Colombia’s Santos, Chavez restore ties after talks

SANTA MARTA, Colombia, (Reuters) – Colombian  Presi-dent Juan Manuel Santos and Venezuela’s Hugo Chavez  restored diplomatic ties yesterday at talks to end the latest  dispute between the ideologically opposed Andean neighbours.

Cross-border tensions have run high for more than a year  with the socialist Chavez imposing what Colombia called a trade  embargo and cutting ties completely last month.

Yet both leaders came to the colonial city of Santa Marta  in a reconciliatory mood, and said ties had been restored in a  statement read after their meeting.

“We have had a frank, direct, sincere dialogue like in all  good relations. We have taken a huge step forward in restoring  confidence,” Santos said, adding Venezuela had agreed to pay  debts owed to Colombian exporters. That debt is estimated at  about $800 million.

“I came here to turn over the page,” Chavez said. The pair  shook hands and stood under a statue of South American  independence hero Simon Bolivar.

At the heart of the latest dispute were Bogota’s  allegations that Chavez, a left-wing foe of the United States,  harbors Colombian guerrillas, and Venezuelan complaints about a  Colombian deal to allow U.S. troops more access to its military  bases.

Those issues and ideological differences remain difficult  to resolve in the short term, but both leaders will benefit  from any move to restore $7 billion a year in bilateral trade  as they seek to spur economic recovery.

On his arrival, Chavez declared his affection for Colombia  in a brief speech quoting Bolivar and Colom-bian author Gabriel  Garcia Marquez. He marched with Santos past Colombian troops  and to a monument on the site of Bolivar’s former colonial  home.

Santos, a U.S.- and British-educated economist elected in  June, has clashed before with Chavez, a Cuba ally who says his  homespun revolution in Venezuela is inspired by Bolivar.

Santa Marta, a port town on the Caribbean sea, was where  the Venezuelan-born Bolivar died after his long fight to free  the region from Spanish rule. Chavez has met several Colombian  leaders there in the past.

Santos, who took office on Saturday, has appeared to take a  more pragmatic approach to relations with Venezuela. Chavez  would also benefit from better trade ties to boost his  popularity before legislative elections in September.

Venezuela would gain cheap food imports from Colombia as it  tries to control high inflation, and Colombia would restore  some trade with its traditional No. 2 commercial partner.

“Deeper differences between the two governments, including  over ideology and attitudes to the United States, will not  simply disappear,” said analyst Christian Voelkel with IHS  Global Insights risk consultants.

“Traditionally high volatility of relations could gradually  decrease.”

News of the meeting and possibilities that trade could be  restored helped push up Colombia’s peso currency in trading on  Monday, the day after the talks were announced by the foreign  ministers of both governments.

Colombia’s long guerrilla conflict has often spilled over  the Venezuelan border, where kidnappings and drug trafficking  are common. Chavez has complained that Colombia’s military is  not doing enough to secure the frontier.

But Chavez’s ideological affinity with Colombia’s Marxist  FARC rebels has led Washington and Bogota to accuse him of  supporting the guerrillas. The former paratrooper dismisses the  charges as U.S.-backed propaganda.

Andean tensions have run high since 2008 when Colombian  troops attacked a FARC rebel base hidden over the border in  Ecuador. Quito and Caracas warned of war and sent troops to the  border area before a regional summit defused tensions.

The most recent squabbling came after Colombia signed a deal giving U.S. troops more access to its bases for  anti-narcotics and counterinsurgency efforts. Chavez accused  Bogota of working with Washington to undermine his government.

Chavez broke off ties again with Colombia last month after  then-President Alvaro Uribe accused him of harboring more than  1,000 leftist Colombian FARC rebels on his territory.