MercoPress. South Atlantic News Agency

South America breaking news

Brazil and Argentina honor “Belgrano” / Former Bolivian president and dictator dies / Priority is “conservation” / Chile exposed to Argentina / TPA in Congress / “Lula effect” / Chile lifts strict sanitary control

Brazil and Argentina honor "Belgrano"
The Brazilian and Argentine navies currently in joint exercises in the Southern Atlantic, last May 2nd. paid tribute to the Argentine cruiser "General Belgrano" sunk twenty years ago by a British submarine during the Falklands conflict. Latinamerica's only aircraft carrier Brazilian navy "Sao Paulo", plus the frigate "Rademaker" and the supply vessel "Marayo", together with the destroyer "La Argentina" and logistics vessel "Patagonia", had crews formed on deck and later dropped a flower wreath in the South Atlantic. "The apparent (Argentine-Brazilian) military rivalry was but a futile waste of energy" remarked Brazilian Ambassador in Argentina José Botafogo Goncalves present at the ceremony together with top officials from the Argentine Defence Ministry, Admiral Joaquín Stella Commander of the Argentine Navy and Admiral Edson Lawrenz Mariath head of the Brazilian Task Force. "These exercises go far beyond developing military capabilities, they generate links that extend to ordinary life and have a very positive effect on bilateral relations", added Ambassador Botafogo Goncalves. For the last ten years navies from Argentina and Brazil have participated in joint "Araex" exercises that include operations with Argentine aircrafts, Super Etandards and Trackers landing and taking off from the "Sao Paulo", the latest acquisition of the Brazilian Navy. Actually Argentine naval pilots in 1998 advised their Brazilian counterparts when they purchased Skyhawks in Kuwait for the "Sao Paulo", since up to then the Brazilian navy had no fixed wing aircraft. French built, "Sao Paulo" is 266 meters long with a landing strip of 168 meters and carries a crew of 2,000.. "Sao Paulo" replaced the aging "Minas Gerais" that was scrapped.

Former Bolivian president and dictator dies
Former Bolivian president Hugo Banzer, a military dictator who later was democratically elected died this week in his hometown of Santa Cruz. The former Army General was forced to resign last August when terminal lung and liver cancer was diagnosed in the Walter Reed Army Medical Center. He first came to power in 1971, --until 1978--, as a military dictator, surviving 13 coups, and with democracy restored in Bolivia in 1982, he finally won the presidential election in 1997. A controversial figure of Bolivian politics, as elected president Banzer will be remembered for his close relation with the United States, --he was a student at the notorious School of the Americas in Panama--, his rather autocratic methods even in democracy and for having advanced the campaign to eradicate drug crops in spite of the fact most of his support came from poor indigenous constituents. As a dictator his regime was among those world known for human rights violations, banning all political activity and "disappearances" of opponents. However during his tenure, particularly since 1973, booming oil and tin prices plus growing agricultural exports helped him solidify his following among Bolivia's middle and upper classes. In 1978 he was forced out of power but the country regained democracy in 1982 and in 1985 the political Banzer emerged. In the 1985 election he won the first round but since he didn't have sufficient Congressional support moved aside and Paz Estensoro was named. But in 1997, and is spite of having only 20% of the vote, Congress finally agreed to vote him in. In August 2001 he handed power to his vice president Jorge Quiroga.

Priority is "conservation"
Rafael María Delpech is Argentina's new Agriculture, Livestock and Fisheries Secretary. Mr. Delpech replaces Mr. Miguel Paulón who resigned in protest over President Duhalde's administration decision to tax up to 30% agriculture and fisheries exports. In his first official act Mr. Delpech participated in the inauguration of a new fish processing plant in Puerto Madryn belonging to US multinational Irving and Johnson, where he promised more openness and "transparency" in the decision making process, as well as a greater private institutional participation in the sector's policies. Mr. Delpech promised to work closely with the scientific research offices of the Agriculture Secretary such as SENASA (responsible for livestock health and sanitary conditions), and with INIDEP, the Mar del Plata based fisheries research center. The new Secretary told the industry that President Duhalde's instructions regarding fisheries were very precise, long term policies so as to promote long term investments from the private sector, ensuring that the naming of a new cabinet minister does not interfere with basic policy outlines, and overall predictability regarding future planning. However Mr. Delpech stressed that the main responsibility of the Fisheries Department of his office will be "conservation of resources". "That is paramount for any long term industry policy this we will enforce by all means", underlined Mr. Delpech. One of Mr. Delpech's first tasks will be to achieve stability in the fuel market since scarce supplies of diesel and gas oil, and speculative prices, are disrupting harvesting, cereal and cattle transport, and have immobilized great part of Mar del Plata's coastal fleet. Fishermen associations in Mar del Plata are complaining not only about insufficient supplies of fuel but also about the fact that price has jumped from 220 US dollars per cubic meter last November, to 275 US dollars currently, when available.

Chile exposed to Argentina
Argentina ensured Chile that the supply of oil and natural gas will proceed, and be honored, as established in the bilateral agreements. Argentine Foreign Affairs Secretary Carlos Ruckauf visited Santiago to relieve Chilean officials who were shocked when a few weeks ago in the midst of a labor dispute, union leaders blocked the supply of natural gas to Chile. "We are committed to Chile, and we are committed to honor all international agreements with Chile", said Mr. Ruckauff who nevertheless admitted Argentine authorities were taken by surprise by the magnitude of the radical measures adopted in a recent labor conflict. Mr. Ruckauf added that with bipartisan support the Argentine Senate is considering a bill that sanctions natural gas concessionary companies, including the loss of the concession, if the company is unable to comply with supply conditions or endangers Argentina's international agreements. During Mr. Ruckauf's visit the Chilean government expressed support for Argentina and appealed to international multilateral organizations to help Argentina overcome the current financial crisis. "From a regional and bilateral perspective, this (aid) is of particular relevance since its impact and solution not only affects Argentine interests, but also other countries such as Chile, with a relevant trade and significant investments in Argentina", underlined María Soledad Alvear Chilean Foreign Affairs Minister. In the nineties, under former President Carlos Menem, Argentina became Chile's main energy supplier (natural gas and oil) with several pipelines crossing the Andes. Similarly, a significant proportion of Chile's pension funds, (several billion US dollars) are invested in Argentina, mainly in the generation and distribution of electricity in the metropolitan area of Buenos Aires.

TPA in Congress
With just a few months left before mid term elections, the US Senate began considering the Trade Promotion Authority, TPA, (former fast track) which enables the White House to discuss directly trade agreements with other countries. The special powers bill has been requested on several occasions by President George Bush, but Democrats have conditioned its approval to the passing of other bills linked to trade and compensations for US workers left redundant or affected by trade liberalization. Democrat leader Senator Tom Dashle has long insisted that no new trade related bills will be approved in Congress until there's agreement on an integral protection system for US workers, be it because of been laid off or the companies move to other countries. For the Bush Republican administration, with strong support from the business community, TPA is a top priority of the country's foreign policy. Chile and Singapore are in the waiting list to sign trade agreements with the United States. President Bush anticipated Chilean officials that by next May 27th., the Administration will have the bill approved with the specific environment and labor clauses, that should help with the final thrust to the ongoing trade negotiations.

"Lula effect"
Government and opposition have closed ranks in condemning several international banks that are warning investors about a possible victory of Socialist Luis Ignacio da Silva, "Lula", in the coming Brazilian October presidential election to succeed president Fernando Cardoso. The so called "Lula effect" last week had a devastating effect in the Stock Exchange and for the Brazilian currency after Dutch and Spanish banks plus US risk assessment agencies recommended their clients to limit their exposure in Brazil. Brazilian Economy Minister Pedro Malán rejected the adverse comments and said "Brazil is a consolidated economy and therefore the coming elections must be analyzed as a natural process". Luis Ignacio da Silva, Lula, when asked by the Brazilian press said that the "assessments of these banks are done by adventurers. They are made public during the day to influence stock markets and later denied by the official comptrollers of financial systems". Although President Cardoso made no official comment, an influential newspaper "O'Globo" quoted Mr. Cardoso saying he will not tolerate interferences fromfinancial institutions in the country's electoral process". "These institutions must learn to respect democracy. In Brazil it's the people's vote that will decide what must be done and what is good for the country", apparently was Mr. Cardoso's reaction to the situation. The latest polls indicate that Lula has a comfortable lead doubling his closest runner up, but those still undecided are a majority. The ruling coalition candidate, Mr. José Serra, a close ally and hand picked by Mr. Cardoso has been unable so far to disturb Lula, and insistent political rumors indicate he might be replaced. Meantime Lula, a former union leader, who considers himself a Socialist and has run several times for the presidency has changed his blue collar for Armani suits and has made it a point to be seen dining and meeting with the Brazilian business and farming community.

Chile lifts strict sanitary control
Chile lifted the strict sanitary controls in the main Andes crossing with Argentina after considering that the situation created by foot and mouth outbreaks in Argentina has been overcome. The more flexible controls in the "Libertadores" crossing will make travelling between Mendoza and Santiago de Chile far speedier since trucks, buses and cars will no longer be fumigated. "Argentina is no longer a source of risk for Chile", said Alejandro Zuleta head of the Agriculture and Livestock Service in the Valparaíso Region. "The measure which was implemented beginning May 1st., benefits all vehicles since we believe that the possibility of contamination with FAM from that source now is zero", added Mr. Zuleta. Chilean sources indicated that the daily cost of fumigating all vehicles entering Chile was 530 US dollars. The measure was initiated March 1st., 2001. However authorities pointed out that all other measures such as inspection of passengers, luggage and freight to ensure that no potentially contaminating products enter Chile remain standing.