MercoPress. South Atlantic News Agency

South America Breaking News.

Chile ready to receive F 16

Chilean Air Force Commander in Chief General Patricio Ríos revealed this week in Santiago that the F 16 American fighter bombers purchase operation is on schedule and any delays are because of financial details. "Interest rates have dropped considerably, so we're discussing credit conditions", said General Ríos adding Chile expected to sign the final contract before the end of the year.The operation involves 10 Lockheed Martin F 16 and 600 million US dollars to be paid in twelve years.. Negotiations began last December and US Congress approved the sale in May. The F 16 will gradually replace the T 37 "Dragonfly", backbone of the Chilean Air Force. The sale will be the first in Latinamerica since the lifting of the "Kennedy Amendment" banning the sale of weapons to the region. Argentina, Brazil and Peru have expressed concern about the operation fearing it could trigger a regional arms race. Chile has a special purchasing arms Copper Fund with annual revenues equivalent to 10% of the country's overseas copper sales.

Copper price plunges

Copper plunged this week to its lowest price in fourteen years in the London Metal Exchange, selling at 60 US cents the pound for A grade metal. Three months future is also depressing: 61,8 US cents the pound. According to the Chilean Copper Committee, prices are in line with the dismal prospect for the world economy in the coming months, particularly following the September 11 terrorist attacks in the US. This week's price is the lowest since February 6th., 1987, when copper reached 60 US cents. In spite of a strong diversification of its economy, Chile is still highly dependent on copper sales, particularly since it's one of world's main exporters.

US economy key index down

A key index of leading US economic indicators experienced its largest drop since January 1996 confirming the downturn of the country's economy. The Conference Board Index made up of ten components, (unemployment, share prices, consumer confidence, etc.) that helps forecast where the economy is heading, dropped 0,5% last September following a 0,1% fall in August. However the Conference Board indicated t