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Put Politics Before Economy - Venezuela's Chavez Slams Pan-American Trade Pact *** Chavez proposed instead a social and political pact called the Bolivarian Alternative for the Americas, named after Simon Bolivar, the 19th century general who struggled in vain to politically unite South America. "We don't even need anything like Mercosur (a trade bloc grouping Brazil, Argentina, Paraguay and Uruguay), because we can't put the economy first in terms of integration. Political unity needs to come first," he said.

Chavez's opponents, who have organized months of violent protests, accuse him of authoritarian, communist-style rule in the world's No. 5 oil exporting nation. One person was killed and 22 hurt on Saturday when shooting erupted at an anti-Chavez rally in Caracas. The Venezuelan leader declined to comment on the violence, which came a day after government and opposition negotiators agreed to a pact that could lead to a referendum on his rule.

"I don't know if there will be a recall referendum. It's a possibility if the opposition meets all the constitutional requirements," said Chavez, who has declared his willingness to submit to a referendum. "If there is, I will defeat (the opposition) again. The people will defeat them again." "The Rio Group countries...are sure that (the agreement) will strengthen the democratic process in our brother nation," the leaders at the summit said in a declaration.***

Latin leaders steer away from US in policy on Colombia's civil war, Cuba*** And Latin American leaders have been bolstered in their independence from US policy with the recent elections of several left-of-center leaders, among them Lula da Silva, Brazil's first elected leftist president. Venezuela's elected populist-leftist President Hugo Chavez took part, but Cuba, the region's only one-party communist system, as has been the tradition, did not. But Brazil's Lula said he was in favor of Cuba taking part in the next summit, which will be held in Brazil, and said he would handle necessary consultations with regional leaders.

US policy toward Cuba is aimed at isolating and squeezing Castro's government, but more than 43 years into his rule, it is often criticized as ineffective. And Lula's open arms come despite Cuba's recent crackdown on dissidents and execution of ferry hijackers seeking to flee to the United States, measures that brought an international outcry even from many longtime Castro supporters. Lula also told reporters the Rio Group would be sending a firm message to Group of Eight leaders meeting in Evian, France, next month rejecting farm subsidies, and in favor of better market access for exports from the region.

"We cannot accept multi-million-dollar farm subsidies, arbitrary trade measures, and protectionism . . . which take markets away from us and keep us from reaping the fruits of our labor," said Lula, who with Mexican President Vicente Fox will represent the Rio Group at the meeting in Evian June 1-3. Lula said he hoped the meeting with G8 leaders would mark "a sign that our voice may be heard, and that rich countries may be ready to change their behavior so that free trade is a two-way street."***