MercoPress. South Atlantic News Agency

Paraguayan president first “international test” in Brazil

Next time red carpet official visitor honours for Pte. Lugo

Paraguayan President Fernando Lugo is scheduled to make his first official international incursion (and test) next September 17 when he visits Brazil and meets with his counterpart Lula da Silva.

The visit was announced Friday in Brasilia following a two hour meeting between Foreign Affairs minister Alejandro Hamed and Brazil's Celso Amorim In a brief press conference the officials said they had analyzed bilateral relations, Mercosur and the South American integration process, and other international issues. Hamed pointed out that Paraguay will support the Mercosur incorporation of Venezuela which remains stalled in the Paraguayan and Brazilian congresses. Uruguay and Argentina have already finished the process. "President Lugo will wait for the right moment to make the official request to Congress, but I'm hopeful, certain that the newly elected Congress will support the initiative", said Hamed. Regarding bilateral relations Hamed admitted that Paraguay's claim of higher prices for electricity generated in the shared Itaipu hydroelectric dam, South America's largest, was what most time demanded and was analyzed "in depth". According to the Itaipu treaty Brazil and Paraguay share 50/50% the 14.000 MW electricity generated but the small landlocked country satisfies its demand with only 5% of the volume, and under contract must sell the rest to its senior partner. And for this Brazil pays annually 300 million US dollars, at 1970s prices. During his electoral campaign Lugo said the price must be reviewed and increased to the correct value in the range of 2 billion US dollars, which Brazil rejects. Amorim said that Brazil had offered to build a high tension line from Itaipu to the capital Asunción, at a cost of 200 million US dollars. Hamed said the Brazilian offering and all issues concerning Itaipu will be addressed next September 17 and "probably that will be the correct moment to seat a technical commission to discuss all which is necessary".