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Chilean-Argentine accord ready for initialing in Rome

Chile and Argentina expect to initial a treaty tomorrow on the Beagle Channel dispute which has been mediated by the Vatican, say diplomatic sources in both delegations.

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The Vatican, which began mediation in 1979, announced Oct. 5 that both sides had reached full agreement on solving the territorial dispute that brought the two countries to the brink of war in 1978.

The treaty reflects the so-called bi-oceanic principle, whereby Argentina controls the Atlantic waters and Chile the Pacific waters, giving the disputed islands - Lennox, Picton, and Nueva - to Chile.