Venezuelan President Hugo Chavez reached out to his opponents Monday after suffering his first loss on a referendum that sought to expand his powers.

Venezuelan President Hugo Chavez gestures early Monday during the media conference in Caracas where he acknowledged his defeat in a referendum that would have let him run for re-election indefinitely and impose a socialist system.
(Fernando Llano/Associated Press)

Voters narrowly rejected the sweeping constitutional reforms by 51 per cent to 49 per cent.

During the campaign, Chavez called his opponents a slew of nasty names from Yankee lovers and spoiled rich kids to perverts and liars, but he toned down the combative talk after his defeat.

"Hopefully, we can all understand each other and appreciate our differences and work together to avoid violence," said Chavez, referring to the street protests leading up to the vote.

Caracas Mayor Leopoldo Lopez said the opposition is also ready to work together.

"Enough of the conflict. Starting today, I hope we begin building some reconciliation here. That's what we want," he said.

Lost 3 million votes

Chavez blamed the loss instead on low turnout among the very supporters who re-elected him a year ago with 63 per cent of the vote.

Scribbling down the numbers in front of a room full of journalists, he compared the number of votes he received in the referendum compared to his re-election.

"We lost three million votes since last year," he said. "These are people who didn't come out to vote. We have to figure out why."

Seven in 10 eligible voters cast ballots then. This time, the turnout was just 56 per cent.

While Chavez is used to winning against a weak and discredited opposition, he faced a different foe this time — university students, the Catholic church and human rights groups who worried Chavez was imposing an authoritarian system on the country.

His reform package would have created new types of communal property, let Chavez hand-pick local leaders under a redrawn political map and suspend civil liberties during extended states of emergency.

Other changes would have shortened the workday from eight hours to six, created a social security fund for millions of informal labourers and promoted communal councils where residents decide how to spend government funds.

Without the overhaul, Chavez will be barred from running again in 2012.

'The people spoke,' U.S. says

The White House applauded the citizens of Venezuela following news of the referendum's results.

"We congratulate the people of Venezuela on their election and their continued desire to live in freedom and democracy," National Security Council spokesman Gordon Johndroe said.

U.S. Undersecretary of State Nicholas Burns also said it was a victory for the country's citizens who want to prevent Chavez from having unchecked power.

"We felt that this referendum would make Chavez president for life, and that's not ever a welcome development," Burns told reporters in Singapore.

"In a country that wants to be a democracy, the people spoke, and the people spoke for democracy and
against unlimited power."