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Reuters Argentina Threatens Court Case over Uruguay Pulp

Date: 10-Feb-06
Country: ARGENTINA

The project has caused diplomatic sparring between Argentina and neighboring Uruguay in recent months, with Uruguay insisting on going ahead with construction of the two pulp mills and Argentina questioning their environmental safety.

"For now, this is the only option we have in sight," cabinet chief Alberto Fernandez said during a press conference, regarding the possibility of battling Uruguay at the Hague.

Fernandez said the government will send a bill to Congress regarding the proposed case so that legislators can debate the nation's position, probably next week, although he added that their vote would not be binding on the executive branch.

"Our desire is to generate the greatest debate possible with regard to this situation, so that all the political groups can express themselves and we can move forward with an action on behalf of all Argentines," Fernandez said.

The mills, to be built by Finland's Metsa-Botnia and Spain's Ence, are expected to produce 1.5 million metric tonnes of wood pulp for export after they begin production in 2007.

The companies say any pollutants from the plants would be within internationally accepted levels.

The mills are among Uruguay's biggest planned foreign investment projects, located on the banks of the Uruguay River dividing Uruguay from Argentina's Entre Rios province.

Uruguay's President Tabare Vazquez said this week that blockades by Entre Rios residents and environmentalists along a highway linking the two countries are hurting his nation's economy.

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