Environmental protesters voice their opposition in Montevideo

The Uruguayan environment minister told a nationally televised meeting that the two plants on the border would adhere to the strictest standards.

Argentina believes the mills will cause extensive pollution and deter tourism.

The Argentine government has filed a formal complaint over the plants at the International Court of Justice.

The meeting at the presidential offices in the Uruguayan capital, Montevideo, brought together some 250 political, business and trade union leaders.

Correspondents say it was a clear attempt to show that Uruguay is united on the issue.

Strained ties

Environment minister Mariano Arena said the mills, which are being built near Fray Bentos on the Uruguayan side of the river that separates the two countries, would adhere to the strictest international standards.

He said there had been many studies to show that the plants would not have a detrimental effect on the environment.

The meeting, attended by Uruguayan President Tabare Vazquez, took place amid tight security, with some 300 demonstrators opposed to the plants kept from the building by police barricades.

The row between Uruguay and Argentina has been continuing for more than a year and has strained traditionally warm ties.

Earlier this month, Argentine President Nestor Kirchner addressed a demonstration in the border town of Gualeguaychu, saying Argentines were "standing together" to solve the issue.

Argentina says there have not been adequate studies into the project's environmental impact.

Uruguayan officials say the mills, being built by a Finnish and a Spanish company, are safe and will provide much needed jobs.