CNN
January 18, 1999
 
 
Venezuela's Chavez threatens to dissolve Congress

                  CARACAS, Venezuela (CNN) -- Hours after returning from Havana,
                  Venezuelan President-elect Hugo Chavez praised Fidel Castro's Cuba and
                  warned that he might dissolve Congress if it blocks his bid to create a
                  popular assembly with the sole power to rewrite the constitution.

                  Using the fiery rhetoric that he had largely eschewed since his victory in
                  presidential elections last month, the paratrooper-turned-politician on
                  Monday attacked legislators who argued that his proposal required a prior
                  constitutional reform.

                  "If Congress does that, then it will be outside of the law and we would have
                  to think about dissolving it," Chavez said. "... The referendum will go ahead,
                  nobody can stop it."

                  "Let everybody know that in Venezuela there is a revolution in process
                  which nobody can stop ... Those who are afraid must put their fear behind
                  them or take it with them somewhere else," Chavez added.

                  Chavez, who takes office February 2, also promised to implement an
                  economic system in which the state intervenes actively to defend society's
                  interests, instead of relying on the "invisible hand" of the market.

                  During his two-day visit to Cuba, Chavez met with Castro and Colombian
                  President Andres Pastrana to discuss Colombia's peace talks.

                  He also visited a hospital that was treating a Venezuelan boy.

                  "In that country they take care of the children in the hospitals, while here they
                  die of hunger in the street," Chavez said Monday during a ceremony in
                  Caracas to mark the 28th anniversary of the leftist Movement to Socialism
                  Party, one of several backing his government.

                  Chavez, 44, led a failed military coup in 1992. When he was released from
                  prison two years later, he provoked controversy by visiting Cuba and giving
                  a speech in which he lauded Castro's government.

                  Next stop: Washington

                  Chavez's remarks Monday marked a sharp departure from the tone that he
                  had adopted in recent weeks as he had tried to woo international financial
                  leaders and allay fears over the radical populist platform on which he
                  campaigned.

                  He has met with a series of world leaders in an international tour that has
                  already taken him to Europe, Canada and Cuba and includes a stop in
                  Washington on January 27 to meet with President Clinton.

                  He also has dropped intimations that Venezuela might try to delay debt
                  payments, opting instead to push for renewal of the country's pact with the
                  International Monetary Fund.

                  The IMF deal is a monitoring and technical assistance agreement and does
                  not involve any lending. However, it would be crucial to Chavez's efforts to
                  restructure Venezuela's foreign debt and gain new funding.

                  How Chavez proceeds with his plans for political reform will help determine
                  Venezuela's relations with the United States, which holds a virtual veto over
                  any substantial debt restructuring.

                  U.S. Assistant Secretary of State for Inter-American Affairs Peter Romero
                  said after meeting Chavez last month: "We are behind him as long as he
                  remains within the constitutional boundaries for reforming his country."

                  Chavez: Corrupted system needs shakeup

                  The leader of a bloody attempt to seize power seven years ago, Chavez said
                  a Constituent Assembly of about 100 elected members not affiliated to
                  political parties was needed to shake-up a political system riddled with
                  corruption and deaf to the problems of the 80 percent of the country living in
                  poverty.

                  Chavez has said previously that the assembly, which would work for about
                  six months on rewriting the 1961 constitution, could decide to disband
                  Congress and dismiss the country's top judges.

                  He planned to sign a decree calling for a popular referendum on the
                  assembly February 15, 13 days after he assumes the presidency.

                  Chavez had succeeded in easing fears among investors since the election
                  with his conciliatory tone and by choosing moderates for key positions,
                  including that of finance minister. He made his remarks Monday after the
                  Venezuelan stock market had closed for the day.

                       The Associated Press and Reuters contributed to this report.