Brazil says ties with Bolivia strategic
Brazilian Foreign Minister Celso Amorim said on Tuesday that his country's relations with Bolivia were strategic.

The foreign minister was responding to Bolivia's recent move tonationalize its natural gas industry.

Addressing the Foreign Affairs and National Defense Committee, Amorim said Bolivia supplied half of Brazil's natural gas.

Brazil's policy had never been designed to bludgeon (Bolivia), said Amorim, adding that if Brazil was to adopt a strident attitude, it would run the risk of endangering Brazil's gas supply.

Bolivian President Evo Morales announced on May 1 the nationalization of his country's natural gas industry, ordering all foreign companies to accept new operation contracts within 180 days or quit.

About 20 foreign firms are exploring Bolivia's gas reserves, including Brazil's government-owned Petroleos Brasileiros, Spanish-Argentine Repsol-YPF, Britain's BG Group PLC and France's Total.

Brazilian President Luiz Inacio Lula da Silva was now negotiating with his Bolivian counterpart in pragmatic ways, Amorim said.

"It was not President Lula who chose Morales. The Bolivian people elected Morales and we have to respect that fact," he added.