Fw: More on Venezuela showdown

["Nello Margiotta" <animarg@tin.it>]

Strike Paralyzes Venezuela
Kevin Curran, NewsMax.com

Tuesday, Dec. 11, 2001 Millions of Venezuelan business owners and unionized
workers launched a general strike Monday to protest the leftist economic
policies of President Hugo Chavez.

Most of the work force joined the 12-hour stoppage, which shut down more
than a million businesses including banks, financial services, commerce and
transport, according to United Press International.

Three years ago, Chavez got 60 percent of the vote. His election was hailed
as the end of rule by corrupt parties. Instead of providing Venezuelans with
the higher living standards he promised, Chavez has been borrowing from
history books to chart his vision of Venezuela's future.

The historical figures he is emulating: Mao Tse-Tung and Fidel Castro.

Chavez has become prone to making rambling speeches on state radio to
explain his vision of a collectivist utopia. To achieve that dream, he has
been given broad executive powers by a legislature he controls.

On Monday, he planned to sign bills eliminating the property rights of farm
owners, expand government control of beaches and fishing waters and increase
royalties on oil operations. The measures were never debated, but secretly
drafted and take effect under his executive authority.

That authority expires this week, and Chavez still has about 50 new laws to
sign. Many of those would give Chavez more authority for economic
intervention.

"The legislation appears to have a tremendous tilt toward Cuban law,"
VenEconomy editor Robert Bottone told the Wall Street Journal on Friday.

An angry Chavez thundered Monday, "Nobody, and nothing, will stop this
revolution." He withdrew an offer to discuss amending laws he decreed last
month.

The measures could have a chilling effect on Venezuela's shaky economy:

U.S. Over a Barrel

* Oil companies would have to pay so much more in royalties that the
business would be unprofitable. As the largest producer of oil in the
Western Hemisphere, any reduction in Venezuelan production could have
consequences in the U.S. and other countries.

* Along the coast, all property 80 meters (almost 90 yards) inland from the
high-tide mark would be subject to government control. That is 30 meters
more than the current law, and its effect on seaside development is
uncertain.

* Farmers are being told their land must comply with the social function of
agricultural security and their output will have to meet government plans.
Those who fail to comply with the new regulations could have their land
seized.

An unusual alliance has developed to stage Monday's protest. Venezuela's
largest chamber of commerce, Fedecamaras, is joining with the country's
largest union, CTV. "It's as if the AFL-CIO and the American Chamber of
Commerce were on strike together, in solidarity," said one businessman.

Pedro Carmona, president of Fedecamaras, said Monday that he was "immensely
satisfied with the strike. The action was convoked by the business
community, but the whole country has joined in."

Chavez was expected to counter the demonstration by busing supporters into
Caracas for the signing ceremony. Several hundred supporters gathered in a
central Caracas square to show support for a disputed agrarian "reform" law,
Reuters reported.

There were concerns about violence and looting among business owners, but
UPI and other wire services reported generally quiet streets and few
disturbances, with most people staying home. About 100 riot police shielded
Fedecamaras' headquarters from dozens of Chavez supporters carrying banners
and placards denouncing the strike, the Associated Press said.

Though Chavez has said he would never use the military to stay in power,
F-16 fighter jets flew over Caracas on Monday to remind opponents who is in
charge. How much support Chavez has among the military is uncertain.

Venezuela's economy has been on a roller coaster ride through the Chavez
administration. It contracted 6.1 percent in 1999, but grew 3.2 percent in
2000. Much of that growth was attributed to a large government spending
program funded by high oil revenues.

Lower oil prices and a cut in government spending could limit 2001's
economic growth to slightly more than 2000.

Venezuela has become a violent place. Gang warfare around Caracas has led to
100 murders each weekend.

It is not surprising that pollsters say Chavez has been losing public
support. He got 60 percent of the vote in 1998's presidential election after
a failed coup attempt in 1992, but only 24 percent of those surveyed
recently said they would vote for him again.

Data analysis pollster Luis Leon said Chavez's most vocal critics, the
Catholic Church and the media, have an 85 percent approval rating.

U.S. officials have been keeping a close eye on Chavez. He has tried to
build ties with Iraq, Iran and Libya. Visiting Moammar Gadhafi in Libya,
Chavez said, "our struggles are the same, as well as our ideals."

Chavez has also used the power of his office to try to influence subversion
in other countries. He has asked the Venezuelan embassy in Paris to work for
the release of Carlos "The Jackal," the world's most notorious terrorist.
Chavez is also backing two guerilla groups in Columbia.

Of most concern appears to be the relationship between Chavez and Castro.
Chavez has called himself "the second Fidel."

In September he spoke of a "Venezuelan-Cuban team . swimming together toward
the same sea of happiness."