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STRATFOR

Chavez Increasingly Isolated by Cuban Pullout, Mounting Dissent
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2350 GMT, 011206

Summary

Embattled Venezuelan President Hugo Chavez appears to be seeking a
confrontation that would justify declaring a state of exception. Such a
move, however, would be condemned at home and abroad and likely would
accelerate the end of Chavez's regime. With tensions in Venezuela building
rapidly, Cuban leader Fidel Castro is distancing himself from Chavez.

Analysis

Venezuelan President Hugo Chavez announced Nov.30 that he will rule until
2021, when he plans to retire at the age of 67. Chavez also warned critics
and political opponents that he has "rifles and tanks" to defend his
"Bolivarian revolution."

Faced with a rapidly slowing economy, collapsing popularity and growing
political opposition, Chavez appears to be looking for any justification to
declare a state of exception. Such a move would suspend constitutional
guarantees and civil liberties, militarize the government and prolong his
regime indefinitely. But Chavez is fast losing support from ally Cuba and
his own military forces. Any effort to sustain his regime through a
"self-coup" backed by top commanding generals will backfire almost
immediately.

A state of exception would be viewed at home and internationally as a
self-coup -- a move by a democratically elected leader to rule
autocratically with military support. Chavez apparently believes that a
state of exception would enable him to consolidate his grip on power. But if
he goes that far, his already tenuous support within the military will
collapse and Venezuelan business and labor leaders likely will join forces
to shut down the economy and disrupt oil production with prolonged strikes.
Moreover, the United States and Latin American governments would immediately
repudiate Chavez, as would entities like the Organization of American States
and United Nations.

In Cuba, President Fidel Castro and his brother, Raul, believe Chavez has
placed himself in a politically untenable position since Sept. 11,
diplomatic sources from Cuba and Mexico tell STRATFOR. A year ago, Fidel
Castro publicly anointed Chavez his revolutionary heir in Latin America but
in recent weeks has been distancing himself from the Venezuelan president.

On Nov. 30, as Chavez announced plans for a lengthy rule, the Castro
brothers called a meeting and ordered the immediate withdrawal from
Venezuela of all Cuban doctors, sports trainers, security and other
non-diplomatic personnel, sources said. The decision -- which comes ahead of
a national civic strike in Venezuela on Dec. 10 -- is intended to head off
potential political confrontations between Havana and Washington if armed
conflict erupts in Venezuela. Mexican diplomatic sources said the Castro
brothers believe Chavez will seal his own political destruction if he
declares a state of exception.

Although Chavez controls the armed forces' senior chain of command, from
generals to colonels in command of battalions, the military's support for
Chavez has always been ambiguous and shallow. Career officers are upset with
low salaries and poor military housing. Also, many Venezuelan officers are
unhappy about the Chavez regime's links to Colombian guerrillas and the
Castro government, both of which Venezuelan military doctrine for the past
40 years has painted as the greatest potential threats to national security.

Moreover, well-documented corruption allegations against senior generals
loyal to Chavez have recently infuriated many senior and middle-grade
officers who are not part of the president's inner circle.

Officers that Venezuelan news media have publicly accused of corruption
include Division Gen. Victor Cruz Weffer, who commands the army, and
Division Gen. Melvin Lopez Hidalgo, commander of the 3rd Infantry Division
based in Caracas. Other senior officers and Chavez loyalists believed to be
involved in corruption include Gen. Lucas Rincon Romero, the military's
top-ranking officer after Chavez, and Division Gen. Belisario Landis, who
commands the National Guard.

Quinto Dia, a Caracas political weekly, reports that the corruption
allegations have inflamed tensions and divisions within the military. Many
officers are furious that Venezuelans increasingly view their armed forces
as a corrupt institution.

According to Quinto Dia, anti-Chavez sentiments and intrigues run strong at
Fort Tiuna in Caracas and in the central states of Aragua and Carabobo,
where elite air force and army paratrooper units have headquarters. However,
army units in Carabobo are split between pro- and anti-Chavez factions.
Pro-Chavez sentiment is strongest at the Maracaibo Command, where key tank
and artillery regiments are based, and also at frontier commands in the
states of Tachira, Apure and Amazonas.

The military infighting and other turmoil will come to a head soon.

Business, civic and labor groups are joining forces for a strike on Dec. 10.
To counter that, Chavez has organized a series of public events to celebrate
the third anniversary of his election. Those events include the official
celebration of Air Force Day on Dec.10, which Chavez ordered should be moved
from Maracay to Caracas. The celebration will involve flyover exercises for
F-16, F-5, Mirage and Mig-29 combat aircraft and attack helicopters. Chavez
has also urged his supporters to "concentrate" their numbers around the
presidential palace of Miraflores from Dec. 7 to 10 to celebrate his
election and the enactment of reform laws.

Business and labor leaders are urging Caracas residents to stay home during
the national strike to minimize the possibility of confrontation with Chavez
supporters. But violence is still a possibility.

A Dec. 7 march led by Alejandro Pena Esclusa, a right-wing firebrand, likely
will collide near the presidential palace with pro-Chavez activists who have
vowed to block the march. If violent confrontations ensue, Chavez may be
emboldened to decree a state of exception.

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