Foreign Correspondence

[Amaunet]

China studying huge investment in Brazil-source
Reuters, 04.14.04, 7:53 PM ET


BRASILIA, Brazil, April 14 (Reuters) - The Chinese government is studying investing between $3 billion and $4 billion in infrastructure projects in Brazil, an official involved in talks between the two countries said on Wednesday.

The source, who asked not to be named, spoke after Brazilian president Luiz Inacio Lula da Silva met visiting representatives of the China International Trust & Investment Corporation, or Citic, the country's biggest financial conglomerate, to discuss investments in Brazil.

Representatives of Citic and Brasilinvest, a Brazilian company taking part in the talks, said the Chinese investments would be included in a letter of intent to be signed by the leaders of Brazil and China when Lula visits the world's most populous country next month.

The representatives said the Chinese were interested in investing in railways, the petroleum sector and raw materials.

Brazil's agriculture ministry said last February that China was interested in building railways and other infrastructure in Brazil in exchange for commodities like soybeans, cotton, and cane-based ethanol. It said a deal could be signed in May.

Brazil's infrastructure is woefully underdeveloped for the size of its economy and the agricultural sector, which has proved the engine of growth in recent years.

Copyright 2004, Reuters News Service


http://www.forbes.com/markets/newswire/2004/04/14/rtr1332547.html