MercoPress. South Atlantic News Agency

Chavez acknowledges a “growing rift” in Latinamerica

The growing regional rift in Latinamerica was acknowledged Saturday by Venezuela's Hugo Chavez, the most extroverted of the region's leaders who is pushing for a return to (nationalist) “Bolivarian roots” and “Socialism” with governments playing predominant roles in the economy.

"Latin America has, well, various visions" Chavez told reporters in Vienna during the European Union/Latinamerica leaders' summit. But he predicted that one day the region would be integrated along a "single political and geopolitical line."

Following the close of the summit on Saturday, President Chavez, his new ally Bolivian president Evo Morales and Cuban Vice President Carlos Lage went to attend the Alternative Summit organized by anti-globalization and other radical groups.

Morales said on May 1 that Bolivia would nationalize its hydrocarbons industry, sending troops to guard natural gas installations and giving foreign oil firms six months to renegotiate contracts and turn over majority control to La Paz, or leave. In Vienna Morales accused some foreign oil firms, including Brazil's government owned Petrobras, of operating illegally and warned that some firms may not be compensated for assets or investments in Bolivia.

"Our brother, we are with you in the nationalization of Bolivia's natural resources," Cuban leader Lage told Morales before a crowd of hundreds in the Alternative Summit.

Brazil's escalating dispute with Bolivia over nationalization, and further threats to seize Bolivian land held by Brazilian farmers, dominated the three-day Vienna summit of 58 leaders.

On Friday, European leaders urged Bolivia and Venezuela to keep their markets open to foreign investment. Venezuela is planning to issue a new tax on foreign oil firms. Brazilian Foreign Minister Celso Amorim said Bolivia must compensate Petrobras for any assets it seizes, adding that he had not ruled out pulling Brazil's ambassador from La Paz in protest.

Nevertheless Presidents Morales and Chavez said their two countries would meet May 18 to sign new accords on natural gas. Some of the accords already signed include a credit line of $100 million for Bolivia and a $35 million donation for computers in Bolivian schools and food for children.

In Bolivia opposition leaders warned Morales that his tough stance on foreign oil firms could drive investors away and insisted they feared he was far too influenced by Venezuela's Chavez.