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Sign of new U.S. hands-off policy: Chavez rules *** The failure of Venezuela's national strike to oust President Hugo Chavez carries significance far beyond Venezuela's borders. It is an indication of a subtle but significant shift in U.S. policy toward Latin America. The collapse of the strike that began two months ago -- despite broad support by the political opposition, the backing of nearly every business and financial leader in the country and a pro-business, pro-democracy platform that should have resonated throughout the hemisphere -- is partly due to its organizers' violation of the traditional rules of political rebellion. They underestimated their opponent, poorly exploited their own considerable resources, had no comprehensive strategy and found no appealing leader to rally their supporters.

But their failure also reflects the changing nature of U.S. involvement in Latin America. When they first called for the strike, opposition coordinators expected that the Bush administration would intervene on their behalf. This assumption was not without reason. Chavez has routinely turned his back on the United States, befriending Fidel Castro, meeting with Iranian and Libyan leaders and -- supported by the poorest elements of Venezuelan society -- enacting populist, anti-business reforms that fly in the face of American economic values. ***

634 posted on 02/13/2003 12:31:11 AM PST by Cincinatus' Wife
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Chavez Pushes Venezuela Price Controls, Subsidies at Youth Rally *** CARACAS, Venezuela (Reuters) - Venezuela's President Hugo Chavez on Wednesday introduced price controls and announced subsidies to soften the impact of an economic crisis after a two-month opposition strike slashed the nation's vital oil production.

Chavez, a populist former paratrooper locked in a bitter struggle with foes of his self-styled "revolution," said the government planned to subsidize basic food items such as rice, beef and milk that are covered by the new price controls. "We're preparing subsidies. Why? To sell the goods whose prices we are setting even more cheaply, for the poor ... We'll subsidize as much as money allows," Chavez told cheering supporters at a youth rally (in La Victoria).

Thousands of anti-government demonstrators later packed an eastern Caracas avenue for a series of concerts in support of the opposition campaign for elections to oust Chavez, who is resisting their demands he go to the ballot box. ***

635 posted on 02/13/2003 12:39:04 AM PST by Cincinatus' Wife
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