Venezuela's President Chavez has welcomed regional integration

President Pastrana told journalists that his country did not feel isolated, but his fellow leaders are worried that war and drug production could spill over the border into their countries.

The hopes at this summit belong mainly to Brazil, which is putting aside some of its traditional reluctance to intervene in the affairs of others and appears willing to assume a new leadership role.

The Brazilian President, Fernando Henrique Cardoso, made some pointed remarks about the importance of democracy and fair judicial processes, comments clearly aimed at President Fujimori of Peru, who attracted international criticism following allegations of fraud in May's elections.

President Cardoso has also made it clearer than ever before that he wants to bring the whole of South America into a free trade zone.

Mr Cardoso said he hoped to bring South America's two trade blocs - Mercosur and the Andean Group - closer together.

It is a move which could challenge a plan by the US to expand the Nafta trade area into an Americas-wide free trade area, the FTAA.

Positive step

The efforts at regional integration have been welcomed by the president of Venezuela, Hugo Chavez:

"We are proposing that Venezuela should get much closer to Mercosur. And we hope all the Andean countries will do so as well. We have received extremely favourable signals from the Brazilians."

South American leaders still see the United States as a crucial partner, and few are keen to offend Washington.

So the regional power-tussle will likely remain largely behind-the-scenes at the summit.