Latin American Chavez allies back Libya peace plan

Sat Mar 5, 2011 2:48am GMT

* Chavez-allied Alba block was expected to back initiative

* Says initiative will help stop "NATO aggression"

* No more details of timing or wider support for mission

CARACAS, March 4 (Reuters) - A group of mostly Latin American countries in a leftist bloc loyal to Venezuela's President Hugo Chavez backed his plan on Friday to create an international peace mission to mediate the Libyan crisis.

The Alba group was founded by Chavez and includes staunch allies Cuba and Bolivia, so there was little surprise in its support for the still vague proposal, which he says is aimed at averting an invasion of Libya by Western countries thirsty for its oil. Critics have called his proposal grandstanding.

"Alba supports (Chavez's) peace and unity initiative to create an international humanitarian commission for peace and the integrity of Libya," said the statement, read out by Chavez after a meeting with foreign ministers.

It said the commission would aim to "avoid military aggression from NATO as part of the efforts the international community should make to help the Libyan people."

Speaking from the presidential palace, Chavez warned oil could reach $200 a barrel if the United States or European nations took military action in Libya.

Chavez is often very vocal about international crises.

His chances of helping bring a quick end to the fighting are slim, since the rebels have ruled out talks and many see him as too close to Muammar Gaddafi, whom he calls a friend.

On Thursday, Gaddafi's son Saif al Islam told Sky News he appreciated Chavez's mediation offer but said there was no need for help from Venezuela. [ID:nLDE7222F7]

Gaddafi's forces captured part of a town in western Libya on Friday, but rebels say they have taken the coastal oil town of Ras Lanuf, extending the territory they control in the east of the country. [ID:nLDE72300M]

Oil prices dropped on Thursday on news Gaddafi supported Chavez's proposal and the Arab League was studying it.

Libyan officials repeated they welcomed the plan on Friday. apparently contradicting Gaddafi's son Saif.

It is not clear whether the idea has gained traction with larger countries. Chavez gave no more details of its timing or content. A government source has said Venezuela wanted Brazil's former president Luiz Inacio Lula da Silva to lead it.

Venezuela, Cuba, Bolivia, Nicaragua, Dominica, Honduras, St. Vincent and the Granadas, Ecuador, Antigua and Barbuda are all members of the Alba group. (Reporting by Deisy Buitrago; editing by Todd Eastham)

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