
With a letter - the contents of which were broadcast on Cuban TV - Fidel Castro, 81, implied that he would be stepping down as leader and would not put obstacles in the path of a younger leader.

A former Education Minister was leading a close race for the presidential nomination of Paraguay's ruling Colorado Party, opening the chance for a third sitting woman president in South America.

The European Union Economic and Monetary Affairs Commissioner Joaquin Almunia said on Sunday that the Botnia pulp mill in Uruguay which recently begun production and is at the heart of an acrimonious dispute with Argentina complies reasonably with environmental requisites.

The recent surge in military expenditure particularly Chile and Venezuela has led to fears that South America might be involved in an arms race. However most experts feel that in spite of existing regional differences what is going on is a modernization process of the Armed Forces arsenals which are rapidly becoming obsolete.

Mercosur presidential summit which begins Tuesday does not have much to show besides an unfinished agenda, pending proposals and a list of issues that if openly debated can prove explosive for an already anemic trade group.

Uruguay's last military dictator, former General Gregorio Alvarez, was charged Monday with the forced disappearance of political prisoners. Human rights activists who have long campaigned for his prosecution cheered on the news and the country's trade union confederation called for a march in support of democracy in downtown Montevideo.

British Defence Minister Baroness Taylor announced earlier this month a £35m (70 million US dollars) major upgrade to Royal Navy Type 23 frigate HMS Sutherland.

Bolivian President Evo Morales has formally received a new draft constitution, ahead of two referendums due on its reform measures.
Proposals to cut the time tourists from outside the EU can stay in the UK from six months to three are expected to be announced by ministers this week.

The Argentine government yesterday said that the report presented by US prosecutors, linking the suitcase full of cash that came from Venezuela with Cristina Fernández's presidential campaign, is part of an operation against Argentina, while US officials said the case should not affect the bilateral relationship.