Deal reached on Bolivia gas supplies

[CHIMO]

Four South American presidents have agreed to negotiate prices of Bolivian gas and decided that supplies should keep flowing after Bolivia's surprise takeover of its energy industry.



The leaders of Brazil, Bolivia, Venezuela and Argentina reached the agreement at an emergency summit in Argentine tourist town of Puerto Iguazu on Thursday to manage the fallout of Bolivia's nationalisation of its natural gas industry.

The leaders stressed the idea of regional unity despite the crisis and dismissed the notion of a rift between Bolivia and Venezuela on one side and Brazil and Argentina - Bolivia's top gas markets - on the other.

Brazil and Argentina have relied on cheap imports from Bolivia and their leaders are worried about a rise in prices from the nationalisation that could hurt their standing at home as they run for re-election.

http://english.aljazeera.net/NR/exeres/22A031A4-1873-457C-BD56-CBD45D3994CF.htm

[1932]

1. With the money Bolivia makes from the gas sales, they'll

be able to build a decent economy which will increase aggregate demand (and regional stability) which will be good for Venezuela, Bolivia, Argentina and Brazil.

We're all better off when we're all better off.

[Judi Lynn]

2. This remark from your article should be noted!

Luiz Inacio Lula da Silva, the Brazilian president, said at the meeting's closing news conference that he saw no alliance between Bolivia and Venezuela.

What's important is that people see Lula da Silva has made this observation public, and it stands in direct contradiction to _Bush officials tawdry claims that Hugo Chavez is secretly pulling the strings, putting Evo Morales up to things, acting as a heavy influence.

A few years ago, they all claimed Fidel Castro was secretly pulling Hugo Chavez' strings, and that Chavez was his love slave.

Very glad Luis Inacio Lula da Silva gave his far more honorable opinion. Thanks.

[Judi Lynn]

3. AP version of this important event: Leaders Back Bolivia Gas Nationalizati

Leaders Back Bolivia Gas Nationalization
South American Leaders Look to Price Talks After Accepting Bolivia Gas Program
By DEBORA REY

PUERTO IGUAZU, Argentina May 5, 2006 (AP)— South American leaders are making peace with Bolivia's decision to nationalize its natural gas sector, hoping to diffuse tensions sparked by the Andean nation's radical petroleum industry takeover.

The leaders of Argentina, Brazil and Bolivia also agreed to open talks on new prices for Bolivia's natural gas at a summit Thursday in the Argentine city of Puerto Iguazo.

At the summit, Brazilian President Luiz Inacio Lula da Silva suggested that state-owned company Petroleo Brasileiro SA could reverse its decision, announced a day earlier, to freeze investment in Bolivia because of the nationalization decree.

"As a company, it will always invest wherever it sees a chance to obtain a return for its investments," Silva said after meeting with Bolivian President Evo Morales, Argentine President Nestor Kirchner and Venezuelan President Hugo Chavez in this city along the border with Brazil.
(snip/...)

http://abcnews.go.com/Business/wireStory?id=1925804&CMP=OTC-RSSFeeds0312



Morales and Lula da Silva