Chavez Expels American Envoy, Threatens to Cut U.S. Oil Exports

By Matthew Walter and Jose Orozco

Sept. 12 (Bloomberg) -- Venezuelan President Hugo Chavez yesterday ordered the American ambassador to Caracas to leave and threatened to halt oil exports to the U.S. in a show of solidarity with his Bolivian counterpart Evo Morales.

Chavez recalled his ambassador from Washington and said he won't send another until after the U.S. presidential elections in November. Chavez and Morales, who expelled the top U.S. envoy from his country two days ago, have accused the U.S. of backing opposition movements in their countries.

Chavez, a self-proclaimed socialist who refers to America as an ``empire,'' threatened to halt Venezuelan oil shipments to the U.S. if it attacks his country. Venezuela is the fourth- biggest supplier of foreign crude oil to America.

``The U.S. is behind the plan against Bolivia, behind the terrorism,'' Chavez said at a political rally for his United Socialist Party of Venezuela. ``We're committed to being free. Enough crap from you Yankees.''

In a televised speech, Chavez gave Ambassador Patrick Duddy, who arrived in Caracas a year ago, 72 hours to depart. Noel Clay, a State Department spokesman, said there hasn't been any official communication through diplomatic channels.

Chavez, who has built his political career on thwarting U.S. influence in Venezuela and Latin America, may have expelled the ambassador to rally support among poor voters ahead of state and city elections scheduled for November, said Jose Vicente Carrasquero, a professor of political science at the Universidad Simon Bolivar in Caracas.

`Tendency to Overreact'

``The president has a tendency to overreact,'' Carrasquero said in a telephone interview. ``He's appealing for people's sympathy.''

Morales expelled the U.S. ambassador Sept. 10 after accusing him of supporting regional leaders wanting more autonomy. The U.S. responded yesterday by ordering Bolivia's ambassador to Washington to leave.

Morales's move came during a week of intensifying political disputes between his government and regional leaders opposed to a new constitution and energy taxes. Morales frequently accused U.S. Ambassador Philip Goldberg of conspiring with opposition groups, charges the State Department called ``baseless.''

The expulsion of the two U.S. ambassadors is another example of Chavez's success at building a coalition of socialist-leaning governments in Latin America that are prepared to confront America. The Venezuelan leader has tapped into his country's surging oil revenue to provide billions of dollars of aid and financing to his allies.

``There are a lot of countries in Latin America with social debts that can be taken care of with Chavez's assistance,'' Carrasquero said.

Marxist Guerrillas

Ties between Venezuela and the U.S. have been increasingly strained over the past year as George W. Bush's administration has stepped up charges that Chavez is funding Marxist guerrillas in neighboring Colombia and ignoring the increased flow of illegal drugs across his country's borders.

Chavez has countered that the Bush administration is helping opposition parties in Venezuela try to overthrow him. Yesterday, he ordered an investigation into an alleged military plot to assassinate him, which Foreign Minister Nicolas Maduro said had U.S. support. The minister didn't provide any evidence.

The Venezuelan leader has also pledged support for Russia's recognition of the independence of the Georgian breakaway regions of South Ossetia and Abkhazia. Both the U.S. and Europe have condemned Russia's actions in Georgia.

Two Russian bombers landed in Venezuela this week and plan to carry out training exercises over neutral waters.

`Revolutionary Movements'

Hundreds of Chavez backers gathered outside the Miraflores presidential palace last night to show their support, according to images broadcast by state television.

``The U.S. is trying to stop revolutionary movements in Latin America,'' Chavez said. ``This is a dignified people. Damn Yankees, go to hell 100 times.''

Chavez has been named directly in a U.S. criminal trial taking place in Miami this week. Prosecutors have provided evidence that the president directed the head of Venezuela's intelligence agency to manage a scandal caused by the seizure of $800,000 in cash at an Argentine airport.

Prosecutors allege that the money came from the Venezuelan government and was intended to finance the election campaign last year of Argentine President Cristina Fernandez de Kirchner. Both Chavez and Fernandez have denied the allegations.

Venezuela and the U.S. are unlikely to sever ties permanently, said Carrasquero.

``Trade between the two countries is gigantic,'' he said. ``Venezuela wouldn't have anywhere to put all the oil it sells the U.S. so quickly.''

To contact the reporters on this story: Jose Orozco in Caracas at jorozco8@bloomberg.net; Matthew Walter in Caracas at mwalter4@bloomberg.net.