EM temporarily won a series of court orders in
PDVSA’s web site went further. It explained that the company will "fully honor existing contractual commitments relating to investments in common with ExxonMobil on the outside, reserving the right to terminate those contracts" under terms that permit. This likely refers to a Chalmette,
EM sought the injunctions ahead of an expected International Centre for Settlement of Investment Disputes (ICSID) arbitration ruling. It’s over a compensation claim owed Exxon after
ExxonMobil and ConocoPhillips balked, and it led to the current action. In Exxon’s case, it refused a generous settlement offer for its 41.7% stake, but that’s the typical way this bully operates. The company is the world’s largest, had 2007 sales topping $404 billion, it’s more than double Venezuela’s GDP, and it places EM 25th among world nations based on World Bank GDP figures.
It’s too early to predict what’s ahead, but one thing is sure. As long as George Bush is president, he’ll go after Chavez every way possible with one aim in mind – to destabilize the country and remove the Venezuelan leader from office. Once again, battle lines are drawn as the latest confrontation plays out judicially, economically and geopolitically. The stakes are huge – the most successful democracy in the
The next judicial hearing is on February 22, but it’s unclear where things now stand with Exxon and the Chavez government having different views. The oil giant claims PDVSA’s assets are frozen, but on February 9 Minister Ramirez denied it saying: "They don’t have any asset frozen. They only have frozen $300 million" in cash through a
Ramirez also added that EM’s action is a "transitory measure" while PDVSA pressed its case in
Ramirez expressed confidence that his government will prevail. It’s arbitrating fairly, offered just compensation, and that in the end may defeat the latest Bush administration assault against the right of a sovereign state to its own resources. He also explained that Exxon violated ICSID arbitration proceedings by seeking separate court orders, and that PDVSA is considering a response. It may sue the oil giant for damages that caused
On February 8, PDVSA declared its position on its web site to put the facts in context, clarify the situation, and dispel how the dominant media portrays it ExxonMobil’s way. Below is a summary.
The company states it’s been "in arduous level agreements and negotiations with" its joint venture partners – "Total, Statoil, (
PDVSA awaits its ruling "which, we are confident, will promote the interests of the Republic." In addition, Exxon sued PDVSA. As a result, "we see a clear position (of this company) to go against the sovereign interest of an oil-producing country such as Venezuela," deny its legal right to its own resources, and get overt US backing for it from State Department spokesperson Sean McCormack saying: "We fully support the efforts of ExxonMobil to get a just and fair compensation package for their assets according to the standards of international law" that Washington defiantly trashes.
PDVSA’s statement explained that the national media have "such ignorance of the situation (by reporting that) our company has (assets of) 12 billion dollars (frozen and) that is completely untrue….we do not have any court decision that is final with respect to all of our assets. We have an interim measure in a court in
Exxon also got injunctions in
"We are no longer surprised (about) the attitude of ExxonMobil, as it is the typical American transnational company which….historically has tried to attack the oil-producing countries and impose their views on the management of (their) national resources….On behalf of workers and our oil industry, we are not going to (be) frightened, intimidated, or retreat in the sovereign aspirations of our people to manage their natural resources."
We must "warn our country because they could continue this type of action….the position of our people and our Government is firm in defence of our decisions." We will defend our interests. We won’t "yield to this (action), we will defeat them (on the) ground(s) that (are) raised…."
In a February 12 interview, Ramirez repeated Hugo Chavez’s message two days earlier on his weekly Sunday television program, Alo, Presidente: "If you end up freezing (our assets) and it harms us, we’re going to harm you. Do you know how? We aren’t going to send oil to the
PDVSA spokesperson, Eleazar Diaz Rangel, then said on Latest News on February 12 that "we are ready" to stop supplying oil to the
On February 12, Venezuela’s deputy oil minister, Bernard Mommer, said on state-owned Venezolana de Television that Exxon knows it will lose in arbitration and its "maneuver represents a way to intimidate" other countries against standing up to its will. It’s trying to "create panic and anxiety with the banking and the oil sector."
Views from the
It’s no surprise how the
Then, there’s the Washington Post’s editorial view on February 15. It’s astonished that "Mr. Chavez himself threatened to cut off exports of crude oil to
The Chicago Tribune was just as hostile by asking "Where is the king of
Then there’s the Houston Chronicle in Exxon’s home city. It blasted Chavez for "making a fool of himself on the floor of the UN General Assembly last year," called him a "clown," and said "his buffoonery is neither amusing nor benign." Ignoring Exxon’s shenanigans in cahoots with Washington, it stated that Chavez "was in full bluster (and that he) and his henchmen (were launch(ing) a war of words in response (that is) little more than political theater, sound bites for the loyalists back home, and You Tube fodder abroad."
This type bluster gets supplemented with outrageous comments about how Chavez "seized power," shuts down his opposition, control’s Venezuela’s media, took over American oil fields, is a "destructive menace" to the region, and even worse a communist and a dictator with a terrible human rights record. Is it any wonder that Americans know almost nothing about Venezuelan democracy and the man who shaped it for the past nine years. Under his leadership, it’s the real thing, is impressive and improving. Compare it to
What’s Going On and What’s At Stake
Throughout most of the last century, and especially post-WW II,
William Blum documented the history in three editions of his book, "
— "lie down and happily become an American client,"
— accept free market capitalism and today’s steroid-enhanced neoliberal version that’s even more predatory,
— sacrifice its peoples’ welfare for ours,
— "produce primarily for export,"
— allow dangerous environmental dumping on its soil,
— surrender to IMF, World Bank, WTO and international banking rules; accept exploitive structural adjustments and debt slavery as a way of life;
— relinquish control of its natural resources, especially if they’re large oil and gas deposits,
— surrender all freedoms and call it democracy,
— permit US military bases on its soil, and
— agree unquestionably to all other imperial demands.
Countries unwilling to oblige are called "bad examples (and) reduced to basket cases." In addition, their leaders are replaced by "friendlier" ones. It’s an ugly story of the rich against the poor, the monied interests against all humanity, and if outliers are tolerated, they’ll be "bad examples" for others to follow.
Chavez became one of them after his 1998 election. Ever since, he’s been a thorn in
Imperialism is safe in the
He "reversed (some of) the corrupt privatizations of previous rightest neo-liberal regimes," but still supports business. Nonetheless,
As a result, he tops George Bush’s target list outside the
Earlier (but no longer), John McCain’s web site was outrageous. It featured a petition to "stop the dictators of
These comments aren’t surprising from a man who headed the hard right International Republican Institute (IRI). Along with the National Endowment for Democracy (NED) and USAID, these organizations front for imperialism, support rightest dictators, and plot the overthrow of independent democrats like Chavez who dare confront
Think hard about this man from what his fellow Republicans say about him. Some call him psychologically unhinged and unqualified to be president. Mississippi Senator Thad Cochran said: "The thought of (McCain) being president sends a cold chill down my spine." Others from the far right, like
Along with these unsettling comments, there are disturbing allegations about McCain’s POW years and reported special treatment he got after his father, Admiral JS McCain, became CINCPAC Commander-in-Chief, Pacific Command over all
Democrats aren’t much better, and consider their views about Chavez. They’re hardly friendly with Hillary Clinton saying "we have witnessed the rollback of democratic development and economic openness in parts of
Forget Obama’s friendly smile, comforting demeanor and reassuring rhetoric. Bottom line – he’s no different from the rest. There’s not a dime’s worth of difference among them that matters. Next January, they’ll be a new face in charge with the same agenda: wars without end; subservience to the monied interests; disdain for the common good; and deference to the dominant media view that Chavez is: an authoritarian, a strongman, a dictator and what Wall Street Journal columnist Mary Anastasia O’Grady calls him: anti-democratic, dictatorial, vengeful, bullying, crude, unpopular, and having "an insatiable thirst for power that should give Venezuelans reason to be fearful."
Forget that under Chavez Venezuelan business is booming or how gracious he was in defeat last December after voters rejected his constitutional reforms. Petras assessed what followed. Centrist and other influential Chavez advisors jumped on the setback and "pressed their advantage to secure programmatic, tactical-strategic and organizational changes." They got him to replace over a dozen cabinet ministers and others in government with new faces sharing their views. They also, to a degree, shifted Chavez to the center, influenced him to "slow down….the move to socialisma, (establish) economic ties with the big bourgeoisie, (halt) immediate moves to nationalize strategic economic enterprises, and (move slowly) in reforming land tenure."
In addition, they got him to ally "with the middle class center-right parties, and (won) them over (by eliminating) price controls to let "basic food prices…. soar, while salaries remain stagnant." The result: a fundamental contradiction in trying to advance socialism by "liberalizing economic policy." Petras is worried that Chavez’s base (the urban poor) "will lose interest, abstain or resist the centrists and withdraw their loyalties." Indignation is surfacing, loyal Chavez support may be jeopardized, and it "raises fundamental questions about the long-term future of state-class movement relations under" his leadership.
In addition, rightest forces see an opening, are pressing their advantage, Exxon’s move is a warning shot, and so are reports about Colombian paramilitaries entering the country in greater numbers. More destabilization will follow, and continued efforts will be made to weaken Chavez, then try to oust him. More than ever, he needs strong support at a time it’s jeopardized, and that’s a worrisome situation to consider.
Petras alarmingly notes that when "social movements (adopt common) electoral strategies, (work) within the framework of institutional politics, and (ally) with center-left regimes….few positive reforms and numerous regressive" ones result. Will this be Venezuelans’ fate? The prospect is frightening because if not Chavez, who’ll lead their struggle for social equity and justice – for the nation, the region and beyond. Bolivarianism is glorious and vibrant. But to flourish, grow and prosper, it needs care and nurturing from a resolute leader backed by mass popular support.
Stephen Lendman lives in
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