Daily International News Review, Venezuela
February 17, 2003

Good day,

Today is Presidents Day in the United States, and many businesses are closed, including the New York Stock Exchange.

Chavez didn't disappoint international news reporters yesterday during his televised address. He threatened to militarize plants that process agricultural products, such as producers of pasta , corn meal, margarine, coffee, chocolate, and oil, if these shut production. Many plants said they would be forced to stop production due to price controls, since they would be unable to even meet production costs with the new prices. In addition, according to the Washington Post, "President Hugo Chavez said Sunday interest rates should be fixed" to reverse Venezuela's deteriorating economic crisis. He suggested to the Central Bank "a maximum rate of 30 percent for commercial banks' lending rates, compared with well over 40 percent at present. This would give small companies and farmers better access to credit" The central bank's current lending rate is 37 percent, which he qualified as "too high" without speculating why banks would feel hesitant to extend credit. The Washington Post reports that " Venezuela's Central Bank is, by law, an autonomous institution but has worked closely with Chavez's government in drawing up the recent price and exchange controls."

In addition, local news report that the government published four new lists in the newspapers, bringing the total number of PDVSA workers fired to 12.828, including scientists, engineers, CIED professors, and managers. The government used article 102 of the Bolivarian Constitution to justify the latest firings, which took place at PDVSA's corporate college. Article 102 states: Education is a human right and a fundamental social obligation; is democratic, free, and obligatory. The State will assume this as an undeniable function and with maximum interest in all its levels and modalities, and as an instrument of scientific, humanistic, and technological knowledge for the service of society.

Reuters reports that "Venezuela signed deals with international energy firms on Friday to develop two offshore natural gas fields in a bid to diversify its strike-hit oil reliant economy. U.S. oil major ChevronTexaco CVX.N and Norway's Statoil STL.OL signed agreements to explore and produce Blocks 2 and 4 in waters in the northeastern Deltana region, bordering fields in gas rich Trinidad and Tobago."

This weekend, international news focused on comments by Planning Minister Perez Marti, who said, "Venezuela's economy, overall, fell 16.7% in the fourth quarter and 8.9% for the entire year." The severe contraction was due to "reduced oil production, a combination of Venezuela's adherence to lower production quotas established by the Organization of Petroleum Exporting Countries, followed by the general strike on December 2." Furthermore, central bank officials said "Venezuelan current account ended the fourth quarter with $2.07 billion surplus, while the capital account showed a deficit of $1.62 billion," according to the Wall Street Journal. Central Bank governor Domingo Maza said that "the government would lift a ban on dollar sales at the end of the month," due to "continued delays in establishing regulations for a new currency control system." The New York Times and Reuters echo fears in the private sector: "Chavez has said businesses that participated in the work stoppage will be denied dollars under the new policy."

In addition, the Post reports that "Chavez said Sunday production had exceeded 2 million barrels a day; fired oil executives say the figure is around 1.3 million barrels." Production is definitely at the 1.3 million bpd level, as heavy crude production requires experienced workers and light-flowing wells are currently being over-produced or lack servicing. Moreover, only three PDV Marina tankers are currently functioning - Pil�n Le�n, Maritza Sayalero y B�rbara Palacios - clearly indicating that the industry is not up and running, as the government claims.

The Times and Reuters report: "Tens of thousands of opposition Catholics marched in Caracas against the populist president, praying for peace and an end to his rule as firemen soaked them." The central theme of the event was unity, indicating a shift in the opposition's strategy, from the division that Chavez uses as his game plan, to an attempt to be inclusive of all sectors of society. Using the religious theme was a good plan, as Catholicism runs deep in every social sector and class. As the weeks pass, let's hope that the opposition continues to play the unity card, as it may sway the fears among Chavista supporters that they would be excluded from a new transition program. The event also deeply contrasted Chavez's latest moves, when he traveled to the states of Monagas and Zulia - governed by opposition leaders - to claim that these governors should be removed as soon as possible. The Zulia governor quipped back that he would resign - immediately after Chavez.

Newspapers this weekend featured articles with soft, frivolous news, signaling that events in Venezuela may be moving at a very slow pace. The New York Times magazine featured a picture of three Chavistas asking the National Assembly "to back the creation of a support group for victims of the general strike that the opposition launched against President Hugo Chavez." The Miami Herald reports that : "Venezuelan President Hugo Ch�vez told a TV audience last week what everybody already suspected: He's having the time of his life running the nation, despite the frequent mass demonstrations by protesters demanding his resignation." Juan Forero of the New York Times writes on "the world of Venezuelan soap operas � the sappy, drippy daily dramas that captivate millions by sticking to a proven formula." He claims that "several leading scriptwriters are convinced that soaps need to reflect the reality of Venezuela, and that reality is a country roiled by protests and the daily rants of a pugnacious left-leaning president, Hugo Ch�vez, and his determined opponents." The Washington Post reports on the "scary winter" that famous Venezuelan baseball players are spending in Venezuela. "Afraid for himself and his family amid the political and economic turmoil in Venezuela, postseason phenom Francisco Rodriguez stayed holed up in his house in Caracas over the winter," while "Houston Astros outfielder Richard Hidalgo was wounded in his left arm during an attempted carjacking in Venezuela in November. Former major leaguer Chico Carrasquel, 74, was beaten during a carjacking there last month. Both Hidalgo and Carrasquel have recovered."

Review
First, I'd like to point out a sentence that appeared in Reuters: "The economic turmoil and rising unemployment is underscored by violent street clashes between Chavez allies and enemies that have left seven dead and scores injured since December. " The sentence is misleading because it implies that the violence that takes place in Venezuela is between two aggressive sides. This could not be further from the truth. The violence that takes place is caused by Chavistas who hide and hurl rocks and bottles at opposition marches and protests. I'd challenge anyone to bring me ONE story or incident of the opposition initiating a street brawl or event. As Chavez has repeated more than once, his is an "armed revolution." He consistently calls his followers to "defend the revolution," and they do so, attacking media property and opposition events. I have an e-mail at alexbeech@hotmail.com. Again, if you have one story of an opposition-led attack against Chavistas, I will print it here tomorrow. In the meantime, we ask reporters to consider the weight of your words and sentences, as they could discredit you and your organization, as well as a national effort to find a peaceful and democratic solution to an agonizing crisis. The deaths will come, not from violence necessarily, but from the hunger and thirst that Chavez's failed economic policies and unwillingness to negotiate will likely cause.

While I've grown accustomed to slanted reported from the New York Times, (hence the magazine insert), I was still dismayed by the picture and paragraph in the weekend's magazine. It does little to explain the reasons for the strike, but features three Chavistas in full splendor, sitting at the National Assembly. I spoke with Patricia Poleo, a very distinguished Venezuelan journalist, yesterday. She told me that one of the elements of reporting that misses most is going to the National Assembly, as she was accustomed to in the past. She says that as she nears it, a a Chavista group who permanently guards the legislature attacks her with rocks. Note: the National Assembly is the legislative branch of the government. Yet a prominent journalist is not allowed near its premises. However, three Chavistas can sit in the hallway and ask for funds.

The article that begs for review today is "Whatever his foes do, Ch�vez grows stronger", by the Miami Herald's Frances Robles (frobles@herald.com), who reports that "Ch�vez may have reason to boast. Even as opposition cries have grown louder over the past few months, Ch�vez has managed to amass greater power over Venezuela's political system and the economy." Yet, I'd like to point out to Mr. Robles that Chavez has little reason to boast. The economy is in freefall, (contracting at least 25% in the first quarter), he has to padlock the currency system to prevent every single dollar from leaving the country, he had to place controls on the prices of 220 items to maintain what little support he has in the country, he's not even producing a third of the oil that the country produced before December 2, he's being forced to import gasoline that is more toxic than Drano, he has lost the respect of the six countries who went to Venezuela to help him negotiate a dignified way out of the crisis, and his grand plan for restoring economic progress is providing pepper gardens and vertical chicken coops. The fact is that Chavez has not grown stronger. In fact, his recent behavior is that of a "town macho" who's been humiliated and wants to show a strong front, when in fact inside he's seething and waiting for the right moment to strike back. While he's boasting, he's also threatening the financial sector with fixed interest rates; the private sector with the militarization of private food processing plants and a lack of dollars for the purchases of imported goods; and the media, with a half-baked censure law and administrative proceedings. Anyone who understands the mentality of a caudillo would have interpreted Chavez's recent actions differently. His squeals are like those of a pig that has been cornered.

E-mails
Today's e-mail is a from a university professor, who details the results from a university study on the gasoline that Venezuela's government is currently importing, to offset the losses from the oil strike, in particular at refineries. The study, conducted at the Universidad Simon Bolivar by several prestigious professors, presents the noxious effects of the gasoline, which may have adverse effects on health. It could also be permanently damaging vehicles (see below)

Events
February 22 is The World Day of Prayer for Venezuela. Venezuelans from New York, New Jersey, and Connecticut are invited to the Holy Family Church (315 E. 47 Street) near the United Nations at 3:00 PM for the "Mass for Peace and Reconciliation in Venezuela". Afterwards, a meeting will be held in the rectory hall to discuss concerns and future projects. Also, the Venezuelan organization AVENY is planning a concert on February 19, at the Blessed Sacrament Church, with the following performers: Aquiles B�ez, Sim�n D�az, Gonzalo Grau, Marco Granados, Omar Ledezma, Jose Angel P�rez, Julio Brice�o (Los Amigos Invisibles), Luisito Quintero, Neil Ochoa, Marisabella M�ndez (For further information, call 1(917) 5194393- 1(646)2446692-1(917)5194752). On February 24 at 12:00 pm, Columbia University will hold a panel discussion between IESA professor Michael Penfold and UCV professor Samuel Moncada. The panel is in room 802 of the SIPA building on 118th Street off of Amsterdam Avenue.

I hope you are safe, content, and peaceful, wherever this e-mail finds you.



E-mail from a university professor
Dada su importancia, les anexo el estudio realizado sobre la gasolina importada por el gobierno nacional. El mismo fu� realizado en un laboratorio certificado de la Universidad Sim�n Bol�var, por profesores de reconocido prestigio.

Circulen a sus familiares y amigos. Sin saberlo, pueden estar destruyendo sus veh�culos y causando da�os a su salud.

Estimados colegas, a continuaci�n los resultados de la caracterizaci�n de las gasolinas realizada en el Laboratorio de Desechos T�xicos de la USB.
Copia de este informe ser� enviado a la prensa y al MARN.
Saludos

Caracterizaci�n de las gasolinas
Introducci�n:
El proceso de combusti�n en los motores a gasolina requiere que �sta tenga una composici�n tal, que garantice su inflamaci�n justo en el momento de m�xima compresi�n de la mezcla gaseosa en el pist�n. Dicho proceso se inicia mediante una chispa producida por la buj�a. Si la inflamaci�n del combustible se manifiesta a destiempo, ocurre lo que se conoce como "golpeteo" o "pistoneo". Esto trae como consecuencia la p�rdida de potencia del motor as� como una merma en la calidad de la combusti�n de la gasolina, lo cual a su vez incrementa la emisi�n de sustancias contaminantes al medio ambiente. La propiedad de las gasolinas relacionada con este fen�meno se conoce como "octanaje". Este t�rmino deriva de una escala en la cual la capacidad de combusti�n (relaci�n presi�n/inflamabilidad) de los hidrocarburos, asigna el valor de 100 al iso-octano, un componente de la gasolina. Para controlar el "pistoneo" se utilizan modificadores de ignici�n denominados antidetonantes. El antidetonante mas conocido es el tetraetilo de plomo. La descomposici�n de este compuesto durante la combusti�n de la gasolina produce gases que contienen plomo, lo cual ha sido positivamente relacionado con varias enfermedades cr�nicas. Debido a esto, en USA a mediados de los a�os 70, se inicio un programa para la eliminaci�n del uso de tetraetilo de plomo en la gasolina. Sin embargo estas gasolinas sin plomo, com�nmente conocidas como reformuladas, a�n produc�an compuestos contaminantes. Esto condujo al desarrollo de lo que conocemos como "convertidores catal�ticos". Estos equipos tienen la funci�n de completar el quemado de aquellos compuestos de dif�cil combusti�n en el motor. El convertidor catal�tico es una pieza colocada a la salida del m�ltiple de escape del motor. Los gases, a�n calientes y con alto contenido de mon�xido de carbono, �xidos de nitr�geno y productos de combusti�n incompleta, reaccionan completando la combusti�n y minimizando la emisi�n de productos contaminantes.

Una de las principales manifestaciones de la combusti�n incompleta de hidrocarburos es la formaci�n de los que se conoce como "smog" fotoqu�mico, el cual se caracteriza por afectar v�as respiratorias y mucosas. Los convertidores catal�ticos no pueden ser utilizados con gasolina con plomo pues este metal inactiva el componente activo o catalizador. En Venezuela a�n utilizamos gasolina con plomo. Sin embargo PDVSA inicio la producci�n nacional de gasolina reformulada sin plomo como parte de un programa tendiente a la eliminaci�n paulatina de la gasolina con plomo. De hecho, todos los veh�culos fabricados o importados desde el a�o 2.000 en adelante , utilizan gasolina sin plomo y tienen, por obligaci�n (Decreto 2.673: Normas sobre Emisiones de Fuentes M�viles) que utilizar convertidores catal�ticos. Las gasolinas sin plomo venezolanas, al agual que muchas de las producidas internacionalmente, contienen mejoradores de octanaje oxigenados. Los mas comunes son alcoholes y �teres tales como el MTBE (metil terbutil eter) y TAME (teramil metil eter).

Caracterizaci�n de las gasolinas
En vista de las numerosas denuncias p�blicas relacionadas con la calidad de las gasolinas presuntamente importadas por PDVSA recientemente, el Laboratorio de Desechos T�xicos de la USB decidi� contribuir con el Estado (lo cual ha venido haciendo desde hace varios a�os), caracterizando muestras de gasolina sin plomo.

Fueron caracterizadas 2 muestras de gasolina sin plomo. Una de ellas corresponde a gasolina sin plomo nacional, la cual fue obtenida del tanque de un Corolla 2000 que se encuentra estacionado desde noviembre del 2002. La segunda muestra corresponde a gasolina presuntamente importada y fue obtenida directamente en la Estaci�n de Servicio de Taz�n (primera estaci�n antes de la subida) el domingo 2 de febrero.

Debido al equipamiento del LDT, solo se realiz� una caracterizaci�n parcial de la gasolina. El an�lisis consisti� en un barrido cromatogr�fico con detecci�n de masas, mediante el cual se pueden identificar sin lugar a dudas los componentes de las sustancias analizadas. La cuantificaci�n exhaustiva de los componentes requiere del uso de est�ndares de los cuales no se dispone. Sin embargo es posible comparar cuantitativamente el contenido de componentes comunes en ambas gasolinas.

Los resultados obtenidos se resumen a continuaci�n:
1. El contenido de benceno, regulado internacionalmente en 1%, se encuentra por debajo de este valor en ambas gasolinas.
2. La gasolina nacional contiene TAME como mejorador de octanaje. La gasolina importada no contiene ning�n oxigenado. El octanaje es regulado incrementando el contenido de componentes arom�ticos (xilenos, etil-benceno).
3. La gasolina importada contiene ciclopentadieno y derivados en concentraciones porcentuales de alrededor de 2 d�gitos. Este compuesto es reconocido como responsable de la formaci�n de gomas en carburadores e inyectores.
4. Adem�s, se conoce que su combusti�n es dif�cil, por lo cual produce emisiones que contienen productos de combusti�n incompleta.

Puede concluirse que la gasolina importada es de inferior calidad a la producida nacionalmente. Adem�s es evidente el da�o que a mediano plazo se producir� sobre inyectores y carburadores debido a la formaci�n de pol�meros o gomas.

Por �ltimo, la utilizaci�n de estas gasolinas en veh�culos sin convertidor catal�tico produce mayores emisiones y genera condiciones para que se incrementen las concentraciones de ozono y otros gases contaminantes en la atm�sfera urbana. Lo mismo ocurre en veh�culos a�n con convertidor catalitico, si este ha sido inactivado por el uso indiscriminado de gasolina con plomo.

Esta informaci�n es suficiente para que las autoridades competentes (Ministerio del Ambiente y de los Recursos Naturales) inicien una investigaci�n en el marco de las regulaciones de calidad del aire y de las emisiones de fuentes m�viles.

Autores:
Laboratorio de Desechos T�xicos
Universidad Sim�n Bol�var
Registro MARN: 01-034-01
Prof. Rafael L�pez
Prof. Oswaldo N��ez
Lic. Ram�n S�nchez
Prof. Fernando Morales





Daily International News Review, Venezuela
February 14, 2003

See "Daily International News Review 2003 File"




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