Brasília - After spending the weekend in Santa Cruz de la Serra, Bolivia, president Luiz Inacio Lula da Silva received the president of Bolivia, Carlos Mesa, in Brasilia this week. Lula announced that Brazil will pardon most of a US$53 million Bolivian debt and use the remainder to pay expenses at the Brazilian embassy and consular offices in Bolivia.

Following the lead of other Latin American governments, Mesa announced that Bolivia favors a permanent seat on the UN Security Council for Brazil.

Mesa praised Lula's vision of Brazil and Latin America, saying that his visit, in the company of six cabinet members, had been successful.

BRAZILIAN IMPORTS OF BOLIVIAN GAS TO CONTINUE

With regard to bilateral trade, the most important issue was Brazilian imports of Bolivian natural gas. Under the contract presently in force, Brazil imports 30 million cubic meters of gas daily, but has not been using all of the gas, although Brazilian consumption has risen from around 10 million to almost 20 million cubic meters daily.

Under a new agreement, Brazil will establish a Technology Center for Gas, as part of a technology transfer scheme involving Petrobras-Bolivia. The two countries are also studying the construction of a petrochemical center somewhere along their border.

During the Mesa visit other agreements were signed for cooperation in the farming sector.

In a speech, Mesa said that Bolivia and Brazil, united by the Amazon rainforest, needed to move ahead with physical integration. "We need to unify infrastructure and connect the cities of Santa Cruz de la Sierra and Campo Grande by highway, river and regular flights," he concluded. (AB)