VENEZUELA SAID MONDAY THE ARAB LEAGUE HAS AGREED TO ACCEPT IT AS AN OBSERVER, DPA REPORTED. BOTH SIDES PLAN TO SIGN AN AGREEMENT IN SEPTEMBER TO FORMALISE THE RELATIONSHIP, VENEZUELAN DEPUTY FOREIGN MINISTER REINALDO BOLIVAR SAID IN A STATEMENT. THE ANNOUNCEMENT CAME BEFORE A TWO-DAY MEETING OF FOREIGN MINISTRY OFFICIALS FROM SOUTH AMERICAN AND ARAB NATIONS THAT OPENS TUESDAY IN CARACAS, THE VENEZUELAN CAPITAL. DELEGATIONS FROM 15 ARAB AND 12 SOUTH AMERICAN COUNTRIES WERE DUE TO DISCUSS COOPERATION IN POLITICS, ECONOMICS, CULTURE, ENVIRONMENT AND TECHNOLOGY. THEY WILL ALSO PREPARE A PRESIDENTIAL SUMMIT OF THE GROUP PLANNED FOR 2008 IN MOROCCO. THE CARACAS CONFERENCE WAS CALLED TO FOLLOW UP ON RECOMMENDATIONS FROM A MAY 2005 SOUTH AMERICAN-ARAB SUMMIT IN BRAZIL. BOLIVAR MET THE ASSISTANT SECRETARY GENERAL FOR POLITICAL AFFAIRS OF THE ARAB LEAGUE, AHMED BENHELLI, WHO WILL CHAIR THE MEETING IN CARACAS.