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Morales-Kirchner meeting in Buenos Aires

Sunday, January 15th 2006 - 20:00 UTC
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Argentine president Nestor Kirchner will be receiving next Tuesday elected Bolivian president Evo Morales who this weekend returned to La Paz from a successful international trip of eleven days in four continents with promises of support for his administration.

Following a first trip to Cuba before the end of 2005, on January 3 Mr. Morales began his long tour that included Venezuela, Spain, Belgium, Holland, France, China, South Africa and finally Brazil where several energy agreements were reached with President Lula da Silva.

Precisely in Argentina top of the agenda figures natural gas supply and prices, and energy integration agreements.

Mr. Morales is scheduled to arrive in Buenos Aires with a small party, his official spokesperson Alex Contreras and Carlos Contreras who was tipped to become Hydrocarbons minister but apparently will be his Economy minister. Not included is elected vice-president Alvaro García Linera, the man who anticipated Argentina that gas prices will be hiked.

According to the Argentine press Mr. Kirchner will be offering Mr. Morales technical, agricultural, environmental and sanitary support, particularly next to the border where many Bolivians cross to receive medical attention in Argentine hospitals.

However the most important issue will be political since Brazil and Argentina are directly interested that the incoming administration does not radicalize or that the country falls back again into political turmoil paralyzing the oil and gas industry which has become increasingly significant for both powerful and energy thirsty neighbours.

The Brazilian government managed oil company Petrobras has control over 45% of Bolivia's proven natural gas reserves and the Sao Paulo industrial hub is the country's main client.

Both Argentina and Brazil are also forecasted to act as a shield to Washington's pressure against the incoming president who has promised to end the US financed coca crops eradication program, and to "take back" from the "multinational corporations" the oil and gas industry.

Helping to keep Washington at a distance, --which was closely linked to the previous elected Bolivian governments --, should help strengthen Brazil and Argentina's influence in the Morales administration.

Categories: Mercosur.

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