Posted on 04/14/2002 4:01:40 AM PDT by Cincinatus' Wife
The well, 340 kilometers (210 miles) northeast of Bogota, was initially drilled by Los Angeles, California-based Occidental Petroleum Corp., but that company abandoned the project last May. Ecopetrol took it over after that. "Gibraltar I is a 100 percent Ecopetrol project, which means the reserves and the production belong exclusively to the nation," Ecopetrol said in a statement. This oil well gained notoriety while being drilled by Occidental because the U'wa Indians protested the project fiercely, even threatening mass suicide by jumping off a cliff. The U'wa say oil is the blood of the earth.
The exploration is taking place despite heavy security risks due to the country's 38-year civil war. Guerrillas frequently bomb oil pipelines and installations as part of an extortion scheme and to protest the government's alleged "subservience" to foreign interests. The United States has deployed about 70 Green Berets to oil-rich Arauca state to train Colombian soldiers in counter-guerrilla tactics to protect a crucial pipeline there.
Oil is Colombia's No .1 legal export and a key source of government revenue but Yanovich warned last year that the country would be forced to start importing crude within five years if large new reserves weren't discovered. Colombia produces 590,000 barrels a day, more than half of which is exported.***
Garrison commander Jorge Luis Garcia Carneiro, a military officer still loyal to Chavez, has refused to give precise figures of how much gold his men took. He claims, however, that at least ten metric tonnes (321,500 troy ounces) of gold bullion currently remain under his heavily-armed 24/7 control in Fuerte Tiuna, and that the order to remove it from the Central Bank came directly from Hugo Chavez himself.
The lack of precise numbers makes it difficult or impossible for independent controllers to verify the government's accounting if the gold is ever returned.
Immediately when the gold was moved to Fuerte Tiuna, Hugo Chavez and three of his cabinet ministers also moved there, and now sleep permanently in lodgings in the Circulo Militar, within the protected perimeters of the garrison.
International credit rating agencies are now expected to downgrade Venezuela once again, as chaos in the Central Bank and the uncertainty of the country's gold reserves reveal the true state of affairs in the country's increasingly desperate Chavez government.
Preliminary data released Dec 27 2002 by the Venezuelan Central Bank showed that the country's economy contracted by an estimated 10 percent to 12 percent in the fourth quarter of 2002, the largest quarterly drop in the past 50 years. [End] www.MilitaresDemocraticos.com
The list of 6,000 items deemed essential by the exchange control commission, or Cadivi, includes various food products, medicines, personal hygiene items and industrial raw materials. The list was posted on Cadivi's Web site.
Most of the items on the list are not produced in Venezuela, which imports more than half of the goods it consumes, including almost all the medicine used by Venezuelans. U.S. dollars must pay for those imports.
Restrictions on imports form part of a new currency exchange control system that President Hugo Chavez's government is gradually implementing. ***
URBAN VIOLENCE The FARC, the Revolutionary Armed Forces of Colombia, are leftist rebels waging war here for nearly 40 years. Guerrilla tactics common in the countryside have recently made their way to urban centers, bringing a decades-old war to the cities in random incidents that sometimes appear to have no particular target. The rebel group denied responsibility for a Feb. 7 car bomb that killed 37 people at an exclusive social club. Other recent urban attacks have included a laptop bomb left in December at a hotel frequented by politicians, and mini-rockets launched at the federal prosecutor's office in November.
Tuesday's attacks were against Transmilenio buses, a transportation system inaugurated just two years ago that shuttles 800,000 people a day in designated lanes. Police said gasoline-filled bottles were left on three of the 470-bus fleet. Police confiscated Coca-Cola containers with an unusual substance inside, police Col. Marco Antonio Pedreros said. Two women allegedly seen planting the devices were arrested.
''We saw the bus was parked and started to light up,'' transportation worker Jenny Correa told local TV reporters. ``There were about 35 or 40 people on board. There was desperation, and they started to run.'' Everyone was evacuated safely. A similar bomb was found on a Transmilenio bus in January. And in December, authorities announced they had learned of a FARC plan to bomb 80 buses.*** STATIONS SEARCHED Transportation officials stressed that all 61 Transmilenio stations were being searched and that bus service would not be suspended. City leaders urged commuters to continue using the shuttle system. [End]
Washington is observing Venezuela's economic development closely. Last year, Venezuela supplied America with 13 percent of its crude oil imports. The severe economic problems could signal unabated instability and further disruptions in oil production. According to Banco Provincial, in the first quarter of this year, Venezuela's economy will shrink 40 percent and oil sector activity will drop by 69 percent. To put this in perspective, this slowdown would be more severe than America's sharpest Great Depression contraction. The bank also said that the non-oil sector would contract by 33 percent and the unemployment rate would rise to 25 percent from the official rate of 18 percent. ***
It was more than a propaganda victory for the Revolutionary Armed Forces of Colombia, the 17,000-strong guerrilla group that, according to Colombian and U.S. officials, was behind the bomb that leveled Bogotá's El Nogal social club last month, killing 35 people -- including six children -- and injuring 175 others. It was a public snub to Colombian President Alvaro Uribe that seems to have emboldened the FARC, courtesy of the Brazil-Ecuador-Venezuela axis of diplomatic spinelessness.***
U.N. sanctions notwithstanding, the-man-who-would-be-Bolivar was enchanted by the desert nations, specifically Baghdad. "His courting of Fidel Castro, Colombia's Marxist guerrillas and Saddam Hussein made him a pariah both in Latin America and in Washington," the Post reported.
Even more troubling are allegations of support for international terrorist organizations. Several high-ranking military defectors, including the former head of the border service, claim Chavez has helped conceal the identities of terrorists, many Middle Eastern, passing through the country. More fantastically, and more likely fabricated, is the charge that he funneled money to al-Qaida in October 2001, in the guise of humanitarian aid.
The testimony of former higher-ups should be taken with more than a grain of salt; however, the claims are entirely possible. Chavez has done nothing to crack down on the drug smuggling taking place in the border regions that directly benefts Colombian rebels. And he has sent members of his fanatical civilian support groups, his Bolivarian Circles (often referred to as "Circles of Terror"), to Cuba for "unspecified training."
His contentious and troublesome history aside, Chavez deserves special attention now as he carries out his pledge to make those behind the recently defeated strike pay for challenging his authority. "Twelve-armed men kidnapped the four victims on Saturday night as they were leaving a protest. They were bound and gagged, and some were tortured before the gunmen executed them, the police said," the New York Times reported Wednesday.
The killings of the three dissident soldiers and an opposition organizer, while perhaps not directly authorized by Chavez, were undoubtedly politically motivated. The Bolivarian Circles have been known to physically threaten protesters with violence. To counter this, some protesters have formed their own armed bands, raising the terrible, if still distant, specter of all-out urban warfare between opposing camps.
Such an apocryphal warning may be necessary, however, as Venezuela continues to destabilize. Labor-government negotiations are on the cusp of dissolving, and the possibility has led many to take to the streets in protests dwarfing antiwar crowds in the United States.***
Newsprint isn't manufactured in Venezuela and many local newspapers have said they only have paper to last them through about April. Opponents of President Hugo Chavez warn he'll likely use the new rules to close newspapers critical of his administration, which they say is becoming increasingly dictatorial. Chavez often accuses some newspapers, along with television and radio stations, of unfair coverage. ***
Colombia's leading daily El Tiempo reported Wednesday that the Revolutionary Armed Forces of Colombia, or FARC, runs a training school for some 400 rebels in Venezuela. Citing an unidentified report from the Colombian army, the newspaper also said that the National Liberation Army, or ELN, has a camp in Venezuela that it uses as an air base and hideout for kidnap victims. Venezuelan Foreign Minister Roy Chaderton denied the report, saying Colombian officials would have contacted Venezuelan authorities by now if it were true. Chaderton said he believed someone provided false information to the press.
On Thursday, a Venezuelan opposition politician claimed he has a report by Venezuela's Environment Ministry confirming the existence of a FARC camp in Sierra de Perija. The report says the camp has a water tank, a cafeteria for 50 people and a dormitory, Fernando Villasmil, president of the legislature of western Zulia state, said in an interview with Union Radio. Environment Ministry officials did not immediately return calls seeking comment.
Earlier in the week, Chaderton said his country would not declare Colombian rebels terrorists because that would make it harder for Venezuela to help broker any future peace agreement in the civil war. Chavez has condemned rebel bombings and kidnappings as "acts of terrorism." Caracas and Bogota are considering calling a meeting between Chavez and Colombian President Alvaro Uribe to discuss relations, which have been rocky for years. Many Colombians believe that the Venezuelan government is sympathetic to the leftist rebels, and some have even accused Venezuelan authorities of harboring rebels.
Chavez denies supporting rebels.***
On Venezuela, Hill described the street protests during the two-month general strike that crippled Venezuela's economy as, "for lack of a better term, democracy in action." The strike crippled oil exports in what had been the world's fifth-largest oil exporter. He said that following the strike, Chavez's "actions may portend a move toward greater authoritarianism. In my mind, that bears watching very carefully. I have directed my people to do that." Since the strike ended, Chavez has come under international criticism for cracking down on political opponents.
Chavez has accused the United States and other nations of conducting a smear campaign to discredit his government. He continues to have strong support among Venezuela's many poor people. Hill said he has not personally been in contact with Venezuela's military, but praised it as professional and said it has good relations with the U.S. military. "The Venezuela military did not go out in the street and kill its citizens, nor did they conduct a coup," he said. "I think that's an important aspect of what's going on."
The Bush administration long has been wary of Chavez, who has befriended Iraqi President Saddam Hussein, Cuban leader Fidel Castro and other U.S. adversaries. But after appearing too eager to support a failed coup attempt last April, the United States has been cautious in its criticism. It is following the leadership of the Organization of American States in seeking a peaceful resolution of Venezuela's political crisis. Hill created a stir in Venezuela last week when he said terrorist organizations were operating on the country's Margarita Island, as well as in border areas of Brazil, Argentina and Paraguay. Venezuela's foreign minister, Roy Chaderton, called on him to provide evidence. ***
The withdrawal will wipe out the federal government's balance within the FIEM, leaving the fund with $1.608 billion, of which $208 million is earmarked for state governments and the remainder for state oil company Petroleos de Venezuela SA(E.PVZ), according to the report.
Government officials couldn't be reached for confirmation. The FIEM is a rainy day fund that, in 2000 and 2001, absorbed half of Venezuela's oil revenues above budgeted levels. The account isn't expected to get any deposits until 2004 as a result of a new law.
Government income was severely affected by a two-month general strike against President Hugo Chavez's leadership that began Dec. 2, which all but shut down Venezuela's vital oil industry, among many other sectors. Opposition leaders are demanding Chavez agree to early elections, blaming his left-leaning policies for the country's deepening economic crisis. The economy contracted 8.9% in 2002, amid 17% unemployment and 32% annualized inflation sparked by a 46% devaluation of the bolivar. The currency lost a further 25% this year before currency sales were halted Jan. 21. [End] Chavez has said the problems are due to an "economic coup" led by his opponents. El Universal Website: www.eluniversal.com -By Jehan Senaratna, Dow Jones Newswires; 58212-564-1339; jehan.senaratna@dowjones.com
Costa Rica is evaluating whether to grant Ortega territorial asylum, which would allow him to live in the country, Lizano said. Venezuela would grant safe conduct to Ortega if he is granted territorial asylum, Interior Minister Lucas Rincon said. Chavez said on state television that Ortega's asylum request "demonstrated the criminal character" of the strike leaders. "They are sabotagers and terrorists who greatly harmed the country," he said. At the same time, hundreds of flag-waving supporters gathered around the Costa Rican embassy in eastern Caracas chanting, "Ortega, friend, the people are with you!" ***
Everyday, Faria appears in television advertisements pleading with Caracas residents not to waste water. Hidrocapital swore in 100,000 kids as "water guardians." Their job is to warn family and friends against wasting water. The basin that feeds the Camatagua reservoir, the source of over half the capital's supply, hasn't received rain for months.
"I've never seen it this low," said Juan Quintero, a fishing guide at Camatagua, 37 miles (60 kilometers) from Caracas. According to Luis Olivares, a meteorologist at the Cajigal Observatory, which measures rainfall and weather conditions in Venezuela, said 58.8 millimeters (2.3 inches) of water fell in Venezuela's central region during November and December. None has fallen since. ***
The executives went into hiding after the lower court ordered their arrest Feb. 26. Echeveria said he advised the executives not to emerge from hiding yet because they might be seized by authorities unaware of the appeals' court decision. Last week, secret police stormed an opposition march in an attempt to arrest Petroleos de Venezuela executive Juan Fernandez, who made a surprise appearance. The police clashed with protesters, and Fernandez escaped. "We see a light in Venezuela's administration of justice," Echeveria said. ***
The government says oil production has risen to 3 million barrels a day, almost what it was before the strike. Fired executives insisted Tuesday it was 2.4 million barrels. Also Tuesday, PDVSA failed to restart the El Palito refinery's main gasoline producing unit, which shut down last week because of a mechanical failure. It could take another few days to restart the catalytic cracker, a delay that could force Venezuela to continue importing gasoline, pro-government union activist Jose Arias said. PDVSA officials were not immediately available for comment.
Foes say Chavez is persecuting opponents, trampling over the country's democratic institutions and fomenting class hatred. The former army paratrooper accuses his opponents of trying to overthrow a democratically elected president and bring Venezuela back under the control of two corrupt traditional parties that ruled for 40 years until his 1998 election.
Also Tuesday, strike leader Carlos Ortega waited for the Venezuelan government to grant him safe conduct to Costa Rica, where he has been given asylum. Venezuelan officials have indicated the government would grant the safe conduct. ………….Co-strike leader Carlos Fernandez, the president of Venezuela's biggest business association, is under house arrest awaiting trial for rebellion and instigation. A judge struck down a treason charge.***
Chavez accuses Venezuela's news media of conspiring to overthrow his leftist government. Many newspapers endorsed a recent, failed two-month general strike to demand early presidential elections. Chavez's term ends in 2007. Chavez suspended dollar sales to businesses and citizens Jan. 22 to stem a rapid devaluation of the bolivar currency and capital flight. The government published a list this week of 6,000 imported items, such as medicine and food, that will be eligible for private dollar purchases at a date to be announced. Newsprint is not on the list, although the government says it may be in the future.
"This is undoubtedly an attempt against freedom of expression. It's becoming a government policy," Otero said. The bolivar lost a quarter of its value against the dollar this year before currency sales were halted. [End]
The Americans were captured by the Revolutionary Armed Forces of Colombia -- known as the FARC -- Feb. 13 after their U.S. government plane went down in rebel territory during an intelligence mission. A fourth American and a Colombian on the plane were killed near the scene. The U.S. State Department years ago classified the FARC as a terrorist group, but the U.S. Embassy denied that the offer of the money -- equal to more than a lifetime's pay for many Colombians -- and the hard-to-get U.S. visa is tantamount to negotiating with terrorists. ***
When we spoke about famous exchangeable prisoners (political, military, police and governmental dignitaries that have been kidnapped and that, according to the guerrilla, could be exchanged by FARC captives), one of the guerrilla told me: "You should be grateful for not being one of those exchangeable people, because if you were, we would have taken you with them already." And where are they? I asked. "On that side of the frontier."
I told him how could it be possible that such as honest person like former presidential candidate Ingrid Betancourt, known also by her fight against corruption, remains kidnapped. He answered that she was a big shot that would be released only when an exchange law is passed. They never said the exact location of the exchangeable prisoners. But we can presume that the place should be between Venezuelan Zulia and Táchira states. Once, they said that it is possible to go to the Venezuelan zone called Machiques through Sabana Rubia, in Colombian Codazzi municipality. ***
The decision to free businessman Carlos Fernandez was a blow to Chavez's efforts to punish the leaders of the crippling general strike in December and January that slashed oil output and exports by the world's No. 5 petroleum exporter. The court ruled that 52-year-old Fernandez, who faces rebellion charges, should be released from house arrest because prosecutors had not complied with correct procedures. "He is completely free," appeals judge Luis Lecuna told reporters.
Fernandez was taken from his home in Valencia, west of Caracas, to hospital late Wednesday suffering from a heart condition. Lecuna said he could still face prosecution for his role in leading the strike that fizzled out early last month after failing to force Chavez to resign. Earlier this week, an appeals court annulled arrest orders against seven former executives of the state oil firm Petroleos de Venezuela (PDVSA), whom Chavez had accused of disrupting and sabotaging national oil production during the strike.
Another strike leader, union boss Carlos Ortega, has been granted asylum by Costa Rica and is waiting in the Costa Rican embassy in Caracas to travel to the Central American country, Chavez, who was first elected in 1998 and whose current term ends in 2007, has refused opposition calls for early elections. [End]
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