The New York Times
February 2, 1999
 
 
'Question Mark' to Become Venezuela's President

          By CLIFFORD KRAUSS

          CARACAS, Venezuela -- Since his election seven weeks ago, "Hurricane Hugo," as
          President-elect Hugo Chavez is popularly called, has barnstormed Europe, Latin America and
          the United States sending mixed signals about how he will govern Venezuela.

          On Tuesday he will put on the presidential sash at an inauguration that will launch what promises to
          be a presidency of surprises.

          The 44-year-old former lieutenant colonel has promised a revolution to clean up the government's
          chronic corruption. He also pledges to break the stranglehold of the two traditional political parties
          by holding a referendum that would lead to the drafting of a new constitution.

          But on other matters, like how he will manage the ailing economy, deal with the United States and
          Cuba and recalibrate the flow of oil exports, analysts say he remains a question mark.

          Chavez has been an international curiosity since he tried unsuccessfully to overthrow an elected
          civilian government with a military coup in 1992. Afterward he was cashiered from the Venezuelan
          Army and spent two years in jail.

          Despite his checkered relations with some in the military, he made the red beret worn by many army
          units the symbol of his election campaign and proclaimed his admiration for Fidel Castro and the
          Cuban Revolution.

          Since his election he has been wearing well-tailored suits, but Chavez has basked in his bad-boy
          image. "I am being compared to Mussolini, Hitler or even the devil," he told reporters in Paris last
          month with a characteristic guffaw. "But I am a social fighter and a democrat."

          Chavez's globe-trotting was aimed at polishing his image and calming foreign investors who steadily
          withdrew money from Venezuela's stock market last year in anticipation of his election.

          Here and abroad, he told investors that he would not impose exchange controls or default on the
          national debt. He said he would defend the Venezuelan currency, the bolivar, even though analysts
          say it is at least 25 percent overvalued. He also promised to slash the government's bureaucracy,
          strengthen central bank automony, raise the sales tax and encourage foreign investment.

          With oil prices at a 12-year low and the government's interest payments on its debt expected to rise
          to 40 percent of the budget this year, analysts say Chavez will probably have little room to maneuver
          if he wishes to avert the kind of currency turbulence now unsettling the Brazilian economy.

          On oil policy, Chavez's aides have said they would support efforts by the Organization of Petroleum
          Exporting Countries to raise the price of crude. But they would not commit themselves to a
          production cut.

          While campaigning Chavez promised to reverse Venezuela's practice of pumping more than its
          OPEC quota. Venezuela is the leading source of foreign oil to the United States and is the
          second-biggest petroleum exporter in the world.

          "The cliche is that there are two Chavezes and we don't know which one will be inaugurated," said
          Roberto Bottome, editor of a Venezuelan business journal. "He has moderated his message in tone if
          not in content."

          Still, Chavez's oratory has remained hard to decipher in recent weeks as he has painted himself as
          both an economic realist and a left-leaning populist.

          Two weeks ago Chavez told a group of businessmen that he wanted to install a system "where
          market forces truly work, where the state will be the engine of progress." In Washington last week,
          Chavez met with President Clinton for 20 minutes and pledged his commitment to democracy.

          But on a visit to Cuba last month, Chavez embraced President Castro anew.
 

                     Copyright 1999 The New York Times Company