The Fire Spreads
"...it is clear that the wealth from oil in this country flows like that black gold into the hands of increasingly few, and that wealth finances their oppression of the great Venezuelan people..."
- Lieutenant Hugo Chavez
By late spring of 1979, it appeared to most observers that the Latin American crisis that had threatened to create a "continent-sized Vietnam" was not dwindling but at least seemed to not be as severe as once feared. Though Torrijos and Noriega still hid in the Central American jungles, attacks on American troops in Panama had declined substantially and the Canal Zone was once again one of the most fortified places on Earth; the fighting in El Salvador raged but next door, in Nicaragua, the Sandinista regime of Daniel Ortega had quietly implemented a populist, non-confrontational path, at least so far. Honduras and Costa Rica had seemed to dodge any serious spillover from the crises of their neighbors; though political violence had spiked in both Guatemala and Mexico, it was nowhere near the level of an insurgency. Colombia was another story, with FARC and ELN dramatically stepping up their campaigns, and earning CIA counterinsurgency attention for their troubles. It was now easily the most violent country in the world, and close to 100 American soldiers had perished there since the previous year despite the rather small contingent of forces - no more than 15,000 troops meant to serve as backup support - stationed at bases throughout the country.
But the Ford administration was quick to ignore Colombia, at least for a little while, when Argentina sued for peace in the Beagle War in May. The campaign had been a catastrophe for Buenos Aires. Their Navy had been quickly routed in the waters around Tierra del Fuego, with the bulk of it now at the bottom of the South Atlantic and Chile's elite Marines having seized Ushuaia in a bloody firefight; Chile's air force, while severely hampered, had been able to deny Argentina complete air superiority over the core mountain passes the enemy sought to secure, and a mix of barbed wire, trenches and dynamite had turned the Andes into a latter-day Isonzo, where the outmanned Chileans had exacted hugely disproportionate casualties on their enemy's elite mountaineer divisions and soaked the white snow red. 27,000 Argentines were dead, many from being left wounded in the cold, against just shy of 8,000 Chileans, a quarter of whom were civilians killed by indiscriminate bombings in Santiago; many more tens of thousands were wounded, and the men being sent up by Argentina into the Andes were now raw recruits fighting a weakened but still grizzled Chilean force. Perhaps worse than the high casualty count was Argentina's complete diplomatic isolation; their war of aggression had managed to turn Pinochet from a reviled American puppet to a national hero, and their own regime from a run of the mill junta to an international pariah whom even other South American dictators wouldn't engage. A hoped-for intervention by Peru was not forthcoming; the crumbling, unpopular military dictatorship there elected to continue its transition to democracy lest it trigger a political crisis like those further north, and at any rate had its hands full with the massive economic crisis engulfing the country, one which was about to only get worse.
[1] Bolivia would be no helped either; it was in the midst of a churn of Presidents, where nine different men would serve in the office in the space of four years, a remarkable orgy of instability.
[2] Fearing a mass uprising after news reports of soldiers mutinying in the mountains (reports that were, ironically, fabricated by SIDE, the Argentine intelligence agency, in order to stiffen the resolve of the junta to not tolerate dissent), President Rafael Videla announced an immediate ceasefire and that Argentine troops would withdraw five kilometers from the front lines. This proved enormously unpopular with the rest of the junta and frontline troops who had spent months fighting for every last centimeter of that rugged mountain land and were now being asked to give it up as winter approached; a coup and counter-coup erupted in Buenos Aires as people took to the streets. Pinochet secured the five mile retreat zone and then accepted the ceasefire offer, though in cables to Washington the US ambassador in Santiago relayed that Chilean officials seemed unsure who exactly in Argentina they were to negotiate with.
Argentina's collapse into civil discord - a civil war now seemed likely - and the robust position of Pinochet in Chile was followed upon suddenly by utter chaos in Venezuela. Protests against the narrow electoral win - by less than 10,000 votes - of Luis Herrera Campins in 1978 had soon blended in with the general "red tide" around South America after the Panama Shock and American response and paramilitary spillover from Colombia along the porous border of both. While Colombia had navigated its 1978 Presidential election successfully in electing a Liberal reformist in Julio Cesar Turbay (and through a robust security operation to minimize still-substantial political violence during polling), Venezuela's had seemed a farcical exercise by comparison, with supporters of both Campins and his main opponent Luis Piñerúa claiming unproven fraud allegations, and the more ardently socialist Jose Vicente Rangel declaring the whole matter a rigged "duopoly" of the main parties. Riots had broken out, but been ignored at the time as every Latin American country seemed plunged into quasi-revolutionary riots in 1978.
By the spring of '79, however, the boiling water in Caracas had started to come out of the pot. FARC and ELN forces had made connections not only with Venezuela's Red Flag Party with radical Army officers, most prominently Lieutenant Hugo Chavez, and tapped into a deep well of disillusionment among junior Venezuelan officers who were tired of the rampant corruption, middling pay and endless counterinsurgency operations that seemed mostly to target innocent women and children rather than actual rebels. It did not help matters that even the right wing government of Campins was busy fanning populist, anti-American sentiment to stave off its own unpopularity and spending heightened oil revenues as a form of mass public bribery. In June of 1979, therefore, a minor coup began to spread; not large enough to topple the elected government entirely, but just right to cause mass chaos. Led by Chavez, the Venezuelan People's Liberation Army (ELPV) announced itself and encouraged other disgruntled soldiers to refuse to follow orders which contravened "popular rule." Hundreds of soldiers revolted, but rather than marching on Caracas to establish yet another Latin American junta, they simply went home. Street gangs picked up the guns floating around the country and violence erupted; right wing forces established paramilitaries, now worried that the military may no longer be able to defend the country. And on June 28, 1979
[3], their fears were borne out - a massive, coordinated attack by the Red Flag Party, ELN and other Marxist guerillas against the country's onshore petroleum infrastructure, bombing multiple refineries and pipelines and seizing two drilling platforms in the Maracaibo oilfields. The attacks occurred in the northwest and northeast of the country, within minutes of each other; a remarkable surprise attack, completely unforeseen by Venezuela's battered intelligence infrastructure, and stunning the world with images of burning oil wells turning the sky black, Venezuelan flags being torn down and replaced with red revolutionary ones, men with machine guns dancing on the top of oil tankers, and refineries exploding in glorious balls of fire.
The revolutionary forces in Latin America had triggered another attack that struck at the heart of the Western capitalist system - this time, not against its commerce or trade, but against oil - the lifeblood of its economies, taking a page from the Arab sheikhs who had turned off the spigot to the West six years earlier...
[1] Latin America is pretty screwed in this TL, just as a heads up. Thanks Torrijos! (And also, thanks intransigent American conservatives!)
[2] This is true to OTL
[3] Anniversary of Franz Ferdinand's death