The cease-fire between the Colombian government and the AUC should be respected, otherwise, the peace process in the area of Santafe de Ralito in the northern state of Cordoba would be endangered, said the representative of the OAS, Sergio Caramagna.

Caramagna is helping with the peace talks between the Colombian government and the AUC, whose leaders are linked to drug-trafficking activities.

"Had there not been drug trafficking in these groups, Colombia would have overcome that problem long time ago," said Colombian President Alvaro Uribe Wednesday.

"Colombia has these violent groups because they have financed themselves through drug trafficking, and these processes will be open to the public opinion as a balance between peace and justice is sought. There cannot be impunity," he added.

Meanwhile, according to the Peace Commission of Congress Thursday, within the coming days three new negotiation zones will be set up to concentrate the members of the AUC.

The new areas will have the same legal and political benefits as the first zone established at the locality of Santafe de Ralitoin the northern state of Cordoba, which is the negotiation place between the government and the AUC.

Should the peace talks conclude successfully, the AUC will turn into a political movement and its 20,000 paramilitaries will be demobilized.

The AUC, mainly funded by landowners and drug dealers, was founded in April 1997 to fight left-wing guerrillas who also try to control plantations and sales of coca leaves, the raw material for cocaine.

Colombia's four-decade-old civil war among government troops, leftist rebels, and right-wing paramilitaries claims about 3,500 lives each year, mostly civilians.
 

South America trade bloc expands
The South American trade bloc, Mercosur, has accepted Mexico and Venezuela as associate members.

The announcement came on the final day of Mercosur's presidential summit, which was held this year at the Argentine resort of Puerto Iguazu.

Trade agreements were also reached with India, South Africa and Egypt.

Argentina will now transfer the rotating six-month presidency to Brazil.


The 26th Mercosur Presidential Summit got off to the worst possible start when just hours before it was due to begin, Argentina decided to impose restrictions on certain Brazilian imports, in a bid to protect its domestic industry.

But by the time the two-day gathering ended, significant progress had been made on several issues, and the row between Buenos Aires and Brasilia appeared to have subsided.

Among the most important agreements was the decision to accept Mexico and Venezuela as associate members of Mercosur, a status already enjoyed by Chile, Bolivia and Peru.

Mercosur went on to invite Mexico to continue free trade talks, with a view towards its eventual full admission to the South American trade bloc.

Elsewhere, Venezuela's President, Hugo Chavez, occupied much of the media's attention.

Just weeks before facing a recall referendum that could put an end to his presidency, he agreed to form a strategic energy alliance with Argentina, called Petrosur.

Mr Chavez hopes other state-owned energy companies, like Brazil's Petrobras, will join in the future.

The Venezuelan leader, who has clashed with privately-owned TV channels in his home country, also signed an agreement with Argentina to create a bilateral state television channel, which he hopes will one day compete with international news organisations.

Chile satisfied with Argentina's planned increase in gas exports
The Chilean government on Thursday expressed its satisfaction over the Argentine government's decision to regularize its supply of natural gas and increase gas exports next year.

Chile believed that Argentina's natural-gas crisis in the first half of the year was "absolutely over," Chilean Government Secretary General Francisco Vidal said after a meeting between Argentine President Nestor Kirchner and Chilean President Ricardo Lagos.

"This is assured, not only because of the present flow, but also because of the compromise of the Argentine government to increase the export of natural gas next year," Vidal said.

He added that the fact that this crisis has been overcome "makes us very happy as a government." He underscored the efforts by the government and entrepreneurs in solving the crisis.

"It is good when one faces the problems and solves them; it is important not only to identify a problem but to solve it. This is good news," Vidal said.

Under the Gas Integration Treaty signed by the two countries in1997, Argentina supplies 90 percent of Chile's gas demand. But Argentina, which is grappling with a serious energy crisis, has to buy fuel from Venezuela and cut gas export to Chile.

In May and mid-June, Argentina reduced its daily shipments of gas to Chile from 15 million cubic meters to only 5 million cubic meters.
 

Chilean Court hints to charge Pinochet for abuses of human rights
The Santiago Appeals Court Wednesday confirmed former dictator Augusto Pinochet was aware of his abuses of human rights, indicating the 88-year-old former strongman may be tried later.

Pinochet knew what his National Intelligence Direction (DINA) was doing against the political opponents during his military dictatorships in the 1970s and 1970s, according to the ruling of the court.

He also knew DINA's cooperation with South American military organizations to assassin the opponents in Argentina, Brazil, Chile, Paraguay and Uruguay, as part of Operation Condor, it added.

On May 28, the Santiago Appeals Court stripped Pinochet of his immunity under Chilean law as a senator for life.

Pinochet's lawyers said they will appeal the ruling to the Supreme Court, which decided to drop charges against Pinochet due to his health problems two yeas ago.

Chilean Interior Minister Francisco Vidal responded the ruling by saying that Pinochet is already a part of history and history has already political judged him.

The task of the government is to obey and enforce the law, he added.