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To: Grampa Dave; mafree; Cincinatus' Wife; marron; RedWhiteBlue
Ping. I think the "loans" may not be spent on exactly what is intended.
2 posted on 07/26/2002 3:50:01 PM PDT by Shermy
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Venezuela: Chavez Secure for Now, but Threats Are Rising
3 posted on 07/26/2002 3:52:23 PM PDT by Shermy
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To: Shermy
ping!
4 posted on 07/26/2002 3:55:26 PM PDT by mafree
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To: Shermy; Axion; All
Venezuelan oil shipments to Cuba resuming in August - Libya studying Cuba's oil refinery***Rodriguez added that Cuba and Venezuela had studied the possibility of modernizing Cuba's Cienfuegos refinery but decided the project isn't feasible. He said OPEC member Libya is conducting a similar study and that Venezuela is sharing information on Cienfuegos with Libya.*** July 2002

***The Bush administration created a stir last week by accusing Cuba of sharing its dual-use biotech capability with "rouge" states that are looking to create plagues for biological warfare. That charge should put into perspective Castro's own warning to the United States during his swing through the Middle East last May. "Iran and Cuba, in cooperation with each other, can bring America to its knees," Castro said at the University of Tehran. "The U.S. regime is very weak and we are witnessing this weakness from close-up." *** Source - May 12, 2002

Fidel, Saddam and Hugo --An improbable but growing friendship of three military revolutionaries*** The Castro-Hussein-Chávez connection is anti-American and anti-capitalistic, but not in an ideological way. What matters to the three is domestic power built upon a base of nationalism that they believe legitimizes their policies In a way, this bizarre trio represents the rebirth, a half century later, of the kind of nationalist populism spawned by General Juan Perón in Argentina and Gamal Abdel Nasser in Egypt. Mr. Castro and Mr. Saddam gained power through armed revolutions; Mr. Chávez, a paratroopers' lieutenant colonel, was democratically elected in 1998, after serving time for trying to overthrow the government in 1992.

…Mr. Chávez is the most intriguing new leader to emerge in Latin America since Mr. Castro - and he is the lynchpin between Mr. Castro and Mr. Saddam. Although Cuba had been sending doctors and health workers to Iraq for years, there had not been any major contacts between the two countries until Mr. Chávez appeared on the scene. This fall, Mr. Chávez became the first democratically elected foreign head of state to visit Iraq since the Gulf War, ostensibly to invite Mr. Saddam to a summit of the Organization of Petroleum Exporting Countries. But it also was an in-your face gesture toward the United States.

With France and Russia, two of the five veto-wielding members of the Security Council, determined to see the sanctions against Iraq ended, the United States can do little to prevent them from withering away. Mr. Saddam has no intention of allowing UN weapons inspectors back into his country, and he knows that renewed bombing of Iraq is out of the question. Confident that the United States and the British would not risk shooting down a civilian airliner in the southern or northern "no-fly" zone, Mr. Saddam has resumed regular domestic commercial flights for the first time in a decade.

Iraq has the world's second-largest reserves of oil, after Saudi Arabia, which it exports legally under UN controls and smuggles out on a huge scale. Mr. Saddam is not short of cash for whatever adventure next occurs to him, and, with Mr. Chávez, he can influence the international oil supply and its prices.

As for Venezuela, a main source of U.S. imported oil, Mr. Chávez has been raising his profile within OPEC, having presided in Caracas in late September over a summit of that organization. Late in November, Mr. Saddam showed on two occasions what he can do to the oil market when he briefly threatened to halt the shipping of oil, a move Mr. Chávez knew about beforehand.

The Iraqi link is one aspect of Mr. Chávez's international involvements that the United States must not underestimate, with Cuba playing a central role. Since he took office in February 1999, Mr. Chávez has proclaimed his "identification" with the Cuban revolution. He visited Havana and entertained Mr. Castro in Caracas for five days last October. Mr. Castro treated Mr. Chávez as a son, an attitude seldom displayed by the Cuban leader toward any young people. During that same visit, Mr. Chávez granted Cuba large crude-oil price discounts, as he has done selectively elsewhere in the Caribbean, and agreed to help complete building a Cuban oil refinery. ***December 2000

Gaddafi's bid for Africa*** Mugabe has been increasingly isolated by the world in the wake of his controversial victory in last month's presidential election amid reports that Zimbabwe is virtually mortgaged to Libya in exchange for oil and money. The Libyans are said to have been allocated farms by the government. No official comment could be obtained from the Libyan ambassador, Mahmoud Azabi, who was said by his office to be out of the country. Reports in the State-controlled Herald yesterday said Libya was now providing 70 percent of Zimbabwe fuel imports. A 12-month US$330 million (Z$18,15 billion) oil deal signed by Mugabe and Gaddafi last year for Libya to supply Zimbabwe with oil expires in two months' time and Mugabe was reportedly anxious to secure an extension to avert another crisis in the tense period after the presidential poll.

"The bottom line is that Libya has been unable to get the products promised by Mugabe when the deal was sealed," another source said. "That is why Mugabe had to go and plead with Gaddafi." The deal, under which Gaddafi supplied oil in exchange for land, agricultural produce and stakes in key enterprises in the tourism sector, helped Mugabe reduce the magnitude of the crippling fuel crisis which started in October 1999. With the exception of Gaddafi, the rest of the world's suppliers had stopped oil supplies to Zimbabwe due to non-payment. ***

Libya pulls Zimbabwe's fuel plug***Libyan demands that the Mugabe regime hand over valuable farms as part of the deal have yet to be met, prompting fears from fuel-hungry consumers that the north African country will soon grow impatient with Zimbabwe. It is understood that groups of Libyan businessmen have been to Zimbabwe and visited vast commercial farms around the country. Libyan leader Muammar Gaddafi also toured some big commercial farms and identified some for his country's expropriation last year. However, the mechanics of delivering this land to the Libyans seem to have been delayed, prompting cries of impatience from the Libyans. Zimbabwe is now so heavily reliant on the Libyans that the country will cease to function if Gaddafi puts brakes on oil supplies. Mugabe has paid a dozen visits to Libya in the past year to maintain Gaddafi's patronage. Opposition leader Morgan Tsvangirai says Zimbabwe has virtually become a "colony of Libya". Libya's cut supplies have only

***Venezuelan Energy and Mines Minister, Alvaro Silva Calderon, was appointed the Opec secretary-general last month. "The fuel situation is getting worse and with the Libyans reportedly turning a cold shoulder after amassing land in Zimbabwe, there is a pressing need to take the begging bowl to other oil-producing countries like Venezuela to avert the crisis," said the source. "Why would the President honestly spend a week in Cuba when he has been there before?" he said. Last week, parts of the country were hit by fuel shortages triggered by hoarding amid reports that the commodity was in short supply.*** Source July 2002

Now look at who's the latest beneficiary of Gaadafi's largess -- Source: Central Bank of Venezuela -Caracas proposed an emergency fiscal adjustment package May 30 that was designed to cut government spending and raise revenues. So far, this package has been a dismal failure. Proposed tax hikes are languishing, and multilateral agencies have refused to lend, forcing Chavez to seek a $5 billion bridge loan from Libya, sources say. Attempts to refinance Venezuela's debt have been equally unsuccessful, primarily because domestic and foreign investors are wary of the risk. Caracas was able to raise only around $4 million, or 10 percent of its goal, in a late-June auction of two-month treasury bills.***

15 posted on 07/27/2002 1:23:32 AM PDT by Cincinatus' Wife
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