MercoPress. South Atlantic News Agency

Chile/Peru squabble over copper bill and military spending

A call by Peru that Chile scrap a law that earmarks a percentage of copper windfalls for military equipment is “unacceptable” said Chilean government spokesperson Francisco Vidal.

Peruvian Foreign Affairs minister Jose Garcia Belaúnde said over the weekend that Chile should reduce its purchase of military equipment and finish with the so called "copper bill" to help "contribute with regional peace". "I think it would be something good that Chile annuls the copper bill because obviously the purchase of military equipment is worrisome" and continued "why does a country arm itself to that extent?" The sensible thing would be the rejection of the bill and have military procurement included in the budget as in most countries, added the Peruvian official. Under the "copper law", which dates back to the military dictatorship of Augusto Pinochet, Chile is obliged to spend 10% of its revenues from its extensive copper mining on weapons procurement. The tripling of copper prices on world markets during the commodities boom of recent years means Chile's military spending has skyrocketed, to the unease of Peru, with which it has often tense relations. In 2005, Chile became of the top spenders on defence in Latin America, attributing 3.54% of GDP to the sector, according to the Latin American Security and Defence Network. Garcia Belaunde also recalled that the Chilean congress "a year or so was considering the issue, but suddenly the debate is no more there". "It's not acceptable for the Chilean government that the Foreign Affairs minister of a foreign country should say how Chile should legislate; it's unacceptable that a Foreign Affairs minister should say that there's no urgency to a certain draft, it's unacceptable that a Foreign Affairs minister from a foreign country should say that the renewal of military equipments by our Armed Forces is a risk to regional peace", said Vidal. Chilean Peruvian relations have been tense for the last two weeks following the release of a video on U-tube where the Peruvian Army commander is seen saying that "any Chilean who dares march into Peru will return in a coffin or a black bag". Chileans wanted the general sacked but President Alan García preferred to let him finish his five days as Army chief before retirement.