Venezuela takes oil patronage to Uruguay By BILL CORMIER, Associated Press Writer

Venezuela takes oil patronage to Uruguay By BILL CORMIER, Associated Press Writer
2 hours, 59 minutes ago



MONTEVIDEO, Uruguay - Venezuela's socialist President Hugo Chavez took a campaign of petrodollar diplomacy to Uruguay on Wednesday, seeking stronger political ties while offering energy aid from one of the world's largest oil producers.

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Uruguayan President Tabare Vazquez and Chavez discussed ways to help Uruguay expand its lone oil refinery and to guarantee access to Venezuela's continent-leading oil and gas reserves at time of growing regional concern about security access to underground reserves.

Uruguay, a nation of 3.5 million, enjoys both sweetheart terms for Venezuelan crude and warm ties with Washington.

But efforts to sell more beef and textiles to the United States, its biggest trading partner, have been complicated by Uruguayan membership in the leading South American trade bloc, Mercosur.

On a four-nation tour, Chavez arrived late Wednesday in the Ecuadorean capital of Quito and will later travel to Bolivia, where he plans to make similar pitches for a "grand South American alliance," spreading energy and financial deals that leverage Venezuela's vast oil and natural gas reserves.

On Tuesday in Argentina, he announced Venezuela will buy a total of US$1 billion (euro720 million) in bonds this year, half immediately.

When President Bush visited Uruguay five months ago during a Latin American tour, Chavez appeared at a soccer stadium rally in neighboring Argentina to shout, "Gringo, go home!"

The Venezuelan leader denounced U.S.-style capitalism, claiming it harms hundreds of millions of poor on the continent, and haunted Bush on a parallel tour across Latin America.

He took up that theme anew Wednesday, blaming the United States for seeking to dominate the world's limited energy resources while leaving many countries poor and struggling.

"The empire of the north is a real assassin, a genocidal killer," he declared at a televised news conference with Vazquez in which he bashed Bush for war in Iraq and called him "the Dracula of the world."

Chavez even took aim at America's penchant for big cars: "This is savage capitalism when everyone wants to drive a vehicle and a luxury vehicle at that. This kind of capitalism is unsustainable."

He said an "energy security treaty" signed with Vazquez here would assure Uruguay ongoing access to oil and gas reserves in Venezuela for decades to come, even at a time of growing shortages.

He said the treaty, like one signed with Argentina and another planned with Ecuador, underscore collective efforts to free South American countries from U.S. domination of their resources.

"These resources belong to the people," said Chavez, who promised Argentina financing for a $400 billion regasification plant for liquid natural gas from Venezuela and offered similar help for a refinery for Ecuador.

He also said Venezuela agreed to help Uruguay to boost capacity by 10 percent at its lone oil refinery, which currently processes 50,000 barrels a day.

During his one-day stop Thursday in Ecuador, Chavez will sign an aid package in the afternoon, including help to build an oil refinery.

Chavez also sought Uruguayan help easing Venezuela's entry into the South American trade bloc Mercosur and reiterated claims the U.S. was undermining Venezuela's admission.

Chavez has complained that lawmakers in Brazil and Paraguay have unnecessarily delayed votes to ratify Venezuela's entry to the largest regional bloc.

But he said he hoped for approval before Mercosur presidents next meet in December, adding "I cannot imagine coming here for the meeting if Venezuela isn't yet admitted."

The Venezuelan leader — a close ally of Cuban leader Fidel Castro — sees Mercosur as another way for South American nations to unite against U.S. economic and political influence in the region.