MercoPress. South Atlantic News Agency

Argentina denies any “nationalization wave” after mid term election

Cristina accepted Venezuela’s leader “joke” on special deal for Brazilian companies

Argentina accepted on Wednesday Venezuelan President Hugo Chávez' explanation about his comments on his administration’s nationalization plan that doesn't include Brazil's firms, and in a separate statement denied any “nationalization wave” was planned following June’s mid term election.

Venezuelan Foreign Ministry said the press tried to manipulate Hugo Chávez' comment about the non nationalization of Brazilian firms in Venezuela. They said the comment was a “joke” the President said during a relaxed moment in the meeting with Brazilian President Lula.

“The press release was clear” said Argentine Interior Minister, Florencio Randazzo, referring to the one published by the Venezuelan government after President Cristina Fernández de Kirchner claimed Chávez an explanation for his comments during the meeting with Brazilian President Lula da Silva on Tuesday in Bahía.

“Argentine press did a smear campaign” with the intention of making the Argentine believe they had been threatened, said the Venezuelan Foreign Ministry's press release, there are plenty of Argentine firms that work with Chávez government “to contribute in national development plans that guarantee justice and prosperity for the Venezuelan people. Techint is not the only Argentine company in the country”.

According to the Buenos Aires press Mrs. Kirchner called the Venezuelan President after reading in foreign media that he allegedly told Lula d Silva Venezuela would nationalize the country's main companies, except the Brazilians.

According to the Government house, President Chávez denied the foreign media allegations and Argentine President summoned him reject them publicly. Chávez answered that he will read all that has been said about the reunion as soon as he gets back to Venezuela and then do a public speech.

“Such a declaration - if it really has been said - would be very discriminating, and would show an unacceptable attitude from the two democratic states. It would also be totally contradictory to the bilateral strategic deals our country has signed with Venezuela”, was Mrs. Kirchner’s first reaction.

The domestic reaction to Chavez (joke or no joke) statements in Brazil, and its possible repercussions in Argentina given the close relation with the Kirchners, was addressed by Buenos Aires province governor Daniel Scioli.

The powerful Argentine Industry Union, UIA, on hearing Chavez’ comments on Tuesday released a strong communiqué requesting Argentina review Venezuela’s incorporation to Mercosur and demanded more support for the Argentine companies, most related to the iron and steel sector, that last week had been nationalized by the populist leader.

Argentine businessmen also fear that following the June 28 mid term election there could be a similar “nationalization” process of so called strategic industries following on the Chavez pattern.

But Governor Scioli assured businessmen in Argentina that there would be no “nationalization wave” in Argentina, as “the one taking place in Venezuela”, adding that Argentina “does not want to spread fear among companies interested in investing in the country.”

Meanwhile, the governor said the Argentine government is negotiating with Venezuela a compensation for Techint, which Venezuela said it would pay in return for the nationalization of the companies. “Argentina is asking compensation,” the governor said, and then he blamed the opposition for accusing the government of inaction.