MercoPress. South Atlantic News Agency

Finland rejects involvement in Uruguay/Argentina dispute

Finland will not be involved in the Uruguay/Argentina controversy over the construction of pulp mills in the Uruguay but fully supports the Finnish Botnia investment and the company's environmental responsibility.

Paula Lehtomaki, Finland's minister of Foreign Commerce currently on a South America tour insisted in Montevideo Tuesday evening during a press conference that Botnia is a "serious company" and therefore there should be no room for environmental problems.

"All human activities have an impact on the environment, and particularly industrial activities; what is important is that in Uruguay the latest and best technology will be applied so any environmental impact will be minimal", she pointed out.

Argentina was originally scheduled in Ms Lehtomaki agenda but following strong statements from Argentine president Nestor Kirchner demanding the involvement of the Finnish government in the dispute, the minister opted to cancel Buenos Aires feeling "she would not be welcome".

After meeting with the Secretary of the Uruguayan Executive Gonzalo Fernández and later with Foreign Affairs Minister Reinaldo Gargano and Industry and Trade Minister Jorge Lepra, Ms Lehtomaki held a press conference where she clearly stated Finland's position in the dispute.

Botnia and Ence from Spain are each building a pulp mill in the river Uruguay but Argentina wants construction stopped until an environmental impact report is completed arguing that the waters of the border river Uruguay are shared and according to a long established agreement, jointly managed by a binational Committee.

Ms Lehtomaki repeated several times she was confident a "negotiated" solution to solve the year long dispute between Uruguay and Argentina would be reached.

"As the situation stands it does not benefit any of the sides so I'm convinced a negotiated solution will be forthcoming".

However she also was skeptical about Argentina's insistent demand: "at least two environmental reports have been done so I'm not a 100% certain that another report will help solve the problem".

Ms Lehtomaki said that Finland has 19 industries similar to the one being built in Uruguay, "all over our territory, next to towns, lakes and rivers, and contamination problems have not been detected".

"In fact in Helsinki we drink water from a river where one of these plants exists and we are quite healthy and prosperous", she added.

When asked specifically if Finland was going to intercede before Botnia (for a 90 days construction suspension as requested by Argentina), the minister brushed aside the suggestion.

"It's a private company, it's not our job or competence to say what should be done" adding that "Botnia has invested lots of money and is sufficiently responsible to do whatever is needed to solve the conflict".

The Finnish minister admitted having talked about the dispute with Brazil but gave no details. However she revealed that the issue will be in talks with other regional governments.

The Botnia 1.2 billion US dollars pulp mill programmed to produce a million tons annually is the company's largest investment overseas and the largest private undertaking in Uruguay.