MercoPress. South Atlantic News Agency

Uruguay/Argentina pulp mill summit postponed

The Uruguayan/Argentine presidential summit scheduled for Wednesday to address the pulp mills dispute was postponed according to official releases from both governments.

Uruguay's Tabaré Vazquez was going to host President Nestor Kirchner in Colonia but apparently "more time" is needed to adjust details of the meeting to untie the dispute over the construction of two pulp mills on the Uruguayan side of the shared and jointly managed river Uruguay.

"The postponement was jointly agreed so as to collect the adequate instruments to ensure a fruitful meeting", said the Argentine release.

Vazquez and Kirchner were expected to agree on the naming of a bilateral committee with the purpose of establishing the environmental impact which the two pulp mills under construction in Fray Bentos could generate.

However a first approach meeting between the cabinet chiefs of both countries took place in Buenos Aires early Tuesday to advance on several points of the agenda for the meeting which has been postponed.

Over the weekend the companies building the pulp mills, Finland's Botnia and Spain's Ence had advanced they would postpone work for 90 days to contribute with the "dialogue commitment" reached by the Argentine and Uruguayan governments.

Residents on the Argentine side of the River Uruguay in Gualeguaychú, across from Fray Bentos, had been blocking with pickets two bridges leading to Uruguay to protest the alleged future pollution of the pulp mills.

As part of the agreement, pickets were lifted and the private companies accepted to stop construction of the pulp mills for 90 days during which an environmental impact assessment would be elaborated.

The Uruguayan government promised to take care of the 90 days payroll for the 1,500 workers involved in the construction of the pulp mills. No new date for the presidential summit was confirmed.