MercoPress. South Atlantic News Agency

Finally Argentine ? Uruguayan summit is confirm

The Finnish firm Botnia yesterday announced it would stop the construction of a paper pulp mill in the Uruguayan town of Fray Bentos for “up to 90 days,” a decision that clears the way for a meeting between Presidents Néstor Kirchner of Argentina and Tabaré Vázquez of Uruguay on Wednesday.

The two neighbouring countries are engaged in a long diplomatic feud over the construction of the pulp mills, one of the largest private investments in the history of Uruguay.

Argentina says that the plants will pollute the Uruguay River shared by the two countries. Uruguay denies the claim. Botnia said in a statement its board had decided to freeze the works in response to "a petition" made by the governments of Argentina and Uruguay and "in order to contribute to the opening of dialogue between the two republics."

"The government of Uruguay has announced that, in the above period of time, both countries will analyze the environmental impact that our undertaking will have on the region," said Botnia in a written statement released yesterday afternoon.

It added that the move was given the thumbs-up by the firm's headquarters in Finland.

ENCE, a Spanish company, is the other firm planning to set up a plant in Fray Bentos. ENCE, which has also said it is willing to contribute to dialogue between the two countries, has not started the construction of its plant yet.

Argentina's Cabinet Chief Alberto Fernandez will today receive Uruguay's Presidential Chief-of-Staff Gonzalo Fernandez. According to information published by two dailies in Montevideo, the Uruguayan envoy will officially inform the Kirchner government about Botnia's decision to halt the construction of the plants and the two officials will then work together in the preparation of the presidential summit.