March 20, 2006

Former Chilean navy chief backs giving Bolivia ocean access for gas, water

SANTIAGO, Chile
A right-wing senator and former commander of the Chilean navy has said he would back a deal to give landlocked Bolivia access to the Pacific Ocean in exchange for gas or water.

``A solution must be found to Bolivia's demand for an outlet to the sea,'' retired Adm. Jorge Arancibia was quoted as saying in the Santiago daily newspaper Siete on Sunday. ``And if that includes giving up sovereignty, I would not oppose it, as long as we get corresponding compensations.''

Arancibia could not immediately be reached by phone.

Bolivia lost its coast to Chile in the 1879-84 War of the Pacific and has since been trying to recover it. It broke diplomatic relations with Chile in 1978, in the wake of a failed deal to gain access to the ocean in exchange for a section of land.

Asked whether he would support such a deal, Arancibia replied, ``Today the world is open to another kind of compensation that can strengthen relations between the two countries.''

He added, ``I am thinking of the Bolivian gas, the water that exists in the highlands.''

Bolivia has repeatedly said it is prepared to exchange gas for ocean access.

Energy-short Chile could benefit from Bolivia's mammoth natural gas reserves, while its dry northern region could take advantage of Bolivia's water reserves.

In Chile, opposition to Bolivia's demands appears to be softening.

When Bolivian President Evo Morales visited Santiago on March 11 for the inauguration of President Michelle Bachelet, thousands of people rallied to honor him, many chanting, ``Sea for Bolivia!''

Morales said later it was difficult ``not shedding tears hearing the Chilean people back our historic demand.''

Chile has in the past refused to discuss ocean access with Bolivia, but in recent months has offered to talk about ``a fee agenda.''

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