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GV Peruvian president General Francisco Morales Bermudez leaving plane followed by wife and being welcomed by Argentine President Jorge Raphael Videla
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SV Guard of honour
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MV Two Presidents walking past dignitaries to podium
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MCU President Videla speaking in Spanish
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SV Reporters
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GV ZOOM IN TO MV President Morales speaking in Spanish
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Script is copyright Reuters Limited. All rights reserved

Background: President Francisco Morales Bermudez of Peru has ended his four-day visit to Argentina, after discussions with President Jorge Raphael Videla. Both Peru and Argentina are members of the Organisation of American States (OAS), to whom Nicaragua's President General Anastasio Somoza has appealed for help against the Sandinistas guerrillas fighting to depose his government. But Peru and four other countries, Venezuela, Colombia, Ecuador and Bolivia, all members of the Andean Pact, have formally recognised and Sandinistas as combatants with the Nicaraguan government. The decision announced on Sunday (17 June) means that Peru and the other pact nations could assist either the Sandinistas or President Somoza.

SYNOPSIS: The Nicaraguan situation was reported to be one of the main areas of discussions between the two military Presidents, following the official welcome for President Morales at Buenos Aires airport.

The Peruvian leader's visit is in return for President Videla's visit to Peru in 1977. Then the two leaders signed an agreement for Argentine assistance for Peru in the field of nuclear power. This involved the construction of a ten megawatt reactor equipped to produce radio isotopes, complementary laboratories and auxiliary installations. This visit by President Morales was expected to result in further technological aid.

President Morales has defined the bilateral agreements as a means of facing the challenge of under-development. However, the commercial interchange between the two countries until last year, was strongly in Argentina's favour, to the tune of twenty-three million dollars (U.S.). There is speculation that the new agreements might include an offer of Argentina-made light war planes for Peru.