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Viewing cable 06MONTEVIDEO376, PAPERMILL DISPUTE HAS FINLAND'S ATTENTION

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Reference ID Created Released Classification Origin
06MONTEVIDEO376 2006-04-26 19:55 2011-07-12 00:00 UNCLASSIFIED Embassy Montevideo
VZCZCXYZ0117
OO RUEHWEB

DE RUEHMN #0376 1161955
ZNR UUUUU ZZH
O 261955Z APR 06
FM AMEMBASSY MONTEVIDEO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5702
RUEHHE/AMEMBASSY HELSINKI IMMEDIATE 0057
INFO RUCNMER/MERCOSUR COLLECTIVE
RUEHMD/AMEMBASSY MADRID 0850
RUEHTC/AMEMBASSY THE HAGUE 0165
RUMIAAA/CDR USSOUTHCOM MIAMI FL//J-5//
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RHEHNSC/NSC WASHDC
,UNCLAS MONTEVIDEO 000376 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR WHA/BSC BARNES, CROFT AND MURRAY 
DEPT ALSO FOR EB A/S WAYNE AND WHA/OAS DCENTO 
DEPT PLEASE PASS USTR 
TREASURY FOR OASIA FOR DOUGLAS 
COMMERCE FOR ITA/MAC BASTIAN 
NSC FOR FISK AND CRONIN 
 
E.O. 12958: N/A 
TAGS: PREL SOCI EINV SENV AORC UY
SUBJECT: PAPERMILL DISPUTE HAS FINLAND'S ATTENTION 
 
REF: MONTEVIDEO 00353 AND PREVIOUS 
 
1. (U) In Uruguay there has been widespread dissatisfaction 
over reports from Sao Paulo that Brazil and Argentina will 
not support the papermill dispute's submission to Mercosur's 
conflict resolution mechanism, as Presidents Lula da Silva 
and Nestor Kirchner apparently consider the affair to be 
purely bi-lateral. The reports also maintained that Argentine 
President Kirchner has called for another environmental 
impact study on the plants. The news came on the eve of 
President Vazquez' April 25 departure for a nine-day official 
visit to Mexico and the U.S.  Uruguay contends that the 
dispute is multilateral in nature because the continued 
international bridge blockades have also affected commerce 
with Chile, Paraguay and Bolivia -- and indirectly involve 
Finland and Spain because their private companies are 
building the contested plants. Uruguay also maintains that 
the plants have been sufficiently studied for environmental 
concerns. 
 
2. (U) On April 26, local newspapers headlined Argentina's 
and Brazil's reported decision not to take up the papermill 
dispute under Mercosur auspices, as Uruguay has long sought. 
A number of articles were openly anti-Argentine or 
anti-Mercosur in their tone and implied that the dispute 
could be raised at the next EU-Mercosur meeting in Vienna on 
May 11. 
 
3. (U)) Meanwhile, Finland's Minister for Foreign Trade Paula 
Lehtomaki arrived in Montevideo to discuss trade and 
investment issues, including those related to the Finnish 
company Botnia's pulp mill under construction in Fray Bentos 
where a bridge remains blocked by Argentine protesters. 
During her April 25-26 visit, Minister Lehtomaki privately 
and publicly lent her support for Botnia's billion-dollar 
pulp mill project on the Uruguay river, saying that the plant 
used environmentally safe technology that has been proven 
safe by 19 such plants operating in Finland and elsewhere and 
have been backed by exhaustive scientific studies.  She also 
said that the Botnia plant represented Finland's largest 
private overseas investment, but stressed that the GOF did 
not interfere with private contracts.  Lehtomaki said she 
will later travel to Chile and Peru, but has canceled her 
trip to Argentina, publicly stating that she was ""not a 
welcome guest"" in Argentina. 
 
4. (SBU) Comment: We have been told by members of President 
Vazquez' entourage that he may raise the papermill dispute at 
his May 4 meeting with POTUS with no expectations for the US 
to take sides in the matter.  However, we also understand 
that Uruguay is seriously contemplating lodging a formal 
complaint at the OAS.  Apparently some officials are also 
hoping to enlist Finland's help further when it assumes the 
EU pro-tempore presidency next July, if the paper mill 
dispute is not resolved by then. End Comment. 
Nealon