'Sinking stopped deal

Press, 31 May 1982, Page 8

'Sinking stopped deal

NZPA-Reuter New York President Fernando Belaunde Terry of Peru was quoted in an interview published yesterday, as saying Argentina and Britain had been close to an agreement in the Falkland Islands dispute on May 2, a month after the initial Argentine invasion. But the agreement was frustrated by the sinking of the Argentine cruiser General Belgrano, by a British submarine, he said, according to "Newsweek.”

President Belaunde was quoted as saying the agreement had included provisions for a mutual withdrawal from the area of conflict. Peru had been acting as a mediator seeking a settlement between Britain and Argentina at the time. “Yes, for a moment they were ready to subscribe to a document, but that document was not quite acceptable, to Argentina,” , the magazine reported him as saying. “On May 2, we were very close to a settlement, which was'frus-

trated with the sinking of the Belgrano.” Asked whether he felt either side had negotiated in bad faith, be answered: “No, I think that on both sides there was good will but also some intransigence.” He’ said the sinking of the Belgrano at that point also sank all the peace proposals he had made. This was an act committed outside the area proscribed by Britain ... "f still cannot console myself that the proposal I made wasn’t approved the morning of May 2.”