www.sfgate.com ALEXANDRA OLSON, Associated Press Writer Friday, January 31, 2003
-(01-31) 20:28 PST

CARACAS, Venezuela (AP) -- Under international pressure, opponents of President Hugo Chavez agreed Friday to ease a 2-month-old strike -- but not in the crucial oil industry, the world's fifth-largest exporter.

Strike organizers said factories, schools, malls and franchise restaurants would be urged to open next week, at least on a restricted schedule.

The decision came after many of those participants were already considering abandoning the strike, fearing bankruptcy.

Most small businesses never joined the stoppage, which began Dec. 2 under the organization of a combination of labor unions, business leaders and opposition political parties.

But Chavez opponents insisted the walkout would continue in the oil industry, which provides half of government income and 70 percent of export revenue. The strike has slashed production by two-thirds.

Carlos Fernandez, president of Venezuela's largest business chamber, said the decision to ease the strike came at the request of diplomats from six countries -- the United States, Brazil, Chile, Mexico, Spain and Portugal. The diplomats were in Caracas seeking a deal on early elections and an end to the strike.

Fernandez suggested that continuing the strike could weaken the opposition, allowing the government to "destroy the business sector and increase unemployment, then build the totalitarian model over the ashes."

With the strike dying down, opposition leaders_ who accuse Chavez of ruining the economy with leftist policies and trying to accumulate too much power -- are hoping international pressure on Chavez to negotiate will help revive their drive for early balloting.

But Foreign Minister Roy Chaderton said the government had no intention of pledging to end Chavez's term early.

"The government has no interest in doing away with itself," Chaderton said Friday.

Diplomats urged both sides to make concessions during negotiations mediated by Cesar Gaviria, the secretary-general of the Organization of American States.

"Reconciliation and healthy coexistence require mutual concessions," said Gilberto Saboia, Brazil's undersecretary for bilateral political affairs, reading a brief statement late Friday. "We reiterate the need for both sides to reach an constitutional, democratic, peaceful and electoral agreement."

The diplomatic group is urging both sides to accept one of two proposals made by former Nobel Peace Prize winner Jimmy Carter.

One is to hold a recall referendum on Chavez's rule halfway through his six-year term, or August. Venezuela's constitution allows opponents to petition for such a vote by gathering signatures from 20 percent, or 2.4 million, of the country's 12 million registered voters.

The other -- favored by Chavez opponents -- calls for ending the strike in exchange for a government pledge to push through quickly a constitutional amendment cutting Chavez's six-year term to four years, clearing the way for early elections.

Tens of thousands of Chavez opponents marched through Caracas on Friday to protest government investigations into three television stations accused of supporting the strike.

The government has managed to raise oil production beyond 1 million barrels a day -- a third of normal, signaling that Chavez was regaining control of the state oil monopoly, Petroleos de Venezuela S.A., or PDVSA.

Strike leaders insist production will never return to normal unless the walkout ends.

In another sign the strike was weakening, private banks announced they would restore normal working hours next week after two months of opening just three hours a day.

The Bush administration has promoted early elections as a solution to the crisis.

Chavez has irritated Washington by cozying up to Cuba and criticizing civilian deaths in the U.S.-led bombing campaign against Afghanistan. Chavez tried unsuccessfully to widen the negotiating group to include governments more friendly to him.

The government estimates the country has lost $4 billion in the strike. Private economists warn the economy could shrink 25 percent in the first three months of the year after contracting an estimated 8 percent last year.

www.globeandmail.com, February 1 Associated Press

Caracas — Under international pressure, opponents of President Hugo Chavez agreed Friday to ease a 2-month-old strike — but not in the crucial oil industry, the world's fifth-largest exporter.

Strike organizers said factories, schools, malls and franchise restaurants would be urged to open next week, at least on a restricted schedule.

The decision came after many of those participants were already considering abandoning the strike, fearing bankruptcy.

Most small businesses never joined the stoppage, which began Dec. 2 under the organization of a combination of labor unions, business leaders and opposition political parties.

But Chavez opponents insisted the walkout would continue in the oil industry, which provides half of government income and 70 per cent of export revenue. The strike has slashed production by two-thirds.

Carlos Fernandez, president of Venezuela's largest business chamber, said the decision to ease the strike came at the request of diplomats from six countries — the United States, Brazil, Chile, Mexico, Spain and Portugal. The diplomats were in Caracas seeking a deal on early elections and an end to the strike.

Mr. Fernandez suggested that continuing the strike could weaken the opposition, allowing the government to "destroy the business sector and increase unemployment, then build the totalitarian model over the ashes."

With the strike dying down, opposition leaders — who accuse Mr. Chavez of ruining the economy with leftist policies and trying to accumulate too much power — are hoping international pressure on the embattled President to negotiate will help revive their drive for early balloting.

But Foreign Minister Roy Chaderton said the government had no intention of pledging to end Mr. Chavez's term early.

"The government has no interest in doing away with itself," Mr. Chaderton said Friday.

Diplomats urged both sides to make concessions during negotiations mediated by Cesar Gaviria, the Secretary-General of the Organization of American States.

"Reconciliation and healthy coexistence require mutual concessions," said Gilberto Saboia, Brazil's undersecretary for bilateral political affairs, reading a brief statement late Friday. "We reiterate the need for both sides to reach an constitutional, democratic, peaceful and electoral agreement."

The diplomatic group is urging both sides to accept one of two proposals made by former U.S. president and Nobel Peace Prize winner Jimmy Carter.

One is to hold a recall referendum on Mr. Chavez's rule halfway through his six-year term, or August. Venezuela's constitution allows opponents to petition for such a vote by gathering signatures from 20 per cent, or 2.4 million, of the country's 12 million registered voters.

The other — favored by Chavez opponents — calls for ending the strike in exchange for a government pledge to push through quickly a constitutional amendment cutting Mr. Chavez's six-year term to four years, clearing the way for early elections.

Tens of thousands of Chavez opponents marched through Caracas on Friday to protest government investigations into three television stations accused of supporting the strike.

The government has managed to raise oil production beyond 1 million barrels a day — a third of normal, signaling that Mr. Chavez was regaining control of the state oil monopoly, Petroleos de Venezuela S.A., or PDVSA.

Strike leaders insist production will never return to normal unless the walkout ends.

In another sign the strike was weakening, private banks announced they would restore normal working hours next week after two months of opening just three hours a day.

The Bush administration has promoted early elections as a solution to the crisis.

Mr. Chavez has irritated Washington by cozying up to Cuba and criticizing civilian deaths in the U.S.-led bombing campaign against Afghanistan. Mr. Chavez tried unsuccessfully to widen the negotiating group to include governments more friendly to him.

The government estimates the country has lost $4-billion (U.S.) in the strike. Private economists warn the economy could shrink 25 percent in the first three months of the year after contracting an estimated 8 percent last year.

www.news-journal.com By ALEXANDRA OLSON Associated Press Writer

CARACAS, Venezuela (AP)--Under international pressure, opponents of President Hugo Chavez agreed Friday to ease a 2-month-old strike--but not in the crucial oil industry, the world's fifth-largest exporter.

Strike organizers said factories, schools, malls and franchise restaurants would be urged to open next week, at least on a restricted schedule.

The decision came after many of those participants were already considering abandoning the strike, fearing bankruptcy.

Most small businesses never joined the stoppage, which began Dec. 2 under the organization of a combination of labor unions, business leaders and opposition political parties.

But Chavez opponents insisted the walkout would continue in the oil industry, which provides half of government income and 70 percent of export revenue. The strike has slashed production by two-thirds.

Carlos Fernandez, president of Venezuela's largest business chamber, said the decision to ease the strike came at the request of diplomats from six countries--the United States, Brazil, Chile, Mexico, Spain and Portugal. The diplomats were in Caracas seeking a deal on early elections and an end to the strike.

Fernandez suggested that continuing the strike could weaken the opposition, allowing the government to ``destroy the business sector and increase unemployment, then build the totalitarian model over the ashes.''

With the strike dying down, opposition leaders_ who accuse Chavez of ruining the economy with leftist policies and trying to accumulate too much power--are hoping international pressure on Chavez to negotiate will help revive their drive for early balloting.

But Foreign Minister Roy Chaderton said the government had no intention of pledging to end Chavez's term early.

``The government has no interest in doing away with itself,'' Chaderton said Friday.

Diplomats urged both sides to make concessions during negotiations mediated by Cesar Gaviria, the secretary-general of the Organization of American States.

Reconciliation and healthy coexistence require mutual concessions,'' said Gilberto Saboia, Brazil's undersecretary for bilateral political affairs, reading a brief statement late Friday. We reiterate the need for both sides to reach an constitutional, democratic, peaceful and electoral agreement.''

The diplomatic group is urging both sides to accept one of two proposals made by former Nobel Peace Prize winner Jimmy Carter.

One is to hold a recall referendum on Chavez's rule halfway through his six-year term, or August. Venezuela's constitution allows opponents to petition for such a vote by gathering signatures from 20 percent, or 2.4 million, of the country's 12 million registered voters.

The other--favored by Chavez opponents--calls for ending the strike in exchange for a government pledge to push through quickly a constitutional amendment cutting Chavez's six-year term to four years, clearing the way for early elections.

Tens of thousands of Chavez opponents marched through Caracas on Friday to protest government investigations into three television stations accused of supporting the strike.

The government has managed to raise oil production beyond 1 million barrels a day--a third of normal, signaling that Chavez was regaining control of the state oil monopoly, Petroleos de Venezuela S.A., or PDVSA.

Strike leaders insist production will never return to normal unless the walkout ends.

In another sign the strike was weakening, private banks announced they would restore normal working hours next week after two months of opening just three hours a day.

The Bush administration has promoted early elections as a solution to the crisis.

Chavez has irritated Washington by cozying up to Cuba and criticizing civilian deaths in the U.S.-led bombing campaign against Afghanistan. Chavez tried unsuccessfully to widen the negotiating group to include governments more friendly to him.

The government estimates the country has lost $4 billion in the strike. Private economists warn the economy could shrink 25 percent in the first three months of the year after contracting an estimated 8 percent last year.

www.nytimes.com By JUAN FORERO

CARACAS, Venezuela, Jan. 31 — Though hammered by a 61-day strike, Venezuela's oil industry is now pumping three times the crude it was in December and will soon meet contractual commitments that were scrapped when the walkout began, the president of the state-run petroleum company said today.

Although far off its prestrike total of 3.1 million barrels a day, Venezuela is now extracting 1.5 million barrels daily and could reach 2 million by the end of February, Alí Rodríguez, president of Petróleos de Venezuela, told foreign reporters. By March, production is expected to reach 2.8 million daily, a level that would allow Venezuela to meet its contractual obligations, which have been suspended. Advertisement

"The international financial community can be absolutely sure that we will meet all our financial obligations," Mr. Rodríguez said.

Petróleos de Venezuela was the fifth-largest exporter of crude and one of four crucial suppliers of oil to the United States before the Dec. 2 anti-government strike began.

Mr. Rodríguez's assessments, if accurate, are the clearest indication yet that President Hugo Chávez's government is on its way to reactivating a once moribund industry that opposition leaders had hoped to use as a weapon to force his ouster.

The strike, which had shut down much of the country, is now fraying as an increasing number of businesses open their doors. Though still able to muster hundreds of thousands for antigovernment marches, as it did today, the opposition is rapidly losing leverage as negotiations with the government enter a new phase in which the two sides are expected to discuss the feasibility of an electoral solution to the country's political turmoil.

"Every day that goes by, the government is winning by attrition," said Lawrence J. Goldstein, president of the Petroleum Industry Research Foundation, an industry-supported consulting group in New York. "And every day that goes by, they are winning a little bit more because workers are going back and production is going up."

Today, the government and the opposition met with the so-called friendly nations, including the United States and Brazil, that are trying to help bolster talks by providing guidance and advice to the two sides.

With mediation from César Gaviria, the secretary general of the Organization of American States, the two sides were expected to discuss two proposals put forth earlier this month by former President Jimmy Carter during a visit to Caracas. One calls for a constitutional amendment cutting the president's term to four years from six and leading to an early vote; the other would convene a recall referendum in August.

But the negotiations promise to be difficult, and government officials have grown increasingly defiant this week, feeling that a victory over the strikers is at hand.

Opposition leaders still believe they have an oil card to play, and today they cast Mr. Rodríguez's assessment as exceedingly rosy. They noted that just Thursday the finance minister, Tobías Nóbrega, said the 2003 budget for the oil company would be cut by $2.7 billion to about $6 billion to offset the two-month slide in revenue.

Venezuela, which continues to import gasoline, is refining much of its oil abroad and is in dire need of experienced managers and engineers to restart its operations.

"That is all a big contradiction, what they are saying," said Edgar Paredes, an oil executive who helped lead the walkout. The dissident oil workers instead contend that oil production stands at 1.1 million barrels.

Mr. Rodríguez today acknowledged that spending would drop 40 percent and investment 30 percent this year, possibly foreshadowing a big fall in production that could hurt a country that depends on oil for half of its government spending.

The executive, though, told reporters that a planned restructuring of the company would lead to staff cutbacks and reductions in some operations to make Petróleos de Venezuela more efficient. He did not rule out selling bonds or overseas assets.

Mr. Rodríguez also announced that 5,300 of the company's 33,000 salaried workers — among the thousands who walked off the job — had been fired. He said there was little chance those workers would get their jobs back, particularly the 700 senior executives who helped orchestrate the strike.

Many of those workers also played a role in an April strike that led to Mr. Chávez's temporary removal from power. After reinstating them, the government decided not to retaliate. But not this time, Mr. Rodríguez said.

"Those people got their jobs back or got better positions," he said. "They took advantage of that policy."

COMPANY NEWS; CITGO PETROLEUM SAYS IT WILL CUT SPENDING BUT NOT JOBS  (January 24, 2003)  OPEC's Odd Position: Complaining of High Oil Prices

news.bbc.co.uk Saturday, 1 February, 2003, 00:36 GMT

Thousands have turned out to demonstrate

Venezuelans are marching through the streets of the capital, Caracas, in a show of support for the country's radio and television stations and newspapers.

The demonstration comes a day after President Hugo Chavez started legal proceedings against a private television channel.

The legal move is seen as a crackdown by the president on those who oppose him.

The television channel is the third of the four private companies to be placed under investigation.

The president is accused of a media crackdown

The government accuses it of violating telecommunication laws.

The BBC's correspondent in Venezuela, Adam Easton, says the media has given wide coverage to the opposition-led general strike against Mr Chavez, which has been going on for three months.

Leading newspapers in Venezuela however have started to question the wisdom of continuing the general strike.

The dailies widely read by the middle class, many professionals and the wealthier sectors of society, argue that the strike has run its course and is now doing more harm than good.

'Irreparable damage'

A commentary in the right-leaning El Universal on Thursday expressed the fear its continuation will "cause the country irreparable damage".

On the same day, the centre-left El Nacional warns that the opposition strategy has "serious limitations" and that instead of weakening the government, had "strengthened the Chavistas' convictions".

When the strike began, they were generally optimistic the opposition would prevail and the president would be forced to step down or call a referendum on his rule imminently.