Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-08-27
TURMOIL IN THE CARIBBEAN
Venezuela Feels Unrest
But Promise of Stability

year, seriously affected divi-
dends Of all companies which
had not closed their books for
1858.
The government, which had
been taking so per cent Of each
company's profits. suddenly de-
manded so per cent and made
the new rate retroactive to
January /, 1858. Standard of
New Jersey, alone. had to pay
$50 million more in income
taxes than 1t anticipated. It
paid Venezuela a total Of $4l8.5l
million.
President Betancourt appears
on the verge Of going ahead
with a plan proposed many
years ago to establish a ma
tional" oil company and q
tanker fleet. This is matter
of concern to American 'inves-
tors. but the President declares
he does not intend to compete
with private companies so as to
drive them out of Venezuela.
Oil executives are facing up
to more immediate worry. In
october the three-year con-
tract with oil labor unions ex-
pires and the industry is con-
fronted with q long list Of de-
mands for much higher wages.
improved working conditions
and better fringe benefits. AS
of the moment, there is q feel
ing of optimism. The industry |
believes a new contract can be
worked out satisfactorily, al
though company executives are
frankly disturbed by the trou-
ble-making possibilities resid-
ing with the large number Of
Communists who sit on the gov
erning boards of the local labor
unions.
Keeps Hand on Disputes
Petroleum contributes about
IS per cent Of the national in
come and 1t is unlikely Presi-
dent Betancourt, backed by his |
army, would permit Commu-
nists or anyone else to strangle |
the economy. The President al
ready has acted firmly on other |
occasions when disputes threat
ened to get out of hand and !
disrupt progress toward stabil-
lily.
DR.. Juan Pablo Perez Alfonso,
the ultranationalistic Minister |
Of Mines. is pressing not only
for the national oil company |
but for heavier taxes on iron
ores taken from Venezuela. This |
development, Of much concern
to the big steel corporations in
the United StateS-and so to q |
large number of stockholders
is still in negotiation. The steel
companies hope to convince the
government it should abide by
an existing contract signed by
officials in a previous admins
tration.
Foe Of DictatOrships
In international relations,
President Betancourt proceeds
with composure and statesman
ship.
Like the fiery young revolu-
tionary in Cuba. Prime Minis
ter Fidel Castro, he is eager
to see all relationships elimi-
mated from Latin America.
Both are implaccable foes of !
Generalissimo Rafael L. Trujil-
10 Molina, ruler of the Domini-
can Republic. They accuse him
Of meddling in their internal
affairs.
But there the comparison |
with Premier Castro ends.
President Betancourt makes
a point of non-involvement |
with expeditions aimed at the
overthrow of other govern
ments. He looks with complete !
disfavor upon DR.. Castro's I'M
volvement in such ventures.
He is dedicated to the prin-
ciple Of human rights and
freedoms for all of Latin Amer
lea. He insists on free elections |
and apparently is sincere in !
the effort to secure democracy
for Venezuela.
1t may be said that President
Betancourt wants no axis link
ing Caracas and Havana. He
thinks strict application of the
freedom and rights principle |
might hit Fidel Castro as hard |
as some Of the other heads of
state.