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Waiting On a Deal.(President Ricardo Lagos, Chile)(Brief Article)(Interview)(Statistical Data Included)

Newsweek International

| August 12, 2002 | COPYRIGHT 2002 Newsweek, Inc. All rights reserved. Any reuse, distribution or alteration without express written permission of Newsweek is prohibited. For permission: www.newsweek.com. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

President Ricardo Lagos spoke to NEWSWEEK's Joseph Contreras last month in the skies above the Andes as Lagos flew to a regional summit in the Argentine capital of Buenos Aires. Excerpts:

CONTRERAS: The United States and Chile have been haggling over a free- trade accord for years without achieving any breakthrough. What message would Washington send to the rest of Latin America if those talks end in deadlock?

LAGOS: That there will be no free trade with any country. I don't want to seem presumptuous, but I think it's easier to conclude a free-trade agreement with Chile than with any other country.

Do you feel angry or disappointed with the United States after your government clinched such an accord with the European Union in May?

I feel a bit resigned instead of disappointed or angry. Both Presidents Clinton and Bush have been staunch supporters of a free-trade accord, but they face political limitations.

Your government's recent $660 million purchase of 10 F-16 fighter jets was condemned by some of Chile's neighbors and by left-wing opposition leaders inside the country. Was this decision aimed at appeasing the country's armed forces?

In no way whatsoever. The Chilean state has a policy of replacing what is obsolete, and nothing more.

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