MercoPress. South Atlantic News Agency

Kirchner to talk utilities in France.

President Néstor Kirchner and most of his Cabinet start today on a four-day official visit to France, where he is to meet with French President Jacques Chirac and local businessmen with interests in Argentina's utility sector.

Kirchner's delegation includes Economy Minister Roberto Lavagna and Investment Minister Julio de Vido, who are expected to discuss with French authorities and businessmen the future of French investments in the water and power areas.

Although the government has said Kirchner and Chirac will review a "strictly political" agenda, utility contracts are expected to be at the top of the list of issues Kirchner and his delegation will discuss with French counterparts.

The government is said to be considering scrapping the contract with Aguas Argentinas, the water company controlled by France's Suez. The company owes the government more than 60 million pesos in fines. The latest fine was slapped by the Kirchner administration last week, days after service was cut in sweltering heat.

Utilities have for over two years been urging the government to update rates, which remained frozen after the sharp devaluation of the peso in January 2002. The Edenor power distributing company is also controlled by French capital.

"Utilities will be a topic of conversation but will not be the main topic," said Fernández, the Cabinet chief, before leaving for France.

Kirchner left for France on an Aerolíneas Argentinas plane just before 6pm yesterday. First lady Cristina Fernández, Cabinet Chief Alberto Fernández and Legal Secretary Carlos Zanini are part of the delegation. So are governors Felipe Solá (Buenos Aires) and Sergio Acevedo (Santa Cruz) and Peronist congressional leaders José María Díaz Bancalari and Miguel Angel Pichetto. Foreign Minister Rafael Bielsa is flying from New York and joining the group in Paris.

The meeting with Chirac in the Elysée Palace is scheduled for tomorrow morning. (BAH)