Nelson Motta
Reporter - Agência Brasil

Brasília – Yesterday president Luiz Inacio Lula da Silva's press secretary released the following statement: "The decision by the government of Bolivia to nationalize its natural resources and control their industrialization, transportation and commercialization, is recognized by Brazil as a sovereign right. Brazil, pursuant to its own constitution, exercises total control over its natural resources."

The note added that there are no problems with the flow of natural gas from Bolivia to Brazil and that in a telephone conversation yesterday (May 3) president Morales of Bolivia ensured Lula that the flow would continue normally. The two presidents also agreed that any price adjustments will be resolved through negotiations.

Translation: Allen Bennett