Venezuela closes in on Chinese launch deal

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Venezuela is close to signing a deal with China to build and launch a satellite for Venezuela in 2008, President Hugo Chavez says.

Venezuela is close to signing a deal with China to build and launch a satellite for Venezuela in 2008, President Hugo Chavez said on Sunday. The move could reduce the Latin American country's dependence on U.S. and European satellites.

"God willing, we'll be launching the satellite in 2008 ... from China," the president said during his weekly "Hello President" television and radio show.

Chavez said the Chinese contract would include the transfer of technology to Caracas, which might enable Venezuela to build and launch satellites from Venezuelan territory in the future.

"Because it's close to the equator, Venezuela's geographical position gives it a big advantage to launch rockets, satellites and everything that flies," Chavez said.

Science Minister Yadira Cordova said the 6-ton satellite, which would be named "Simon Bolivar" after Latin America's 19th-century independence hero who was born in Venezuela, would be used for strategic national communications and to provide images and data required by the government.

Venezuela's telecommunications depend at the moment on satellites operated by private U.S. and European companies.

Left-winger Chavez has vowed to reduce his country's technological dependence on the United States, Venezuela's largest trade partner and the single biggest buyer of oil from the world's No. 5 oil exporter. He has accused Washington of trying to topple or kill him, a charge U.S. officials deny.

Venezuela started talks last year with China's National Space Administration and the Chinese Great Wall Company on details of the construction and launch of the satellite, which Venezuelan officials have said could cost $200 million.

Flush with oil income generated by high world petroleum prices, Chavez's government last year set up a new state telecommunications company.

While sharply reducing military cooperation with the United States, Chavez's government has strengthened ties with China and Cuba and has announced the purchase of military helicopters and 100,000 automatic rifles from Russia.

U.S. officials have criticized Venezuela's buying of the Russian rifles, saying they feared the arms could fall into the hands of left-wing Colombian guerrillas. Washington has accused Chavez of supporting the guerrillas, but Chavez denies the claim.

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