Peru Says Chile Fight Over After Army Chief Leaves

Chileans called for Edwin Donayre`s immediate resignation after the remarks surfaced last week on the video-sharing website YouTube

Peru's army chief stepped down on Friday as Lima sought to end a diplomatic squabble he caused by saying Chileans should not be allowed to enter the country, and if they did enter they should leave in boxes or plastic bags.

Chileans called for Edwin Donayre's immediate resignation after the remarks surfaced last week on the video-sharing website YouTube.

But Peru rejected the demand and Donayre left, as scheduled, after two years of service.

The incendiary statements were captured on video months ago at a private meeting, where Donayre toasted his colleagues with a drink in hand. They caused an uproar in both countries after appearing in local media.

Otto Guibovich will replace Donayre.

"Today, Guibovich stepped in as general and with this, it seems to me there will be nothing more to say on the matter," Peruvian President Alan Garcia said.

Over the weekend, Peru canceled a trip by its defense minister to Chile because of Donayre's comments.

The incident was the latest diplomatic brush between Chile and Peru. They have good relations but disagree on issues ranging from the origins of a grape liquor they both make called Pisco, and more sensitive issues like maritime borders. They were enemies in the 1879-1883 War of the Pacific.

Speaking to reporters on Friday, Peru's Prime Minister Yehude Simon echoed Garcia's response and said the fight with Chile was finished.

"Chile is a brother country," he said.