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

Venezuela's government rejected an opposition proposal to cut President Hugo Chavez's term and instead suggested a referendum on his rule later this year as a way out of the country's political crisis, a negotiator said Tuesday.

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.

Chavez is a former army paratrooper who led a failed coup attempt 11 years ago Tuesday. Jailed for two years, he 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 a 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.

Julio Brazon, president of the Consecomercio business chamber, which represents about 450,000 businesses, said the strike was a "resounding success" because "an electoral solution to the crisis is in march."

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?"

The United States and five other countries have joined the OAS in mediating talks and seeking early elections.

Chavez claims his "revolutionary" government would crush the opposition at the ballot box. He said Sunday that he will prosecute strike leaders for sabotaging the economy.

www.guardian.co.uk Tuesday February 4, 2003 4:30 PM

CARACAS, Venezuela (AP) - Venezuela's government rejected an opposition proposal to cut President Hugo Chavez's term and instead suggested a referendum on his rule later this year as a way out of the country's political crisis, a negotiator said Tuesday.

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.

Chavez is a former army paratrooper who led a failed coup attempt 11 years ago Tuesday. Jailed for two years, he 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 a 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.

Julio Brazon, president of the Consecomercio business chamber, which represents about 450,000 businesses, said the strike was a resounding success'' because an electoral solution to the crisis is in march.''

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?''

The United States and five other countries have joined the OAS in mediating talks and seeking early elections.

Chavez claims his ``revolutionary'' government would crush the opposition at the ballot box. He said Sunday that he will prosecute strike leaders for sabotaging the economy.

www.fox23news.com

CARACAS, Venezuela (AP) - A two-month strike designed to force President Hugo Chavez's ouster crumbled as workers in all sectors except the oil industry returned to their jobs. Stores, factories, schools and banks started opening their doors as the government raised oil production to 1.2 million barrels a day, up from 1.1 million a day over the weekend, according to dissident staff at the state oil company. The gains brought production closer to pre-strike levels of 3.2 million barrels a day in a nation that is a major supplier of crude to the United States and the world's fifth-largest petroleum exporter. Oil production was still only about one-third or normal production as the strike frayed Monday, but Venezuela is 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, which began Dec. 2. Still, strike leaders called their work stoppage a success, claiming it unified the country's diverse opposition - a mix of conservatives, leftists, business and civil groups and labor unions. On Sunday, a nationwide petition drive collected signatures supporting a proposal to amend the constitution, cut Chavez's term to four years from six and pave the way for early elections. Organizers said 4 million people signed the petitions, a claim that could not be verified. The petitions called for a binding referendum on Chavez's rule in August and an all-powerful constituent assembly to rewrite the constitution. Government adversaries were unsure how and when the petition drive could bring results. "We may have to wait until August, but then again it could be another year," said Leonardo Aparo, a 30-year-old store manager. The Supreme Court ruled last month that the Chavez-dominated Congress must appoint a new National Elections Council. Without a council, no one can verify the signatures or organize a vote. Julio Brazon, president of the Consecomercio business chamber, which represents about 450,000 businesses, said the strike was a "resounding success" because "an electoral solution to the crisis is in march." 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?" The United States and five other countries have joined the Organization of American States in mediating 3-month-old negotiations. After meetings here last week, diplomats from the six nations said early elections were the best way to restore stability in the increasingly volatile South American nation. Little progress has been made since the talks began under OAS chief Cesar Gaviria in November. Chavez, who was elected in 1998 and re-elected in 2000, claims his "revolutionary" government would crush the opposition at the ballot box. As the conflict between entrenched political rivals drags on, the specter of more economic problems - made worse by the strike - looms on the horizon. According to the Fedeindustria business chamber, strike fallout and continuing recession will cost 200,000 jobs and close more than 20,000 small- and medium-sized businesses by August. Lack of oil and tax income forced Chavez to cut 10 percent from Venezuela's $25 billion budget for 2003. Economists forecast the economy will shrink 25 percent this year after an 8 percent contraction in 2002.

news.bbc.co.uk Tuesday, 4 February, 2003, 15:55 GMT

The Venezuelan Government has rejected an opposition call for a vote on a constitutional amendment to allow the term of President Hugo Chavez to be cut short.

The move revives the spectre of prolonged political turbulence in Venezuela, after a 64-day strike had appeared to be faltering.

Long queues are now much rarer than at the height of the strike

Opposition leaders claim they collected four million signatures supporting the initiative, a number double that necessary to call a national referendum.

However, the government said it endorsed another plan - to hold a binding referendum on Mr Chavez's presidency after August.

"We're proposing what we always have: referendum after 19 August as laid down in the constitution," Vice-President Jose Vicente Rangel said.

Carter suggestions

Mr Chavez had previously been reported as saying he would have "no problem" with the referendum.

Both proposals had been put forward by former US President Jimmy Carter as ways out of the crisis.

The first - the constitutional amendment - would have allowed the presidential term to be cut from six years to four years, in this case opening the way for fresh elections early next year.

But the Supreme Court ruled last month that the National Assembly should appoint a new electoral body to verify the opposition petition and, if necessary, set a referendum date.

Chavez: buoyed by 'victory', is in uncompromising mood

Opponents of Mr Chavez branded the ruling politically motivated as it would delay any eventual referendum by months.

They accused the government of hampering negotiations to put an end to the bitter confrontation over Mr Chavez's rule.

"This response takes us further away from the Carter proposal, especially about any electoral date," anti-Chavez union head and opposition negotiator Manuel Cova told the Reuters news agency.

"The government just isn't interested."

Not so generous

Vice-President Rangel also dismissed Mr Carter's call for no reprisals against workers at the state oil company. Output from the world's fifth-largest oil exporter fell from 3.2 million barrels per day to a strike low of just 150,000 barrels.

Mr Chavez has fired more than 5,000 oil company employees. Some had been given their jobs back after being involved in the short-lived coup against Mr Chavez last April.

But correspondents say he looks unlikely to be so generous again.

Reduced oil production remains the most damaging effect of the strike.

Mr Chavez says production is back up to 1.8 million barrels a day, though oil strikers said output still hovers around one million barrels.

www.forbes.com Reuters, 02.04.03, 9:11 AM ET

CARACAS, Venezuela, Feb 4 (Reuters) - Venezuela's oil output held steady Tuesday at just over one third of volumes produced before the two-month oil strike by foes of President Hugo Chavez, striking oil workers said. "Production continues at 1.2 million (barrels per day)," a representative of striking workers told Reuters by telephone. Venezuela had been producing 3.1 million bpd before the strike, which started on Dec 2 and is aimed at forcing Chavez from office. Strike leaders last week scaled back the stoppage in non-oil sectors. Many workers had already returned to their jobs as support for the shutdown frayed. But oil workers have decided to continue their strike to press for an early election. Efforts by the government to break the strike using replacement workers have increased oil production from its lowest point of 150,000 bpd during the stoppage. However, opposition and government officials offer conflicting accounts of how much output has recovered so far. The president of state oil firm Petroleos de Venezuela (PDVSA) Ali Rodriguez said Monday that crude output had been increased to 1.8 million bpd. Rodriguez said foreign-financed extra-heavy oil joint-ventures in the Orinoco tar belt would begin producing synthetic crude again this week and will add another 300,000 to 350,000 bpd of output.