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General


The oil supply to the US from Venezuela has been cut once in recent years. The reason for this cut was the bosses’ lockout at Petroleos de Venezuela (PDVSA) that took place at the end of 2002 and the beginning of 2003. Ironically, the lockout was backed by US imperialism.

However, the recent trip of President Chavez to China has made top ranking members of the US administration uneasy. The Government Accountability Office (GAO), a Congress investigative agency, is studying the issue at the request of Richard Lugar – Republican chairman of the Senate Foreign Relations committee. Venezuela, the world’s fifth largest exporter of oil, supplies almost 15% of imported oil to the US.

The oil in Venezuela has been under the control of the oligarchy since the discovery of this raw material more than a century ago. In spite of the state owned character of PDVSA the management of this company has always given priority to their own personal interests and those of the Venezuelan ruling class and US imperialism. It used to be said that it was not the government who controlled PDVSA – it was PDVSA that controlled the government.

This has now changed. The trigger for the coup d’etat of April 11 2002 was precisely the removal of the director’s board of the company. After that, the overwhelming majority of the managerial elite of PDVSA were removed due to their role in the bosses’ lockout that followed at the end of that year. The financial aims of the company have also changed. A large share of the money coming in from oil revenues is being used for social programmes known as “misiones” which cover housing, healthcare and education. Some people at that time were talking about “a second nationalisation”. Since then President Chavez has warned more than once that he would “not send one drop of oil” to the US if the Bush administration carried out more attempts to oust him.

After his visit to China the concerns of the US have increased. On January 14 the Financial Times revealed, “Venezuela is currently studying how it can ship oil to China, either through the Panama Canal or via a pipeline across the Panamanian isthmus”. A US official said “the US will not look favourably on Panama aiding Venezuela to sell its oil to a competitor of the US” (Ibid.). In recent years China has emerged as one of the biggest consumers and importers of hydrocarbons. China is now also an industrial and commercial rival of the US. On top of that the price of oil is rising higher and higher. In 2004 US crude prices rose above $55 a barrel. On January 13 oil prices rose again – this time to a six-week high due to fears of lower stocks of crude. It is quite clear that this future commercial deal with China is a movement of self-defence on the part of the Venezuelan government against the continuous attempts of US imperialism to undermine the Bolivarian Revolution.

In order to safeguard the gains of the revolution the oil is an important factor that must be skilfully used by the revolutionary movement. However, this is not enough. At the moment the prices are favourable for PDVSA and massive revenues coming from the oil are reverting to the poor and the workers but there are no means at all to keep the high prices of oil forever. If the prices of oil fall in the meantime, the Venezuelan Revolution will be jeopardised. The oligarchy still holds control of most of the economy and is using its financial power to attack the revolution by whatever means necessary. Massive media corporations like Globovision are using all their resources to spread lies about the Bolivarian Revolution and openly call for coups and foreign intervention. Meanwhile the landowners are hiring thugs to terrorise peasant and community leaders. The Venezuelan Revolution must take the initiative and expropriate all those who do not respect the democratic will of the majority and put these means of production under the control of the workers and the community.

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Caracas, January 14, 2005—Amidst escalating tensions between Colombia and Venezuela over the recent abduction of Revolutionary Armed Forces of Colombia’s (FARC) foreign minister, Ricardo Granda, the Venezuelan Ambassador to Colombia, Carlos Santiago Ramirez, was called back to Caracas yesterday, for “consultation.” Also, President Chavez, during his annual report to the National Assembly, announced that bilateral business deals, such as the Venezuela-Colombia gas pipeline, would be put on hold as long as the Colombian government does not apologize for its actions in the kidnapping.

Consultation is a step below an official protest between governments. Venezuelan Vice President José Vicente Rangel noted, “For now, our ambassador, Gen. Carlos Santiago Ramirez was called back,” deeming that Colombia’s actions “constitute a crime that could have international implications.” He went on to criticize the Colombian government for “committing a huge mistake by legitimizing these criminal acts,” adding “This is bringing back the law of the jungle in the Andes.”

In a statement was released by Chacón yesterday, five members of Venezuela’s National Guard’s Anti-kidnapping Force (GAES) have been detained in relation with the kidnapping, as well as three police officers. He went on to allege that at least one member of the Colombian police force was directly involved. The kidnapping “was planned some time ago from Colombia, by Colombian authorities”, adding that the Colombians crossed the Venezuelan border ahead of time to coordinate the abduction.

The recall of the Venezuelan ambassador follows a statement released on January 12th by Colombia’s Defense Minister, Jorge Alberto Uribe, in which he retracted his prior position that Granda was captured in Cúcuta, Colombia, on December 15th, 2004 and confirmed that the high-ranking FARC member was indeed apprehended in Caracas two days prior.

Chavez, in his speech to the National Assembly, said, “With much pain I have withdrawn the Venezuelan ambassador in Bogotá and the ambassador will not return as long as the Colombian government does not apologize and rectify what it has done.” Chavez also explained that he sees himself “obligated” to suspend bilateral business deals. “It cannot be. It is unjustifiable from any point of view that high officials of the Colombian state are instigating Venezuelan officials to break the law,” said Chavez, adding, “they are buying Venezuelan military personnel who betray their homeland and these will be punished with the full weight of the law.”

“This definitely signifies a violation of the sovereignty of the Venezuelan state, which we categorically reject,” said Venezuelan Minister of the Interior and Justice, Jesse Chacón in a press conference. “Colombia’s government, or at least Colombia’s national police, planned this.”

Granda was kidnapped in Caracas on the 13th of December around 4 in the afternoon by a Special Task Force of the Venezuelan National Guard that was closely cooperating with the Colombian National Police. After the kidnapping, Granda was in to Captain Francisco Antonio Rojas Bejarano of the Colombian police, on the morning of December 14th in Cúcuta, Colombia.

Although Chacón admitted that the Venezuelan investigation has not yet identified the Colombian police involved in the incident, he informed the Colombian Minister of Defense, Jorge Alberto Uribe, that there was proof linking the Colombian police to the kidnapping of Granda.

Chacón went on to emphasize that Granda was not wanted by the Colombian government nor any other government until January 9, 2005, in order words, 25 days after his capture in Bellas Artes, Caracas. For the Minister, this procedure is ironic. “I do not understand why they are making the request for his arrest since they have already detained him.”

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As was to be predicted, London's Financial Times reacted negatively to Venezuelan president Hugo Chavez's announcement of a speeding up of land reform (see: Chavez announces “war against the latifundia”). On January 13th they published an editorial comment (see: Chávez slips into demagogy again) full of distortions of the truth and pontificating advice. We did not expect less from the FT, a paper that has always unashamedly defended the interests of capital. However, what we did not expect was for the FT to argue that the "best way to address rural poverty", was for businesses to "pay decent wages and guarantee good working conditions for its workers"!

The editorial piece contains a number of factual errors, which are introduced for the purpose of backing their argument against land reform. Let's look at those:

1) The FT says that "Land reform ... has been on the statute books for more than three years. But it is only now, ... that Mr Chávez is implementing it." This is plainly wrong. The National Land Institute has already distributed some 2.2 million hectares of land (approximately 5.5 million acres) to peasant cooperatives in the last three years.

2) The FT further says: "First, the government itself is the biggest landowner in Venezuela and has huge amounts of empty land that could be settled by the landless". This is correct, but what the FT does not tell us is that there has been no expropriation of privately owned land in Venezuela so far, so the 2.2 million hectares of land distributed have all been state owned land. The government is therefore, already distributing land it owns.

3) The FT then talks of "The expropriation of Vestey's Agroflora subsidiary is an inauspicious precedent since the government has so far failed to show that the estate was unproductive". Again, this is wrong, since Vestey's Agroflora ranch has NOT been expropriated. On Saturday, January 8th, there was an “intervention” by the Venezuelan authorities at the El Charcote ranch, belonging to Agroflora, precisely for the purpose of determining if the land titles are correct (since the government claims that at least a third of the land is state property) and if any parts of the estate have been left idle. The intervention entails a number of troops from the National Guard being present at the ranch carrying out the investigation, during which the ranch is allowed to operate normally. Despite the FT's correspondent Andy Webb-Vidal’s talk of the ranch being "seized", this is clearly not the case.

The Financial Times is obviously entitled to have its own editorial views on land reform in Venezuela, and we expected them to be on the side of the landowners. To resort to twisting the truth to fit their arguments is very poor journalism indeed. To do so three times in a 7 paragraph editorial is quite a lot. However, what is really hilarious is that the FT, in order to further their argument against land reform, end up advocating workers rights! The editorial piece in fact ends up by recommending that "ensuring these [agricultural] businesses pay decent wages and guarantee good working conditions for its workers would be the best way to address rural poverty." How nice of them to think of rural workers! Whose demagogy then? Chavez's or the FT's?

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At a mass rally of 10,000 people on Monday January 10, Venezuela's president Hugo Chavez announced a new decree aimed at speeding up land reform. He was speaking in front of a massive banner with the slogan of 19th century peasant war leader Ezequiel Zamora "Free land and men - War against the latifundia". This comes after the Christmas period, during which a number of regional governors, elected in the October 31st elections, passed regional decrees along the same lines.

Since the Land Act was passed in December 2001, the National Land Institute has already distributed 5.5 million acres of land (2.2 million hectares) to peasant cooperatives. But up until now all the land distributed has been state-owned land and there have been no expropriations. The new decree, called Decreto Zamorano, and passed on the anniversary of the death of Ezequiel Zamora, is aimed at the large landed estates (latifundia) that have been left idle or are poorly used. But even so, the Decree is not based on expropriation of private land. A special land commission has been appointed to look into the issue of land ownership and usage. This commission will then issue reports on the following two aspects. The first is whether large landed estates which are privately used actually have proper land titles. In Venezuela, over the years, there have been many cases of private landowners occupying land that belongs to the state and de facto appropriating it. The other issue will be whether the land is being used or is being left idle. If landed estates are found not to be productive, then they can be seized (with compensation) and distributed to peasant cooperatives. Chavez has made it clear, both now and during the October 31st regional election campaign, that his preferred option is to solve this through negotiation with the land owners (in which they can give up land they do not use), but also that if no agreement is reached, the full strength of the law and of the army will be used to implement land reform.

On the face of it, this is in fact quite a moderate decree and in its wording is far from a wide-ranging threat to private property, as has been presented by the Western media. The Financial Times for instance has talked of "what is likely to be a number of Zimbabwe-style expropriations of big estates", when referring to the intervention at the El Charcote estate. The FT chose to describe this move, which took place on Saturday January 8th, as "seizure", when in reality what happened is something else completely. The El Charcote estate is owned by AgroFlora, a subsidiary of the British Vestey Group. The Vestey group, belonging to the family of Lord Vestey is a major meat and food multinational which has been operating in South America for decades.

The El Charcote estate has 13,000 hectares (32,000 acres) of land and produces some 450,000 kilos of beef every year. The Venezuelan government argues that a large part of this land is not actually owned by the Vestey group and that they are illegally using property belonging to the Venezuelan state. Local peasant leaders argue that the land was bought by dictator Juan Vicente Gomez in the 1930s and that subsequently, all land owned by the dictator was passed over to the Venezuelan state. Vestey Group administrators complain that parts of the ranch have been occupied by peasants since 2001 when the Land Act was passed. The intervention at the El Charcote estate was carried out by the governor of Cojedes, Johnny Yánez, with about 200 national guardsmen and police along with helicopters which will allow them to survey the ranch.

As part of a regional review of land ownership the Cojedes regional governor sent a commission of enquiry to El Charcote. The ranch has not been "seized", as the Financial Times claims, but rather there has been an "intervention". There is now a technical team on the ranch which will investigate the claims of the British group over the land titles and whether the land is being used to its full capacity or whether parts of the ranch have been left idle.

As Chavez explained in his speech on Monday, the structure of land ownership in Venezuela is scandalously unfair. A 1998 census found that 60 percent of Venezuelan farmland was owned by less than 1 percent of the population. Chavez yesterday said that nearly 80 percent of the country's land is owned by 5 percent of landowners. Meanwhile, the smallest landowners representing 75% of agricultural holdings have to share 6% of the land. The 1998 census also revealed that 90 percent of farmland given to the poor under a 1960 agrarian reform had since returned to large landholders. "A democracy that permits such a situation of injustice will lose its democratic character and will end up turning itself into a pantomime of democracy. A revolution that permits this injustice cannot call itself a revolution," said Chavez.

This is at the same time that Venezuela, despite having large extensions of very fertile land with a benign climate, imports about 60 to 70% of all the foodstuffs that it consumes. Some have called it a "harbours' agriculture", since most agricultural products come from ... the harbours through which they are imported. For instance, every quarter, 14,000 tonnes of black beans (caraotas) and other pulses, which are an important part of the staple diet of poor Venezuelans, are imported. Production of caraotas actually collapsed in the 1990s, from 31,376 tonnes in 1988 to 18,627 tonnes in 1999, while the Venezuelan population increased by 20%.

In fact, agriculture is one of the most extreme expressions of the backwardness and parasitical character of the Venezuelan oligarchy, this reactionary alliance between capitalists, bank owners, landowners and multinational corporations that has ruled the country since it achieved independence. For them it is preferable, and more profitable, to live off the state and oil resources, gamble on the stock exchange, buy government bonds, invest their money abroad, and import luxury goods, than it is to develop national production in any field.

In these conditions it is difficult to see how an amicable agreement can be reached with the landowners to voluntarily distribute land to the hundreds of thousands of land hungry families that need it. The struggle for the land has been one of the most contentious issues of the Venezuelan revolutionary process so far. It was the passing of the Land Act in December 2001 (together with the Hydrocarbon Act and others) that triggered the opposition to organise the April 2002 military coup against the Chavez government. The hopes of thousands of peasant communities were again lifted during the regional election campaign last October, when Chavez delivered belligerent speeches against the latifundio and instructed the Bolivarian gubernatorial candidates to tackle the problem of land reform straight away.

No meaningful land reform possible within the boundaries of private property

The president of the ranch owners association, Betancourt, reacted strongly to the decree, saying in an interview on the Globovision television station that "If they eliminate private property rights, they will also be eliminating the peace in Venezuela''. This is an ominous threat. Some 100 peasant leaders and activists have been killed in disputes over land property with big landowners in the past 4 years. In some areas along the border with Colombia ranch owners have for some time armed white guards modelling themselves on, and sometimes getting advice from, the infamous paramilitary gangs from neighbouring Colombia.

If you have a situation in which 5% of landowners control nearly 80% of the land, then it is clear that one cannot carry out a land reform policy that will please both the owners of large landed estates and landless peasants. Even the Cojedes governor, Johnny Yanéz, had to say that private property "is a right, but not an absolute one, since the collective interest, public need, and food security are parameters that must justify this private right".

This is not just about land. If the conflict over land reform deepens, as it is bound to do, and land is expropriated and given over to landless peasants, then workers in industry are bound to draw similar conclusions. Instances like that of the Venepal paper mill, which the owners declared bankrupt and the workers took over and are now demanding to be nationalised under workers control, will spread. On the other hand, Venezuela's landowners are an inseparable part of the Venezuelan ruling class. An attack on them will be rightly seen by the capitalists as an attack on the very principle of private property of the economy.

The analysts of the ruling class can clearly see the implications of these moves. According to business analysts Bloomberg, Benito Berber, an analyst with HSBC Securities in New York said: "The erosion of private property rights may undermine long- term economic growth as capital inflows slow and investors lose confidence in the country's future".

mass peasants rally in El PoliedroThe problem is precisely that, as in other areas of the progressive government of Chavez, any social justice measures implemented, no matter how "moderate" they might be, clash head on with the vested interests of the owners of industry, capital and the land. We must remember that, even though the Bolivarian revolution has not directly infringed on the rights of private property, the capitalists and landowners have attempted the violent overthrow of the government on several occasions. The fact is that the basic needs of the working people of Venezuela (to free health care and education for all, to a roof over their heads, to decent food on their table, to means of earning their livelihood) are in direct contradiction to the existence of the capitalist system based on private profit and the benefits of a wealthy minority. And this is why the very existence of a revolutionary movement in Venezuela is seen by the oligarchy, rightly, as a threat to their interests.

The Bolivarian revolution should understand this basic fact and move to wrest from the oligarchy the levers of economic and political power they still control as the only guarantee for the victory of the revolution.

January 11, 2005

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Caracas, January 12, 2005—According to Venezuelan police who are investigating the kidnapping of Rodrigo Granda, the "Foreign Minister" of Colombia's FARC guerilla, two bounty hunters captured him and delivered him to Colombian authorities. Colombia's Defense Minister, Jorge Uribe, confirmed today that the Colombian government paid a reward for Granda's capture.

The Venezuelan newspaper El Mundo reports that police officials involved in the investigation have said that the two bounty hunters had plenty of previous experience with this type of operation and know how to travel throughout Venezuelan territory with their victim without being stopped at military or police check points. It is thus assumed that the individuals in question are active duty police officers.


FARC "Foreign Minister" Rodrigo Granda under arrest by Colombian security forces.
Credit: AP

Rodrigo Granda was kidnapped in the middle of the day, in the center of Caracas, on December 13, a few days after attending a conference of Latin American supporters of the Bolivarian project. Two days later, on December 15, Colombian authorities announced that they had captured Granda in the Colombian border town of Cucuta. Colombia's rebel force, the Revolutionary Armed Forces of Colombia (FARC), denied he was captured in Colombia and demanded an investigation on the part of Venezuelan authorities. Last week Venezuelan authorities confirmed the Granda was kidnapped in Venezuela and then taken to Cucuta.

Luis Tascon, who represents Chavez's party in the National Assembly and is from Tachira state, which shares a border with Colombia, said today that Venezuelan intelligence forces have found out that members of Venezuela's investigative police (CICPC) and a Colombian military officer participated in the action and that they received a $1.5 million reward that had been placed on Granda's head.

Jorge Uribe, Colombia's Defense Minister, confirmed that the government paid a reward, but denied that it was $1.5 million. Also, he did not specify who received it. In an interview with the Colombian television channel RCN, Uribe said that the Colombian government specifically sought out Venezuelan bounty hunters and thus Colombian state security forces never violated Venezuelan territory in the action. Furthermore, this type of action is not new for the Colombian government, said Jorge Uribe, and that they would continue to employ such methods whenever the Colombian government considers it necessary.

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