Uruguay's president defends controversial pulp mills in nationally televised briefing

June 2006

U.S. Water News Online

MONTEVIDEO, Uruguay -- President Tabare Vazquez held a nationally televised briefing to defend two wood pulp plants being built in Uruguay that have provoked protests in neighboring Argentina, declaring the mills environmentally sound.

The televised meeting late at the presidential offices, which included 250 guests, marked Uruguay's staunchest defense yet of the pulp mills in months of bitter feuding with Argentina.

Protesters and environmentalists claim the two plants being built just across the Uruguay River will pollute Argentine farmlands and damage tourism along the river. Uruguay insists the project -- the biggest investment in the nation's history -- is environmentally sound.

Argentine President Nestor Kirchner held his own "town hall" style meeting May 5 near his country's border with Uruguay to voice growing dissent with the project, saying he awaited an environmental study proving it would not pollute the border river.

But in his televised briefing, Vazquez defended the two sprawling plants being built near Fray Bentos, Uruguay, saying they would count on state-of-the-art technology.

He said any pollution would remain within internationally acceptable limits and that his country wasn't handing the French and Spanish consortiums in the project a "blank check."

Applauded as he spoke in the Liberty Building housing the executive branch, Vazquez also said his small South American country has always insisted on "dialogue" to peacefully settle disputes.

Argentina and Uruguay have been feuding for months over Uruguay's plans for the two plants, which are expected to create hundreds of jobs and pump millions of dollars (euros) annually into the economy.

"Uruguay has always embraced dialogue, peaceful discussions and responsible negotiations," Vazquez said.

He spoke in the seat of executive power before 250 guests, including government representatives, political party chiefs and heads of social organizations.

Outside, some 300 people protested against the pulp mill projects, kept back from the building behind police barricades.

The two pulp mills are being built for a total of $1.8 billion (1.42 billion euros) -- the biggest investment project in the history of Uruguay. One of the plants is being built by Finnish consortium Metsa-Botnia Oy and the second by Spain's Grupo Empresarial ENCE.

Earlier, Argentina announced it had filed a claim against Uruguay before the International Court of Justice at the Hague, arguing that Uruguay didn't provide enough time for a thorough environmental impact study.

The pulp mill feud has damaged traditionally warm ties between the two nations. Meanwhile, Uruguayan officials claimed months of blockades of bridges on the border earlier this year by Argentine protesters caused it some $400 million (317 million euros) in damages from lost trade.

 

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