Street rallies across country and some opinion polls confirmed rising popularity of opposition candidate Manuel Rosales ahead of 3 December presidential polls. Incumbent President Chávez still holds comfortable lead. Chavez has claimed Rosales plans coup for election period. National Electoral Council will allow auditing of voting machines in bid to allay opposition fears of voting irregularities. Along with Guatemala, Venezuela withdrew on 7 November to allow election of Panama to Security Council.

Venezuela’s bid for Security Council seat unsuccessful as country failed to garner required votes in over 41 deadlocked rounds with Guatemala. Tens of thousands marched through capital 7 October in support of opposition candidate Rosales ahead of December presidential elections; largest opposition rally since early 2004.

President Chávez lambasted President Bush in speech to UN General Assembly. Relations further deteriorated as Chávez accused Washington of funding opposition candidate Rosales and Venezuelan FM briefly detained at JFK airport. Iranian President Ahmadinejad visited Caracas; signed series of bilateral agreements. Chavez continued to pursue support for Security Council bid at Non-aligned Movement summit in Cuba. Chile requested replacement of Venezuelan ambassador after he criticised Christian Democratic Party for opposing Security Council bid.

Opposition rallied behind candidacy of Manuel Rosales, governor of Zulia state, to run against President Chavez in December elections. Chavez continued to seek international support for Security Council bid, with visits to China and Syria; while U.S. expressed its support for Guatemala’s bid. Chavez called Israeli intervention in Lebanon “new Holocaust” and said likely to cut ties with Israel after both countries recalled their ambassadors.

Venezuela joined Mercosur 5 July and stepped up bid for UN Security Council seat with President Chavez seeking international support during global tour. During Moscow visit, Chavez formalised purchase of fighter jets and requested licence to produce AK-47s domestically.

Parliament issued report recommending state assume majority control of key oil projects, as President Chavez doubled taxes on oil firms to support social programs abroad. Chavez solidified leftist block by signing economic and cultural accords with Bolivia and Ecuador. Tensions with U.S. continued with U.S. ban on arms sales.

U.S. complained after convoy of ambassador pelted with vegetables by supporters of President Chavez; Caracas warned ambassador could face expulsion if “deliberate provocations” continued. Chavez withdrew from Andean Community trade bloc after Peru and Colombia signed bilateral trade pacts with U.S.

Tense relations with U.S. continued. U.S. ambassador called for improved security from Venezuelan authorities after President Chavez supporters threatened U.S. delegation. New 4-month training program for 2 million army reservists began early March.

Bush administration and Chavez continued to exchange criticism, with both expelling diplomats early February. Sec. State Rice accused Chavez of being menace to Latin American democracy. President Chavez announced intention to increase weapons purchases.

President Chavez accused U.S. of blocking purchase of planes and patrol boats from Brazil and Spain by prohibiting transfer of U.S. technology used in vessels. Spain to sell planes despite restrictions. Chavez’s comments on Peruvian presidential candidates sparked diplomatic row.