MercoPress. South Atlantic News Agency

Brazil - Chile - Venezuela Hot News

Petrobras, the Brazilian government oil company discovered an offshore field off the state of Espirito Santo to the north of Rio do Janeiro with estimated reserves of 600 million barrels.

"Initial tests indicate this is the most important discovery we've had since 1996", said José Coutinho Barbosa, head of Exploration and Production in Petrobras, Rio do Janeiro.

The deep water field (1,250 meters below sea level) is 80 kilometres from the coast of Espirito Santo, but the quality seems to be heavy crude oil.

Mr. Coutinho Barbosa estimates production could reach 20,000 barrels per day by next February.

Brazil has been trying for years to be self sufficient in oil and has developed a leading technology in off shore exploration, where most of its productive fields are located. The Campos basin off Rio do Janeiro holds one of the nine billion barrels of the country's proven reserves.

Petrobras is currently in an aggressive five years investment plan involving 33 billion US dollars with a target of 2,5 million barrels per day by 2006, a substantial increase from the current 1,8 million b/d.

The company also is expanding in the region and recently purchased the energy division of Perez Companc, Argentina's second most important company of the industry and also took over Santa Fe's province leading refinery.

Labour unrest

Chile's main trade union federation is organizing a massive concentration for next Wednesday in downtown Santiago to protest against unemployment, lack of effective social security, the 1980 Constitution and IMF recommendations.

"We want to openly express we're not satisfied with living and working conditions in Chile", said Arturo Martínez head of the federation which is said to have over half a million members.

The labour movement protest follows two serious conflicts, one with students demanding cheaper bus tickets and university fees, and a massive demonstration from the urban transport that virtually blocked and paralyzed Santiago for two days.

During the student conflict that extended for several weeks, 550 students were arrested and public buildings suffered significant damage. The urban transport protest ended with the government appealing to national security legislation, 700 arrests, including leaders of the strike, and extensive economic loss mainly because of commercial and industrial inactivity.

Mr. Martínez explained the coming protest will concentrate in the 9,5% unemployment of the last three years, the need for more workers protection, a more "democratic" Constitution, and an end to the IMF recommendations of more labour flexibility and privatizations "that have only caused redundancy and job losses".

Regarding the 1980 Constitution, inherited from the Pinochet regime, Mr. Martínez said the labour movement wants to reform the electoral system that punishes small political parties (return to proportional representation), an end to non elected Senators for life and reestablishment of presidential power to call a plebiscite.

"The protest in organized under the banner of "A More Fair Chile", with workers protesting with pots and pans in their work places, the louder the better, and in the afternoon a march and concentration in downtown Santiago", said Mr. Martínez.

March organizers expect to attract over 30,000 people to the concentration.

The current coalition government headed by Socialist president Ricardo Lagos promised to create thousands of jobs and reduce unemployment, an objective still unaccomplished.

Peruvian president visit to Chile

Peruvian president Alejandro Toledo will be officially visiting neighbouring Chile for three days beginning August 21st. The visit is considered of great importance given several pending political and trade issues and the fact it's the first time in a decade a Peruvian president officially visits Chile.

Actually Mr. Toledo was scheduled in Chile last March, but a regional summit held in Lima with the participation of US president George Bush cancelled the whole operation.

The last Peruvian president to officially visit Chile was Alberto Fujimori in 1993 in coincidence with a Rio Group summit and three years before Alan García was present when the first civilian Chilean president took office in 1990.

During his first day, next Wednesday President Toledo will hold talks with his counterpart Ricardo Lagos and the following day he will address the Chilean Congress.

Both presidents are close friends and Mr. Toledo, before running for the presidency, visited Mr. Lagos in Santiago.

Once in office, president Toledo proposed a regional demilitarization process and banning the purchase of new equipments. The initiative occurred when Chile had just decided the acquisition of ten fighter-bombers F 16 from the United States and was planning to invest a billion US dollars in a frigate building program for the Navy.

Speculation at the time was that the real reason for postponing the March visit was the F 16s, an acquisition that alters the regional balance and could trigger an arms race in the region.

Although Mr. Toledo was elected in 2001 in the midst of great popular expectation, following ten years of authoritarian rule under Mr. Fujimori, he's public opinion standing has dropped to below 20%.

Riots in Venezuela

The Venezuelan Supreme Court dismissed charges against four high ranking military officers involved in last April's coup attempt that briefly ousted President Hugo Chavez.

As soon as the decision was made public, clashes erupted between president Chavez supporters and National Guard troops stationed next to the Supreme Court in Caracas. The Court voted 11-9 to reject the charges arguing the Prosecutor's Office failed to present enough evidence to convict the two generals and two admirals on "military rebellion".

Chavez supporters were furious since they believe it sets a dangerous precedent for further uprisings such as happened last April 12th. However opposition leaders accused Mr. Chávez followers of trying to intimidate the Court, and were preparing on Wednesday evening to celebrate the high court's ruling.

"Impunity is often worse than crime itself", blasted Vice president Jose Vicente Rangel.

The high ranking officers claim they moved in to prevent a political vacuum after Mr. Chavez was temporarily taking from the presidential palace.

"There was no military rebellion, simply disobedience of some of President Chávez criminal orders", said Antonio Ledezma, spokesman for the Democratic Coordinator, an organization of opposition groupings.

President Chavez' rule has been signalled by a bitter division in Venezuelan society, his followers hail him as the enlightened leader of the poor and underclass while his opponents accuse him of preaching hatred and leading the country to an authoritarian regime, Cuban style.