided by AP, AFP and Reuters.

www.globeandmail.com Associated Press

Rio de Janeiro — After only two weeks in office, Brazil's new president is indicating he is ready to shepherd through big changes — both at home, where he's raising hope for the poor, and abroad, where he wants his nation to take a greater role in international affairs.

Luiz Inacio Lula da Silva is scheduled to meet Wednesday with other Latin American leaders in Ecuador to form a “Group of Friends of Venezuela” aimed at resolving the crisis that has divided that country and crippled oil production in the world's fifth largest petroleum exporter.

Before leaving for Quito, Mr. da Silva plans to meet with Argentine President Eduardo Duhalde in Brasilia to discuss regional trade and the terms of a proposed hemispheric free trade zone.

Such an intense international presidential schedule is unprecedented in Brazil, where diplomatic efforts traditionally proceed at a snail's pace.

“He is creating a sense of movement,” said Stephen Haber of the Hoover Institution at Stanford University. “He has promised lots of change, and if he sits around and doesn't do much in the first 100 days, those expectations are dashed.”

Analysts say Mr. da Silva's rapid pace is even more striking coming so soon after last week's two-day trip to desperately poor areas in the country's northeast as part of his goal of reducing the hunger that affects between 20 and 44 million people in the nation of 175 million citizens.

“This activism in Brazil's diplomacy is new,” said William Goncalvez, a political analyst at the Federal University of Rio de Janeiro.

But it seems in line with Mr. da Silva's pledge to bring about changes for how Brazil is viewed domestically and internationally, and in keeping with signs in recent years that the country wants to play in the major leagues of foreign policy while developing new programs to help the country's poor.

In late December, Mr. da Silva sent one of his closest aides to Venezuela on a fact-finding mission that developed into the idea of creating a group of Latin American and European countries to assist mediation already under way by the Organization of the American States.

Foreign Minister Celso Amorim said Monday that Mr. da Silva is concerned about Venezuela and wants neighboring countries to help find a peaceful solution to the strike aimed at ousting Venezuelan President Hugo Chavez.

Some analysts believe Silva is also shaping a message to Washington — suggesting that the United States cannot impose its policies in the region.

“His goal is to signal that Brazil intends to be a leader, which given its economy and population makes perfect sense,” Mr. Haber said. “To the United States he is signaling that we are going to have an activist foreign policy not dictated by you to us.”

But Mr. da Silva is well aware that he must maintain an image showing he is dealing with pressing domestic issues. Just days after being inaugurated, he delayed for at least a year a $760-million (U.S.) plan to order 12 jet fighters needed by Brazil's air force.

In doing so, Mr. da Silva made it clear that his main funding priority for Brazil is the hunger eradication program. He even suggested that young Brazilian diplomats should regularly visit the Brazilian slums known as favelas — so they will learn about poverty firsthand and can better defend Brazil's interests abroad.

www.nationnews.com Tuesday 14, January-2003 by Robert Best

WITH THE OPPOSITION strike in Venezuela now more than six weeks old certain contrasts are revealing themselves among those who are demanding that President Hugo Chavez either resigns or calls early elections, and his supporters, The “Chavistas” who want him to stay.

For a start, the international news media, while making it difficult to accuse them of being partial towards the anti-Chavez protesters, have certainly been focusing more on these than on any elements that are supporting Chavez. This is most interesting since this trend comes in the wake of accusations within Venezuela itself, even before the anti-Chavez marchers had hit the road, that the Venezuelan media were anti-Chavez in much of their news coverage.

It has reached the point where a number of TV and radio stations have been attacked with the blame being placed on those who support the Venezuelan president. But it is not difficult to read between the lines with all that has been going on in the country.

For example, even when the international media carry pictures of the protesters, it is marked how better off those in the anti-Chavez ranks look compared with those who are rallying for the Chavez cause. We are seeing people in proper looking threads (clothes), some even wearing their jewellery as they march against Chavez compared with those who are shouting on his behalf, leaving no doubt by their appearance that they are among the country’s poor.

It comes over strongly in these pictures that while the anti-Chavez elements have been accusing him of dividing the country, with its more than 21 million people, the real “divider” is poverty.

Those who have been following developments in Venezuela will recall that reports from international agencies have noted that it is a country in which some 80 per cent of the population live below the poverty line. This is in a country that boasts of being the third largest oil producer in the Organisation of Petroleum Exporting Countries.

It is not difficult to understand why the 20 per cent who are better off see their way of life being threatened by signals sent by Chavez that he intended to do more to improve the living conditions of the poor, most of whom, it should be noted, are of native Indian origin.

A close look at the pictures coming out of Venezuela of those who have been queuing up outside the banks as the crisis there deepens, with the country’s bolivar currency taking a beating because of the long strike, leaves no doubt who really have money in the banks. This also accounts for the ability of so many of the middle class to keep up the strike pressure on Chavez, since they have been able to use their bank accounts like a “strike fund.” Now that the currency has began to slide it will be interesting to see how these protesters will react. Many of them will find themselves moving closer to that 80 per cent who are said to be below the “poverty line” if the strike drags on much longer.

It is still true that where a man’s treasure is, there will his heart be also, and we must now wait and see if the anti-Chavez protesters will have the heart to keep going for that much longer now that their protest to bring down Chavez is hitting them where “their way of life” is concerned.

Next door in Brazil, where socialist convert Lula da Silva has recently taken over as president with a strong promise, like Chavez, to improve the lot of his country’s poor, tentative steps have begun towards that end. But how what has been going on in Venezuela will affect Silva’s approach to the problem we can only guess.

Brazil is a country where it is reported that an estimated 54 million out of a population of 175 million live below the poverty line. This is a smaller percentage than Venezuela’s 80 per cent. It is not far-fetched to anticipate that should Silva make certain moves on behalf of the poor in his country, he could run into similar problems as Chavez has.

Silva was reported to have visited a number of poverty-stricken areas last week promising residents government programmes to end hunger and provide clean water; basics which have been lacking. He however told them that he cannot promise all their problems “will be solved from one day to the other.” He has given them, nonetheless, some hope. That is what Chavez has also given millions of poor in Venezuela. The problem ahead is that having held out that hope to the poor, it will not be easy, now there is some momentum, for those replacing him or ousting him, to put back the clock. It will be more of a challenge for those who are privileged, to continue in their comfort zone.

Hopes dashed deepen discontent and discontent courts strife. This is the path that beckons Venezuela if all involved are not careful. Chavez has really not been able to do much so far to help the poor. Yet that 80 per cent poor will be determined that more of that oil wealth trickles down.

www.abs-cbnnews.com

CARACAS, Venezuela - Six weeks into a strike against Venezuela's President Hugo Chavez, a solution to the political deadlock over his rule seemed no closer on Monday as fresh street clashes inflamed simmering tensions in the world's No. 5 oil exporter.

Police fired tear gas and a water cannon to disperse hundreds of Chavez supporters protesting against the strike in western oil-rich Zulia State. National Guard troops also repelled government sympathizers who attacked an opposition delegation with stones in central Caracas.

The clashes were the latest outbreak of violence in an escalating opposition strike aimed at forcing populist Chavez to resign. The shutdown has slashed Venezuela's vital oil exports, causing widespread domestic fuel and food shortages and jolting world energy markets.

U.S. oil prices rose 58 cents to $32.26 on Monday despite a pledge from the OPEC oil exporters cartel to increase output to compensate for the Venezuelan crisis.

But 43 days into the stoppage the government and opposition appeared no nearer to making a deal on elections that might restore stability to South America's largest oil producer.

International pressure is increasing for a solution to the conflict in Venezuela, which usually provides about 13 percent of U.S. oil imports. The crunch in Venezuela's petroleum supply comes as Washington prepares for a possible attack on Iraq.

Opposition leaders on Monday gave a lukewarm response to a fledgling initiative, first broached by Brazil, for a "group of friends" from regional nations to help broker an accord. Talks chaired by the Organization of American States have so far failed to reach an agreement on elections.

Chavez administration officials have welcomed the idea. The U.S. also last week backed the group of friends plan although it is not clear which nations would take part.

"We might agree to a group of friends, not of Chavez, not of the government, but of Venezuela, which are two different things. This initiative must be in tune with OAS negotiations," anti-Chavez union boss Manuel Cova told Reuters.

But other opposition leaders in Caracas questioned the initiative and said it could confuse negotiations.

Talks possible in Quito Timoteo Zambrano, an opposition negotiator visiting Washington, told Reuters that he opposed Brazil and Colombia taking part because they were neighboring countries. He mentioned Mexico, Peru and Canada as possible participants.

Brazil's leftist President Luiz Inacio Lula da Silva recently angered the opposition when he sent gasoline to Venezuela to offset shortages caused by the strike, a move Chavez foes described as unfriendly.

U.S. Ambassador to Venezuela Charles Shapiro said on Monday that presidents from the region could discuss the group of friends initiative when they meet in Quito on Wednesday for the swearing-in of new Ecuador president Lucio Gutierrez.

After traveling to Ecuador, Chavez is scheduled to hold talks with United Nations chief Kofi Annan in New York on Thursday, U.N. officials said.

Former paratrooper Chavez, elected in 1998, has faced an increasingly determined opposition campaign against his self-styled "revolution" for the poor since April when he survived a brief coup by rebel military officers.

But opponents say Chavez must step down for failing to deliver on his election vow to ease poverty in Venezuela, where most people benefit little from the nation's huge oil wealth.

Opposition leaders have promised to maintain the shutdown until Chavez quits. But the tough-talking leader has refused to step down. He has sent troops to control oil installations and threatened a crackdown on businesses, banks and schools involved in the strike.

Energy Minister Rafael Ramirez said on Monday the strike had cost Venezuela about $4 billion, battering an economy already in deep recession. Oil sales provide about half of government revenues.

Major private manufacturing industries, shopping malls and cinemas have stayed closed and most private schools have failed to open this year. But commerce is bustling in the center of Caracas. Even businesses in opposition strongholds have begun to open amid frustrations over the shutdown.

Accusing Chavez of corruption and dictatorial rule, his foes are demanding elections and also a nonbinding referendum on his rule on Feb. 2. They hope a referendum defeat for Chavez would give more weight to their call for elections.

But Chavez has challenged the referendum in the Supreme Court. He says the constitution only allows a binding referendum on his mandate in August -- halfway through his current term.

Please send your comments or feedback to newsfeedback@abs-cbn.com

www.miami.com Posted on Tue, Jan. 14, 2003 BY FRANCES ROBLES frobles@herald.com

CARACAS - Venezuela's national strike, 44 days long and aimed at forcing a new presidential election, has cost the government $4 billion, the energy minister said Monday night.

An alliance of business, oil and labor sectors declared strike here Dec. 2 in a quest to force the resignation of President Hugo Chávez. The former army paratrooper is accused by infuriated opponents of arming civilian militias and weakening democracy as he institutes a leftist revolution.

A staggering drop in oil production has cost the country $50 million a day in lost revenue, even as the government claims it is using retirees and ''patriot'' employees to bring production up to 800,000 barrels a day. Before the strike, the norm was three million barrels.

Among the costs of the strike, Energy and Mines Minister Rafael Ramírez cited imports of 2.2 million barrels of gasoline to satisfy domestic needs, at a cost $105 million. Anchored tankers whose captains refuse to sail cost $20,000 a day each, with a total price of $15 million, he said.

''These acts of terrorism and sabotage have had their consequences,'' he said. ``These are enormous losses, without including the enormous losses in the future.''

While the strike is faltering on the local business level, it has succeeded in devastating Petróleos de Venezuela, S.A., the state oil company.

''They have tried to stop food delivery -- they have not succeeded and will not succeed,'' Ramírez said of the opposition front. ``They have tried to create chaos -- they have not succeeded and will not succeed.''

Last week, Chávez claimed oil production was already up to 1.5 million barrels a day -- a figure most experts consider preposterous. Striking PDVSA managers said Monday's production was 413,000 barrels. Normally, 1.5 million barrels go to the United States alone.

''Let's just start by saying: The oil industry is on a work stoppage,'' said Juan Fernández, the company's former planning director, who says the government widely exaggerates its ability to break the strike. 'Mr. Ramírez referred to `sabotage.' Is he saying the 36,000 people on strike are sabotaging by remote control?''

Strikers have insisted they will continue the work stoppage until Chávez agrees to new elections. The president has refused, despite a nonbinding referendum called for Feb. 2 asking voters whether he should step down.