Weekly Report - 29 August 2006

BOLIVIA | Climbdown regarding Brazil? Vice-President Alvaro Garcí­a Linera travelled to Brasí­lia last week in what was widely expected to be an attempt to break the impasse on the vexed issues of the price Brazil pays for Bolivian gas and the new contractual terms for Petrobrás operations in Bolivia. After meetings with President Lula da Silva, foreign minister Celso Amorim, energy minister Silas Rondeau and Petrobrás executives, Garcí­a Linera said agreement had been reached to 'leave behind what differences there may have been'. Energy, he said, had been the main topic of discussion, but he did not provide any details beyond stating that Bolivia considers Petrobrás a 'strategic partner' with which it will work on 'energy integration processes' beneficial to both countries and to the rest of South America, and that the gas price would be analysed 'in the framework of lasting agreements'.

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