Venezuela: OPEC vs. USA

Yoshie Furuhashi furuhashi.1 at osu.edu
Fri Dec 13 22:24:28 PST 2002


Agence France Presse December 14, 2002 Saturday SECTION: International News LENGTH: 588 words HEADLINE: Chavez raises the ante in Venezuela's conflict, US calls for elections BYLINE: PATRICK MOSER DATELINE: CARACAS, Dec 13

BODY: As Venezuela's volatile conflict led to a US call for early elections, President Hugo Chavez raised the ante Friday, threatening to import staff to replace strikers who have paralyzed the vital oil sector.

"If we have to bring in technicians from other countries, they will come," said Chavez, whose government is under intense pressure from a 12-day-old general strike staged in support of demands for his resignation.

The leftist-populist president said he would not hesitate to fire 80 percent of managers and technical staff of Petroleos de Venezuela if that proves necessary to jumpstart the stalled state oil company. Chavez pointed out that the Organization of Petroleum Exporting Countries (OPEC) offered to temporarily supply oil to Venezuela's clients, and said the cartel also expressed willingness to deploy oil tankers to the South American country.

The strike has paralyzed oil exports, usually around 2.5 million barrels a day.

On Friday, dissident Petroleos de Venezuela managers said domestic supplies would run out within two days, a claim that contrasted with the government's insistance there was enough fuel to last a long time.

The United States, the main importer of Venezuelan oil, expressed deep concern over the situation, citing a warning by an international mediator that the country "could erupt into violence."

"The United States is convinced that the only peaceful and politically viable path to moving out of the crisis is through the holding of early elections," said White House spokesman Ari Fleischer.

Chavez, whose mandate ends in 2006, has rejected opposition demands that elections be held within months, and accused his right-wing foes of fomenting civil war and plotting his ouster.

Both sides remained firmly entrenched in their positions, while warning the crisis could explode into violence.

Venezuela's Roman Catholic church Friday issued a dramatic plea for reconciliation, warning that armed groups threatened to plunge conflict-torn Venezuela into a violent tragedy.

Standard and Poor's also expressed concern over developments, cutting Venezuela's credit rating and citing an "increasing probability of default."

The US credit rating agency cut Venezuela's long-term foreign currency sovereign rating to CCC+ from B- in a sign that the nation is vulnerable to default.

"Removal of President Chavez would likely lead to a heightened mobilization of his supporters and result in increased violence," said S and P sovereign analyst Richard Francis.

Government opponents, headed by business and labor leaders, were set to stage a massive rally on Saturday, which they dubbed "the taking of Caracas" and pledge would be the largest protest in the history of Latin America.

On Friday, several thousand Chavez supporters including vigilantes, massed outside the Miraflores government palace in Caracas to show their support for the president, as a similar number of people gathered at East Caracas square to demand that Chavez step down.

Both sides accused each other of sowing the seeds of violence, which already marked the conflict when three people were gunned down during a December 6 protest in Caracas.

Justice and Interior Minister Diosdado Cabello said it was suspicious that opposition leaders "are announcing there will be attacks and violence."

"In April they also had the booklet in hand and knew what would occur," he said in reference to the April 12 ouster of Chavez, who regained power after 47 hours. -- Yoshie

* Calendar of Events in Columbus: <http://www.osu.edu/students/sif/calendar.html> * Anti-War Activist Resources: <http://www.osu.edu/students/sif/activist.html> * Student International Forum: <http://www.osu.edu/students/sif/> * Committee for Justice in Palestine: <http://www.osu.edu/students/CJP/>



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