CARACAS, Venezuela (AP) -- Thousands jammed the streets around
                 Venezuela's presidential palace for a rowdy all-night celebration of President
                 Hugo Chavez's third year in office.

                 Chavez's supporters set off fireworks, held concerts and distributed political
                 pamphlets on Thursday to demonstrate their faith in a government facing a
                 nationwide strike next week. The festivities were countered by Chavez's opponents,
                 who banged pots and pans across Caracas to drown out a televised speech by the
                 president.

                 Chavez will face one of the toughest challenges of his presidency on Monday when
                 business leaders and labor unions shut down companies to protest new legislation
                 they say will restrict free enterprise.

                 In a late-night televised speech on Thursday, Chavez predicted the strike would fail,
                 insisting most Venezuelans support his efforts to narrow the gap between rich and
                 poor.

                 "The people know ... that they have a defender, that they have one of their own,"
                 Chavez said. "Those who are calling for a strike are wrong. They will fail. No one
                 paralyzes Venezuela."

                 Chavez said his greatest achievement during his presidency was giving Venezuela a
                 new constitution, which was approved by popular referendum two years ago. The
                 new constitution mandated a series of elections that swept Chavez's leftist party
                 into Congress and most state governments, ousting two traditional political parties
                 accused of running decades of corrupt governments.

                 Now, Chavez is using his power to push through left-leaning economic reforms. A
                 new Land Reform Law requires farmers to conform to a government agricultural
                 plan or risk having their land confiscated. A new fishing law requires trawlers to
                 work at least six miles from the coast to make room for small fishermen. A
                 Hydrocarbons Law requires state-owned oil company Petroleos de Venezuela SA to
                 hold a majority stake in all future joint ventures with private companies.

                 But the initiatives have met spirited resistance from the business elite at time when
                 Chavez's approval rating is sliding over frustration with crime and unemployment.
                 Political opponents planned a march on Friday to demand that Chavez resign.

                 At the pro-Chavez celebration at Miraflores Presidential Palace, supporters brought
                 their children, who waved posters of Chavez; women wore Santa Claus caps and
                 held candles; and bands played traditional salsa and drum rhythms.

                 "Don't forget that Hugo Chavez is with God, and God is with Chavez," said
                 flag-waving supporter Arelis Venegas.

                  Copyright 2001 The Associated Press.