Venezuelan opposition plans new protests amid coup rumors.
AFP - June 7, 2002

CARACAS -- Opponents of Venezuelan President Hugo Chavez were
preparing a new protest against his rule Friday, amid rumors that
military elements are plotting a new coup to remove him from
power.

Opponents plan to demonstrate June 15 to demand Chavez's
resignation and an end to the politicization of the armed forces.

Meanwhile, Foreign Minister Roy Chaderton charged government
opponents with floating rumors of another coup to create a
climate of instability.

"They want to create an impression of instability and of the
imminent downfall of the legitimate government of Venezuela,"
Chaderton said.

The Caracas daily El Universal published portions of what it said
were communiques in which military officers call for a
"constitutional rebellion" against Chavez.

Earlier in the week, opposition journalist Patricia Poleo, editor
of the daily Nuevo Pais, divulged the contents of a videotape of
hooded officers declaring that they would "do whatever is
necessary" to defend Venezuela's institutions and denouncing
Chavez as a leftist. The authenticity of the tape could not be
confirmed.

A week ago, a hooded man claiming to be an officer of the
National Guard made public statements against Chavez.

Rumors circulating by word of mouth have been reinforced by news
reports and handbills calling for an overthrow of the government.

Chaderton said well-financed groups were using the Internet to
foment subversion.

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Storm Clouds Again Forming Over Venezuela
7 June 2002

Summary

Multiple STRATFOR military and political sources in Caracas
report that Venezuela soon may experience another outbreak of
violence. This could result in a forced regime change, or it
could serve to consolidate President Hugo Chavez's so-called
"Bolivarian Revolution." If the reports are accurate, the
violence likely will involve opposing elements of the armed
forces and Chavez's armed civilian militias, called the
"Bolivarian Circles."

Analysis

Multiple military and political sources in Caracas, including
some within President Hugo Chavez's government, say another
outbreak of violence in Venezuela, on par with that seen in April
before the president's brief removal, is likely. Given the
elevated political tensions between the Chavez government and its
numerous (if uncoordinated) opponents, the possibility of a more
permanent ousting of Chavez could be wishful thinking by some of
these sources and exaggerated emotionalism by others.

However, if the consensus opinion STRATFOR has obtained in the
past two weeks is accurate, Venezuela could be on the verge of a
violent confrontation between the Chavez government and groups
seeking a change of regime by any means. The sources agree that
potentially violent actors in a conflict would include opposing
elements of the armed forces (FAN), National Guard and armed
members of the Bolivarian Circles -- civilian militia groups
financed and coordinated by the Chavez regime.

If violent confrontation eclipses efforts to negotiate a
political deal between Chavez and his opponents, there could be
two possible outcomes. On one hand, if a second military
rebellion fails to oust Chavez, he would finish ferreting out his
political and military foes and consolidate his regime's control
despite an economic crisis.

On the other hand, if a rebellion against Chavez were to succeed,
Venezuela's political instability likely would grow worse in the
near- to mid-term, making it almost impossible for any
post-Chavez transition regime to stabilize the economy. Moreover,
regardless of the outcome, Venezuela likely would continue to
suffer political instability, violence and economic stagnation
for several years.

The first scenario -- Chavez surviving a rebellion and
consolidating his power -- would be a geopolitical nightmare for
the United States, which is eyeing conflict in Colombia and
economic collapse in Argentina with growing concern. A new regime
without Chavez would be far less problematic in some respects for
the U.S. administration, although many international critics of
the United States likely would accuse the Bush administration yet
again of encouraging a forced regime change.

Defense Minister Lucas Rincon Romero, who will retire from the
military on Venezuela's July 5 independence day holiday, when the
president traditionally announces military promotions, insists
that the internal situation within the armed forces is stable and
controlled. The reality, however, is starkly different.

The command purge Chavez launched after barely surviving a
48-hour military rebellion on April 11-13 has intensified the
factionalism in the armed forces between those for and against
Chavez. This situation has been exacerbated by the rapidly
deteriorating economic conditions among military families, and
what appears to be a deliberate government strategy to dismantle
the FAN as an effective professional military institution.

On June 4, a clandestine group of middle- and lower-ranking
officers, called the "comacates" -- which stands for commanders,
majors, captains and lieutenants -- issued a communiqué and
videotape through Venezuelan reporter Patricia Poleo that openly
threatened to kill all armed Bolivarian Circle members and force
a regime change if Chavez did not drastically reform his
policies.

The alleged officers who appeared on the videotape hid their
faces behind hoods, but the majority wore National Guard
uniforms. Interior and Justice Minister Diosdado Cabello, a
former army captain, dismissed the videotape as a fake, but
STRATFOR sources in Venezuela's military intelligence have
confirmed the comacates do exist within the military.

Three days later on June 7, the Caracas daily El Universal
published another document entitled "Manifesto of the
Constitutional Rebellion," sent by a clandestine group that
described itself as including active duty officers in all
branches of the FAN and civil society groups from Caracas and the
states of Carabobo and Aragua. A large proportion of the
country's private industrial and manufacturing base is
concentrated in these states, near Caracas, as well as most of
the personnel and weapons assigned to the army's Fourth Infantry
Division, which now is commanded by Brigadier Gen. Raul Baduel.

An ongoing military command purge has inflamed the political
tensions and potential disloyalties it was meant to suppress. So
far at least 117 of the FAN's 260 general and admiralty-rank
officers have been relieved of their commands and sent home, and
as many as 700 active duty officers are believed to be under
investigation to determine whether or not they are loyal
politically to Chavez and his increasingly socialist "Bolivarian
Revolution."

Moreover, the military command purge is happening as Venezuela's
economic crisis takes an ever-bigger chunk from the pocketbooks
of middle- and lower-class Venezuelan families. Military families
have not been spared the impact of their country's economic
crisis and in fact may be hurting even more than civilian
families because many military garrisons have not received their
budgeted operating funds for fiscal year 2002, STRATFOR sources
in the FAN report. These budgets include not only funds for
military training purposes but also salaries and other social
benefits military families have not received because the central
government has run out of cash.

Since Chavez became president in 1999, the military's economic
difficulties have mounted while its operational readiness and
personnel have declined, military sources in Caracas report. In
fact, high-ranking sources in all branches of the FAN -- army,
air force, navy and National Guard -- acknowledged that their
equipment is deteriorating, training maneuvers have been scaled
back drastically and the number of soldiers in many
battalion-size units is down to company-size strength.

Additionally, army sources told STRATFOR that the FAN's defensive
deployments along Venezuela's frontier with Colombia have been
reduced to significantly less than 10,000 soldiers, instead of
the nearly 30,000 claimed as recently as three months ago by
then-Defense Minister Jose Vicente Rangel. Our sources also
report that the FAN is having manifold difficulties recruiting
personnel despite laws mandating 24 months of service for army
and air force personnel and 30 months of conscript service in the
navy.

As the FAN's operational readiness has deteriorated over the past
three years, the Chavez government has spent, by the president's
own public admission, millions of dollars organizing, training
and indoctrinating thousands of Bolivarian Circles members.
Cabello told a national assembly hearing in May that there were
130,000 Bolivarian Circles groups throughout the country, with 12
members in each circle or more than 1.5 million members in all.
Chavez, Cabello and other government officials insist they are
peaceful and unarmed.

In fact, FAN intelligence officials who oppose the circles think
there are likely no more than 180,000 individual members in all
of Venezuela, and of these only a handful are armed and spoiling
for a confrontation to consolidate Chavez's revolution. However,
even a relatively small number of organized armed civilian
militias could inflict a significant amount of carnage and panic,
especially if pro- and anti-Chavez elements in the military and
National Guard were to open fire against the circles and each
other simultaneously.

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