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Antarctic Treaty meeting in Madrid; Chávez popularity receding; Argentina poised to grow 5%; Aerolíneas Argentinas to sell 35% equity;

Antarctic Treaty meeting in Madrid

Over 300 experts from 45 different countries will be participating as of this week in the twenty sixth consultation meeting of the Antarctic Treaty when it's anticipated that Buenos Aires will be officially declared as seat of the organization's Secretariat. The meeting that is hosted by Spain in Madrid will be inaugurated by the Prince of Asturias, heir of the Spanish throne, and will have a cost of 1,5 million Euros billed to the Spanish Development Agency. Illegal fishing in Antarctic waters also figures as a priority of the coming Madrid discussions. Argentina has been lobbying for the Antarctic Treaty Secretariat location for years but the British veto consistently delayed the issue. At the end of the Carlos Menem administration, Argentina and Britain reached an understanding that opened the way for the Argentine aspiration. Among other things Argentina agreed to a more scientific emphasis (and lesser military presence) in her Antarctic operations.

Chávez popularity receding

Almost two thirds of Venezuelans would vote for President Hugo Chavez to abandon office if a referendum on his mandate takes place, according to a public opinion poll released last week in Caracas. Datanálisis, a respected private consulting Caracas company revealed that 64% of those interviewed in the whole of Venezuela during the first week of May would have voted against Mr. Chávez if the referendum had been organized for the last Sunday of May. Even with a technical error of plus/minus 3% the poll also indicated that former paratrooper and coup instigator Mr. Chávez has a 28,8% hardcore support which contrasts with 70% strong critics and miles away from the 80% popularity he mustered when the president was first elected four years ago. According to the Venezuela constitution which was reformed following Mr. Chávez initiative, a referendum can be called at the mid term of any elected official, including the President, and for Mr. Chávez this will happen as of August 19. A fortnight ago the Chávez administration and its fierce opponents who accuse him of wanting to install a Communist regime similar to the Cuban dictatorship, signed a peace understanding to pave the way for the referendum in an attempt to reduce the intensity of the political conflict that has virtually melted the oil rich Venezuelan economy. However the government has since accused opponents of "conspiring" and anticipated that the understanding does not guarantee the referendum, and anyhow the "timetable and convening process" must abide to law. These include a signatures petition of 20% of the electoral roll which must be presented to an Electoral Committee, that still has to be nominated by a Chavez dominated Congress. According to the poll 62,8% of those interviewed would sign the petition to terminate Mr. Chávez rule, but 29,8% also indicate that the government will impede the voting to proceed. Another 23% believes the government will do its utmost to delay the voting process and 10,5 that it will appeal to any form of fraud. In the opposite position 28,6% consider that Mr. Chávez will honour the voting process.

Argentina poised to grow 5%

The Argentine economy is poised to expand over 5% this year and prospects are increasingly optimistic, indicated Enrique Iglesias president of the Inter American Development Bank, IDB, during a conference in Brussels. "Argentina's problems are becoming untangled. They have a lot of work ahead but Argentines are moving in the correct way", said Mr. Iglesias who was the main speaker at a conference on social inequality and poverty organized by the European Commission. "We're optimistic about Argentina. The economy expanded during the last four quarters and I believe it will end the year above 5%, which is very important for Argentina and its neighbours. During 2002 the Argentine economy almost collapsed, in the verge of hyperinflation and contracted an unprecedented 10,9%. "Argentina has a transitory agreement with the IMF and we trust the new administration will continue advancing over the problems the country faces". The IDB openly supported Argentina during the 2002/2003 financial crisis and loaned 1,5 billion US dollars in much needed funds. Mr. Iglesias was recently bestowed by the former Argentine President Eduardo Duhalde administration with the highest Argentine honour for his services to the country.

Aerolíneas Argentinas to sell 35% equity

Aerolíneas Argentinas currently under the control of the Spanish tourism group Marsans will be floating 20%/25% of equity in the Spanish stock exchange and selling another 15% to private companies, according to a report in a Madrid newspaper. "Our objective is to make a public offer of equity in May 2004, but before we would like to have a stable core of institutional share holders", said Mr. Antonio Mata, president of the former Argentine government airline. "We're already having discussions with Argentine and Spanish companies for the sale of 15%, and in the stock exchange we're thinking of 20 to 25%". However the equity and managerial control of the company will remain in the hands of the Marsans group, underlined Mr. Mata. Mr. Mata also revealed that Aerolíneas is in the process of opening four regional affiliates that will be operating in Bolivia, Chile, Paraguay and Uruguay, plus the final fusion with the company's domestic affiliate Austral. Aerolíneas is expected to achieve 25 million US dollars in profit during 2003 with an annual turnover of just above a billion US dollars. Mr. Mata recalled that only twenty months ago the company was loosing 30 million US dollars a month. Aerolíneas Argentinas, the Argentine flag carrier, was privatized in 1990 and currently controls 80% of the country's domestic market.