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    VENEZUELAN President Hugo Chavez (right) and Nicaraguan President Daniel Ortega wave to supporters during an inauguration of a new oil refinery on the outskirts of Managua, Nicaragua, last month. The refinery, dubbed The Supreme Dream of Simon Bolivar, will be financed by the Venezuelan government. Chavez last week criticized the use of agricultural products to produce biofuels, saying the United States’ policy of supporting the practice could lead to “disaster.” --BLOOMBERG

     
    Hugo Chavez criticizes
    Bush’s biofuel initiative
     

    CARACAS—Venezuelan President Hugo Chavez criticized on Sunday the use of agricultural products to produce biofuels, saying the United States’ policy of supporting the practice could lead to “disaster.”

    In his weekly broadcast Hello President, Chavez repudiated US President George W. Bush’s policies of respecting the use of crops to produce biofuels.

    “Now Bush says trees and bush will produce ethanol. I can imagine people going crazy to cut trees and leaving everything like a desert,” said Chavez.

    He set Mexico and Central America, where corn production prevails, as examples of the consequences of using food to produce biofuels.

    Nicaraguan “President Daniel Ortega tells me that many Nicaraguan corn producers have compromised their production for the next five years by taking it to the United States. That will be a disaster!” Chavez said.

    He said that ethanol production is not intended to create electricity for homes or medical centers, but to ensure that “illogical, absurd and stupid capitalism can continue its voracious growth.”

    Meanwhile, in London, it was reported that the National Express Group Plc. suspended a biodiesel trial at its UK bus operations after consulting environmental groups, the Guardian reported, citing chief executive officer Richard Bowker.

    The group said there was “considerable concern’’ that biofuel production from crops such as sugar cane or rapeseed, would destroy natural habitats and increase the cost of farming in developing countries, the Guardian said.

    The company will continue to look at similar initiatives, but its biofuel study determined that “what appears to be green option may not actually be green after all,’’ the newspaper cited Bowker as saying. (Bloomberg)

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