PORLAMAR, Venezuela (AP) – President Hugo Chavez attempted to derail a U.S.-Brazil ethanol agreement as host of an energy summit on Monday, offering his own development plans for South America using Venezuela’s vast reserves of oil and natural gas.

Despite Chavez’s clash on ethanol with Brazilian President Luiz Inacio Lula da Silva, the two leaders smiled and shoveled cement side-by-side for the foundation of a new petrochemical complex in eastern Venezuela before they flew to Margarita Island for the summit.

Chavez has pledged to explain to Silva his sharp criticisms of last month’s U.S.-Brazil ethanol agreement, but neither leader mentioned ethanol right away.

“Only united will we be great,” Chavez said in a speech at the Jose petrochemical complex, with Silva and the presidents of Bolivia and Paraguay at his side. “That great power isn’t Venezuela. That great power isn’t Brazil. … That great power will only be known as South America.”

Chavez repeated his accusation that the U.S. plotted a brief 2002 coup against him and warned that if the U.S. tries to topple him in the future, “there won’t be a single drop of oil for the United States.” He said any U.S. invasion of Venezuela could lead to a “100-year war.”

Chavez has pledged to offer an alternative proposal to “overthrow” the U.S.-Brazil ethanol agreement, which he calls a “cartel” that would monopolize arable lands and starve the poor – concerns shared by his Cuban ally Fidel Castro.

The United States and Brazil are the world’s two biggest producers of ethanol – the alcohol-based fuel made from crops such as sugarcane or corn. They signed an “alliance” last month to promote its production in the region and create international quality standards to allow it to be traded as a commodity like oil.

Chavez has not said what he would do to oppose that plan, other than allude to his lobbying efforts against other U.S.-proposed trade agreements.

Asked about recent criticism from Cuba and Venezuela of ethanol as an alternative energy source, Marco Aurelio Garcia, a foreign relations adviser to Silva, denied that Brazil’s biofuel initiative would cause food prices to skyrocket while defending the plan as a means of creating jobs.

“Nobody stops eating due to shortage of food. People stop eating due to lack of income, that’s the fundamental issue,” Garcia said.

The new petrochemical plant involves Brazil’s Braskem SA and Pequiven, a division of Venezuela’s state oil company. The two signed joint venture agreements to build the new petrochemical complex and plan to invest about $2.9 billion in a complex that will produce ethylene, polyethylene and other petrochemical products.

Top leaders of Argentina, Chile, Colombia and Ecuador also were attending the two-day energy summit, where Chavez was expected to seek support for projects including a South American natural gas pipeline and a proposed alliance modeled after the Organization of Petroleum Exporting Countries to promote “a fair price” for natural gas.

Brazil will fully join a proposed regional “Bank of the South” proposed by Chavez as an alternative to U.S.-backed lenders like the International Monetary Fund and World Bank, said Rafael Isea, Venezuela’s deputy finance minister.

On ethanol, though, Brazil’s interests appear to lie in its agreement with the United States, despite Chavez’s disapproval.

Silva said before leaving Brazil on Monday that he hopes to discuss the ethanol concerns, especially “the technical or scientific basis of the criticisms.”

Chavez used to speak warmly about ethanol’s future, but he came out harshly against its promotion as a substitute for gasoline after the U.S.-Brazil agreement. His concerns are shared by some experts who say that even if all arable land on Earth were turned over to biofuel production, it still would not meet world demand for fuel. Venezuela still plans to expand its own ethanol production for use as a fuel additive.

Silva said in a Monday morning radio broadcast that South American countries “have an immense territory” to be able to comfortably produce ethanol and plenty of food.

In a visit to Brazil, meanwhile, former Florida Gov. Jeb Bush criticized Cuba and Venezuela for their leaders’ newfound opposition to increased ethanol production.

“Mysteriously, for reasons I can’t explain, they did a complete about-face,” said Bush, the brother of U.S. President George W. Bush.

Without mentioning Venezuela by name, Jeb Bush said the United States needs to boost ethanol use because much of the petroleum consumed by America comes from nations that consider themselves “enemies of our country.”

Venezuela’s information minister, Willian Lara, dismissed Bush’s remarks as part of the “open, clear and persistent intention” of the U.S. government to create a negative image of the energy summit being hosted by Chavez.

—

Associated Press writers Alan Clendenning in Sao Paulo, Brazil, and Vivian Sequera, in Brasilia, Brazil, contributed to this report.

AP-ES-04-16-07 2219EDT