<a href=www.vheadline.com>Venezuela's Electronic News Posted: Tuesday, April 01, 2003 By: Patrick J. O'Donoghue

Venezuelan Confederation of Trade Unions (CTV) general secretary, Manuel Cova has announced that members of the national executive will visit Costa Rica to consult with CTV president Carlos Ortega.  Political affairs observers suggest that Ortega wants to continue dominating play inside the union leadership and dictating the tune he wants the leadership to dance to. 

It remains to be seen whether Alfredo Ramos and Froilan Barrios, who have been very quiet since Ortega's exile at the Costa Rican Embassy, will attempt to challenge the takeover. 

An attempt to shuffle leadership positions and replace Ortega met with stiff opposition from Cova and the Accion Democratica (AD) apparatus, who seemingly think that Ortega merits honorary membership and has the right to dictate union policy from exile, even though he no longer resides in Venezuela.  

• Meanwhile, Cova has launched a campaign for a 30% hike in Venezuela's  minimum wage in anticipation of an annual government decree on May 1st increasing the minimum basic wage 10%. 

In an attempt to relate to members of his own trade union, Cova says a 30% increase in the minimum wage, would help the construction industry put money into the economy and create jobs.

Reuters, 04.01.03, 10:54 AM ET CARACAS, Venezuela, April 1 (Reuters) - Venezuela's annualized inflation rose to 34.1 percent in March compared with 17.6 percent a year before, as the oil-rich economy struggled with recession and the aftershocks of a crippling two-month strike, the Central Bank reported on Tuesday. Inflation was 0.8 percent in March compared with 4.2 percent in March 2002. Accumulated inflation to March was 9.4 percent compared with 7 percent a year earlier. Venezuela's inflation closed 2002 at 31.2 percent, the highest level in five years and more than double the 12.3 percent recorded in 2001. Venezuela, the world's No. 5 oil exporter, is struggling with political and economic crisis after the opposition strike aimed at ousting leftist President Hugo Chavez disrupted its vital petroleum output.

<a href=usinfo.state.gov<Read complete article 31 March 2003

(Commission cites its pro-competitive policies as a reason) (4660)

The U.S. Federal Communications Commission (FCC) has issued an order eliminating its policies that ban U.S. carriers from providing certain international telephone services to countries considering those services illegal and allow a foreign entity to use FCC enforcement mechanisms against U.S carriers providing such services.

In the order released March 28, the commission said it is removing the policies on the most popular form of call-back services -- uncompleted call-signaling -- because these rules restrict global competition.

The commission said, however, that it will continue to remind U.S. carriers that "it is in their best interest to act in a manner consistent with foreign laws, and to refer [those carriers] to the public file and note which foreign governments have notified the Commission that call-back is illegal in their countries."

Call-back services allow a foreign caller in a country with relatively costly international connections to use a U.S. dial-tone at less expensive U.S. rates.

In 1995 FCC banned U.S. carriers form offering certain international call-back services to countries where those services had been expressly prohibited. It also established a mechanism for notifying the U.S. government about the illegality of the services in a foreign country and procedures for seeking U.S. assistance in enforcing a foreign government's prohibition on this type of services.

<a href=usinfo.state.gov<Read complete article

The Venezuelan News Service | Mar 30 2003 05:19:30 GMT By J.M. Barrionuevo

Venezuelan bonds plummeted on Mr. Chávez’s comment on the need to restructure external debt this year. The Ministry of Finance immediately denied that an external debt restructuring or default was in the offing. We consider Mr. Chávez’s announcement as premature, but it does indicate that, given Mr. Chávez’s sharp political orientation, the time when foreign investors will be made “responsible” for the Venezuelan economic debacle is nearing.

The economic devastation, inflation, unemployment and devaluation that the people face today are usually only experienced by countries waging war. When there is no one left to blame and default ensues, Mr. Chávez will step down, ending one of the greatest wars that any man has waged against himself, as the culprit of corruption, economic collapse, and extreme poverty. More.. Hugo Chavez continues to foster terrorism

Editorial by Aleksander Boyd

A couple of days ago and article published in "El Nacional" exposed the views of Gen. Efraín Vásquez Velazco about the situation with bordering Colombia. Disagreeing with the president and government officials statistics, Gen Vásquez Velazco denied the existence of a 20.000 strong Venezuelan force in the frontier. Furthermore, he said "we have never had 20.000 men there, we have had at the most 6.000". His declarations came as no surprise for international analysts whom are convinced that the Venezuelan state is not only offering a haven of tranquility for guerrilla groups running away from the eventual attack of the Colombia army, Chavez's government is also engaged in protecting and supporting them whilst they are in Venezuelan territory.

One of the main leaders of the FARC had surgery in a clinic located in Venezuelan Tachira state near the border only two weeks ago. According to local sources, the bill was paid by the Governor of the state using funds of a lottery company named Kino Tachira. Gen. Vásquez Velazco whilst in charge of the frontier's garrison, reported all sorts of irregularities to army chief Lucas Rincon and former Minister of Defence Jose Vicente Rangel. On the occasion of the launch of the US & Colombia joint operation "Plan Colombia", he passed documents to Gen. Lucas Rincon relating guerrilla cells using Venezuelan territory (Sierra de Perija) to escape attacks from para-military groups and Colombian army. These reports were treated as diplomatic matters by the Venezuelan admin rather than as military issues and no further action was ordered by the president.

Military intelligence has reported to the central government the creation of a para-military group called "Frente Bolivariano de Liberacion" (Bolivarian Liberation Front). This group is operating in Venezuelan territory with the leniency of the army. Arguably, they are engaged in extortion and kidnappings in areas near the border, providing detailed information to the guerrillas about wealthy individuals to be targeted for extortion. Vcrisis sources report an individual by the name of Orlando Mancilla acting as the leader and liaison agent between the Bolivarian Front and the guerrillas in Buena Vista and Alto Grande. Inhabitants of these areas feel completely hopeless for they have informed such actions to the local authorities and the army with no results. Colombian groups are moving so freely in Venezuelan territory that cases of extortion and kidnaps have been reported in the central states of Aragua, Guarico, Cojedes only three hour drive from Caracas.

The funds for the maintenance and operation of the troops in the border have been misused in the implementation of the "Plan Republica", which constitutes one of the most resounding cases of corruption and misappropriation that Hugo Chavez's regime has had. The president is not interested in the slightest in eradicating the ever increasing presence of the Colombian guerrilla in Venezuela. He would not refer to them as terrorists, although he rapidly brands his political opponents as such.

Reuters 03.28.03, 3:30 PM ET

CARACAS, Venezuela, March 28 (Reuters) - Venezuela's CANTV <TDVd.CR>, the nation's largest telecommunications company, is seeking government approval for new tariffs that will increase telephone charges by about 19 percent this year, the company's president said on Friday. CANTV, whose principal shareholder is U.S. No. 1 local telephone company Verizon Communications Inc. (nyse: VZ - news - people), has not defined the new tariffs, as Venezuelan residential charges are still frozen by presidential decree as part of price controls intended to curb inflation. "We are hoping for approval of the new tariffs, which have been worked out with Conatel (state telecommunications commission), CANTV President Gustavo Roosen told Reuters during a company shareholder meeting. Roosen said the charges would be increased on average about 19 percent for the year. CANTV, the domestic market leader in telecoms and Internet access, last year raised its charges by an average of 25 percent. During their assembly, CANTV shareholders approved an ordinary dividend of 71 bolivars per share, or 497 bolivars per American Depositary Share, to be paid on April 23. Shareholders also authorized the board to issue up to 150 billion bolivars (about $94 million at the current exchange rate of 1,600 bolivars to the dollar) in commercial paper coming due June, 30, 2004. Last year, the company, the largest presence on the Venezuelan stock market, reported a 27.7 percent fall in net profits to 61.03 billion bolivars as its results were undercut by inflation and currency adjustments. CANTV fourth-quarter results were also battered by a strike started in December by opposition leaders trying to oust President Hugo Chavez. CANTV reported a quarterly loss of $2 million compared with profits of $22 million in the same period in 2001. Roosen refused to give detailed first-quarter forecasts but he said he believed the results would be better than the company had been expecting. He said the company was now focused on significantly reducing costs and maintaining cash flow.