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US Skeptical of Chavez Nationalization Plans
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http://enews.voanews.com/t?ctl=15B68D0:A6F02AD83191E1606815397B8CC2B6079574F7DCC14957C0 US State
Department says history has shown nationalization doesn't usually
benefit population The U.S. State Department Tuesday expressed
skepticism about the industrial





Venezuela's President Hugo Chavez laughs at the swearing ceremony of
new ministers in Caracas, 8 Jan 2007nationalization plans of
Venezuelan President Hugo Chavez. The Bush administration has had a
difficult relationship with the populist Venezuelan leader. VOA's
David Gollust reports from the State Department.

Officials here say decisions about Venezuela's economic future are for
the people of that country to make. But they say nationalizations of
key industries like those announced by President Chavez have
traditionally not provided the economic benefits promised by their
promoters.

The comments followed word from Mr. Chavez Monday that he plans to
nationalize the country's telecommunications and electric power
industries, in which investors from the United States and other
countries have major interests.

The left-leaning Venezuelan leader revealed the plan as he swore in a
new cabinet in Caracas in advance of his own inauguration for a new
term in office on Wednesday, declaring that Venezuela is heading
toward socialism and that no one can prevent it.

The action prompted criticism from the country's business community
and sharp drops in the Venezuelan stock market and in the value its
currency, the Bolivar. In a talk with reporters, State Department
spokesman Sean McCormack said Mr. Chavez has been elected to act on
behalf of his country's people but suggested the course he has
embarked upon may not benefit them:

"The proposals that he's made concerning nationalization are a
well-worn path that history has shown doesn't usually benefit the
population of the country in question. But those are again,
Venezuela's decisions to make," he said. "At this point, if there is a
follow through on nationalization, there is an accepted international
practice in foreign companies being compensated at fair market value
for the assets that are nationalized."

McCormack said the United States would expect that Venezuela will
follow through on all of its contractual obligations with regard to
assets being taken over by the government.

The Bush administration has had a stormy relationship with Mr. Chavez,
a close friend of Cuba's ailing President Fidel Castro, who won a
third term in office in a landslide election victory last month.

The Venezuelan president delivered a bitter personal attack on
President Bush in a U.N. General Assembly speech in September.

On Monday, Mr. Chavez branded Organization of American States
Secretary-General Jose Miguel Insulza as an "idiot" after he expressed
concern about a decision by the Chavez government not to renew the
operating license of a broadcaster, Radio Caracas Television, that had
been a persistent critic of his rule.

The O.A.S. chief, who has said he will not respond to the Chavez
attack, said last week the move against the broadcast outlet, which
was accused of subversion by the Venezuelan leader, had no precedent
in recent years and gave the appearance of an act of censorship.

In his comments here, spokesman McCormack said the Chavez remarks
"rather unfortunate" and certainly not conducive to building greater
understanding and respect in the region.

The State Department last week criticized the move against the the
Caracas broadcaster as anti-democratic.