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Breaking News from South America

Tuesday, October 22nd 2002 - 21:00 UTC
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Peronist summit; Confrontation in Venezuela worsens; Chile confident about Lula

Peronist summit

Representative from the different Peronist groups that will be disputing Argentina's presidential elections next March are scheduled to meet this week to find a consensus solution to primaries and the nomination of candidates. Originally a presidential decree from the Eduardo Duhalde administration established that primaries, scheduled for next December 15th, are compulsory and simultaneous in all political parties and according to the national Electorate Registrar. However former president Carlos Menem followers appealed and an Electoral Court ruled that parties are free to organize their primaries and according to their own statutes. The ruling boosted Mr. Menem's aspirations since he controls the Peronist Party Electoral Board. But the other Peronist hopefuls rejected the new situation as "not sufficiently impartial" and warned they would participate in the presidential election even if it means running outside the party. Since there's not sufficient time to appeal the latest ruling the Duhalde administration finally opted to convene all Peronist groups to a summit to decide how to overcome the situation. Mr. Duhalde and Mr. Menem are declared enemies to the extent that they do not address each other and the current Argentine president is obsessed with avoiding al all costs having to hand the presidential sash next May 25th to his archrival. "If we all act in good faith there should be no major inconvenience to hold the primary in early January, but no later", said President Duhalde. Menem's brother Senator Eduardo Duhalde and vice-presidential candidate Juan Carlos Romero will be representing the former president in the summit. The other Peronist presidential hopefuls are Adolfo Rodríguez Sáa, who leads in the opinion polls; and the current governors of Córdoba Juan Manuel de la Sota and Santa Cruz Nestor Kichner. But polls also indicate that none of the candidates including Mr. Menem manages more than 18% of the Argentine electorate. Mr. Romero confirmed to Buenos Aires press he had been talking with president Duhalde in representation of Mr. Menem. "We agreed to sit down to agree", said Mr. Romero. "If we don't agree, things can worsen", remarked President Duhalde who warned that if presidential elections are not held next March 30th, as scheduled, "I will resign, I'm not staying a minute later than May 25th; Congress will receive my resignation, dated May 25th, on New Year".

Confrontation in Venezuela worsens

With a deafening half hour pots banging, Venezuelan opposition groups concluded Monday evening the twelve hour general strike called to demand President Hugo Chávez's resignation or early elections call. This is the third stoppage in less than a year against Mr. Chávez, plus a frustrated coup last April, a huge street demonstration of over a million people in early October and a foiled attempt on his life when his return from the latest trio overseas, according to the presidential intelligence service. However the elected Venezuelan government dismissed the general strike as a movement by desperate people with no popular support. Carlos Ortega leader of the trade unions and one of the organizers of the strike said that the next step following the success of this Monday's almost 90% stoppage is to collect signatures to force a referendum on new presidential elections. Since taking office with overwhelming voter support, the former paratrooper and coup leader Mr. Chávez has managed to create a rift in Venezuelan society, on the one side the impoverished masses that adore him, on the other trade unions, business organizations and opposition parties who now reject his left wing policies and the virtual collapse of the economy. The opposition announced that next November 4th another mega march is scheduled for when the necessary 1,2 million signatures needed to force a referendum on a presidential election will be delivered to the National Electoral Council. "We appeal to local authorities and international organizations to listen to this deafening silent and peaceful protest from a democratic people that is saying, Mr. Chavez enough is enough, no further hiding of the crisis", indicated Mr. Ortega. Vicepresident Jose Rangel replied that the "strike was a flop, a mere 10% adhered and it was mainly a mediatic event since all the Venezuelan private media supported the political action", and suggested opposition restrain from "continuing to jump into an empty pool". President Chávez insisted he will remain in office until his term expires in 2007 and "the next election will not be held until 2006". The powerful workers union of the oil industry, the country's main source of foreign income, supported the strike.

Chile confident about Lula

The Chilean government is optimistic about the most certain election of Luis Inacio Lula da Silva as Brazil's next president. Chilean Economy Minister Nicolás Eyzaguirre said he felt confident and had no fears about the run-off next Sunday in Brazil. "I'm very optimistic, rumours are usually worse than the news itself; Brazil has excellent economists, good political advisors and if Lula keeps to the economic sound rules he will rapidly recover regional credibility", underlined Mr. Eyzaguirre during a meeting with foreign correspondents in Santiago. Mr. Eyzaguirre said he believed that if Lula is elected he will keep to open markets policies and Brazil's country risk and the local currency will return to normal levels. However he did not discard some financial turbulence until the new administration really gets hold of the economy, particularly given the fears concerning Brazil's mounting foreign debt. "The Brazilian economy was doing wonderfully until rumours became loose, so if Mr. Lula ensures foreign debt payments and the promised investment in social plans, he should have no problems", said Mr. Eyzaguirre, adding that if on the other hand he resorts to other alternatives, "consequences are unpredictable". In this last scenario Chile, and the rest of Latinamerica, will suffer, admitted Mr. Eyzaguirre. "Chilean exports to Brazil represent 0,3% of Chilean GDP, but the greatest damage would come from the rapid retreat of direct foreign investment in the whole region, given Brazil's influence".

Categories: Mercosur.

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