Notes following Joint Media Briefing by Deputy Minister Pahad and Bolivar, Media Centre, Union Buildings, Pretoria, Thursday, 23 November 2006

Comments by Deputy Minister Pahad

• Our diplomatic relations with Bolivar are relatively new - we established relations in 1993, Venezuela established an Embassy in South Africa in 1994, we established an Embassy in 1998.
• We have had wide ranging discussions - bilaterally and multilaterally - bilaterally, we have agreed that we need to do much more to increase economic, cultural, people-to-people contacts - our trade links are not very significant and yet the potential exists.
• There are 10 agreements in the process of being negotiated - economic and broad co-operation agreements that we intend to ensure are finalised:
  
  
• Draft Agreement on Visa Exemptions for Holders of Diplomatic and Official Passports;
• Draft Agreement to allow relatives who are dependants of members of the Diplomatic and Consular Corps accredited in both countries, to perform remunerative employment;
• Agreement on Prevention, Control, Investigation and Suppression of Drug Taking and Illegal Drug Trafficking;
  
  
  • Draft Agreement on Co-operation in Arts and Culture;
  • Draft Agreement on Economic Co-operation;
  • Draft Agreement on Extradition;
  • Draft Agreement Concerning Bilateral Co-operation in Criminal Matters;
  • Reciprocal Promotion and Protection of Investments; and
  • Draft Agreement of Avoidance of Double Taxation
    
    
• There is also the planned visit of President Hugo Chavez to South Africa next year which will give us an opportunity to review progress we have made from now till then.
• We have been fortunate that Minister Bolivar has given us a very good understanding of developments in South America generally but more specifically in Venezuela and how important Venezuela regards South South co-operation.
• This have two or three different facets:
  
  
• Co-operation within South American countries; but more importantly,
• Co-operation with other countries of the South - in Africa, Asia

And therefore the importance of the forthcoming Africa-South America Summit in Abuja is increased.

This will be the first ever Summit of Africa and South American leaders and based on Venezuela's commitment to South South co-operation which the Minister has indicated we hope that this Summit will enable us to extend our relations between Africa and South America to a much higher plane.

This is all part of our own policies of extending South South co-operation at every level - political, economic, cultural, people-to-people

• We are very happy that the Minister and his delegation are here and that the Minister will travel from here to Namibia and then we will meet again in Abuja.
• I believe that we no longer have excuses to intensify our relations at every level. Venezuela is now playing a major role in the policies it is adopting - not just on oil where it is supplying it 60% on credit and the 40% to be paid for in goods - for the poorer countries. I think this is an excellent example of how richer countries in any region can help those poorer ones. We will discuss how these policies can be extended to African countries. You know that Venezuela has one of the largest oil stocks in the world hence the opportunities for this kind of co-operation.
• We have also discussed trilateral co-operation - Venezuela and South Africa in third countries. The areas we see as important are the same as those prioritized in NEPAD - education, energy, infrastructure development, communication. This is the basis on which we will go the Abuja Summit and one from which we can work out a new action orientated relationship.

Comments by Minister Reinaldo Bolivar

• Thank you Deputy Minister Pahad.
• I am also very happy to have been able to visit South Africa for two reasons:
  
  
• The visit to South Africa will take us to complete the visit to Southern Africa. President Hugo Chavez instructed me to visit all Africa in order to be able to increase South South co-operation. With this visit we are advancing on this road.
• We are in South Africa - a country of great importance for Africa and the world because of its historic struggle for equality, for its contribution to conflict resolution and for the example of its development for the entire world. We are convinced that with this political will of the Deputy Minister and the personnel of both the Departments of Foreign Affairs we will be able to accelerate all of those necessary mechanisms in order to sign those 10 agreements mentioned by the Deputy Minister. There can be no obstacles with political will. The bilateral co-operation between South Africa and Venezuela will be very useful to the countries of South America and Africa. We will complement each other in order to grow together and to contribute towards our sisterly countries. We believe that the strategy of South South co-operation will guarantee the development and growth of our countries.
  
  
• We have come to learn from South Africa and we know that Venezuela and South Africa, South America and Africa will join together on the same road.
• The peoples of the South will grow together, the peoples of the South will hold themselves united.

Questions and answers

Question Deputy Minister Pahad, what are these 10 agreements that need to be signed - can you be more specific - are any related to oil?

Answer These agreements are:

• Draft Agreement on Visa Exemptions for Holders of Diplomatic and Official Passports;
• Draft Agreement to allow relatives who are dependants of members of the Diplomatic and Consular Corps accredited in both countries, to perform remunerative employment;
• Agreement on Prevention, Control, Investigation and Suppression of Drug Taking and Illegal Drug Trafficking;
  
  
  • Draft Agreement on Co-operation in Arts and Culture;
  • Draft Agreement on Economic Co-operation;
  • Draft Agreement on Extradition;
  • Draft Agreement Concerning Bilateral Co-operation in Criminal Matters;
  • Reciprocal Promotion and Protection of Investments; and
  • Draft Agreement of Avoidance of Double Taxation

We were briefed by Minister Bolivar that in relation to the broad perspective of South South co-operation, with many countries in the Caribbean, with the possibility of extending this to countries of Southern America and Latin America - Venezuela will provide the oil but understanding that many countries do not have the resources, those countries who cannot afford it will be able to procure the oil on 60% credit, 40% can be met by bartering. Poorer countries will not necessarily have to have foreign currency to pay for this oil.

Question Deputy Bolivar, what is your response?

Answer President Hugo Chavez during the 7th Summit of the African Union in Banjul, The Gambia in July 2006, announced four areas of co-operation for Africa:

• The Energy Alliance which is called Petro-South;
• The Financial Alliance which is called the Bank of the South;
• Co-operation in education; and
• Co-operation in communications.

This is aside from other proposals that African and South American countries have. In Latin America, Venezuela works with countries of South America and the Caribbean in the sale of oil. We call it Petro-Sud and Petro-Caribe and as the Minister was saying, Venezuela sells as credit directly to governments without an intermediary. Therefore the cost is lower and the invoice is paid as follows: 60% through credit and 40% with products of the country that is purchasing the oil. So this is a bartering system - a way of revolutionizing trade. We are doing this with South American countries and countries of the Caribbean. Venezuela has also offered this method to poor countries in Africa - an example of which is Mali. But our government believes that with the oil producing countries in Africa, in alliance with the oil producing countries of South America we will be able to extend this framework and in Africa, aside from the traditional oil-producing countries, there are new oil-producing countries. We also have other types of agreements, eg. with Angola we have an agreement on the energy level and also an agreement in terms of technical co-operation.

President Chavez has recommended that oil producing countries be able to provide their own resources to national countries or through joint enterprises.

The majority of the energy resources are held in countries of the South - that is why this co-operation is a real possibility. If we have our own banks in the South we will not have to deposit our currencies, funds in the banks of the North. We will deposit in our own banks and grant credit to our people of the South in order to do other types of work. Countries with greater wealth play a greater role - example Venezuela, Brazil, Argentina in South America and in Africa - South Africa, Egypt, Nigeria, Algeria.

These are issues that will be discussed in the Summit between the countries of Africa and South America. This Summit is historical because it means Africa will be looking towards South America, not only towards Europe or the US and it will mean that South America will look towards Africa and not just towards Europe and the United States with a perspective of solidarity and mutual assistance in order to benefit our countries and peoples. And the leadership of President Mbeki and President Chavez is crucial for this process.

Question Deputy Minister Pahad, will South Africa be procuring oil from Venezuela?

Answer We are presently not importing any oil from Venezuela. This is an initiative of which Venezuela has just briefed us. We will have these discussions at the Summit - how South American oil producing countries can extend this arrangement to Africa.

We do not have such an arrangement with Venezuela. This possibility now exists. Any relationship that is mutually beneficial can be considered - however, South Africa is not the poorest country in Africa and we must consider how to help the poorest first.

Issued by Department of Foreign Affairs
Private Bag X152
Pretoria
0001

23 November 2006