Argentinian fleet sails ‘to challenge blockade’

Press, 17 April 1982, Page 1

Argentinian fleet sails ‘to challenge blockade’

NZPA-Reuter

Buenos Aires

Argentinian warships were yesterday reported to be heading towards the Falkland Island to challenge the naval blockade mounted by Britain.

A Buenos Aires daily newspaper, “Clarin,” quoted Argentinian Navy sources as saying that the bulk of the Argentinian fleet, led by the aircraft carrier Veinticinco de Mayo, was heading for the conflict zone to intercept British ships steaming towards the Falklands to reinforce the British submarine blockade.

The official news agency, Telam, had said earlier that an undisclosed ..number of Argentinian warships . were leaving mainland ■*’ ports where they had been berthed since Britain drew the 200nautical mile blockade around the Falklands last Monday. The departure of the warships came as the United States Secretary of State, Mr Alexander Haig, arrived in Buenos Aires with a call for a “supreme effort” to avert war in the South Atlantic. The bulk of the Argentinian fleet had been moored at the naval base at Puerto Belgrade, about 650 kilometres south of Buenos Aires, since before Britain imposed the blockade.

At least two and possibly four British nuclear-powered submarines are believed to be in the- blockade zone with orders to sink any Argentinian warship or auxiliary vessel.

The ruling military junta reiterated yesterday that it would take “measures of self-defence” within the blockade zone, a statement that it first made . a week ago. But it said nothing about any fleet movements, nor did it say what measures might be taken.

Western military attaches had suggested earlier that Argentina might send its ships to sea to prevent them from being bottled up in port by British vessels. The Argentinian Navy consists of 17 major ships. The naval activity came as Mr Haig flew back to Buenos Aires from Washington to. resume his efforts to find a peaceful solution to the dispute before the arrival of a powerful British flotilla of about 50 warships, due next week. He had -.said earlier that the situation was still ‘exceptionally difficult and exceptionally dangerous.” Speaking on his arrival in Buenos Aires, he said that both Britain and Argentina would have to show flexibility for a settlement to be reached. “I want to make clear that our job will not be easy, but what is at stake is so important that it is worth while making efforts,” he said. “We have to make the supreme effort to reach a solution to this problem.” Mr Haig was accompanied on the 20-minute drive to his hotel last evening by Argentina’s Foreign Minister, ‘Dr Nicanor Costa Mendez.

Mr Haig said that he had agreed to return to Buenos Aires only after Argentina and Britain had assured him that they wanted the United States to help find a political solution to the crisis. President Galtieri and President Reagan spoke to each other by telephone yesterday and both agreed on the need for a peaceful solution to the dispute, the White

House announced in Washington. However, officials and diplomats see the likelihood of war growing with each passing day. Both sides remain tough and far apart in the negotiations. ■ Dr Costa Mendez appeared to reflect the growing tension with a remark about Britain's Prime Minister (Mrs Thatcher), who made a defiant speech in the House of Commons on Wednesday, declaring that Britain intended to regain the islands “even if the cost is high.” Asked what he thought of Mrs Thatcher, Dr Costa Mendez said, “I don’t think anything of her, or better yet, what I think can’t be sgid publicly.” “The English reaction has been so absurd,” he said. “It is so disproportionate, so without any basis that the reactions are going to be unpredictable for some time.”

In other developments, economic pressure on Argentina’s Government continued to increase as .long lines of depositors formed outside some banks in Buenos Aires to withdraw their money. The Association of Argentina Banks and the Chamber of Argentine Finance Companies yesterday asked the Government to impose emergency financial measures to shore up the banking system.

It appears that huge amounts of private capital have been secretly deposited abroad since the crisis began.

Further reports, page 8