Hundreds of thousands of protesters have taken part in a rally in the Venezuelan capital, Caracas, to demand the resignation of President Hugo Chavez.

Correspondents say the march is the largest demonstration since a general strike began two weeks ago.

This response should bring the head of state to make the decision he needs to make about Venezuela's crisis... to leave Carlos Ortega, strike leader

The president's mostly middle-class opponents say they will continue their campaign until Mr Chavez stands down or calls a referendum on his controversial rule.

But though Venezuela's vital oil industry has been badly hit by the strike, on Saturday Mr Chavez again said he would not resign.

His government responded to the latest opposition rally by organising an open-air Christmas party in the centre of the city for the presidents' supporters.

'Quit'

Opposition leaders said up to a million people had joined their demonstration - occupying a stretch of about two kilometres (1.2 miles) of a four-lane highway.

They converged from different points in the capital into one massive rally near an east Caracas square where three protesters were shot dead on 6 December.

Dissident army officers, union leaders and comedians addressed the crowd, which chanted "let him leave today".

Trade union leader Carlos Ortega said: "This response should bring the head of state to make the decision he needs to make about Venezuela's crisis - and that is none other than to leave, quit, so Venezuela can restore confidence, peace and calm."

US calls

But the government of Mr Chavez mustered its own supporters, many of whom surrounded the presidential palace.

A free open-air Christmas party, complete with music and beer, took place there.

President Chavez ordered the National Guard to restart the oil industry

Both sides warned of possible violence following on from clashes earlier in the week.

But the protest started peacefully if noisily, with participants chanting, singing and blowing whistles as the marched waving national flags.

Earlier this week, Washington backed opposition calls for elections as a way to solve the crisis.

But Mr Chavez told an American television network: "There are no early elections planned here...

"I don't think that the United States Government is suggesting to the world that Venezuela must break with its constitution just to satisfy the pretensions of coup-mongers," he said.

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Click above to see Venezuela's oil export terminals

President Chavez ordered the National Guard to ensure that the oil distribution network continued to run.

The stoppage has drastically reduced oil production and exports in the world's fifth largest oil exporter, leading to increases in oil prices around the world.

In Venezuela, people have been stocking up on petrol and other supplies.

The Organization of American States (OAS) has been trying to mediate between the sides but with little success.