L America urged to fight 'terror'

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US Secretary of State Condoleezza Rice has called on Latin American countries to prevent their territories being used by terrorist groups.

She was speaking after talks in the Brazilian capital with President Luiz Inacio Lula da Silva.

Ms Rice also refused to rule out putting Venezuela on a list of countries that sponsor terrorism.

Colombia has said recently it has evidence that Venezuelan President Hugo Chavez paid money to Farc rebels.

No commitment

Colombia said that a raid it carried out on a rebel camp over the border in Ecuador two weeks ago yielded computer records showing Mr Chavez had paid several hundred million dollars to the group.

The raid, in which a top guerrilla commander was killed, provoked a diplomatic crisis. Venezuela and Ecuador moved troops to Colombia's border in protest.

The crisis was overcome after mediation by Brazil and other Latin American countries.

Ms Rice would not commit herself on the subject of placing Venezuela on the list of states that sponsor terrorism.

"We will watch the situation and the US will act accordingly," she said.

Possible sanctions

Secretary of State Rice added that under United Nations rules all states had undertaken "to do everything they can to prevent terrorists from actively using their territory."

Correspondents say designation as a country sponsoring terrorism could lead to sanctions against Venezuela, which is a big supplier of US oil.

US President George W Bush said earlier this week that Venezuela's response to the crisis had been the latest step in a disturbing pattern of provocative behaviour.

The leftist Farc group is seen as a terrorist organisation by the US, the European Union and Colombia, where it controls vast swathes of land.

Ethnic discrimination

Ms Rice's talks in Brazil also covered trade, global warming and Brazil's proposals for reform of the UN Security Council.

She said she, too, was in favour of reform but gave no firm answer on Brazil's proposal that it should have a permanent seat on the Security Council.

Ms Rice also signed an agreement with Brazilian Racial Integration Minister Edson Santos for the two countries to work together in the fight against ethnic discrimination.

On Friday, Ms Rice flies to Chile.