MercoPress. South Atlantic News Agency

Venezuela/China consolidate trade and political ties

In his fourth visit to China Venezuela's President Hugo Chavez sealed closer trade links with Beijing plus the promise of support for Venezuela's aspiration of becoming a non permanent member of the United Nations Security Council.

Following the signature in Beijing's Great Hall of the People of over half a dozen agreements, "worth hundreds of millions of US dollars", Chavez forecasted that "even more trade and cooperation with China is in the pipeline".

"We have significantly raised the strategic relationship with China. We've signed agreements relating to energy, technology, housing, investment in railroads, oil-drilling equipment, satellites and agricultural cooperation, but as President Hu Jintao has said, "a greater horizon lies in front of us".

Chavez also revealed that China has promised to back Venezuela for the U.N. Security Council. "President Hu has told us that China supports Venezuela in its aspiration to become a non permanent member of the Security Council" underlined Chavez who added the significance of such support "from both a political and moral point of view".

The U.S. government, which Chavez regularly blasts as "imperialist" and war monger, is against having Venezuela on the council. The Bush administration considers Mr. Chavez a de-stabilization force, a threat to regional democracy and is backing Guatemala for the Latinamerican non permanent seat in the Security Council.

For energy hungry China, Venezuela promised to significantly increase oil supply to half a million barrels per day in the "next few years", probably 2009, jumping to a million sometime between 2011 and 2020.

Venezuela the world's fifth oil exporter is also one of the main suppliers of United States and the Chavez administration has been trying to water down that dependency.

Also related to energy the two countries government owned oil companies are forecasted to begin joint exploitation of the Junin 4 block in the Orinoco Belt.

China's development bank pledged to finance 75% of the cost of building 20.000 low cost housing in Venezuela, the first step of a massive housing program. Another area to be promoted is tourism with Chinese groups touring Venezuela.

On the more political side, the two presidents agreed to establish a high level standing committee to oversee bilateral cooperation and another to coordinate close links between the two countries Foreign Service institutes and Information ministries.

Finally Chavez revealed that this coming winter Venezuela will double the supply of heating oil provided at discount prices to poor households in the northeast of United States between the months of October to February.

Apparently last winter Houston based Citgo Petroleum, the US subsidiary of Venezuela's PDVSA, sold 40 million gallons of subsidized heating oil to 181.000 households and homeless shelters in the states of Massachusetts, New York, Maine, Rhode Island, Vermont, Connecticut, Delaware and Pennsylvania.