MercoPress. South Atlantic News Agency

“No regional crisis”, according to State Department

US State Department Planning Office Director and one of Collin Powell's closest advisors, Richard Haas said “there's no regional crisis in South America”, and anticipated the Argentine situation will be overpowered with reforms currently in process.

As to Brazil's financial problems, Mr. Haas said they are related to the current October presidential election with polls showing Jose Inacio Lula Da Silva from the Workers Party leading.

"The campaign has impacted on the currency and stock exchange but Brazil's economic fundamentals are very sound", explained Mr. Haas who made a brief visit to Chile.

"If one compares Latinamerica with what was happening two decades ago, she looks very well", insisted Mr. Haas adding that the hemisphere is almost totally democratic, with open markets, and many advances in other fields, "we must never forget that".

As to Argentina, "this country faces a particular crisis, both political and economic, and obviously the challenge is to agree on a package of reforms the Argentines are prepared to implement".

However Mr. Haas did not expand on the package of reforms, or mention the current IMF ongoing talks with Argentina.

In reference to Colombia Mr. Haas acknowledged the country's "particular problems", although "we can now see a determined effort to convert it in a more secure and safe nation".

As to Mr. Haas visit to Santiago, the Chilean press reports he fathomed the country's position regarding a possible US attack on Iraq. Beginning 2003, Chile becomes a member of the United Nations Security Council and Santiago's posture in the event of a resolution is considered important.

Mr. Haas admitted that if the attack finally takes place, "it will be impossible to have full support from all allies".