Chile, Peru row over espinage affairs

Peruvian officials say an air officer confessed to passing Peru's national security secrets to neighboring Chile. The alleged espionage affair triggered a conflict between the two countries.

The espionage conflict created a diplomatic crisis between the neighboring South American countries.

Peru's Cabinet Minister says they have evidence such as the spy's confession, an Internet address in Chile to which he passed information, money transfers from Chile to Peru, and travel itineraries in Chile. Five others are also involved in the spy ring, including some Chilean military officers.

Rafael Rey, Peru's Defense Minister, said, "What Peru has done is express its anger, its rejection over a hostile act against our country. Peru will hand over to the Chilean government the necessary information so they can see this is objectively true."

Chile's government sees the espionage allegations as groundless, and denies any involvement in the affair.

Michelle Bachelet, Chilean President, said, "I would call the comments offensive and haughty."

Chile has decided to keep its ambassador to Peru within the country. Peru countered by doing the same. Both sides have stopped short of saying the incident will hurt diplomacy between the nations.

Jose Garcia Belaunde, Peru's Foreign Minister, said, "As far as the diplomatic relationship between the two countries, it's clear bilateral relations with Chile will continue."

Peru's President Alan Garcia cites the espionage incident as the reason for leaving the APEC summit in Singapore, where he was supposed to meet Chile's President.