BRASILIA, Aug. 31 (Xinhuanet) -- Brazilian President Luiz Inacio Lula da Silva on Tuesday signed an agreement here with his visiting Mozambique counterpart, Joaquim Chissano, writing off 95 percent of Mozambique's debts.

    Addressing a ceremony in Brasilia, Lula said the elimination of 315 million US dollars out of a total of 331 million, should serveas an example to other countries.

    "I believe this could serve as an example for other countries,"the president said, adding that many poor countries "on many occasions have a debt everyone knows is unpayable."

    Lula also underscored the importance of Chissano's effort in reinstating democracy in his country.

    Chissano, for his part, said his country supports Brazil's bid for a permanent seat at the United Nations Security Council, should a reform and extension of the UN body happen.

    Following his meeting with Lula, Chissano was scheduled to visit Salvador, Bahia, in northeast Brazil, and Porto Alegre, Rio Grande do Sul, where he will be received by local governors and businessmen.

    High-level contacts between the two countries have increased since 1998, when Mozambique opened its embassy in Brazil.

    Lula visited Maputo,capital of Mozambique, in November 2003, which led to increased bilateral exchanges in education, health, science and technology, and agriculture. Enditem