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Published: Sunday November 15, 2009 MYT 5:09:00 PM

Peru president to cut short APEC summit visit


SINGAPORE (AP): Peru's president will leave an Asia-Pacific summit early to deal with the arrest of an air force officer accused of spying for Chile, canceling a meeting between the two countries' leaders.

President Alan Garcia will leave Singapore for Lima on Sunday morning, Foreign Minister Jose Garcia Belaunde told The Associated Press. Peru's ambassador to Chile has returned home to brief the government on the situation, another Peruvian official said, speaking on condition of anonymity because he was not authorized to speak to the media.

The case "has created a political problem," Belaunde said Saturday.

According to a respected Peruvian newspaper, El Comercio, a judge charged the officer with revealing national secrets, espionage and money laundering on Friday and issued an arrest warrant against two members of the Chilean military allegedly involved in the affair.

Relations between the two South American neighbors are already tense because of a maritime border dispute, which Peru has taken to the International Court of Justice.

Chilean officials denied the espionage allegation.

"We reject the accusations that the Chilean government is implicated in any illegal activity with respect to the relations between the two countries," Foreign Minister Mariano Fernandez told reporters in Singapore.

"Chile does not spy," said government spokeswoman Carolina Toha.

Belaunde said Garcia remains committed to the goals of the Asia-Pacific Economic Cooperation, a 21-member forum to discuss free trade, despite missing a planned retreat for its leaders on Sunday.

Garcia's early departure means that his talks with his Chilean counterpart Michelle Bachelet and Mexican President Felipe Calderon scheduled for Sunday morning will be canceled.

Belaunde said he will also leave with Garcia, but the trade minister will stay back.

Peru is considering joining a free-trade agreement among Chile, New Zealand, Singapore and Brunei. The U.S. announced Saturday that it would enter the pact as well.

Belaunde said the espionage case will not have an impact on trade relations.

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