MercoPress. South Atlantic News Agency

Kirchner downplays pulp mills conflict with Uruguay

Argentine president Nestor Kirchner downplayed the conflict with Uruguay arguing that the long established relations between the neighbouring countries go far beyond the “building or not” of the controversial pulp mills.

"We supply Uruguay with electricity and gas. We're not like Brazil, which simply cut the electricity provision over a domestic energy problem", said Mr. Kirchner according to the Sunday edition of Buenos Aires daily La Nacion.

A week ago Brazil decided to cut energy sales of 70 megawatts because of its own domestic needs, forcing Uruguay to appeal to its ultimate resource of hydroelectric power, seriously diminished because of the long drought and lack of rainfall.

"We have a relationship with Uruguay that goes far beyond," insisted Kirchner in direct reference to the two countries dispute over the 1.8 billion US dollars construction of two pulp mills on the shores of the shared and jointly managed Uruguay River. A project that is the largest single foreign private investment in the country's history but which Argentine residents claim will cause tremendous water and air pollution in the waterway.

The two corporations involved in the operation are Spain's ENCE and Finland's Botnia which are building the plants in Fray Bentos across from the Argentine city of Gualeguaychú that is openly resisting the undertakings with pickets blocking international bridges, strong lobbying in Buenos Aires and in close alliance with environmentalist groups such as Greenpeace.

President Kirchner's remarks were made over the weekend at the end of the fourth European Union/Latinamerican leaders meeting in Vienna, where in combination with Greenpeace, a Gualeguaychú beauty queen in a scant bikini protested against the pulp mills before the 59 world leaders.

However President Kirchner's words follow the filing of a demand against Uruguay by Argentina before the International Court of Justice at The Hague. Argentina argues that Uruguay ignored the 1975 River Uruguay treaty which commits both countries to bilateral consultations when water resources are to be used and is demanding an environmental accumulative impact assessment.

"I'm the president of Argentina. I had to intervene" said President Kirchner when asked about the 18 months long conflict.

"For a whole year I did not speak about the issue. The road and bridge blockades were not the best options to work out an agreement, but it wasn't us (Argentina) who abandoned negotiations," he insisted.

La Nacion reports that when he was asked if during the Vienna summit he had been able to speak with Uruguay's president Tabare Vazquez, Kirchner replied he only had "one encounter" with his Uruguayan counterpart in which they shook hands and gave each other "the usual greetings".