VENEZUELA: Plagued by Castro

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Southeast across the Caribbean, in oil-rich, poverty-ridden Venezuela, Cuba's Fidel Castro finds plenty of friends among Communists, among dissident far-left extremists of President Romulo Betancourt's Democratic Action (AD) and among leaders of the Republican Democratic Union (URD). Although a member of Betancourt's three-party coalition, URD is opportunistically trying to build up support for future elections by hoisting Castro's banner. URD's most vociferous Castro supporter has been Betancourt's Foreign Minister, Ignacio Luis Arcaya.

Red Hero, No Job. A fortnight ago in Costa Rica, Arcaya was Castro's warmest non-Cuban supporter at the meeting of the Organization of American States that censured Cuba. As a mortified Betancourt listened by short-wave radio, Arcaya fought to water down the resolution rapping Cuba, warmly embraced Cuban Foreign Minister Raul Roa (who happens to be Arcaya's fifth cousin). A phone call from Caracas summoned Arcaya off the floor. "You will return a hero of the Communists but not a friend of mine," said Betancourt, who thereupon ordered Arcaya to step aside and let another delegation official sign the resolution.

On Betancourt's instructions, Arcaya hung around San José and Panama for a week playing golf, while back home Betancourt ironed out relationships with URD Boss Jovito Villalba. When Arcaya gingerly returned to Caracas last week, 600 Fidelistas welcomed him at the airport—and Betancourt fired him. A government split was averted only because URD agreed to sacrifice Arcaya.

Black Gold, Little Trickle. This patched up things on the surface but did not solve the deeper politico-economic sickness that has plagued pro-U.S. President Betancourt and opened him to charges of inmovilismo—do-nothingness. Although black gold blesses Venezuela with Latin America's highest per capita income ($875), half the 6,894,000 Venezuelans live and hunger in squalid shacks. They wonder why the riches do not trickle down, and many view Betancourt as ineffective compared to their mental picture of onrushing Cuba.

Where does the oil wealth go? The government's share goes largely into a bureaucracy that keeps the capital, Caracas, satisfied. But private wealth is in flight, draining reserves from $1 billion in 1958 to $600 million now. Castro-imitating hotheads have scared off investors by demanding more government controls. Partly as a concession to the leftists, Betancourt has canceled new oil concessions and slashed rents 25%, shaking confidence still more. Chronic crisis—Betancourt's hands are only freshly healed from Dominican Dictator Rafael Trujillo's attempt last June to dynamite him to bits —further contributed to economic trouble.

Business is slow, unemployment is up from 8% to 11%. Betancourt's dilemma is summed up by AD President Raul Leoni: "A government of authority—or a coalition undermined by weakness."