Team Alinghi won the America's Cup in Auckland last March
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South Africa will compete for a spot in the 2007 America's Cup, the first time it has contested one of yachting's oldest and most prestigious races.
Geoff Meek, who will skipper the South African entry, said the country had a good chance of succeeding.
"People won't take us very seriously overseas, but I think we have a great chance," he said.
The 2007 event will be staged off the coast of Valencia, with Switzerland defending the title they won in 2003.
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