Venezuela Strikers Threaten Anti-Chavez Tax Revolt

CARACAS, Venezuela (Reuters) - Venezuela's opposition threatened on Monday to add a tax revolt to a strike that has blocked oil exports and jolted world energy markets but so far failed to make President Hugo Chavez resign.

The leftist leader has thumbed his nose at massive marches, one of which brought a million demonstrators onto the streets of Caracas, and at a 29-day-old strike that has closed down shipments from the world's fifth-largest oil exporting nation.

"We're bashing up against a wall," one of the protest leaders, Carlos Fernandez, president of Venezuela's main business chamber, Fedecameras, told Reuters.

The opposition demands immediate elections and has refused Chavez's offer of a referendum on his rule in August, saying that if it waits that long he will wreck the country. Chavez says under the constitution August is the earliest date an election may be held to assess popular support for his rule.

"Today we are taking the road of legitimate civil disobedience," said another strike leader, union boss Carlos Ortega. "We will refuse to pay taxes to a regime which renders no accounts and squanders the money of the people."

The opposition could also call an assembly to rewrite the constitution, Fernandez said, adding that the law allows for such a move if it is clearly shown to be the will of the people.

Chavez, a former paratrooper who was jailed after a botched coup in 1992 but was elected in 1998, has fought hard against the strike, firing executives from state oil giant PDVSA and ordering troops onto halted oil tankers.

In a major role-reversal for the oil-rich nation, he has imported some gasoline to ease lines hundreds of cars long at filling stations. The government said that oil output would climb back to a third of normal next week, but PDVSA rebels said efforts to kick-start petroleum production were failing.

The squeeze on Venezuelan exports, which normally provide 13 percent of U.S. oil imports, have spooked world energy markets already fretting about a possible war in Iraq. U.S. crude futures jumped to a two-year high early on Monday before sliding sharply to $31.45 a barrel as the OPEC cartel indicated its readiness to come to consumers' rescue by boosting output.

The opposition, backed by business and unions but attracting support from most Venezuelans, accuses Chavez of authoritarianism, corruption and economic incompetence in what they say is a quest to establish a Cuban-style dictatorship.

Chavez condemns as "fascists" his opponents, who also backed a failed coup against him in April. His class war rhetoric and lengthy speeches that ramble from references to his grandmother to threats against his enemies make Venezuela's educated elite apoplectic.

The president, whose term is due to run until 2007, has seen his popularity plunge, even among his core constituency, Venezuela's poor majority. But, with about 30 percent support, he is more popular than any individual opposition figure.

Meanwhile, the country's economy is suffocating without petroleum, which normally provides 80 percent of exports and 50 percent of government revenues.

While Chavez points to $15 billion in Central Bank reserves to allow him to withstand the strike, analysts say the economy, already in deep recession, could buckle if world financial markets panic about Venezuela in the new year.

Caracas-based political analyst Janet Kelly said she has hoped an agreement would be reached before economic pressures explode. But she said personal animosity between Chavez and the strike leaders was a barrier.

"Chavez is crazy, but like a fox. I wouldn't underestimate him. A critical rule of negotiation is never reveal that you're willing to give in tomorrow," she said.

"The opposition has equal problems, because if they really bring the country to a total crisis, of economic isolation, there is a point at which the country turns against them."

The opposition still holds cards it has yet to play, such as a march on the presidential palace in the Chavez stronghold of central Caracas. Many fear this could lead to violence, remembering the 19 deaths during a similar march before last April's coup.

Strike leaders are also organizing a nonbinding referendum in early February, although Chavez says he will pay no attention to the result even if 90 percent vote against him.

While holding firm around its petroleum core, the strike was fraying around the edges, with many smaller companies and restaurants opening their doors.

Several hundred thousand opposition supporters marched in Caracas on Sunday, but the protest was a fraction of the size of a million-strong demonstration a week earlier.

Talks between the opposition and the government, brokered by the Organization of American States, have made little progress. In public, communication between the two sides is largely limited to threats and insults.

"Chavez treats this like a war. He's a soldier and soldiers think of war as victory or defeat. If he were a democrat, which he isn't, he'd be giving some," said Fernandez.

Houston Chronicle - Crude prices drop - Motorists may not see change at pump*** Oil prices did something Monday they haven't done for a while -- they went down. After a strong start that saw the price for crude run all the way to $33.65 per barrel, the price of the benchmark February futures contract skidded $1.35 to end the day at $31.37.***
__________________________________________________________________

***We've got a new resister who just left Chavez and joined the opposition who adds a whole new dimension to this struggle. He is the highest tax cop in the country. His role is equivalent, I think, to that of the IRS commissioner here. His name as Manuel Jesus Carpio Manrique, ...and he has a CV as long as your arm -- his whole life is in tax enforcement. He founded the school that trains tax collectors, and he is the co-founder of "Seniat" (which is Venezuela's version of the IRS). Today, he is now a Plaza Altamira resister.

And, not only that: HE ALSO JOINED THE TAX REVOLT MOVEMENT. He was on TV last night, urging everyone to stop paying their taxes! Here is what he is saying: " - I am one of the founders of Seniat, Venezuela's tax office. But today, I am calling for active and open tax resistance. Not one $ more for Chavez and his crew!" *** Source

Hugo Chavez - Venezuela

An opponent of President Hugo Chavez kicks a tear gas canister during a clash between opponents and supporters outside of the Venezuelan secret police headquarters in Caracas, Venezuela, Monday, Dec 30, 2002. The secret police arrested Gen. Carlos Alfonso Martinez, one of dozens who have occupied a city square for three months, declaring themselves in rebellion against Chavez.(AP Photo/Esteban Felix)

Venezuelan police break up fight between Chavez foes and followers in strike unrest *** Chavez opponents broke through police lines and tried to tear down a tent set up by the president's supporters outside the offices of state oil monopoly in the western city of Maracaibo, in violence broadcast live by Globovision television. Police fired tear gas to end a tug-of-war over the tent. The rival bands continued shouting at each other as police shoved back the two crowds with riot shields.***

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.