Bolivia and Libya Wednesday established diplomatic relations and the two countries will join efforts to develop energy resources, the Bolivian Foreign Ministry announced in a statement.

According to reports reaching in Lima from La Paz, administrative capital of Bolivia, the statement was signed by Bolivian Foreign Minister David Choquehuanca and Libyan Foreign Minister Mohamed Matri.

The Bolivian Foreign Ministry said both nations based their ties "on equality, mutual respect for sovereignty, independence and territorial integrity, and non-intervention into the internal affairs of each country."

Choquehuanca said Bolivia seeks to expand and strengthen its ties with other countries in the spirit of "constructive understanding" of political, commercial, scientific and technological issues.

Matri said Libya's foreign policy "has always been based on mutual respect between people and governments."

He also said that his country has set up a fund of US$80 billion to invest in Latin America, with Bolivia being one of the beneficiaries.

After signing the agreement, Matri met with Bolivian President Evo Morales.

The relations between Bolivia and Libya will be governed by the principles of the United Nations Charter, the Vienna Convention on Diplomatic Relations (1961) and the Vienna Convention on Consular Relations (1963).

(Xinhua News Agency August 14, 2008)