Blair's historic Argentina visit

The two leaders met at the spectacular Iguacu falls

Tony Blair has called for further reconciliation between Argentina and the UK.

On his historic visit to the South American country, the Prime Minister said he hoped the two countries could put behind them the differences which led to the 1982 conflict over the Falkand Islands.

And he called on the international community to do more to help Argentina in its economic troubles.

"I really passionately hope that whatever has happened in the past between Britain and Argentina we are able to work together," he said.

"We have our respective positions as countries on this issue but what has happened in the past is the past."

Mr Blair is the first serving British prime minister to visit the South American country.

He met president Fernando De la Rua for talks just over the border from Brazil, close to the spectacular Iguacu Falls.

It is important that Britain today has a normal working relationship with Argentina

Tony Blair

The two leaders had agreed not to discuss the Falklands during their brief, but highly symbolic meeting.

But afterwards Mr De la Rua ruled out another military invasion of the Falkland Islands, known in Argentina as the Malvinas.

"We have said that our claims over the Malvinas islands are absolutely along peaceful paths," he told a news conference.

Mr Blair and Mr de la Rua initially met on the Brazilian side of the border for three-way talks with Brazil's president Fernando Henrique Cardoso, before crossing the frontier into Argentina.

They then travelled together by car for the 40-minute journey to Puerto Iguazu.

The issue of sovereignty over the islands remains a hot topic among many Argentinians.

One of the first sights to greet Mr Blair as he crossed the border was an official-looking road sign declaring: "Las Malvinas son Argentinas" (the Malvinas (Falklands) are Argentinian).

But Mr Blair and Mr De la Rua were focused on the economy.

Their meeting came amid fears that Argentina could be forced to default of its $128bn debts.

This could trigger a financial crisis in Latin America which could spread to the rest of the world.

'Solidarity'

Mr Blair said it was important that other countries reward Argentina for the measures it was taking to fight its economic crisis.

"This is a moment where it is important that we show support and solidarity with Argentina in the difficulties it faces," Mr Blair said after the meeting.

Mr De la Rua described Mr Blair's expression of support as being of "extraordinary value".

He said that the backing of the big countries should help Argentina to overcome its difficulties.

"We are undergoing a temporary situation that is overcomeable," he said.

De la Rua: Meeting was of "extraordinary value"

"This meeting of three friends represents an extraordinary opportunity to reaffirm solidarity, friendship and peace throughout the world."

A Downing Street spokesman added that such a relationship was the best insurance against a repeat of anything like the Falklands War.

Mr Blair will visit Mexico next on the final leg of his tour.

He is hoping to develop a dialogue with Brazil, Argentina and Mexico ahead of the next round of world trade talks in November.

Last year, Britain's import and export trade was worth £400m with Argentina, £1.9bn with Brazil and £1.3bn with Mexico.

Argentina is cutting spending with a severe austerity programme. The World Bank has said its board would discuss a $400m loan at the end of August.