South American neighbours Venezuela and Colombia have restored relations after a face-to-face meeting between the presidents of both countries.

Venezuela's Hugo Chavez and the new Colombian president, Juan Manuel Santos, issued a joint statement restoring bilateral ties.

The statement marks a radical shift in relations. Just three weeks ago Mr Chavez dramatically severed ties with Colombia amid accusations he was harbouring terrorists.

He is also on the record as describing Mr Santos as a warmonger and a threat to the entire region.

But today in the Caribbean city of Santa Marta, the leaders laughed and joked together before announcing bilateral relations would be restored and that diplomatic ties would be based on transparent and direct dialogue.

Mr Santos said Mr Chavez had assured him that Venezuela would not tolerate rebel camps inside its borders.