MercoPress. South Atlantic News Agency

Argentina, Chile to forge strategic alliance

Bachelet, who took office on March 11, opened the first state visit of her presidency calling on Kirchner to discuss growing trade and political ties ? and the sensitive issue of future Argentine supplies of natural gas to Chile.

The two leaders privately discussed the sensitive issue of declining provisions of Argentine natural gas to Chile's economy. Chile depends almost entirely on the gas imported from neighbouring Argentina, but there have been supply problems due to growing consumption and reduced reserves here.

"Chile believes that we are heading toward building a strategic alliance with Argentina," said Bachelet in a speech in Government House after meeting with Kirchner. She also stressed the fact that she had "ample political coincidences" with the Argentine leader and announced both administrations will set up "a concrete working agenda" in several fields of governing.

"Argentina and Chile will set an example of regional integration," said in turn Kirchner, who referred to the Chilean president as "our friend."

Government officials from the two countries signed on Tuesday a series of accords on strengthened cooperation in energy, defense, mineral industry, science, education and other sectors.

On Wednesday, before heading on to Uruguay, Bachelet is expected to meet governors of seven Argentine provinces bordering Chile.

Bachelet was received by Foreign Minister Jorge Taiana and Buenos Aires Mayor Jorge Telerman upon arrival at the Metropolitan airport. Her first official activity was to lay a wreath at the monument to national hero José de San Martin in the city neighbourhood of Retiro.