MercoPress. South Atlantic News Agency

Blair to visit Buenos Aires?

Argentine diplomacy is working over time to try and arrange for British Prime Minister Tony Blair to visit Buenos Aires at the end of the month, when he will be officially meeting Brazilian president Fernando Cardoso in Brasilia

According to the Argentine press, this would be considered a "further" step in the growing relations between the United Kingdom and Argentina, since Foreign Minister Adalberto Rodríguez Giavarini will be holding his first official meeting with Foreign Secretary Jack Straw next July 17th. in London. The British Embassy in Buenos Aires and the Argentine Foreign Affairs Ministry refused, officially, to comment the news. However Argentine sources recalled that last April, French Primer Minister Lionel Jospin on an official visit to Brazil, managed to fit in a quick trip to Buenos Aires where he dined with President Fernando De la Rúa. Argentine press indicate that Argentine diplomacy is pressing for some formal bilateral announcement regarding Falklands affairs when Mr. Rodríguez Giavarini meets Mr. Straw; possibly mine clearance. Similarly a possible visit of President De la Rúa to London sometime next year.

Real collapses to a historic low

The Brazilian currency "Real" dropped last week to its lowest level ever, in spite of the government's announcement it was prepared to support the "real" with a special 6 billion US dollars fund and if necessary extend the 1998 IMF agreement. A week ago the "real" reached 2,52 to the dollar, a 30% depreciation since the beginning of the year, when the government announced the devaluation for the whole of 2001 would be in the range of 7 to 9%. Brazilian analysts indicate that the Argentine situation, the local energy crisis and the fact that presidential elections will be held in November 2002 have added to uncertainty in local markets. Lack of investment in the energy sector has led to a severe shortage in electricity supply forcing factories to cut working hours, blackouts and a drastic drop in economic growth forecast from over 4% to a flimsy 2%. Polls also indicate that the Socialist opposition leads polls and a weakened ruling coalition, --shell shocked by corruption scandals--, can't agree on a common candidate for 2002, turning Mr. Cardoso into a precocious lame duck. Cardoso's administration announcement of the 6 billion US dollars support for the real and the possible extension of the IMF agreement (involving a 40 billion US