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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared Colorado Democrat Bennet escapes anti-incumbent mood 12:42am EDT Analysis: Drought to crimp not cripple Russia recovery 10 Aug 2010 Nikkei slides 2.7 percent, yen rise feeds economy worry 2:09am EDT Ex-Senator Stevens dies in Alaska plane crash 10 Aug 2010 Cancer cells slurp up fructose, US study finds 02 Aug 2010 Ex-Senator Stevens dies in Alaska plane crash 10 Aug 2010 Advice to U.S. job seekers: drop the Merlot 09 Aug 2010 Analysis: Putin and Medvedev won't be burned by Russia fires 10 Aug 2010 House passes state aid bill; Obama signs into law 10 Aug 2010 Federer shakes off rust to advance at Toronto Masters 10 Aug 2010 Cancer cells slurp up fructose, US study finds 02 Aug 2010 UPDATE 2-Canada's Arctic Glacier posts Q2 loss; units plunge 10 Aug 2010 Pregnant woman uses train toilet, baby slips out | Video 28 Feb 2008 Virtual goods give Web firms new revenue in ad slump 29 Dec 2009 Chemicals in meat may be linked to bladder cancer 02 Aug 2010 Analysis: Putin and Medvedev won't be burned by Russia fires 10 Aug 2010 French criminals now face short arm of the law 10 Aug 2010 Study: Could gut germs underlie Western allergies? 02 Aug 2010 RIM to share some BlackBerry codes with Saudis: source | Video 10 Aug 2010 Mexicana needs at least $100 mln to keep flying-CEO 10 Aug 2010 Colombia's Santos, Venezuela's Chavez restore ties Digg This Tweet This Share on LinkedIn Share on Facebook Factbox History of tensions between Venezuela and Colombia Tue, Aug 10 2010 Related News Analysis: What does Colombia-Venezuela reconciliation mean? Tue, Aug 10 2010 Related Topics World » Venezuelan President Hugo Chavez addresses a meeting of United Socialist Party (PSUV) in Maracaibo August 7, 2010. Credit: Reuters/Miraflores Palace/Handout By Patrick Markey SANTA MARTA | Tue Aug 10, 2010 10:08pm EDT SANTA MARTA Colombia (Reuters) - Colombian President Juan Manuel Santos and Venezuela's Hugo Chavez restored diplomatic ties on Tuesday at talks to end the latest dispute between the ideologically opposed Andean neighbors. Cross-border tensions have run high for more than a year, with the socialist Venezuelan president imposing what Colombia called a trade embargo and cutting ties completely last month over charges he backs leftist Colombian rebels. Yet both leaders came to the colonial city of Santa Marta in a reconciliatory mood, motivated in part by the need to revive bilateral trade of $7 billion a year. "We have decided to turn over the page and look to the future," U.S. ally Santos, who took office on Saturday, said after a lengthy meeting and a joint statement under a statue of South American independence hero Simon Bolivar. Chavez, wearing a sports jacket bearing the tricolor of his country's flag, gave Santos a formal handshake instead of the back-slapping hugs he often shares with other leaders. But he urged the two to rebuild trust between their governments. "Count on my friendship and the affection of all Venezuela," Chavez told Santos. "I will never stop regretting how relations ended with the outgoing government." Among a series of accords between the pair including setting up a cross-border security committee, Venezuela agreed to pay debts owed to Colombian exporters, Santos said. That debt is estimated at about $800 million. At the heart of the latest fight were Bogota's allegations that Chavez, a left-wing foe of Washington, harbors Colombian guerrillas, and Venezuelan complaints about a Colombian deal to give U.S. troops more access to military bases. Those issues and ideological differences remain difficult to resolve in the short term, and Santos was careful to stress that the reconciliation should progress "slowly but firmly." Markets have largely shrugged off the spat as rhetoric, but investors are applauding any resumption of trade. In statements and responses to questions from reporters in Santa Marta, the pair brushed aside the base issue, but Chavez vowed not to allow Colombian rebels in Venezuela. Santos, a U.S.- and British-educated economist elected in June, has clashed before with Chavez, a Cuba ally who says his homespun revolution in Venezuela is inspired by Bolivar. The pair chose Santa Marta, a port town on the Caribbean sea, for its symbolism. The Venezuelan-born Bolivar died there after his long fight to free the region from Spanish rule. PRAGMATISM OVER POLITICS Santos has appeared to take a more pragmatic approach to relations with Venezuela than his predecessor, Alvaro Uribe. Chavez stands to benefit from better trade ties to boost his popularity before legislative elections in September. Venezuela should gain cheap food imports from Colombia as it tries to control high inflation, and Colombia will restore some trade with its traditional No. 2 commercial partner. "Deeper differences between the two governments, including over ideology and attitudes to the United States, will not simply disappear," said analyst Christian Voelkel with IHS Global Insights risk consultants. News of the meeting and possibilities that trade could be restored helped push up Colombia's peso currency in trading on Monday after the talks were announced by both governments. Colombia's long guerrilla conflict has often spilled over the Venezuelan border, where kidnappings and drug trafficking are common. Chavez has complained that Colombia's military is not doing enough to secure the frontier. But Chavez's ideological affinity with Colombia's Marxist FARC rebels has led Washington and Bogota to accuse him of supporting the guerrillas. The former paratrooper dismisses the charges as U.S.-backed propaganda. "The government that I direct does not support, does not permit and will not permit the presence of guerrillas, or terrorists or drug traffickers," Chavez said. Andean tensions have run high since 2008 when Colombian troops attacked a FARC rebel base hidden over the border in Ecuador. Quito and Caracas warned of war and sent troops to the border area before a regional summit defused tensions. The most recent squabbling came after Colombia signed a deal giving U.S. troops more access to its bases for anti-narcotics and counterinsurgency efforts. Chavez accused Bogota of working with Washington to undermine his government. Chavez broke off ties again with Colombia last month after Uribe accused him of harboring more than 1,000 leftist Colombian FARC rebels on his territory. (Additional reporting by Nelson Bocanegra, Javier Mozzo and Luis Jaime Acosta in Bogota; Andrew Cawthorne and Patricia Rondon in Caracas; Editing by Peter Cooney) World Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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