abcnews.go.com Feb. 4 — By Pascal Fletcher

CARACAS, Venezuela (Reuters) - Venezuelan President Hugo Chavez, gloating over his opponents' failure to oust him in a two-month strike, said Tuesday he would deny them access to hard currency through foreign exchange controls to be introduced this week.

"We're going to shut the door on them ... not a single dollar more for the coup mongers," left-wing populist Chavez said in a fiery speech promising a "revolutionary offensive" against his foes, who include many private businessmen.

Speaking at a ceremony to commemorate a botched coup bid he led in 1992, Chavez said foreign exchange curbs to be introduced Thursday would be administered by a loyal retired army officer, Capt. Edgar Hernandez.

Hernandez will head a currency control office set up to counter the economic damage from the nine-week-old opposition strike, which has triggered a financial crisis in the world's No. 5 oil exporter.

The government announced the controls, along with heavy budget cuts, to halt capital flight and a sharp drop in the bolivar currency caused by the grueling protest shutdown.

After support for the strike had crumbled, opposition leaders Sunday scaled it back, keeping it alive only in the strategic oil industry. The walkout there by thousands of state oil employees has slashed production and exports.

Chavez, wearing the red paratrooper's beret that is the symbol of his self-styled "revolution," said oil production was rising again. He said it was fast approaching 2 million barrels per day (bpd), two thirds of pre-strike levels.

Opposition oil strikers put output at 1.2 million bpd.

Chavez used baseball imagery to say the strikers had suffered a "tremendous defeat." "The coup mongering, fascist opposition had their turn with the bat and they've struck out three times ... now it's our turn to bat," he said.

"This is the year of the revolutionary offensive ... Chavez is still here, tougher and stronger than ever," he added after distributing property titles to poor families.

Anti-Chavez business leaders, their companies already hurting from the effects of the strike, say they fear the president will use the exchange controls to block their access to dollars and favor government supporters.

GOOD COUP, BAD COUP

Although full details of the controls have yet to be announced, Finance Minister Tobias Nobrega has said they will initially consist of a single exchange rate, to be adjusted monthly, followed by a dual rate later. The government will give priority to imports of fuel, medicine and food.

Chavez, who survived a coup by military opponents last year and repeatedly accuses his foes of trying to topple him again, taunted his opponents Tuesday by leading an official commemoration of his own Feb. 4, 1992 coup attempt.

"The coup plotters of 2002 are enemies of the nation, while we rebels of 1992 are patriots who always defend, and always will defend, the nation," the president said.

After his bungled assault against the presidential palace in 1992, Chavez was arrested and served two years in jail. The publicity he gained launched him on the path to the presidency, which he won with widespread support in a 1998 election.

He has rejected calls for early elections. In a switch of tactics, opposition leaders grouped in the Coordinadora Democratica coalition are now relaunching a campaign to try to trigger an early poll using constitutional mechanisms.

Chavez portrays his foes as a rich, resentful elite trying to defend their privileges. They condemn him as corrupt and inept, say he is seeking to install Cuba-style communism and accuse him of obstructing their campaign for early elections.

In a nationwide operation on Sunday, opposition leaders said they had collected more than 4 million signatures backing a constitutional amendment that would trigger early elections.

The government says its foes must wait until Aug. 19, halfway though the president's term. After that date, the constitution allows for a binding referendum on Chavez's rule.

The opposition, which appears divided over strategy and lacks a clear leader, wants elections sooner, or at the latest on Aug 19. The Organization of American States and a six-nation "group of friends" are backing the ongoing negotiations for an agreement on elections. (Additional reporting by Ana Isabel Martinez)

abcnews.go.com The Associated Press CARACAS, Venezuela Feb. 4 —

President Hugo Chavez celebrated Tuesday's anniversary of a 1992 coup attempt that launched his political career while opposition leaders trying to oust him mourned those killed in the botched putsch.

Under international pressure to end Venezuela's political crisis, Chavez's government rejected an opposition proposal to shorten his presidential term and instead suggested a referendum on his rule though it would take place far later than the opposition wants.

About 20 Chavez supporters briefly attacked the offices of Caracas' opposition mayor with gunfire, rocks and slingshots after a ceremony marking the Feb. 4, 1992, coup bid against President Carlos Andres Perez.

Five people were hurt by rocks and marbles flung by slingshots, said Ramon Muchacho, head of security for Mayor Alfredo Pena. National guard troops dispersed the "chavistas" with tear gas.

"How long is the government going to call for peace while it promotes this violence?" said Muchacho.

Chavez has declared Feb. 4 a day of "national jubilee," but few observed it as millions returned to work at the end of a 66-day-old strike that failed to force Chavez's ouster.

According to Provea, an independent human rights group, 17 soldiers and more than 80 civilians were killed during the 1992 coup led by Chavez, then an army paratroop commander. Fifty-one troops were wounded.

Chavez was jailed for two years, then embarked on a quest that led him to the presidency in 1998 on an anti-poverty platform. He was re-elected to a six-year term in 2000.

"February 4th wasn't a coup," Chavez said Tuesday, wearing a red beret similar to one he wore when he was captured in 1992. "It was a volcano that erupted from the moral depths of the military youth who rebelled against a military elite submissive to corrupt governments."

Anti-Chavez protesters mourned the 1992 dead. "Those deaths went unpunished," said opposition leader Jesus Torrealba.

Opposition TV stations and newspaper advertisements urged citizens to wear black clothing, turn their house lights off for a half-hour late Tuesday and fly Venezuelan flags at half staff.

The anniversary came at the end of an opposition strike that didn't oust Chavez but did hobble Venezuela's oil industry, the fifth-largest exporter in the world. The strike also managed to bring international pressure on Chavez and opposition leaders to find an electoral solution to Venezuela's political crisis.

Ronald Blanco la Cruz, a government negotiator at talks mediated by the Organization of American States, said the only acceptable proposal was a binding referendum on Chavez's presidency.

While Chavez has said the vote could be held in August, Blanco de la Cruz said efforts to organize the vote could only begin in August.

"This doesn't bring us any closer to a peaceful electoral solution," said Alfonzo Marquina, a member of the opposition Democratic Action party. "It could push the solution back as far as next year."

Blanco la Cruz rejected an opposition proposal to hold a referendum that could change the constitution, shorten Chavez's term to four years, and hold early general elections.

"Otherwise, people would start collecting signatures as soon as a president is elected," Blanco la Cruz told the state-run Venezolana de Television.

Chavez scoffed at opposition claims to have collected 4 million signatures for a referendum in a nationwide drive on Sunday.

"To hide the huge defeat we dealt them, they're saying they collected 4 million signatures in one day," Chavez said. "Well, let them believe their stories. Let them believe their lies."

Before any vote can be organized, the Chavez-controlled National Assembly must appoint a new National Electoral Council.

Shopping malls, fast food restaurants and factories reopened Tuesday, but the walkout continued at the state-owned oil monopoly. Chavez's government has raised oil production to more than 1 million barrels a day about a third of pre-strike production.

www.bayarea.com Posted on Tue, Feb. 04, 2003

CARACAS, Venezuela (AP) - Supporters of President Hugo Chavez opened fire today on the offices of Caracas' opposition mayor today, injuring four people in an attack that marred the government's commemoration of the 11th anniversary of a failed coup led by Chavez.

The brief assault on the offices of Mayor Alfredo Pena began after government officials, including Vice President Jose Vicente Rangel, honored the coup anniversary at a nearby plaza.

When Rangel and the other officials left the area, about 20 Chavez supporters fired handguns and threw rocks at city hall.

Three police officers and a civilian were injured, said the head of the mayor's security office, Ramon Muchacho. A fire official said the injuries were caused by rocks and sticks and that nobody was hit by the gunfire.

National guardsmen fired tear gas to disperse the rioters and arrested several. The mayor was not at city hall at the time of the attack.

The incident raised tensions as a 66-day-old opposition strike against Chavez was winding down. Six people have died in political violence since the strike began Dec. 2.

Earlier today, a government official rejected an opposition proposal to cut Chavez's term and instead suggested a referendum on Chavez's rule later this year to end the country's political crisis.

Ronald Blanco la Cruz, a government negotiator at talks mediated by the Organization of American States, said that under the government's proposal, opponents can start collecting signatures for a so-called recall referendum in August, halfway into Chavez's six-year term.

That was sure to infuriate the opposition, which says it already has collected more than 4 million signatures for a constitutional amendment ending Chavez's term this year and calling new elections.

Chavez repeatedly has pledged that a recall vote can be held in August -- not just that it can start to be organized, as indicated by Blanco la Cruz.

Blanco la Cruz, governor of Tachira state, also said the government has rejected the opposition's proposals to amend the constitution.

``Otherwise, people would start collecting signatures as soon as a president is elected,'' he told the government's Venezolana de Television.

Venezuela's constitution requires signatures from 20 percent of 11 million registered voters -- roughly 2.2 million people -- to demand a recall vote.

OAS Secretary General Cesar Gaviria has been mediating talks since November to try to end Venezuela's political deadlock.

He received a boost when former President Jimmy Carter laid out two options for Venezuela: a recall vote in August, or a constitutional amendment shortening Chavez's term to four years with an early election.

Jailed for two years after the failed coup attempt, Chavez was elected president in 1998 on an anti-poverty platform and re-elected in 2000. His current term ends in January 2007.

Citing economic and political turmoil, Venezuela's opposition launched the general strike Dec. 2 to seek his ouster.

The strike crumbled this week as workers in all industries except oil returned to their jobs. The government, meanwhile, raised oil production to 1.2 million barrels a day, up from 1.1 million barrels over the weekend, according to dissident staff at the state oil company.

Venezuela produced 3.2 million barrels a day before the strike. It is a major supplier of crude to the United States and the world's fifth-largest petroleum exporter.

Venezuela was expected to add 200,000 more barrels per day in the coming weeks, staff at Petroleos de Venezuela S.A. said.

Fear of bankruptcy and shortages of gasoline and other essentials prompted leaders to end the strike. But they proclaimed victory, saying the strike had drawn pressure from the international community on Chavez to resolve the stalemate.

Some analysts disagreed.

The strike reflected the disorganization of the opposition,'' said Riordan Roett, director of Western Hemisphere studies at Johns Hopkins University. It was anti-Chavez but never pro-anything. What were they going to replace Chavez with?''

abcnews.go.com The Associated Press CARACAS, Venezuela Feb. 4 —

Supporters of President Hugo Chavez opened fire Tuesday on the offices of Caracas' opposition mayor Tuesday, injuring four people in an attack that marred the government's commemoration of the 11th anniversary of a failed coup led by Chavez.

The brief assault on the offices of Mayor Alfredo Pena began after government officials, including Vice President Jose Vicente Rangel, honored the coup anniversary at a nearby plaza.

When Rangel and the other officials left the area, about 20 Chavez supporters fired handguns and threw rocks at city hall.

Three police officers and a civilian were injured, said the head of the mayor's security office, Ramon Muchacho. A fire official said the injuries were caused by rocks and sticks and that nobody was hit by the gunfire.

National guardsmen fired tear gas to disperse the rioters and arrested several. The mayor was not at city hall at the time of the attack.

The incident raised tensions as a 66-day-old opposition strike against Chavez was winding down. Six people have died in political violence since the strike began Dec. 2.

Earlier Tuesday, a government official rejected an opposition proposal to cut Chavez's term and instead suggested a referendum on Chavez's rule later this year to end the country's political crisis.

Ronald Blanco la Cruz, a government negotiator at talks mediated by the Organization of American States, said that under the government's proposal, opponents can start collecting signatures for a so-called recall referendum in August, halfway into Chavez's six-year term.

That was sure to infuriate the opposition, which says it already has collected more than 4 million signatures for a constitutional amendment ending Chavez's term this year and calling new elections.

Chavez repeatedly has pledged that a recall vote can be held in August not just that it can start to be organized, as indicated by Blanco la Cruz.

Blanco la Cruz, governor of Tachira state, also said the government has rejected the opposition's proposals to amend the constitution.

"Otherwise, people would start collecting signatures as soon as a president is elected," he told the government's Venezolana de Television.

Venezuela's constitution requires signatures from 20 percent of 11 million registered voters roughly 2.2 million people to demand a recall vote.

OAS Secretary General Cesar Gaviria has been mediating talks since November to try to end Venezuela's political deadlock.

He received a boost when former President Jimmy Carter laid out two options for Venezuela: a recall vote in August, or a constitutional amendment shortening Chavez's term to four years with an early election.

Jailed for two years after the failed coup attempt, Chavez was elected president in 1998 on an anti-poverty platform and re-elected in 2000. His current term ends in January 2007.

Citing economic and political turmoil, Venezuela's opposition launched the general strike Dec. 2 to seek his ouster.

The strike crumbled this week as workers in all industries except oil returned to their jobs. The government, meanwhile, raised oil production to 1.2 million barrels a day, up from 1.1 million barrels over the weekend, according to dissident staff at the state oil company.

Venezuela produced 3.2 million barrels a day before the strike. It is a major supplier of crude to the United States and the world's fifth-largest petroleum exporter.

Venezuela was expected to add 200,000 more barrels per day in the coming weeks, staff at Petroleos de Venezuela S.A. said.

Fear of bankruptcy and shortages of gasoline and other essentials prompted leaders to end the strike. But they proclaimed victory, saying the strike had drawn pressure from the international community on Chavez to resolve the stalemate.

Some analysts disagreed.

The strike reflected "the disorganization of the opposition," said Riordan Roett, director of Western Hemisphere studies at Johns Hopkins University. "It was anti-Chavez but never pro-anything. What were they going to replace Chavez with?"

usinfo.state.gov 04 February 2003 (Proposals follow views set forth by Secretary Powell) (500) By Eric Green Washington File Staff Writer

Washington -- Venezuela's political impasse must be resolved peacefully and democratically, says a group of six nations working together to help the Secretary General of the Organization of American States (OAS) find a negotiated solution to the problems dividing that Andean nation.

Reiterating the views set forth recently by U.S. Secretary of State Colin Powell, the "Group of Friends" said in a formal statement that an end to the crisis in Venezuela must be found within the framework of the Venezuelan Constitution, and "with respect for the legitimate government" of the country's president, Hugo Chavez. The Group issued the statement January 31 following its meeting in Caracas with Chavez and the political opposition, an umbrella organization called the Democratic Coordinator.

The Group of Friends of the Facilitation Process in Venezuela, as it is formally known, was created in January 2003 and consists of the United States, Brazil, Chile, Mexico, Portugal and Spain. The Group said in its latest statement that the solution to Venezuela's problems must be made by the Venezuelan people and "with respect for the country's sovereignty."

The Group said it applauds a proposal from the Democratic Coordinatorfor an electoral solution to the situation. The Group said it also welcomes the Venezuelan government's indication "that it will present its own points of view related to this important matter next week."

Another "positive element" for resolving the crisis, the Group said, were proposals introduced by former U.S. President Jimmy Carter. Under one proposal outlined by Carter, Venezuela's government and the opposition would agree to a recall referendum -- consistent with the Venezuelan Constitution -- that would determine if Chavez should leave office. An alternate proposal offered by Carter calls for the government and the opposition to agree to a constitutional amendment to permit early general elections.

OAS Secretary General Cesar Gaviria has expressed hope that the proposals could open the door in Venezuela to an electoral agreement, which he said was the main outstanding issue still to be resolved at the negotiating table.

In its statement, the Group of Friends reiterated its offer "to help see that the accords that the parties reach in this process are respected." The Group also expressed a willingness to reconvene "when the evolution of circumstances in Venezuela or the facilitation efforts of the OAS Secretary General merit such a meeting."

Secretary Powell said January 24 that the United States believes the only solution to the crisis in Venezuela is a "peaceful, constitutional, democratic and electoral process" agreed to both by Chavez and the political opposition.

"At the end of the day, it is the Venezuelans themselves who must find solutions to their problems," Powell added. "It is my profound hope, and my confident belief, that the Secretary General's continued work, the Friends Group's sustained efforts, and President Carter's valuable contributions will help them do so."

(The Washington File is a product of the Office of International Information Programs, U.S. Department of State. Web site: usinfo.state.gov)

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