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SAN PEDRO, Paraguay — Paraguay’s new leftist president returned Saturday to the province where he spent 11 years as a bishop and pledged to raise living standards by eradicating poverty and corruption.

Accompanied by Venezuelan leader Hugo Chavez, President Fernando Lugo spoke to about 1,000 peasants gathered in a plaza in San Pedro, the biggest municipality in a neglected province where most eke out a living while rich soy farmers profit from high international commodity prices.

“This is where I learned to love the peasant, the indigenous people, and to admire their efforts to excel despite adverse conditions,” Lugo said.

Chavez told the crowd that oil-rich Venezuela will finance a fertilizer plant in San Pedro and send the country “all the oil Paraguay needs” to ensure that periodic diesel fuel shortages don’t get worse.

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