Posted on 08/29/2006 6:59:56 PM PDT by LeftToRight
Beijing backs Venezuela for UN council
By Andrew Yeh in Beijing
Published: August 24 2006 21:40 | Last updated: August 24 2006 21:40
Venezuela has secured China’s support in its bid for a United Nations Security Council seat, Hugo Chávez said on Thursday as he announced a raft of deals to develop his oil-rich nation’s resources.
Detailing an agreement to almost quadruple oil sales to China to 1m barrels a day over the next decade, the Venezuelan president said Hu Jintao, his Chinese counterpart, had assured him of China’s support over its rival Guatemala.
‘‘The support of China is very important from the political and moral point of view,’’ said Mr Chávez after meeting Mr Hu.
The move, together with the broadening of energy ties between Beijing and Caracas, is a further sign of warming relations between China and Venezuela, a worrying trend for the US.
“I’m very satisfied with co-operation with China in the oil and petrochemical fields,” Mr Chávez was quoted as saying on Thursday by the state-run Xinhua news agency. He expressed a desire to diversify his country’s petroleum business.
China National Petroleum Corp (CNPC), China’s state-controlled oil major, and PDVSA, the Venezuela state oil company, have signed two agreements to jointly explore Block 4 of the Junin area of the Orinoco River basin as well as the region of Zumano in Venezuela.
No financial details of the deals were made public.
Venezuela’s oil fields are among the most productive in the world. China’s appetite for crude has been insatiable in recent years, with Venezuelan imports set to rise fast.
This week, Mr Chávez predicted oil exports to China could reach 500,000 barrels a day in five years’ time, nearly tripling from the current amount of about 160,000 b/d. He predicted exports could reach 1m b/d within a decade.
Aside from the energy contracts, six other agreements were signed on Thursday, including those focusing on bilateral trade and infrastructure construction.
Both Mr Chávez and Mr Hu said co-operation would be likely to include the building of oil machinery, railways and telecommunications networks.
Beijing frequently assists developing countries, including rogue regimes shunned by the west, with infrastructure building and other economic incentives. In exchange, China often is able to secure much-needed oil and mineral resources for its expanding economy.
Mr Hu said China was encouraging more companies to invest in Venezuela. Beijing’s leaders have made it a priority to urge competitive Chinese enterprises – particularly in the energy, construction and high-technology fields – to “go out”.
Copyright The Financial Times Limited 2006
"Hey Joe, me love you looong time. Too beaucoup! Too beaucoup! Round the world. One million barrels, Joe."
We will veto this one.
The real Axis of Evil, would you please stand up!
We should veto Chavez.
Isn't there like 50-60 countries ahead of them in line?
Anybody else thinking that Chavez has put together his plan to sell Venezuela's stake in their Citgo US refineries so that they can clear the way to drastically reduce exports to the US (as an act of war) and have China take up the slack in buying their crude? These Commies think in terms of long-range plans. I'm sure that we have folks in the US government who do, too, but it gets complicated with homegrown Demo/Commies constantly yapping at the heels of the adults...
While we are at it...let's get North Korea and Iran on the Security Council as well.
Oh, well. I'm sure more unfettered free trade with Maoist tyrants will solve all our problems.
my belief is that if not for Citgo chavez would have already gone farther than he has. What I do not know is how much of a problem it is to find refinery capacity capable of processing venezuelan crude, which is apparently rather unusual and noxious.
I have no doubt that he is working on both of those, and if not for both of those obstacles would already not be selling oil to the US.
Trash-talk and empty rhetoric aside, this guy became president for life when his april 2002 removal unraveled and was confirmed with the failure of the national strike later that year. He's in, he has LOTS of oil, and pretty much everyone else is going to deal with him.
Someone can correct me if I'm wrong, but I don't think there is a veto arrangement for the non-permanent memberships. I thought it was only open to a General vote.
No se. IDK.
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