MercoPress. South Atlantic News Agency

Argentina and Chile wish for gas supply normalization.

Argentina and Chile agreed Monday to continue strengthening their bilateral “strategic alliance” and overcome recent “trade differences” but could only politely hope for a quick normalization of natural gas supplies.

Argentine president Nestor Kirchner on an official state visit to Chile and his counterpart Ricardo Lagos signed in Santiago several agreements and a joint declaration stating their commitment "to keep strengthening their strategic alliance, founded on shared values of peace and friendship and respect for democracy and human rights".

In the following press conference underscored Chile's support to "Argentina's legitimate sovereignty rights over the Islas Malvinas". Mr. Lagos called upon the governments of Argentina and Britain to resume negotiations as soon as possible "to find a peaceful and definitive solution to the sovereignty dispute in accordance with United Nations and Organization of American States resolutions".

Regarding energy integration, --an irritating issue because of Argentina's unilateral decision to privilege domestic consumption--, both presidents coincided in the "tasks and achievements" attained by a bilateral group working for solving the sector's bilateral problem. "This task force must continue with its activities until the full normalization of natural gas trade operations between Argentina and Chile". Mr. Lagos underscored that Chile "doesn't want to be part of the (gas supply) problem, but rather part of the solution".

Mr. Kirchner and Mr. Lagos, after recognizing the peculiarities of each country's economy, underscored the "continuous growth shown by bilateral trade as well as the renewed dynamism of Chilean investments in Argentina". They also urged officials at technical level to find "agile solutions" for the different trade problems faced.

Both presidents promised to keep advancing in the "possibility of reaching" a greater opening for air traffic and following initiatives from the two countries' Congress mandated Foreign Affairs ministers to co-ordinate the establishment of a "Chilean-Argentine Friendship Day".

As to foreign policy the final declaration underlines joint positions regarding Mercosur, OAS, United Nations and the South American Community of Nations. "Mercosur is an essential tool for regional integration", and "a greater participation from associate members", must be promoted.

Early in the day Mr. Kirchner took the opportunity to blame foreign energy companies established in Argentina for the natural gas supply cuts to Chile. "Argentine energy policy makes it compulsory for gas producers to guarantee full domestic supply and only then export the surplus", pointed out Mr. Kirchner during breakfast with Chilean businessmen.

The current situation was reached "because companies established in Argentina didn't make the necessary exploration investments on time and so we are limited in our gas supply overseas". "We must not fall in false xenophobia", insisted President Kirchner, "Chile is by far our strategic partner", but Argentina is not a country that lives exclusively of gas or oil exports, "even when we do have gas and oil reserves".

Chilean businessmen thanked Mr. Kirchner for having come to Santiago with virtually the whole ministerial cabinet and for having "displayed in clear and concrete terms" the current energy situation.