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Chávez feeds the poor as economy starves - Cuba II is born***At the Mercal food store in Caricuao, a poor district on the dust-blown outskirts of Caracas, the range of goods is limited. Shelves are half-empty. An army sergeant loiters at the end of the checkout, ready to bag your ration of beans, flour and sugar.

Unpromising as it may seem, the government store in the capital is the model to be replicated across Venezuela under a plan fathered by populist President Hugo Chávez and overseen by the military. The plan's goal: to feed Venezuela's growing number of poor and to counter shortages from the private sector. "Prices are cheaper than elsewhere, and for those of us with low incomes, any difference is important," says Viviana Trillo, a Caricuao housewife. "I thank President Chávez for this."

Paradoxically, the food security programme is being prioritised just as the Chávez government is blocking dollar sales to businesses, including soft commodity importers and food processors, curtailing supplies.

Currency trading was suspended in January during the strike at Petróleos de Venezuela, the state oil company that is the government's main source of export revenue. Four months later, international reserves have recovered and oil exports have resumed.

But Cadivi, the foreign exchange control agency, has yet to disburse any dollars and business leaders are convinced that Mr Chávez intends to bring the business sector - which fiercely opposes his government - to its knees.

"This a specific retaliation against all those seen as not being in favour of the regime," says Rafael Alfonzo, president of Cavidea, the food industry chamber.

The non-functional currency controls are not only affecting domestic companies, many of which are closing and laying off employees. Multinationals with subsidiaries in Venezuela, such as Cargill, the US agricultural conglomerate, say they will be forced to shut down operations within the next few weeks unless hard currency is made available.

"A lot of US companies thought that this would be a temporary situation and they got money from their home offices to maintain market share," says Antonio Herrera, vice-president of the Venezuelan-American Chamber of Commerce.

"But now they are being told: 'no longer', so they are exhausting inventories," Mr Herrera says. "This is an economic atrocity against the Venezuelan people."***

516 posted on 05/14/2003 12:49:44 AM PDT by Cincinatus' Wife
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Cuba Calls U.S. Expulsions 'Aggressive' - Spy Recruitment, Association With Criminals, Monitoring..***In Washington, a senior Bush administration official said those ordered home from the Cuban mission in Washington engaged in three kinds of improper activities: monitoring and surveillance, association with known criminals and the attempted recruitment of spies. ***
517 posted on 05/14/2003 1:36:01 PM PDT by Cincinatus' Wife
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