This is what Hugo's FRIENDS think of him. Says it all.

Conditioned Integration
President of Argentina's Industrial Union Juan Lascurain told EFE that the nationalization of Sidor, owned by Argentinean group Techint, "discourages any kind of investment" in Venezuela.

The businessman stated that Venezuelan President Hugo Chávez has an "ambiguous attitude" towards the companies and reiterated that what happened in Sidor "contradicts" the integration process with the Common Market of the South (Mercosur).

In joining Mercosur, Venezuela undertakes to meet the body's regulations under which member states have to provide a fair treatment to other member countries' companies, particularly in the event of expropriation.

This is provided for under the Protocol of Colonia on the Reciprocal Promotion and Protection of Investments in Mercosur, in force since 1994.

Under such instrument, none of the contracting parties will take steps for nationalization or expropriation nor any other measure that has the same effect, against investments that take place in their territory that belong to investors from another contracting party, unless such steps "are taken for reasons of public utility, on a non-discriminatory basis and in accordance with the proper legal proceedings." The protocol adds that such steps "will be followed by the payment of a previous, appropriate and effective compensation."

According to Article 4 of the protocol, "The sum of this compensation will correspond to the real value that the expropriated investment had immediately before the moment that the decision to nationalize or expropriate has been officially announced or made public by the competent authority and generate gains or will have its value updated to the date of its payment."

Venezuela is in the process to join Mercosur -founded by Argentina, Brazil, Paraguay, and Uruguay in 199- as a full member.

Lascurain underlined that Venezuela's membership in Mercosur "undoubtedly requires trade relations that are friendly and based on mutual trust, as well as respect for mutual investments and productive projects."