BUENOS AIRES, Sept. 22(Xinhuanet)-- Paraguay on Thursday denied any intention to withdraw from the Common Market of the South(MERCOSUR) but emphasized its sovereignty in international relations, according to reports from Asuncion.

"Paraguay never thought of the possibility of leaving MERCOSUR,of which it is a member along with Argentina, Brazil and Uruguay,"Paraguayan Foreign Minister Leila Rachid told the press.

"Our immediate economic and territorial reality is with MERCOSUR, which does not mean we are in a straitjacket. We are free," she said.

"We haven't ceased to think MERCOSUR should speak with one voice, or an identical one. Thus, we have not signed any bilateralagreement with the European Union(EU) or the United States," saidthe Paraguayan top diplomat.

In the past few months, the presence of US troops and a plan for 400 US troops to participate in military exercises in Paraguaysparked suspicion among some neighboring countries that the UnitedStates may establish a permanent base in Paraguay.

Brazilian Foreign Minister Celso Amorim criticized the possibleestablishment of a permanent US military base in Paraguay. Some Brazilian officials considered it a US intervention in the MERCOSUR zone.

Regarding such concerns, Rachid reiterated that the presence ofUS troops in the Paraguayan territory is not linked to the possibility of an eventual Free Trade Agreement(FTA) with the United States.

"We don't swap security for free trade," she added.

US Defense Secretary Donald Rumsfeld visited Paraguay in mid-August aimed at strengthening military ties with the South American country.

Rumsfeld chose to visit Paraguay to step up cooperation in heightening vigilance in the"three border area" linking Paraguay,Brazil and Argentina. US officials have described the area as a fund-raising center for Hezbollah guerrillas operating in the Middle East. Enditem