It has occurred to me, as it has to most, that Chavez has very little respect for the rule of law, in a Democracy.
He Nationalizes, and 'expropriates'...steals that is.....property whenever it suits him. These new powers of decree, besides allowing him to flaunt laws, will undoubtedly have him venturing into more ways of taking over business's and whatever.
The question is, will he get to the point where doesn't care about proprieties, and just declare KRY's MOC invalid? There are several 'excuses' he could use.
What about VZ reputation you say? No company or country would feel safe to sign a contract in VZ again?
Well, he thumbed his nose at many giant corporations in the oil industry, nationalizing/expropriating, and yet they came back to sign contracts in the Orinoco oil fields.
Would Russia really care? Would Rusoro? Would China? In terms of VZ resource's Chavez has said they are not for foreign ownership. He could easily argue that Crystallex has acted as if they 'own' Las Christinas, holding Las Christinas as 'hostage', challenging Venezuela's 'sovereignty' They are not in a JV with VZ, and own the MOC 100%. Could he decree that all resources must be controlled by VZ, including MOC's?
Logic says that by now, the permit should have been issued to the JV, or there should have been a buyout offer made. Although most think that China is accepted by all, I think that there are many in the Government that do not want China in control of VZ resources anymore than they want Crystallex in control. China doesn't have the best reputation out there. Chavez may very well be hampered by his own bureaucrats and political foes, ( besides him wanting certain powers before the new NA is formed ) and this 'power by decree' is his way of getting around them.
If anything is going to happen soon, it may be through these new powers, because nothing else will have changed, for us to see any positive development.
As some have suggested, it could be that the JV will go ahead, with Chavez using his powers of decree to thwart opposition to the China/KRY JV.
Or, it could be that Chavez uses his powers of decree to declare the MOC null and void, citing Venezuelan sovereignty issues, and he JV's with......?
Either way, I just don't see the status quo caring on....there has just been too much done to pave the way for the development of the gold mining industry, and too many ducks lining up.
Lets just hope that we aren't a 'duck' that's just a little too plump and juicy, and that we don't get taken out by a 'pot shot'
JMHO
May the New Year bring a close to this chapter, and bring everyone here prosperity and happiness.
Keith
