MercoPress. South Atlantic News Agency

South America Breaking News.

Mine sweeping in Chile

Chilean Senate voted unanimously to clear the estimated 280.000 mines planted during Pinochet's 17 years regime along border areas, fearing armed conflicts with neighboring countries Perú, Bolivia and Argentina. The operation is estimated will cost 300 million US dollars. Chilean Congress also ratified the Ottawa 1997 Convention that bans the production, storing and transference of antipersonnel mines. The Convention also sets a timetable for the sweeping and destruction of the deadly explosives. An independent report from the Chilean National Foundation for Children's Rights indicated that over half a million Chilean citizens live in the 17 counties with active mine fields. During Pinochet's time Chile almost went to war with Peru in 1975/79 and with Argentina in 1978, over the Beagle Channel. A last minute direct intervention from Pope John Paul II impeded the conflict and set peace talks going in Montevideo. With Chile, a total of 139 countries have ratified the Ottawa Convention.

Business skepticism

Although Chile's economic and financial indicators are the envy of neighbouring countries, many Chileans, particularly the business community, are not quiet so optimistic about the future. After going through a serious recession in 1999, Chile's home market has not recovered as fast as its foreign trade; unemployment remains steady at 8,8% and is expected to rise this coming winter; there are fears that the slowing of the world economy could have a negative influence in copper, the country's main export, and after growing for a full decade at an annual average of 7,6%, Chileans don't seem to get accustomed to a slower rate. However, other fears of a political nature, seem to loom more intensely in the Chilean business community expectations. The ruling coalition headed by Socialist president Raúl Lagos in spite of a working majority in Congress, has been unable to pass legislation regarding labor and tax reforms, and possibly more serious, has exposed internal problems and dissensions. Although President Lagos and his economic team are above all suspicion, the confusing message from Congress makes local investors recall that some