MercoPress. South Atlantic News Agency

Chile denies arms race.

Chilean Defence Minister Michelle Bachelet strongly denied that recent Chilean weapons acquisitions could alter the South American military balance, as insistently claimed by Peruvian Congress members and retired military officers.

"Peruvians can rest in peace, Chile is in no arms race", stressed Ms. Bachelet in several Santiago radio and television interviews.

Ms. Bachelet was responding to repeated claims in the Peruvian press that Chile's purchase of two brand new Franco-Spanish submarines, a used British frigate (former HMS Sheffield) and a squadron of American F 16 fighter bombers were intended to achieve military supremacy.

Ms. Bachelet also pointed out that Chilean and Peruvian Armed Forces are involved in several joint projects and Peruvian cadets regularly train in the Chilean Naval School.

Admiral Miguel Angel Vergara, Commander of the Chilean Navy denied point blank any "arms race" arguing the acquisitions were only renovation of obsolete equipment.

"Ten years ago the Navy had ten units, now we're down to six with an average age of 35 years, which can only be described as an "emergency" situation".

The former HMS Sheffield, now "Admiral Williams" will be reaching Chile in early January after participating in naval exercises with Brazilian and Argentine units along the Atlantic coast.

Admiral Vergara said that two other second hand frigates will be purchased during the first half of 2004. Peruvians insist one of them, Fletcher class, has already been acquired from the United States Navy.

The Chilean Navy has a "Frigate Project" for the purchasing of new units, two of which must be built in Chilean shipyards. Admiral Vergara said that this month the Navy will announce the short list (three) of yards that have bid for the contract. Nine are the countries interested, France, UK, US, Germany, Holland, S. Korea, Spain, Italy and Russia.

The two Franco-Spanish submarines will replace former British units to be decommissioned by the Chilean Navy.

The US made F 16 squadron has been described by Chilean analysts as a "non official" string for the signing of the free trade agreement with the United States.

In Lima Peruvian Foreign Affairs Minister Allan Wagner said he trusted that Chilean short and medium military equipment purchases "were not part of an arms race".

Peru and Chile recently signed an agreement to make defence expenditure accounting compatible and comparable.