[PEN-L:33257] FEDECAMARAS Defy Supreme Court Order to Reopen the Oil Industry

[Yoshie Furuhashi <furuhashi.1@xxxxxxx>]

Agence France Presse
December 20, 2002 Friday 10:30 PM Eastern Time
SECTION: International News
LENGTH: 586 words
HEADLINE: Venezuela heads to new confrontation as strikers defy order
to resume work
DATELINE: CARACAS, Dec 19

BODY: Venezuela headed toward new confrontation as government
opponents rejected a Supreme Court order to reopen the oil industry
crippled by a general strike that headed to its 19th day Friday.

"The oil strike remains active and will not stop," Carlos Fernandez,
head of the Fedecamaras business group and one of the top strike
leaders, after the court issued the ruling Thursday.

The Supreme Court ordered that government decrees to reopen idled oil
production and distribution facilities be enforced.

But strike organizers insisted they will defy the ruling.

"We the oil workers are willing, if that is necessary, to spend
Christmas and New Year's Day in front of our factories," said Juan
Fernandez, spokesman for the strikers at the Petroleos de Venezuela
state oil company.

The protest has severely affected crude output and shipments from
Venezuela, the fifth largest oil exporter. This has caused serious
concern in the United States, which is closely watching the strike
and potential impact of events on its preparations for a possible
conflict in Iraq.

The tense stand-off between the government and its opponents has
triggered fears of violence....

Ali Rodriguez, who heads Petroleos de Venezuela said earlier crude
production was down to one third of its normal level, while the
firm's striking managers said output had dropped to 200,000 barrels a
day.

Venezuela usually produces around 2.8 million barrels a day, of which
it exports 2.5 million barrels

Many gasoline stations across Venezuela remained closed and motorists
waited for hours outside the few stations that remained open.

About 70 percent of service stations in Caracas and 60 percent
nationwide shut down after running out of fuel, according to Juan
Vaquero, who heads the Fenegas association of gasoline station owners.

But Chavez has again insisted he would not give in to the right-wing
opposition and has called on the country to back him.

Chavez has deployed troops to keep oil trucks moving. Military forces
also boarded oil tankers, but many crews have refused to resume work.

The government insists it can ride out the crisis.

"The population is almost 24 million, and we have 15 billion dollars
in reserves, which is enough to resist as long as it takes to get out
of the crisis," said Interior and Justice Minister Diosdado Cabello.

Miguel Perez Abad, who heads the Fedeindustria employers group,
estimated the strike had cost Venezuela five billion dollars so far.

Strike leaders planned to stage another "megamarch" in Caracas
Friday, following several massive protests in the capital.

Suggestions the protesters could head to the Miraflores presidential
palace triggered fears of clashes with Chavez supporters and security
forces.

The interior minister has said demonstrators would not be allowed
near the palace.

During a similar march on April 11, shots were fired at protesters
and government supporters, leaving 19 people dead and hundreds
wounded. A few hours later Chavez was ousted, but loyal forces
returned him to power after 47 hours.
--
Yoshie

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