DJ Argentina Urges Chavez To Clarify Nationalization Plan -Report
BUENOS AIRES (Dow Jones)--Argentine President Cristina Fernandez has called on Venezuelan President Hugo Chavez to publicly clarify his plans to nationalize private companies, Argentina's state news agency Telam reported Wednesday.
In a phone call to Chavez Tuesday, Fernandez voiced her concern about reports Venezuela plans to nationalize multiple companies, including Argentine firms, but will not take over any Brazilian companies.
"We're in a phase of nationalizing companies in the country, except for the Brazilian ones," Chavez was quoted as saying during a visit to Brazil.
The comments, which were inadvertently broadcast live to reporters during a private conversation between Chavez and Brazilian President Luiz Inacio Lula da Silva, put Argentina's president in an uncomfortable bind.
The remarks come just days after Chavez said Venezuela would nationalize assets owned by Matesi and Comsigua, two iron producers, and Tavsa, a steel tube maker owned by Tenaris, all of them part of giant Argentine-Italian conglomerate Techint. The conglomerate already suffered from Chavez's decision in 2008 to nationalize Sidor, Venezuela's largest steel mill.
The nationalization of these firms, which would deal a major blow to Techint and the effort of Argentine businesses to expand their presence abroad, has caused a fierce backlash in Argentina.
The Argentine Industrial Union, which represents the country's leading manufacturers, expressed its "profound concern" about Venezuela's plans. The UIA said it couldn't understand why the Venezuelan government, "which frequently talks about promoting business ties between the two countries," would take over Argentine companies.
The UIA also called on Fernandez to reject Venezuela's bid to become a full member of Mercosur, the South American trade group.
A host of Argentina's most powerful business groups also issued statements calling on Fernandez to stop Chavez and defend the interests of Argentine businesses.
Telam reported Chavez denied to Fernandez that he ever made the comments in question.
"Because of that, the president asked Chavez to publicly deny the media reports," Telam reported.
"That kind of affirmation, if it existed, would imply a degree of discrimination and a discretionary nature that goes beyond the sovereignty of an independent state ...," Fernandez was quoted as saying. "In addition, it would be absolutely contradictory to the strategic accords we've signed with Venezuela."
Argentine business leaders have privately criticized Fernandez for her relationship with Chavez and voiced concern that her government too my try to nationalize more companies in Argentina. Argentine officials have repeatedly

denied such speculation.
But that hasn't prevented business leaders here from wondering why Fernandez, who spent two days here with Chavez just before he announced plans to nationalize Argentine firms, failed to tell them about Venezuela's plans.
Fernandez has said her government respects Venezuela's "sovereign" right to nationalize the firms, though she said she will push Venezuela to pay a "fair price" for doing so.
-By Taos Turner, Dow Jones Newswires; 5411-4103-6728; taos.turner@dowjones.com
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(END) Dow Jones Newswires
May 27, 2009 14:27 ET (18:27 GMT)
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