Peru's President Alan Garcia and his delegation pulled out of an Asia Pacific summit in Singapore on Sunday in a growing dispute over charges a Peruvian military officer had spied for neighbouring Chile. The espionage case has stoked diplomatic tensions in a long-running border feud between Peru and Chile, two major South American metal exporters who share more than $3 billion a year in bilateral trade.
-- Peru's president pulls out of Pacific Rim summit early
-- Chilean officials see Peru attempt to stir up scandal
"President Garcia has left Singapore on his way back to Lima," a Peruvian government official said on Sunday.
Peru a day earlier recalled its envoy from Chile and said Garcia would leave the APEC summit early after Peruvian authorities said they detained an Peruvian air force officer nearly two weeks ago. They said they were investigating him on charges he had spied for Chile.
Garcia and his Chilean counterpart, Michelle Bachelet, had been scheduled to meet at the weekend as part of the Asia Pacific Economic Co-operation summit, where leaders were holding talks on better regional integration and climate change.
Chile rejected the spying accusations. Chilean officials criticised Garcia for over-reacting before any investigation was concluded and suggested Peru had timed the spy case revelation to stir up scandal at the summit.
"There are some, such as the Chilean armed forces chief, who say there are just too many coincidences for us to believe that this was casual," Chilean Foreign Minister Mariano Fernandez told reporters in Singapore. "We cannot accept accusations of espionage."
Peru and Chile have often sparred over their border spat since Chile defeated Peru in the 1879-1883 War of the Pacific and won a part of mineral-rich land from its neighbour.
Peru filed suit against Chile last year at the International Court of Justice in The Hague, disputing their maritime territory and demanding more of the rich Pacific Ocean fishing waters between them. For a factbox on their ties see [ID:nN14461991]. Peru has also been worried this month by Chile's proposed upgrade of its military with the possible purchase of US stinger missiles, medium-range missiles and radar systems.
But the two countries have a free trade pact and have sought to open up their economies to each other as the global economic crisis battered revenues from their vital copper and mineral exports.
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