
By Jude Webber in Montevideo - The Financial Times has published a piece on Uruguayan president Jose Mujica and his view on the future and his government’s policy towards two powerful neighbors, Argentina and Brazil.

President Federico Franco said Paraguay has long cancelled its debts for the construction of two huge shared hydroelectric dams with its powerful neighbours and demanded Argentina pay for the surplus energy it receives and compensation for flooding Paraguayan territory.

Venezuelan president Nicolas Maduro said he is prepared for political dialogue with the leader of the opposition Henrique Capriles to ensure peace in the country, even if it means “talking to the devil”. He also warned that United States must “give a huge leap forward” if relations as equals are to be advanced between Caracas and Washington.

President Nicolas Maduro accused Lorenzo Mendoza, owner of Empresas Polar SA, Venezuela’s largest privately held company, of reducing food production and creating shortages amid record scarcity and the region’s fastest inflation close to 30%.

Paraguay has made official its request to become an observer of the Pacific Alliance, (Colombia, Chile, Mexico and Peru), as part of its policy to strengthen relations with other countries that goes beyond Mercosur and has proven very successful for the exchange of experiences.

Paraguayan president elect Horacio Cartes transition team said that Venezuela should be present at the inauguration ceremony of the new head of state scheduled for 15 August, despite the ‘current circumstances’ of bilateral relations.

President Nicolas Maduro said he was a ‘Kirchnerite president’ and the ‘second Peronist president’ of Venezuela during a political rally with Argentine trade unions and militant groups in a packed Buenos Aires stadium to recall the figures of the deceased Hugo Chavez and Nestor Kirchner.

President Nicolas Maduro promised his Uruguayan counterpart Jose Mujica a “permanent” supply of petroleum from oil-rich Venezuela during the first leg of his visit to Mercosur member countries. Maduro also announced the signing of a strategic alliance in the energy sector with Uruguay.

Paraguay made public in Geneva its support for Mexico’s candidate Herminio Blanco as the next Director General of the World Trade Organization. The other hopeful who reached the final round is from Brazil, Roberto Azevedo. On Tuesday it should be known who will succeed the current head Pascal Lamy as of next September.

Ecuador will notify its intention of beginning negotiation to join Mercosur, while at the same time closing a trade agreement with the European Union. The announcement was made by President Rafael Correa during his regular weekly reports on radio and television.