Graziela Sant'Anna
Reporter - Agência Brasil

Brasília - The situation in Bolivia remains delicate, but the decision to retain the Bolivian President, Carlos Mesa, in office is viewed with optimism by the Brazilian government. "It is a sign of maturity," affirmed the Brazilian Ambassador to Bolivia, Antonino Lisboa Mena Gonçalves. On Tuesday (8) the Bolivian Congress voted unanimously to reject the President's renunciation request.

"We are pleased; the prospects that were forming around a possible renunciation could lead to great instability at a juncture in which important matters need to be dealt with," the Ambassador underscored. One of the most controversial issues is the Law of Hydrocarbons. Social movements want the law to include royalty payments equivalent to 50% of companies' earnings. The law stipulates 18%. Brazil supports raising commercial royalties, provided it is determined by means of agreements.

Bolivia is the poorest country in South America, and Brazil is its main consumer in the energy field. Even during the so-called "Gas War," in 2003, supplies to Petrobras - Brazilian Petroleum, S.A. - remained unaffected; quite to the contrary, the company attained a record level of gas imports, around 26 million cubic meters.

Translation: David Silberstein