Posted on 11/15/2005 12:58:56 AM PST by Cincinatus' Wife
MEXICO CITY - What started as presidential name-calling escalated Monday into a full-blown diplomatic crisis as Mexico and Venezuela recalled their ambassadors from one another's capital.
Mexican President Vicente Fox's government had demanded an apology from his Venezuelan counterpart, Hugo Chavez, who on a Sunday radio program described himself as a thorny plant and warned Fox not to "mess with me" or he'd come away "pricked."
Mexican officials gave the Venezuelans until midnight Monday to offer the mea culpa or warned they would recall their ambassador and send Venezuela's packing.
By noon, Chavez's government announced it wasn't sorry for anything and was pulling its own ambassador immediately.
"This situation is entirely the responsibility of Fox," Venezuelan Foreign Minister Ali Rodriguez said in announcing the move.
Fox told an inteviewer with CNN's Spanish language network that his government was acting in defense of Mexico's national dignity.
"That defense will go as far as necessary," Fox said.
The spat — between two gab-gifted and ideologically opposed leaders whose tongues often spark controversy — reflects a deep and widening breach in Latin America over the hemisphere's economic future.
Feud began at summit
More than a decade of free market policies throughout Latin America has failed to alleviate the region's deep poverty, breeding a backlash among many citizens and some leaders.
Fox, a conservative former corporate executive whose election five years ago ended 71 years of one-party rule in Mexico, supports open markets and free trade.
Chavez, a cashiered army officer who led a failed military coup 13 years ago and has since won half a dozen popular votes, calls for government control of many industries and views free trade as a U.S. bid for global dominance.
The Fox-Chavez dust-up began early this month during a regularly scheduled two-day summit of hemispheric leaders in Argentina.
The summit, often a yawn-inducing affair, this year became a referendum on U.S. policies in the Americas and particularly on President Bush, whose attendance sparked street protests and violence.
Proposals for new talks on a hemisphere-wide trade agreement, backed most fervently by Washington and Mexico City, floundered at the summit amid a South American backlash embodied by Chavez. The Venezuelan leader told cheering supporters at a rally outside the summit that he had come to bury the agreement.
Venezuela, which exports little besides oil, teamed up with Brazil, Argentina, Uruguay and Paraguay to scuttle a firm timetable for trade talks.
Sticks, stones, bricks
On a flight home from the summit, Fox told reporters that Chavez is out of touch with reality, seeming to play on critics' frequent charges that the Venezuelan leader is mentally unhinged.
Rodriguez, the Venezuelan foreign minister, said Monday that his government in recent days had "waited patiently for some kind of positive explanation from President Fox" about his public criticism of Chavez. When no explanation was forthcoming, Rodriguez said, "the necessary step was taken."
Chavez last week called Fox a U.S. "lapdog" working in favor of Washington's "imperialism."
The Caracas daily Tal Cual, a frequent critic of the Venezuelan leader, published a cover illustration Monday of Chavez drawing a pair of six-shooters. "Looking for a Fight," the headline said.
"This wouldn't have happened if Fox had been more diplomatic and hadn't said what he thought," said Rafael Fernandez de Castro, a leading analyst of Mexican foreign policy in Mexico City. "Fox threw a stone and Chavez replied with a brick," Fernandez said. "Chavez is thrilled. The more the problem escalates, the happier he is."
Although he shares Washington's free-trade objectives, Fox has proved less than a faithful lackey, analysts say. His once-friendly relationship with Bush soured in the spring of 2003 when Mexico refused to support the U.S. invasion of Iraq.
This year, the Mexican and U.S. governments have clashed frequently over narcotics related violence along the Mexico-Texas border, over Fox's defense of a black Mexican cartoon figure deemed racist by many Americans and over continued illegal immigration.
But although Mexico already has a free-trade pact with the United States, a hemispheric accord would give the country even better access to North and South American markets, where China is making heavy inroads.
Mexico's influence
In addition, supporting the Bush administration on trade could help Mexico as it seeks new agreements with the United States on immigration and border issues, said Jennifer McCoy, director of the Americas program at the Carter Center in Atlanta.
"Mexico is not a U.S. pawn and Chavez knows that," said McCoy.
She added that Chavez is prone to making outrageous — and often quite funny — statements in public which play well among his supporters at home. But he often comes around to mending fences, as he did earlier this year after an even nastier fight with Colombian President Alvaro Uribe.
"Chavez often says later: 'Maybe I got a little wild on that one,' " McCoy said.
Few expect the dispute to lead to an actual break in relations. But Fernandez, the Mexican analyst, said it could serve to weaken Mexico's influence in Latin America at a time when the free market philosophy is being rejected in many places.
"The worse thing is that South America is closing ranks against Fox," Fernandez said.
dqalthaus@yahoo.com johnotis2002@yahoo.com
Nov. 8, 2005, 2:03AM
Fox seeks energy partners
Mexico wants Central America refinery, LNG joint ventures
By ELIZA BARCLAY For The Chronicle
MEXICO CITY - While thorny political and financial issues continue to plague the Mexican energy sector, the government has set it sights on new projects in neighboring Central America.
Mexican President Vicente Fox last week announced Mexico's interest in forging a regional energy alliance with Central America.
Benefit people, producers
"The agreements that we have arrived at will guarantee, in the medium term, the provision of energy for the region in competitive conditions that benefit the population and the producers," Fox said Friday in Argentina at the Summit of the Americas.
According to Fox, Mexico wants to build a refinery to process heavy crude oil, a hydroelectric plant, and a gasification plant for imported liquefied natural gas. The $7.5 billion cost of these projects would come from both the public and private sectors — 60 percent from Mexican and Central American government partners and 40 percent from the private sector.
Good news for many
The announcement was seen as good news for Central American countries in need of more jobs and lower energy costs. But some analysts said the proposals are unrealistic because Mexico's oil monopoly, Petróleos Mexicanos, or Pemex, doesn't have the money or the crude oil production to back up the plans.
Of the three proposed projects in Central America, the refinery is at the top of the list. Adding refinery capacity would mean Mexico could earn more on its large exports of heavy crude. Prices for this viscous, hard-to-refine crude have been depressed by the limited amount of refining capacity capable of processing it.
According to the Mexican Energy Ministry, Mexico is looking to Central America because such new energy projects with this much private financing are not permitted at home.
Mexico's constitution restricts private companies from investing in oil refining or natural gas extraction, and Pemex does not have enough money on hand to even invest in badly needed domestic refining expansions, said a government energy official who asked not to be identified.
Financial problems at home
Meanwhile, Pemex is facing a range of financial challenges, including heavy losses from interest payments on debts. Pemex said in late October interest payments on year-old debts reached $924 million, according to a third-quarter statement.
Fox's announcement may signal larger geopolitical ambitions in the region, analysts said. It comes after Venezuela has announced a long list of of energy deals, including refinery construction projects, with countries in South America and the Caribbean.
"A new refinery could supply Mexico and the region with more gasoline," and it would allow it to maintain its strong economic ties in this region against Venezuela, which has been involved with significant petroleum expansionism in Latin America, said George Baker, an energy analyst with energia .com, a Houston consultant.
Baker added that Mexico and Central America would likely need an international partner, such as Pemex's partnership with Shell Oil at the Deer Park refinery, to move forward with a costly refinery project.
Locating a refinery in Central America, if approved, could also help Mexico escape the powerful Pemex union, according to Victor Rodriguez, a professor of engineering at Mexico's Autonomous University in Mexico City.
"Mexico's refineries have low productivity and are very costly because there are too many workers," Rodriguez said. "So it might be a good idea to build a refinery outside of Mexico."
Pemex not committed?
Other analysts see signs that suggest Pemex is not committed to the project.
According to Jaime Brito, a market analyst for PFC Energy and a former Pemex analyst, Fox did not consult Pemex engineers or analysts before making his announcements, indicating that it was more of a political gesture than a practical one.
He added that Pemex should focus on its urgent need to invest in exploration and production to maintain its oil production.
Rodriguez, the professor, agreed that these projects may never be built.
"Mexico can't promise the money for these projects because they're not in the budget, and so it will be up to the next president," Rodriguez said.
Boon for Central America
Central American observers say these projects would be a big plus for the region's economy.
"A new refinery in Central America would permit energy costs to go down in the Central American countryside," said Carlos Imendia, a private consultant in Honduras formerly with the Central American Bank for Integration.
But the question remains, can any one of these tiny economies support this investment?
"If a country like Costa Rica builds a refinery, it has to import crude oil. Then it will have to export. Would it all be profitable?" said David Pursell, a production expert with Pickering Energy Partners in Houston.
Of the three options, Imendia says Guatemala makes the most sense.
"Guatemala is closest to the raw material in Mexico, and it already has a developed oil sector," Imendia said. "Plus it would be the best protected from hurricanes."
http://www.chron.com/cs/CDA/ssistory.mpl/business/3445779
Yeah, don't let the nutcase Chavez be responsible for his own actions. If we're just patient, eventually he'll alienate everyone -- including Castro.
Remember the Alamo Chavez.
"Lackey" dovetails nicely with Chavez calling Fox a lapdog. How the msm loves commie dictators. Nice too how they left out all the stuff about Chavez and his climb to power. Hugo Chavez - Venezuela
Nice.
I sense something else going on here. If I were a betting man I'd bet that the US's alphabet soup agencies are looking into weather or not Al Qadea is in bed with Chavez.
Another Al Qadea - South American - China connection?
Israeli Mossad establishing Trinidad & Tobago base against Venezuela
THE INTERNATIONAL FORECASTER editor Bob Chapman writes: We reported on the large contingent of Israelis and Mossad personnel in Colombia a couple of months ago ... they are there in the thousands.
Now we find them popping up in Trinidad & Tobago, which is prosperous due to oil and gas production and processing.
It is also used by the Israeli Mafia for transshipping drugs.
We are beginning to see bombings occur and authorities have arrested Dahtangmik Agaronov.
The drug operation is run by Sergey Mikhail and Yuri Robolaevich ... their organization includes 5,000 criminals in Colombia, Moscow and Trinidad & Tobago who not only move cocaine and marijuana, but weapons as well.
They smuggle many items and engage in extortion.
Our sources tell us they are about to establish, on behalf of George and the neocons and Israel, a base for “revolutionaries,” that is mercenaries, against Venezuela and its President Hugo Chavez Frias ... we’ll keep you updated.
We hope Venezuelan intelligence is on top of this.
http://www.vheadline.com/readnews.asp?id=46902
Here's a bit more information on this.
Hugo Chavez and Fidel Castro lay a trap for Mexico
A Mexico in a state of incremental instability has direct geopolitical implications for the national security of the United States. This is the real objective of Chavez's extraordinarily personal attack against Fox.
If Mexico destabilizes politically, the U.S. government's focus in Latin America would shift decisively to Mexico, where an unstable political environment or unfriendly government would affect sensitive bilateral economic, migration and security issues that concern Washington very much.
Bump!
They're training all sorts of terrorists in Venezuela and passing out visas to known enemies of this region.
Chavez is drooling over Guyana. He believes it belongs to Venezuela. They better watch their backs.
They better be concerned.
I wonder if Bush is getting the proper briefing on this region.
For once I have to side with Fox. Chavez is an overstuffed chorizo! I miss the good old days when the CIA knew how to destabilize a regime and overthrow a dictator... Chavez is lucky Eisenhower or Nixon isn't president or he'd he running through the Venezuelan jungle for his life!
Chavez has been "elected," so our hands are tied.
He's cemented his power by removing the underpinnings of democratic government but still proclaims they're still there.
He controls the oil and I expect, will poison freedom and growth for years to come.
The 250-page Peripheral Warfare and Revolutionary Islam was written by Spanish politician and academic Jorge Verstrynge and is being distributed on the personal orders of Army Chief Gen. Raúl Baduel, a long-time supporter of leftist Venezuelan President Hugo Chávez.
Baduel's office said he's not available for an interview until January. Armed Forces Inspector General Gen. Melvin López Hidalgo said he was unaware of the book but argued that its publication by the army should not be taken as ''tacit support for the opinions it contains.'' It's simply an example of ''freedom of expression,'' he added.
The book focuses on asymmetrical warfare, a term for ''David and Goliath'' conflicts between adversaries of vastly different capacities, such as the war between U.S. forces and Iraqi insurgents.
Verstrynge was a keynote speaker at a recent military conference in Caracas on asymmetrical warfare, which has been adopted by the Venezuelan military as a key defensive concept, based on a possible attack by U.S. forces to seize Venezuela's oil wealth or topple Chávez.
''For us, it would have to be a war of resistance,'' said Baduel in a speech last month.
Chávez, an anti-American populist who has vowed to build a revolutionary ''21st Century socialism'' in Venezuela, has repeatedly alleged that Washington plans to assassinate him and invade his country -- allegations strongly denied by the Bush administration.
Verstrynge, born in Morocco to Belgian and Spanish parents, was a leading member of Spain's right-wing Popular Party before switching to the ruling Socialists. A political-science professor at Madrid's Complutense University, he has authored a number of other books.
'It is unfair to attack `revolutionary Islam' '' and not ''U.S. religious extremism,'' he wrote, adding that Washington has plans to ''re-colonize'' the world that he called ``a danger never equaled in history.''................***
Mexican President Vicente Fox's government had demanded an apology from his Venezuelan counterpart, Hugo Chavez, who on a Sunday radio program described himself as a thorny plant and warned Fox not to "mess with me" or he'd come away "pricked."...Hello???...Fox would not like to be pricked or dicked...
Not hardly!
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