Venezuela has signalled its willingness to grant Guyana beneficiary status under the Caracas Energy Cooperation Accord and an agreement to this effect could be signed early next year when the heads of the two countries meet on Margarita Island.

These were among the developments in the discussions when delegations led by Venezuelan Foreign Minister, Luis Alfonso Davila and his Guyanese counterpart, Rudy Insanally, met yesterday at Herdmanston House.

The proposed meeting between presidents Bharrat Jagdeo and Hugo Chavez during the first quarter of next year is actually a holdover of Chavez's planned visit to Guyana last year, which was thwarted by a number of developments outside his and President Jagdeo's control. Under the Caracas Accord, Caribbean countries are being offered oil on concessional terms. Earlier this month, St Vincent and the Grenadines became the latest country to sign on to the deal.

Insanally told Stabroek News last night after the talks adjourned that he and Davila had agreed that new dynamism should be given to the cooperation between the two countries and to this end the sub-committees of the High Level Bilateral Commission not yet activated would be convened early next year at a meeting of the full commission at which political direction would be given to them. The High Level Bilateral Commission was established during discussions between President Chavez and then President Janet Jagan during the latter's visit to Caracas.

Insanally and Davila also discussed the Good Officer process under the aegis of the United Nations Secretary General which is being used to try to arrive at a settlement of the border controversy arising from Venezuela's repudiation of the 1899 Arbitral Award that fully and finally settled Guyana's western border.

Among the other matters discussed, according to Insanally, were the Association of Caribbean States (ACS) and the need to have the Caribbean region play a more dynamic role in the hemisphere. Also broached was Venezuela's assumption of the chair of the Group of 77 and how Guyana could help it to promote the prosperity of the developing counties.

Davila arrived here yesterday for a two-day visit and a release from the Foreign Ministry described it as being in keeping with the commitment of the presidents of the two countries when they met at the South American summit in Brasilia last year to work towards the promotion of amicable and cooperative relations between the two countries.

It is Davila's first visit to Guyana since his appointment as Foreign Minister last year.

Davila arrived here by private plane at around 10 am yesterday and has so far met heads of the Diplomatic Missions in Guyana and was the guest of honour at a dinner at the Cara Lodge hosted by Insanally.

Before his departure today, Davila will call on Speaker of the National Assembly Ralph Ramkarran SC at Parliament Buildings before continuing his discussions with Insanally at Herdmanston House this morning. After the discussions at Herdmanston House, he will pay courtesy calls on Leader of the Opposition, Desmond Hoyte SC, CARICOM Secretary General, Edwin Carrington and President Bharrat Jagdeo. Following lunch hosted by the Venezuelan ambassador, Jean Francois Pulvenis at his Bel Air Gardens residence, Davila and Insanally will host a joint press conference at the Foreign Service Institute prior to Davila's departure for the airport.

In Davila's delegation to the talks with Insanally are ambassadors Pulvenis, Francisco Velez, Blanca Verlezza and Hernani Escobar, Brigadier General Alfonso Nunez, Vice Admiral Elias Daniels, Dr Luis Herrera Marcano and minister counsellors Oscar Hernandez and Fernando Rincon.

The Guyana delegation includes Foreign Trade Minister, Clement Rohee; ambassadors Elizabeth Harper and Donald Abrams; Bayney Karran, Guyana's ambassador to Venezuela; Barbara Haley, Rosemary Cadogan, Charlene Phoenix, Col Lennox Wilson and Keith George.