Page last updated at 09:03 GMT, Tuesday, 28 April 2009 10:03 UK

Bolivia and Paraguay agree border

Presidents Evo Morales (L) of Bolivia and Fernando Lugo (R) of Paraguay, shake hands while Argentine President Cristina Fernandez de Kirchner applauds in Buenos Aires on April 27, 2009
The agreement settled the border between Paraguay and Bolivia

Bolivia and Paraguay have signed an agreement settling a border dispute, which led to a bitter war in the 1930s.

Bolivian President Evo Morales, who signed the pact in Buenos Aires with Paraguayan counterpart Fernando Lugo, described it as historic.

Argentina has played a key role in resolving the dispute.

Mr Morales blamed multi-national oil firms - in their quest for natural resources - for fuelling the Chaco war, which claimed 100,000 lives.

The key energy companies operating in the region at the time were US Standard Oil, backed by Bolivia, and the Anglo-Dutch Shell Oil company, supported by Paraguay.

President Lugo expressed the hope that natural resources could now "be developed and used by both countries without any foreign intervention."

Rich in mineral and energy resources, Bolivia is one of South America's poorest countries.

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Timeline: Bolivia
03 Feb 09 |  Country profiles
Country profile: Paraguay
03 Jul 12 |  Country profiles

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