Establishment: In July 1974, Luis Echeverría Alvarez, Mexican President made a proposal to set up an organ for the economic cooperation and harmonization in Latin America. In March 1975, President Echeverría and???. President of Venezuela made a joint communiqué and wrote a letter to the heads of the Latin American countries, formally proposing the establishment of the "Latin America Economic System". On 17 October 1975, the representatives of the 23 Latin American governments signed the "Panama Agreement", announcing the setting up of the Latin America Economic System, and the agreement entered into force on 7 June 1976. The official languages are: Spanish, English, French and Portuguese.


Aim: On the principle of equality, sovereignty, independence, non-interference of internal affairs, and mutual respect for the differences of each country's political, economic and social systems, it aims at promoting the regional cooperation in Latin America, pushing ahead the regional integration, working and carrying out the plan and projects for economic and social development, harmonizing the stand and strategy of the Latin American countries in relation to its economy and social problems, maintaining earnestly the lawful rights of the Latin American countries so as to establish a new international economic order, which is just and reasonable.


Members: Up to 1998, this organization had 28 members, who were: Argentina, Barbados, the Bahamas, Paraguay, Panama, Belize, Brazil, Peru, Bolivia, Dominica, Ecuador, Colombia, Costa Rica, Grenada, Cuba, Guyana, Haiti, Honduras, Mexico, Nicaragua, El Salvador, Surinam, Trinidad and Tobago, Guatemala, Venezuela, Uruguay, Jamaica and Chile. More than 50 political, economic and social organizations from Latin America, Europe and the United Nations have their observers in the organization.


Organizations: 1. The Latin American Council: is a supreme organ formed of the plenipotentiaries appointed by each member country. The minister's regular meeting is held once every year to decide the general policy of the Latin America Economic System. If the council makes a decision or request brought forward by no less than 1/3 of the member countries it can call a special meeting of ministers or non-ministers. The council has a president, two vice-presidents, and a speaker, (they jointly form a presidium), who will be taken up in turn by the representative of each member country. 2. The Action Committee: is a provisional organ for cooperation purposes. Each committee must be formed at least of three member countries, and the other member countries may join in or quit it of their own accord. Its task is to work out a common program and plan with regard to some special problems, thereby coordinating their actions. But when the task is completed the committee can be disbanded or become a standing body. 3. The


Standing Secretariat: is an executive body, which is located in Caracas, Venezuela. Its permanent secretary is elected by the Latin American Council with his terms of office being of four years. The present permanent secretary is Carlos Moneta, an Argentinean, who assumed the post on 17 October 1995. 4. Major publications: SELA Noticias and SELA en Acción, both of which are in Spanish.


Major Activities: Up to December 1998, it has called altogether 24 regular council meetings and 6 special meetings. In 1970s, every regular meeting was to coordinate the stands towards the trades with the USA, oppose the discriminating provisions or clauses in the US foreign trade policy and to strive for a fair and reasonable trade order between the USA and the Latin American countries. In 1980s, the main topics at the conferences were to strengthen the economic cooperation among the Latin American countries, to act jointly in the multi-lateral trade talks, to determine a common stand in doing trade with the USA and to close the trade ties with Europe. It also supported the Argentina stand in regard with its sovereignty over the Malvinas Is., and opposed to the economic sanction executed by Europe and the USA over Argentina, Nicaragua and Panama region due to political purposes. It asked the USA and Europe to abolish their trade protectionism, improve the prices of primary products from the Latin America, and advocate to solve the problem of debts with creditor countries through political talks. In 1990s, the Latin America Economic System paid its attention mainly to foreign debts, trades, industrialization, regional economic integration and the social problem of poverty and unemployment, to coordinate the stand towards the Uruguay trade talks, and to work out suitable trade rules and regulations for it, and to oppose to the blockade inflicted upon Cuba by the USA, demanding that the USA should abolish the ???. On 30 November to 5 December 1998, the Latin America Economic System held its 24th regular council meeting in Havana, Cuba, at which was adopted the "Havana Statement". It pointed out that the Latin American countries should hasten the reform of its financial system so as to push ahead the regional integration. To achieve the purpose all countries should strengthen their cooperation to face the challenge of globalization, to seek for ways in setting up an open, non-discriminating and new world trade system, in which the needs of the underdeveloped countries would be taken care of. The statement appealed to the developed countries and the international financial bodies to adopt active measures to wipe out unfavorable influence incurred by economic crises. It also requested that the members of the World Trade Organization, especially the developed members must carry out their pledges and promises and not to increase any new trade barrier.


Relations between China and Latin America Economic System: China gives a high appraisal to the Latin America Economic System, considering that it has made great efforts and gained achievements in promoting the regional cooperation, pushing ahead economic integration, and maintaining the lawful rights and interests of the countries in Latin America, and so China is willing to develop friendly and cooperative relations on the basis of equality, mutual benefits with the Latin America Economic System. In 1995, Liu Huaqiu, director of the Foreign Affairs Office under the State Council headed a delegation to attend the summit conference of the nonaligned countries held in Colombia, during which he met with Carlos Moneta, permanent secretary of the Latin America Economic System. On 14 November 1996, invited by the Latin America Economic System, Li Peng, Premier of the State Council during his visit to Venezuela, made an important speech at its headquarters, entitled "Compose jointly a new chapter of friendly cooperation between China and Latin America", elucidating China's five principles for developing the relations, and four major points for expanding economic cooperation and trade with Latin America. Premier Li Peng also met Moneta, permanent secretary of the Latin America Economic System. On 20 February 1997, Moneta, the permanent secretary of the Latin America Economic System sent a telegram to Li Peng, expressing his profound condolences for the unfortunate passing away of Comrade Deng Xiaoping. During the period of 24 June to 4 July 1997, Moneta, the permanent secretary of the Latin America Economic System, invited by the Chinese Foreign Ministry, paid a visit to China and Liu Huaqiu, Director of the Foreign Affairs Office of the State Council, Li Zhaoxing, vice-minister and Yang Jiechi, assistant to minister, of the Chinese Ministry of Foreign Affairs met him on respective occasions. From 18 to 26 June 1999, the delegation of the Latin America Economic System paid a visit to China and attended the Symposium on Economy and Trade between China and Latin America, during which Wang Zhongyu, council member of the State Council and Yang Jiechi, vice-minister of the Ministry of Foreign Affairs met the delegation on respective occasions.