Replies

U.S., Venezuela mending relationship *** Chávez on Tuesday also dismissed Commerce Minister Adena Bastida, a firebrand Chavista who had regularly portrayed the United States as an ''imperial'' power and advocated closing Venezuelan markets to some U.S. goods. Another Chávez friend said he counseled the president at a recent meeting also to tone down his warm relations with Havana. Chávez did not respond, the friend said.

But Venezuela is toughening the terms of its generous oil supply deal with Cuba after the island has fallen repeatedly into arrears on payments. State-owned oil company Petroleos de Venezuela, S.A. -- or PDVSA -- stopped dispatching crude and refined products, including jet fuel, to Cuba around April 12 after the island defaulted on a $63.4 million bill.

U.S. officials meanwhile are finding it easier to arrange meetings with Chávez and government officials, to let them know that Washington remains concerned by the explosive divisions between the president's backers and foes. ''The U.S. believes it is important that there be national reconciliation in Venezuela and encourages both sides to take steps in that regard,'' said Shapiro, who met with Chávez for two hours on May 10. Shapiro has also spoken with Vice President José Vicente Rangel and met with Alí Rodríguez, head of the state-owned PDVSA oil company, which owns 10,000 CITGO gas stations in the United States, and with several Cabinet ministers.***

Venezuela to Cuba: Oil isn't free*** CARACAS - Venezuela is toughening the terms of its generous oil-supply deal with Cuba after the island has fallen repeatedly into arrears on payments, currently owing $142 million, oil industry sources said. State-owned oil company Petróleos de Venezuela, S.A. (PDVSA) stopped dispatching crude and refined products, including jet fuel, to Cuba around April 12 after the island defaulted on a $63.4 million bill. The outstanding debt has since increased to $142 million, industry sources said.

Officials from Cupet, the Cuban oil company, visited Caracas earlier this month in an effort to renew the eight monthly cargoes, a spokesman for the Venezuelan Energy and Mines Ministry said………………….. During last month's brief 48-hour ouster of Chávez, managers at PDVSA announced that they would immediately suspend the Cuba supply contract. Employees gathered at an assembly cheered and applauded. But PDVSA President Ali Rodríguez, a former leftist guerrilla, said upon taking the post last month that the Cuban contract would be honored.***