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South America Breaking News

Headlines:
Foreign troops to Colombia?; US dollar weaker; Chilean Senator challenge; Chilean astronaut next April; IMF missions in Argentina; Fujimori prepares comeback; Another hat in the ring

Foreign troops to Colombia?

Several Latinamerican countries are considering the possibility of sending troops to Colombia in an joint task force led by United States with the purpose of neutralizing the guerrilla movements of that country particularly FARC and ELN. The news released this Sunday by the Brazilian newspaper "Jornal do Brasil", indicates that the operation would be sponsored by United Nations, include troops from Argentina, Ecuador, Chile, Peru and Uruguay, and the most probable date, January 2004. Apparently a team of thirty Chilean officers from that country's War Academy are currently assessing strategies to send a first contingent of 2,600 fully equipped troops plus heavy armament. According to "Jornal do Brasil" the plan was discovered a few months ago by "Tactical Network", a Pentagon Washington based watch dog organization that monitors United States Defence deployments and related issues such as weapons sales. However the disclosure also coincides with the visit to Brazil of elected Colombian president Alvaro Uribe, a hard liner with full United Sates support in the conflict that has the Colombian government fiercely struggling against Marxist oriented guerrilla movements and drug cartels who have control over vast areas of the country. Brazil has repeatedly insisted in a peace process for the Colombia situation and rejects escalating the war fearing the Colombian fighting could spill over to Brazil and other neighboring countries. When Mr. Uribe was elected Colombian president in the first round with over 51% of votes, (he takes office next August), he immediately offered the guerrilla movements peace talks and political participation, with one main condition, the orderly handing over of all weapons and prisoners. With this proposition under the arm, the Harvard educated lawyer left for a world tour meeting with United Nations Secretary General Kofi Annan, Pope John Paul, president George Bush and European leaders. The European Union until now the main support of the current (frustrating) peace process talks under outgoing President Andrés Pastrana, at the end of June declared left wing guerrilla groups FARC and ELN, together with the paramilitary UDE, terrorist organizations. The decision was taken following particularly vicious slaughtering of Colombian civilian peasants and virtually isolates the guerrilla groups. Chile was quick to point out that the deployment of Chilean troops overseas needs Congressional approval, and that Chilean forces only participate in peace operations under the framework of United Nations and following a resolution from the UN Security Council. Uruguayan sources reacted with similar arguments to the article published by "Jornal do Brasil".

US dollar weaker

Following a week in which the Euro surpassed the US dollar and consolidated as the world's strongest currency, the United States green back will be facing another turbulent week fostered not only by corporate fraud that is scaring investors away from Wall Street, but also as a result of the latest trade balance figures. According to the Department of Commerce, last May United States recorded its largest monthly trade deficit ever, 37,64 billion US dollars, greater that in April, 36,14 billion and above analysts estimates of 35,23 billion US dollars. The trade deficit, higher than expected, will now become another source of uncertainty for the US economy, plagued by negative news from the corporate world, and in the midst of a "fragile" recovery that is "still suffering the effects of last year's recession", as was described by Alan Greenspan president of the US Federal Reserve when addressing Congress last week. US imports have grown steadily since January, 107,12 billion US dollars to 118,27 billion last May, while exports have been a litter weaker, 77,7 billion in January and 80,6 billion last May. China and Mexico, United States main trade partners continue with strong surpluses. The trade deficit impact in the US dollar could force the Japanese Central Bank to intervene in the local currency market ensuring that the yen does not revalue too much dropping below the 115 yens to the US dollar threshold. The Euro on the other hand this last week reached its highest level since January 2000 against the US dollar: a Euro now costs 1,0230 US dollars.

Chilean Senator challenge

A Chilean Senator from the ruling coalition has challenged his colleagues to disclose how they spend the almost 13,000 US dollars they are entitled monthly as elected members of the Upper House of Congress. Senator Carlos Ominami challenge follows a public uproar in Chilean public opinion regarding Congressional privileges and perks, including certain "generous" outlays involving relatives and friends, plus claims that the Chilean Congress is the "most expensive" of the Andean region. According to Mr. Ominami's disclosure, his Senate office spends almost 8,500 US dollars in staff including advisors, secretaries, drivers and provincial heads of office, all of them with contracts. Another 2,200 US dollars are invested in renting offices in different locations of his constituency, plus cellular phones, gasoline, food and mandatory contributions to his political (Socialist) party. Opposition Senators anticipated they will willingly disclose their expenditures, however they pointed out that a "code of ethics" is urgently needed to avoid "adverse public relations", and ensure that the House as a whole is not curtailed in its necessary prestige, or its members pointed out as "good" and "evil". "The most appropriate is an only corporative and fair code clearly indicating what can be done, and what can't be done with monthly entitlements, and so end all the questionings that have lately proliferated", said opposition Senator Hernán Larraín. "We must avoid a competition among legislators as to who discloses most, and ensure it's not limited to a publicity blitz".

Chilean astronaut next April

The first Chilean astronaut could be flying to the International Space Station in a Russian "Soyuz" next April following a preliminary agreement between the Russian and Chilean Space Agencies. "The tentative date is next April", said Nelson Hadad, Director of Chile's Space Agency who was in Moscow for deliberations. The agreement includes the creation of a bilateral group that will begin working in August to conclude the viability of the project, both technically and financially. "We have time tables, but I wouldn't be surprised if the final details are signed when (Chilean) President Lagos makes on an official visit to Russia next October", added Mr. Hadad. The future Chilean astronaut, Air Force Commander Klaus von Storch was also in the delegation that visited Moscow where he was able to get acquainted with the Cosmonauts Training Centre. Chileans have two main experiments for the coming April trip: effects on astronauts sleeping because of the micro gravity environment in space and surveying contamination and pollution in the main populated cities of Earth. "This is not a space tourism tour, this is strictly professional, and expresses the willingness of Chile and Russia to advance in space exploration for the benefit of both countries and mankind", stressed Mr. Hadad.

IMF missions in Argentina

A mission of the International Monetary Fund arrived this Sunday to Buenos Aires to begin auditing Argentina's public accounts and to help define the terms of a future agreement that will be pursued by a second mission that is expected at the end of the week. This first mission is headed by English born John Thornton, who has been in Argentina before, and besides the auditing task, they have scheduled meetings with top officials from president Duhalde administration. Mr. Thornton's visit was preceded by a preparatory meeting held in Washington with Argentina's Central Bank president Aldo Pignanelli, with whom they analyzed the "state of the Argentine financial and banking system and current restrictions". Mr. Pignanelli during his brief visit to the United States also met with IMF Director General Horst Koehler, who sent a message to the Argentine government and society saying that it was the "institution's intention to continue to collaborate actively in the search of a solution for the current crisis". This Monday a group of high level experts, named between IMF and Argentina, will be arriving in Buenos Aires to advise on monetary policy aspects, particularly the design of a monetary framework, with a monetary anchor to control inflation. The members of the panel are Andrew Crockett, General Manager of the Bank for International Settlements; John Crow former governor of the Bank of Canada; Luis Angel Rojo, former governor of the Bank of Spain and Mr. Hans Tietmeyer, president of the Deutsche Bundesbank. The naming of the panel was the result of ongoing disputes among IMF officials and Argentine economists as to how end the current freezing of bank deposits without causing hyperinflation or another payments crisis, as well as advising on institutional monetary aspects and an independent central bank. The liberation of frozen bank deposits or "corralito" as it is described in Buenos Aires is the main stumbling issue for the restoration of the banking system, and frictions are common even among the Argentine economic authorities particularly between Economy Minister Roberto Lavagna and Central Bank president Aldo Pignanelli. It is believed that once the mission led by Mr. Thornton has left, plus the report from the advisory group, Argentina and the IMF will finally be on track to reach a credit agreement.

Fujimori prepares comeback

Destitute Peruvian president Alberto Fujimori, currently living exiled in Japan wants a comeback and is preparing for the 2006 presidential elections, according to one of his closest aides. Mr. Carlos Raffo said that on July 28th., Mr. Fujimori will be launching his news agency "Fujiprensa", that will publish mostly news related to Fujimori's administration achievements and documents refuting corruption claims. However Mr. Raffo was very careful in pointing out that "we're not betting on a downfall of the current Peruvian regime; our main object is ensure Mr. Fujimori's participation in the 2006 presidential election". Mr. Fujimori currently faces an extradition request from the Peruvian government allegedly for his responsibility in the killings of opponents to his regime, but Japanese authorities rejects the presentation given the former president's Japanese nationality. Mr. Fujimori has also been linked to the corruption charges against his former Intelligence chief currently jailed and on trial, Vladimiro Montesinos. The former president denies any wrong doings. The 28th. July is not only Perú's independence day, but Mr. Fujimori's birthday and the anniversary of President Alejandro Toledo's one year government that came to power condemning Fujimori's legacy but has plummeted in public opinion standing and faces constant political turmoil and street protests. "We're going to obliterate with evidence all defamatory claims against Mr. Fujimori's administration", indicated Mr. Raffo, adding that in a near future "we will also have a regular broadcasting program". Mr. Fujimori already has his own web page, "From Tokyo" with information on the achievements of his ten year rule of Peru. The former president is remembered by Peruvians for having ended armed guerrilla movements, re capturing the Japanese Embassy that was taken by a Marxist armed group and bringing a relative economic stability to the country. Polls indicate that Mr. Fujimori has a 23% following in Peru and street graffiti in Lima recall that "With Fujimori we lived better". President Toledo's support after loosing a privatization debate stands at 18%.

Another hat in the ring

Córdoba province governor José Manuel de la Sota announced he will be participating in the Justicialista Party primary to nominate the candidate for the Argentine presidential election of next March 2003. "I've decided to accept the challenge and I will participate as presidential candidate in my party's open elections", said Mr. De la Sota surrounded by his family during a political gathering. Governor of the most important Argentine province after Buenos Aires, De la Sota will be competing with former president Carlos Menem, and Adolfo Rodríguez Sáa, a former governor and seven days president last December when the political crisis that followed Mr. De la Rúa's resignation. "Argentina needs new ideas, honest candidates, and work, lots of jobs and work", remarked Mr. De la Sota during his announcement speech. Mr. De la Sota's presentation is good news for President Eduardo Duhalde after Carlos Reutemann, the most acceptable candidate for Argentine voters, decided not to run alleging "obscure" reasons and un democratic threats from the opposition. Actually Mr. Reutemann, currently governor of the province of Santa Fe, another important electoral constituency, seems more willing to let the next Argentine president face the overwhelming challenges of a country that has no international credit since it defaulted on its foreign debt last December; has condemned half of the population below the poverty line; lives with 25% unemployment and a four years recession. Mr. Reutemann who became involved in politics by former president Menem, 72, said that in four or eight years time he will still be younger that his presidential hopeful and mentor. However Mr. De la Sota fills a big vacuum since he will be representing the governors who forced Mr. De la Rúa out of office and took over having the National Assembly name Eduardo Duhalde, the strongest leader in the province of Buenos Aires and a sworn enemy of Mr. Menem. Whoever is nominated by the Justicialista Party will compete for the Casa Rosada with left wing Elisa Carrió, candidate for the Argentines for a Republic of Equals, ARI, who emerged as the natural leader of a vast sector of the Argentine electorate desperately disenchanted with the political system and past administrations, particularly the "evil" legacy of ten years of Mr. Menem. However Ms. Carrió does not have a party structure, and her government program is but a collection of good intentions, once "we've eliminated corruption and jailed all those that have plundered Argentina". Ms. Carrió, who reached Congress as a Radical Party Deputy and was a close to former president Ricardo Alfonsín, currently leads vote intention polls. Argentina's other large political force that reached presidential office on two occasions in the last twenty years but on both instances was unable to conclude its mandate, (Mr. Alfonsín and Mr. De la Rúa), the Radical Party has minimum presence in the polls and has atomized into several candidates with no chances.

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