AMBASSADOR TRAVELS TO SALTA TO MEET WITH GOVERNOR,

C O N F I D E N T I A L SECTION 01 OF 06 BUENOS AIRES 000496

SIPDIS

PASS NSC FOR TOM SHANNON, KIM BREIER, NILMINI GUNARATNE,

DEL RENIGAR

PASS USTR FOR SUE CRONIN

TREASURY FOR DAS LEE, DAVID DRYSDALE, RAMIN TOLOUI AND

CHRIS KUSHLIS AND OCC FOR CARLOS HERNANDEZ

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E.O. 12958: DECL: 03/03/2015

TAGS: PGOV PREL AR SNAR OFDA MEETINGS WITH AMBASSADOR

SUBJECT: AMBASSADOR TRAVELS TO SALTA TO MEET WITH GOVERNOR,

COUNTERNARCOTICS OFFICIALS AND BUSINESS LEADERS



REF: BUENOS AIRES 00397



Classified By: Ambassador Lino Gutierrez for Reasons 1.4 (B) and (D)




1. (C) SUMMARY: Ambassador Gutierrez traveled to the

northern province of Salta February 24-25 to meet with

Governor Romero, to review the current state of

U.S.-Argentine counternarcotics cooperation on the northern

border, and to exchange views with leading business

executives in the province. Governor Romero expressed his

appreciation for the visit and his recognition of the

importance of cooperation between the U.S. and Argentina.

Romero said he admires the U.S. and supports the FTAA. He

also highlighted to the Ambassador the province's good

record of fiscal responsibility and impressive economic

growth rates in the past few years. The Ambassador toured

the Northern Border Task Force (NBTF) headquarters and was

briefed by NBTF and Gendarmeria commanders. The commanders

were proud of the recent seizure of 149 kilos of cocaine in

Salta by the two forces. They expressed their gratitude for

the critical support that the U.S. provides the NBTF and

Gendarmeria. The Ambassador was the guest of honor at a

meeting of leading business executives that produced a useful

exchange of ideas on U.S. policy. The Ambassador also met

with Salta mayor Miguel Angel Isa who stressed the economic

boom the city is experiencing, fueled by the tourism and

construction sectors. END SUMMARY.



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Positive Meeting With Governor Romero

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2. (C) The Ambassador was received by Governor Juan Carlos

Romero for dinner at his home on February 24. In the

conversation with the Ambassador, Governor Romero highlighted

Salta's continued economic growth, led by the tourism and

agriculture sectors. Romero also pointed to the province's

strong record of fiscal responsibility. Romero was

justifiably proud that the province never defaulted on their

debt when so many of their neighbors did in the past few

years. ""We have not signed the (Federal) Fiscal

Responsibility Law because ours (provincial) is much better.""

Romero felt that co-participation reform was unlikely to

happen in the foreseeable future, even after the debt issue

was resolved and the elections completed.




3. (C) When asked about his relations with Kirchner, Governor

Romero described the relations as cordial. Romero did not

think Kirchner would try to run his own candidates in Salta

in the October 2005 legislative elections, as ""he (Kirchner)

does not have much of a following here."" He did allude to

his fears that ""many local officeholders (who had backed

Menem in the 2003 elections) could be affected"" in the

upcoming elections. Asked about the Menem/Rodriguez Saa

alliance, Romero joked that ""they should have done this in

2003 (during the presidential election)."" He said he was the

one who advised Menem to withdraw from the 2003 presidential

race after the first round when it became clear Menem would

lose big. ""There is no second round tradition in Argentina.""

Romero lamented the fact that former President Eduardo

Duhalde prevented an internal primary to chose a single

Peronist candidate in 2003 ""because he would have lost"" to

Menem. Note: Romero was Carlos Menem's running mate in his

2003 presidential bid. Salta is one of the only provinces

where President Kirchner has not made an official visit.

However, in a sign of warming relations, Governor Romero and

President Kirchner met in Buenos Aires on March 2 to announce

the construction of 2000 housing units in Salta using federal

funds. End Note




4. (C) Romero expressed admiration for the U.S. One daughter

currently attends Georgetown and his other children have

attended U.S. universities. Romero professed to the

Ambassador to be pro-FTAA. Governor Romero criticized the

central government's ""statist"" policies and said that he

believed in the free market. Governor Romero thanked the

Ambassador for his visit to Salta and said he looked forward

to continued good relations with the U.S. and the Embassy.

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SALTA: DRUG CORRIDOR TO BUENOS AIRES

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5. (C) The Ambassador traveled to Salta in the wake of the

Buenos Aires Airport scandal involving the smuggling of 59

kilos of cocaine (Reftel) and one day following the seizure

of 149 kilos of cocaine by the Northern Border Task Force

(NBTF) and the Gendarmeria operating in Salta. The trip was

perfectly timed to take advantage of increased news coverage

of narcotics related issues and enabled him to highlight the

assistance and support the USG offers Argentina in the

counternarcotics area.




6. (C) The Ambassador toured the DEA-funded NBTF headquarters

and received a briefing by NBTF commander Claudio Domenichini

on February 25. Domenichini explained that 90 percent of

cocaine entering Argentina passed through the Province of

Salta and asserted that the NBTF played a pivotal role in

Argentina's drug interdiction effort. He stated that the

NBTF interdicted 110 kilos of cocaine last year as a direct

result of investigations and so far this year had already

interdicted 194 kilos of cocaine. (COMMENT: Domenichini's

choice of statistics is of interest as he cited only

narcotics seizures directly related to the unit's

investigative efforts and did not include drugs seized by

random road block and drug dog searches. By claiming all

seizures in which the NBTF participated in some way he could

have boasted a much larger number, as is the common practice

by GOA law enforcement agencies. Domenichini's choice of

statistics is evidence of his integrity, his commitment to

modern investigative techniques as opposed to random searches

and his DEA/INL funded training. END COMMENT.) Domenichini

discussed the NBTF canine unit and expressed the hope that

DEA/INL could provide a planned drug dog training course in

Salta later this year. In response to a question about the

use of small aircraft in smuggling operations, Domenichini

stated that there had been a great increase in the number of

aircraft in the northern part of the country and stated that

the NBTF was working with authorities in Santiago del Estero,

Chaco, Salta and Tucuman on the issue. All agreed on the

need for the GOA to acquire radar systems in the short term

to deal with the problem of airborne smuggling. The

Ambassador asked Domenichini about inter-agency relations to

which Domenichini replied that relations between the police

and Gendarmeria were not the problem. He stated that the

major obstacle to effective enforcement rested with the

Salta-based federal judges. He related how it often took too

long to obtain warrants from judges in time sensitive cases

and opined that in general Argentina's current laws and legal

system hamper his force's efforts to effectively combat

narcotics traffickers. The Ambassador thanked Domenichini

and his staff for their dedicated efforts in the area of

narcotics enforcement and praised their recent successes.




7. (C) The Ambassador received a briefing by Gendarmeria

Comandante Jorge Ramon Tapia, the Commander of operations in

the Salta area, and Gendarmeria Comandante Anibal Maiztegui,

the former commander in Salta and current director of the

Gendarmeria's national narcotics unit. The meeting started

with a conversation regarding the recent narcotics scandal in

the Buenos Aires airport. Maiztegui opined that the incident

showed a general lack of control by the services involved and

added a point about the defunct DEA-sponsored airport task

force that used to operate in the Buenos Aires airport. It

was an obvious comparison between the lack of control and

communication in Buenos Aires and the healthy coordination

between the NBTF and other groups involved in

counternarcotics operations in the Salta area. Both

Gendarmeria officers briefed the Ambassador on the narcotics

situation in the border area, highlighting their belief that

members of the Bolivian government were involved in narcotics

trafficking and that members of Colombian narcotics

organizations were operating in the area. In response to the

Ambassador's question about radar, Maiztegui stated that the

issue was difficult for the Gendarmeria as the decision

rested with the President, and as such the Gendarmeria dared

not criticize the lack of action on this issue. He added

that for 12 years the lack of radar had been a major and

growing problem in the region. Tapia stated that in truth

his organization could not possibly hope to control the

entire border that the Provinces of Salta and Jujuy shared

with Bolivia due to the rugged nature of the terrain and the

simple lack of manpower. He said that, recognizing the

futility of controlling the border, the Gendarmeria employs a

control-in-depth strategy that utilizes multiple check points

at transportation choke-points in the border region to combat

the traffickers.




8. (C) Tapia also informed the Ambassador of the lack of jail

space in Salta and pointed out that the inability of the

correctional facilities to accept prisoners directly impacted

the Gendarmeria's operational ability, as each prisoner that

could not be transported to a penal institution diverted

resources and field troops from operations. He acknowledged

that a federal prison had recently been expanded, but stated

that it was not big enough to meet current needs. NOTE: The

federal government has committed to building a new prison in

the Province, but there is no timeline as to when it will be

ready for operation. END NOTE.




9. (C) Both commanders echoed Domenichini's comments

regarding cooperation and interaction with the judiciary.

Tapia asserted that it was common for him to dispatch an

officer to court at 8am to request an arrest warrant only for

that officer to wait at the court until 8pm in the hope of

receiving a warrant. Both men opined to the Ambassador that

locally appointed federal judges had more interest in local

political issues than in law enforcement. However, they also

acknowledged that the recently appointed federal judge in the

northern Salta town of Tartagal was working well with the

Gendarmeria and seemed to be honest and committed to

combating the narcotics traffickers. The Ambassador thanked

both men for the briefing and congratulated them on their

unit's recent successes.



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Positive Exchange of Views with Salta's Business Leaders

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10. (SBU) Fundacion Salta hosted a luncheon for the

Ambassador to meet with business professionals and government

officials in the province. The main topics these community

leaders raised during the Q&A session of the event were

trade, Argentina's economy, and U.S. foreign policy. Trade

questions focused on the issue of U.S. agricultural subsidies

as an impediment to Argentina's support for the Free Trade

Agreement of the Americas. The Ambassador responded that the

World Trade Organization has established a mechanism for

addressing concerns about agricultural subsidies. The

Ambassador recalled that, although various observers

predicted NAFTA would have dire economic consequences for the

U.S. and Mexico, both countries have reaped the benefits of

freer trade. He also encouraged an approach to the FTAA that

would seek common ground on a broad base of issues and not

allow sensitivity over subsidies to dismiss the FTAA out of

hand. The subjects for the economic questions were the U.S.

perspective on Argentina's debt exchange, recommended sectors

for investment in Argentina, and the global role of the U.S.

dollar as a central bank reserve currency. The Ambassador

noted that the U.S. does not, and will not, take a position

on whether the terms of the debt exchange are adequate or

not. On the matter of investment in the economy, the

Ambassador noted that the result of the debt exchange would

be key to the tone of discussions with the IMF, the outcome

of which could send positive signals to potential investors.

He emphasized the importance of legal protections and noted

that the growth in the services sector indicated

opportunities, and a need, for investment.


11. (SBU) U.S. businessmen at the luncheon raised concerns

that the value of the U.S. dollar could fall further if

central banks around the globe decide not to continue

including the dollar among their reserves. Emboffs replied

that fears about the effect of U.S. trade and budget deficits

have persisted despite the strength of the U.S. economy.

Emboffs also remarked that threats to dump the dollar would

probably not yield large-scale changes in central banks'

practices to hold dollar-denominated reserves. U.S. foreign

policy questions ranged from U.S.-Latin American relations to

the Middle East peace process. Ambassador Gutierrez

responded that U.S.-Latin American relations have improved

and are improving. The U.S. is working to expand its trade

ties with Latin America and has been in discussions on energy

integration with many countries in the region. One

participant in the luncheon was critical of the U.S. position

regarding Argentina's relationship with the IMF, suggesting

the U.S. should have been more supportive. The Ambassador

was quick to remind the audience that the U.S., unlike other

G-7 states, had consistently supported Argentina in the

aftermath of its economic crisis. Others in attendance

interjected that the U.S. is not to blame for economic

difficulties Argentina brought on itself. The U.S. remains

hopeful, the Ambassador remarked, for peace in the Middle

East. He maintained that U.S. policy is that Israeli and

Palestinian leaders need to achieve this goal themselves.




12. (SBU) Econoff met with Salta Secretary of State Roberto

Ibarguren. Ibarguren conveyed his appreciation for the USG's

strong anti-narcotics cooperation in the province. He used

the occasion of the meeting to ask for Embassy Buenos Aires

consideration of expanding the cooperation to include greater

customs and immigration controls. Ibarguren said the border

with Bolivia needed a modernized system for monitoring

flights, cars, and people crossing into Salta. He reported

that the Gendarmeria had been successful in apprehending

groups of illegal immigrants from the PRC's Fujian Province.

He nevertheless would like to work closely with the Embassy

to identify ""snakeheads"" organizing illegal immigration

activities into and within the province. Econoff said the

Embassy would give these informal requests appropriate

consideration and looked forward to continuing a close and

productive relationship with the province.



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Press Coverage Extensive and Positive

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13. (SBU) Press were present on both days of the trip.

Clusters of media photographers recorded the Ambassador's

airport arrival, his dinner with the governor, and other

events. Salta's binational center, ISICANA, hosted a late

Thursday afternoon press conference by the Ambassador.

Reporters from national cable news, Salta TV and radio

stations, Salta's newspapers, national papers, and the wire

services were all present. Several reporters asked for and

received five-minute exclusives with the Ambassador after the

press conference had concluded.




14. (SBU) The Salta press was extremely appreciative that the

Ambassador gave them a half-hour of his time to openly answer

their questions. One lamented, ""If only our city councilmen

would give us even a fraction of that time."" On Friday the

25th, the Ambassador did a live on-air interview with Buenos

Aires' leading radio station, Radio 10. A local TV and radio

station also showed up for brief coverage of the Ambassador's

visit to the Salta gendarmes' K-9 unit.




15. (SBU) Coverage was extensive and largely positive.

Though Salta press also focused on the fact that the U.S.

ambassador was visiting their province and meeting their

officials, most stories in Argentine media centered on the

Ambassador's responses to questions on the recent scandal

involving drug shipment through Buenos Aires' international

airport. While coverage varied, the headline of the 2/25

story in circulation leader ""Clarin"" - ""U.S. Warns on drug

traffic, but praises the government"" - indicates the tone of

most reporting. The Ambassador noted that drug transshipment

was a problem for Argentina, but that the GOA was making

serious efforts to combat it. He praised the level of

cooperation U.S. anti-drug forces received from their

Argentine counterparts and noted that U.S. anti-drug efforts

in Salta provided technical and technological support as part

of a joint effort with local counterpart agencies. Comment

on the Ambassador's remarks in Salta continued in the same

vein throughout the ensuing week, including brief mention in

some of the key op-ed columns. Though all media reflected

GOA appreciation with U.S. cooperation and the Ambassador's

remarks, some reporters suggested that it had been the U.S.

that tipped-off the GOA on the recent Buenos Aires airport

drug scandal. The Ambassador made clear in his 2/25

interview with leading ""Radio 10"" that this was not the case.




16. (SBU) The PAO had sidebar visits with Salta province's

secretary of culture and education and her staff, and also



SIPDIS

met briefly with Salta city's culture secretary and the

rector of the Catholic University of Salta. At all points,

past and future cooperation between the Embassy and Salta

institutions was discussed. All Salteno interlocutors noted

Governor Romero's firm support for increased cultural

programming in the city and province. PAS is already

providing assistance to some of the programs Governor Romero

is most interested in, such as the symphony orchestra.



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Mayor Upbeat on City's Economy

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17. (SBU) The Ambassador was received by Salta Mayor Miguel

Angel Isa at the Salta City Hall on February 24. Isa has

been mayor of Salta's capital city since being elected on the

Peronist Party (PJ) ticket in 2003. Mayor Isa thanked the

Ambassador for his visit and presented him with the keys to

the city. Isa highlighted the economic progress that has

occurred under his mandate in the city of roughly 600,000.

He reported that the tourism and construction sectors are

booming and unemployment is down. The Mayor said that the

city recently launched a major tourism advertising campaign

in Europe that he thought would help to attract more European

tourists. Mayor Isa also highlighted the city's efforts to

combat drug addiction. The Ambassador noted the common cause

that the United States and Argentina have in fighting drug

addiction and trafficking.




18. (SBU) Isa reported that his relations with the province

are good. He said that there was an equitable division of

responsibilities in the city between the city and provincial

governments. He noted that the city was in the midst of a

long-term joint project with the provincial government

designed to restore the city's numerous colonial-era

buildings. The Ambassador thanked Mayor Isa for his

hospitality.



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Comment:

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19. (C) The Ambassador's trip to Salta was productive on many

levels. The meetings with political and business elites

deepened the Embassy's contacts in this important province

and provided for a useful exchange of ideas. The visit to

the NBTF and Gendarmeria headquarters emphasized the

importance the USG places on counternarcotics efforts at a

time when Argentina is fixated on the narcotics issue

stemming from the recent Buenos Aires airport drug scandal.

Salta's location, sharing borders with Bolivia, Paraguay and

Chile, makes this province critical to stemming the flow of

illegal drugs into Argentina. The message the Ambassador

brought with him to Salta focused on the importance the U.S.

places on the bilateral relationship and on the need for

continued political, economic, and counternarcotics

cooperation. Given the favorable press coverage in Salta and

the positive reception the Ambassador received from those

with whom he met, it appears that this message was well

received.





GUTIERREZ


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