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President Ollanta Humala

After more than two months of diplomatic tension between Peru and Chile over accusations that Peruvian naval officials had sold secrets to Chilean intelligence, Peruvian President Ollanta Humala announced yesterday that the countries have resolved the dispute.

Following a week of debate, Peru’s Congress approved President Ollanta Humala’s new 20-person cabinet yesterday, which will be led by Prime Minister Ana Jara.

Likely top stories this week: Venezuelan opposition agrees to participate in corruption debate; Chilean presidential candidate Evelyn Matthei registers her candidacy; Humala’s popularity reaches a new low; peace talks resume in Colombia; and environmental groups seek a referendum to prevent drilling in Ecuador’s Yasuní National Forest.

The Peruvian Minister of Mines and Energy Carlos Herrera told Congress on Wednesday that the $4.8 billion Minas Conga mine project would not continue without the approval of the local community.