MercoPress. South Atlantic News Agency

“A normal working relation with Argentina”, said Prime Minister.

Tony Blair, the first serving British Prime Minister to visit Argentina expressed full support for the Argentine government and President Fernando De la Rúa “zero-deficit” austerity package, and insisted it's important that “Britain today has a normal working relation with Argentina”.

During a press conference in Puerto Iguazú, on the Argentine side of the spectacular Iguazú waterfalls, Mr. Blair said "this is the moment where it's important we show support and solidarity with Argentina in the difficulties it faces".

President De la Rúa described Mr. Blair's words as of "extraordinary value" and Foreign Affairs Minister Rodríguez Giavarini underlined the "historic" significance of the visit and the "particular improvement in bilateral relations with Great Britain".

Mr. Blair and Mr. De la Rúa initially met on the Brazilian side of the border for a three ways talk with Brazilian president Fernando Cardoso before crossing into Argentina, a forty minutes drive to Puerto Iguazú. During the ride Mr. Blair and Mr. De la Rúa talked about increasing bilateral trade and greater British investments in Argentina. Mr. Blair on the other hand is hoping to develop a formal dialogue with Argentina, Brazil and Mexico, his next stop, ahead of the next round of trade talks in November.

Mr. Blair pointed out the political significance for President De la Rúa and his administration of having achieved Congressional approval for the "zero-deficit" package, and the responsibility shown by legislators in spite of the duress and sacrifice involved in the measures.

At the press conference Mr. Blair refused to speculate about specific British financial aid to the current Argentine situation, but diplomatic sources revealed that the British delegation in the IMF will express a special interest in the issue. Mr. Blair described Argentina's "zero-deficit" package as "tough but necessary" and said that other issues during the talks involved immediate concerns such as the world climatic changes, Britain's support for Argentina as the permanent Secretariat of the Antarctic Treaty, and the financial situation in Latinamerican countries. President De la Rúa added that Mr. Blair was also interested in knowing how Argentina was coping with the foot and mouth disease.

Mr. Blair's meeting with Mr. De la Rúa is interpreted as a strong backing to Argentina from the G 8, group of leading industrialized countries, that recently met in Genoa Italy, and are concerned about a possible "spill over" effect is the Latin