The Uruguayan town of Fray Bentos was long a classic enclave as the home of the British-based Liebig Extract of Meat Company. Today it is the site of a new pulp mill, which represents the largest investment in Uruguayan history. This investigation examines the geographical and sociological consequences of this investment, as part of a concerted effort to diversify land use within the interior of Uruguay. The study focuses on the diplomatic consequences and economic implications that are associated with this project. The operation of this mill near Fray Bentos was a significant source of diplomatic tensions between the governments of Argentina and Uruguay. However, the roots of these problems can be traced back several decades, as can the politics of Uruguayan forest development. I explore the origins of this conflict, while examining the broader implications of the forest industry in the shifting political and economic landscape of Uruguay.