MercoPress. South Atlantic News Agency

S. American countries agree energy and financial coordination.

Presidents of Argentina, Brazil and Venezuela agreed Wednesday in Uruguay to promote energy integration and coordinate their stance vis a vis international multilateral organizations such as the International Monetary Fund.

Nestor Kirchner, Luiz Inacio Lula da Silva and Hugo Chavez met following Tuesday's inauguration of Uruguay's first-ever Socialist president Tabare Vazquez.

"Expectations we have are very high. All the agreements we can reach with Brazil, with Uruguay, with Venezuela, that will help lead to an integrated Latin America are very good. So I leave with high hopes" said President Kirchner.

Three basic issues were addressed in the trilateral presidential summit: macroeconomic situation and social development; civil society; and energy integration.

Regarding macroeconomic situation and social development the presidents discussed options for easing the debt burden. They rejected the idea of a block negotiation with multilateral such as the IMF and the Inter-American Development Bank, but did agree to share information and support similar positions.

Additionally the presidents proposed that the three countries help each other out by purchasing bonds.

"There was discussion of the possibility that some countries in the region that have foreign exchange surpluses might acquire the bonds of other countries" indicated Argentine Foreign Minister Rafael Bielsa. "Venezuela wants to buy Argentine bonds and Brazil bonds from the other two".

However there was no indication about the creation of a Latin American Development Bank to promote regional development.

As to energy integration the Venezuelan experience seems to be leading following on the cooperation agreements exchanging oil, sold on soft terms, for food signed with Argentina and Paraguay and Wednesday morning with Uruguay.

President Chavez has proposed Petrosur, a trans-national governments owned oil corporation.

Giant Petroleos de Venezuela (PDVSA) already has a foot in Argentina, having set up offices in Buenos Aires and signed a wide-ranging agreement with Energia Argentina (ENARSA) for oil exploration, drilling and production, as well as the sale of crude and derivatives. The partnership took its first concrete step early February when it opened the first two gasoline stations out of a planned network of 600.

The PDVSA-ENARSA alliance is supposed to be the foundation block for Petrosur.