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Weekly Report - 20 September 2005

ECUADOR: Palacio tackles oil firms Bolivian-style

President Alfredo Palacio has found a new cause - renegotiating the contracts with all foreign oil companies along lines similar to those adopted by Bolivia - and a new, unexpected ally: the notionally social-democratic Izquierda Democrática (ID). Having just replaced his 'leftist' foreign minister, he has been at pains to reassure Washington that this does not signal a break with the US.

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