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Article

14 Mar 2006

Author:
Benedict Mander, Financial Times

Uruguay hardens stance in rift over paper mills

A truce between the presidents of Argentina and Uruguay over a controversial $1.7bn (€1.4bn, £973m) paper mill project in Uruguay appeared to disintegrate on Tuesday...President Tabaré Váz­quez of Uruguay...said. “The Uruguayan government is not going to stop the construction of the cellulose plants...because leg­ally it cannot do so"... On Saturday Mr Vázquez said he had agreed with President Néstor Kirchner of Argentina to ask for “a gesture”...from Finland’s Botnia and Spain’s Ence to suspend construction of the cellulose plants...Botnia and Ence say they have not received any direct official request to suspend construction and will consider doing so only when that happens...Argentines living across the river that separates the countries where the plants are situated fear pollution of air and water... Argentina has refused Uruguay’s request to settle the dispute in a Mercosur tribunal, instead threatening to take the matter to the International Court of Justice in the Hague.