Clark has high hopes for Chile's leader

SANTIAGO - New Zealand Prime Minister Helen Clark yesterday hailed the return of a socialist leader to Chile as a significant step for the country and its people.

She was speaking following the inauguration of President Ricardo Lagos, the first left-wing head of state since former military dictator Augusto Pinochet overthrew the Allende Government in a violent coup in 1973.

"He [Mr Lagos] is the first centre-left President since the last one was shot 27 years ago," Helen Clark said. "I thought it was very emotional as we came along the street and the people were out with their posters and signs. The people have waited a long time for this. It's really very significant to be part of it.

"It's been a slow crawl to democracy here ... Now the chance has come for this man, who is very highly thought of and a very long-time politician, to have a go. And I think he will be very successful."

The Prime Minister, accompanied by her husband, Dr Peter Davis, was the only Asia-Pacific leader to attend the swearing-in, which became a celebration of left-wing politics in Latin America.

General Pinochet, aged 84, who returned to Chile from Britain this month after escaping extradition to Spain on torture charges, did not attend the ceremony - although he remains a senator.

Since her arrival three days ago, Helen Clark has been revelling in her meetings with fellow socialist leaders from the region and was even more thrilled after the inauguration.

She told New Zealand media she had been seated on the top table at a state luncheon, in between President Lagos and another key social democrat leader from the region, Brazilian President Fernando Cardoso, and opposite Argentinian President Fernando de la Rua.

Italian Prime Minister Massimo D'Alema said in Santiago at the weekend that he was keen to improve bilateral relations between New Zealand and Italy following the America's Cup encounter, and was interested in visiting - but not at the same time as the next Cup challenge in 2002.

Mr D'Alema had a meeting with Helen Clark, who was equally enthusiastic about building closer links, given the two countries had so much in common.

The two left-wing leaders began their business with a lighthearted chat over Team New Zealand's victory over the Italian Prada challenge in Auckland.

Helen Clark praised the sportsmanship of the Prada team and said she hoped that the Kiwis - "if they one day lose" - would be equally gracious in defeat.

Mr D'Alema, a keen yachtsman who stayed up through the night to watch the yachting, assured her that the Italians would work hard to win the next challenge after Black Magic's 5-0 victory. He emphasised the misery it had caused by telling Helen Clark of the sketch on Italian television showing the Italian yachtsmen with prominent "Prada bags under their eyes" - from too much crying.

"I was astonished that such an ugly boat did so well," he said.

Italy shared New Zealand's commitment to human rights and worked alongside New Zealand in East Timor. "It's a matter of strengthening political cooperation."

Mr D'Alema said he had not come to New Zealand for the yacht races because he believed he would have been criticised by the Italian press for coming to enjoy himself.

"If, in fact, I come when there are no races, then there will be no argument and it will be quieter. For that reason I thought it would be better to delay it."

Helen Clark told reporters later that Mr D'Alema had also been very positive when she raised New Zealand concerns about agricultural subsidies within European Union countries which put New Zealand farmers at a competitive disadvantage.

New Zealand was concerned that there were countries, including Poland, waiting to get into the EU which had big agricultural sectors operating with subsidies.

Helen Clark will continue her networking with socialist leaders in a roundtable meeting this morning, expected to be attended by Mr Lagos and the Presidents of Finland, Argentina, Brazil and Italy.

The meeting is being organised by Luis Ayala, an old friend of Helen Clark from her student days. He now heads Socialist International, the worldwide grouping of socialist, workers and labour parties.

The two met in 1974 in New Zealand when Mr Ayala was a political refugee and activist in the Socialist International youth wing.

Last night, Helen Clark was to join in more celebrations, at an open-air gala in central Santiago and then later at a reception for heads of state at La Moneda Palace.

During the inauguration of Mr Lagos, Chileans lined the streets around the Parliament waving flags and cheering "Lagos" as the new President swept past, standing and waving to his supporters from his open-air presidential car. - NZPA