Chile inaugurates female leader

Ms Bachelet, 54, who claimed a convincing poll will in January, smiled broadly and waved after taking her oath in the coastal city of Valparaiso.

Bolivian President Evo Morales, Venezuelan President Hugo Chavez and US Secretary of state Condoleezza Rice were among those at the ceremony.

Ms Bachelet is taking over with the economy booming, correspondents say.

Wearing a cream skirt and a high collared jacket, Ms Bachelet embraced her predecessor, Ricardo Lagos, as she took office amid applause and cheers in the congressional building in Valparaiso.

More than two dozen heads of state attended the ceremony.

Correspondents say the event may have helped efforts to iron out some regional difficulties, for example testy relations with Bolivia over territorial disputes and gas supplies.

Ms Bachelet was pictured laughing as she received a gift of a charango guitar from Mr Morales on the eve of the inauguration, and the two exchanged compliments.

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