Identifier
Created
Classification
Origin
06BUENOSAIRES1286
2006-06-07 20:07:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Buenos Aires
Cable title:  

CODEL SHELBY MEETINGS WITH VP SCIOLI AND FM TAIANA

Tags:  PREL PGOV PTER AR 
pdf how-to read a cable
VZCZCXYZ0008
RR RUEHWEB

DE RUEHBU #1286/01 1582007
ZNR UUUUU ZZH
R 072007Z JUN 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 4820
INFO RUEHAC/AMEMBASSY ASUNCION 5566
RUEHBR/AMEMBASSY BRASILIA 5367
RUEHCV/AMEMBASSY CARACAS 0931
RUEHLP/AMEMBASSY LA PAZ JUN LIMA 1849
RUEHMN/AMEMBASSY MONTEVIDEO 5612
RUEHSG/AMEMBASSY SANTIAGO 5177
RUEAIIA/CIA WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHMFISS/HQ USSOUTHCOM MIAMI FL
RHEHNSC/NSC WASHDC
UNCLAS BUENOS AIRES 001286 

SIPDIS

SENSITIVE
SIPDIS

SOUTHCOM FOR POLAD

E.O. 12958: N/A
TAGS: PREL PGOV PTER AR
SUBJECT: CODEL SHELBY MEETINGS WITH VP SCIOLI AND FM TAIANA


UNCLAS BUENOS AIRES 001286

SIPDIS

SENSITIVE
SIPDIS

SOUTHCOM FOR POLAD

E.O. 12958: N/A
TAGS: PREL PGOV PTER AR
SUBJECT: CODEL SHELBY MEETINGS WITH VP SCIOLI AND FM TAIANA



1. (U) Summary: Senators Richard Shelby and Paul Sarbanes
visited Argentina April 22-24. The Senators' visit was
focused on examining GoA cooperation on combating money
laundering and terrorism financing but also touched on
regional issues and the Argentine economic recovery. The
Senators held separate meetings on April 24 with Vice
President Daniel Scioli and Foreign Minister Jorge Taiana.
End Summary.


2. (SBU) Senate Banking Committee Chairman Richard Shelby
and ranking minority member Paul Sarbanes visited Buenos
Aires April 22-24. The primary purpose of the visit was to
examine Argentine cooperation on combating money laundering
and terrorism financing. The Senators also assessed regional
issues such as the current political in Bolivia and the scope
of Venezuelan influence in the region. In addition to
meetings with the Embassy Country Team, the Senators held
meetings on Monday April 24 with Argentine Vice President
Scioli and Foreign Minister Taiana. The Senators were
accompanied by Banking Committee Staff Director Kathleen
Casey and Shelby Executive Assistant Anne Caldwell.

--------------
Scioli Meeting
--------------


3. (SBU) Following a brief tour of the historic Argentine
capitol building, the Senators, accompanied by the
Ambassador, met with Vice President Scioli in his Senate
office. Scioli opened the meeting with a brief overview of
his role and primary objectives in his capacity as president
of the Argentine Senate, namely, the strengthening of
legislative institutions, community outreach on issues such
as biotechnology, biofuels and education, and finally, a
strong commitment on promoting legislation to combat money
laundering and terrorism financing. Scioli said Argentina
was currently in the fourth year of economic growth. The
challenge now was to enact needed educational reforms to
ensure sustained economic growth in the future. He expressed
his gratitude to the U.S. for its help in "difficult times"
and thanked the Ambassador for his support in a "complicated"
situation where, he said, some want to blame the U.S. for our
problems.


4. (SBU) Senator Shelby noted the primary purpose of their
visit was to learn more about cooperative efforts with

Argentina to combat money laundering and terrorism financing.
He expressed his thanks for the cooperation that has already
been provided by the GoA, noting that interdicting the
financing of terrorist organizations was key to the fight
against terrorism. Senator Shelby said he was also
interested in pursuing better relations with Argentina and
working to build a better economic base in the country.


5. (SBU) Senator Sarbanes asked Scioli what problems in
U.S.-Argentine relations. Scioli replied he did not see
problems with U.S. relations, rather opportunities. He said
investment levels in Argentina were still far below what was
needed for sustained economic growth and that he would like
to see U.S. corporations become more involved. He said he
believed strongly in regional economic integration and that
this process was, indeed, irreversible. Scioli acknowledged
there were obstacles to be overcome, particularly in regard
to agricultural subsidies, but he believed with democratic
governments and fiscal surpluses, Argentina would continue to
move forward on integration.


6. (SBU) Scioli listed several challenges the GoA faced in
achieving its economic goals including ensuring legal
security, increased competitiveness and fiscal
responsibility. He said the Argentine banking sector was
improving but still needed the assistance of the U.S. to
ensure a solid system. In this regard, he said it was
important to raise the awareness of the financial link
between drug trafficking and terrorism financing. Senator
Shelby concurred, noting that terrorism is not in the
interest of commerce. Senator Shelby concluded the meeting,
stating that the U.S. and Argentina should build a stronger,
better relationship.

--------------
Taiana Meeting
--------------


7. (SBU) Following the meeting with the vice president,
Codel Shelby proceeded to the Foreign Ministry where they
were met by Foreign Minister Taiana; Deputy Foreign Minister
Roberto Garcia Moritan; Director of North American Affairs
Ambassador Vicente Espeche Gil; and Special Representative
for Counterterrorism Ambassador Victor Beauge. Senator
Shelby told FM Taiana the Codel was particularly interested
in discussing money laundering and terrorism financing but
also wanted to discuss how to strengthen political and
economic relations with Argentina.


8. (SBU) Taiana responded saying Argentina was "in the same
boat" with the U.S. in its interest in fighting terrorism.
He noted that Argentina had experienced international
terrorism in 1992 and 1994 with the bombings of the Israeli
Embassy and the Argentine-Jewish Cultural Center (AMIA) and
that the government still had a debt to society to bring to
justice those responsible for the bombings. He said the GoA
was pursuing this fight through five specific areas: first,
defining very clearly that the fight against terrorism was a
GoA priority; second, a concerted effort to collaborate in
the fight against terrorism in a multilateral sphere; third,
its work in the UNSC and as chairman of the Al Qaeda/Tallaban
committee; fourth, its work in the OAS counterterrorism
committee (CICTE) and in the three-plus-one initiative in the
Tri-border region; and fifth, that Argentina has acceded to
all international treaties and conventions on terrorism
except on nuclear terrorism which has been signed by
President Kirchner and is awaiting Congressional approval.


9. (SBU) Taiana then noted that the fight against terrorism
and money laundering is linked to the effectiveness of
government and the development of the country. In this
regard, Taiana said the current administration had inherited
a society with two major negative factors: first, "enormous"
tax evasion which gave rise an out of control exchange
system, and, second, a large unofficial economy. The FM said
the government had made important strides in addressing both
of these issues. Another contributing factor, he said, was
the presence of 800,000 to one million illegal immigrants --
70 percent from neighboring countries -- which needed to be
regularized.


10. (SBU) Senator Sarbanes asked what efforts the GoA was
making to address the issue of Muslim charities in the
Tri-border region. Taiana responded that while Argentina has
a large Middle Eastern population, the majority are of
Lebanese Christian descent. He maintained that the Argentine
Muslim community was generally secular but acknowledged there
had been "a return to ethnicity" in some portions of the
community. Taiana said the Tri-border region was a
traditional smuggling area and the most important objective
for the GoA was to improve customs and banking controls at
the border. Therefore, a top three-plus-one initiative was
to train bank workers and public prosecutors.


11. (SBU) Senator Shelby asked Taiana if he was concerned by
the actions of Venezuelan president Hugo Chavez. Taiana
replied he was concerned by the "polarization of discourse"
between the U.S. and Venezuela. From a regional perspective,
he said it was important to recognize that Chavez had emerged
from a political crisis in Venezuela and that this political
crisis was repeating itself in other countries. He said
Argentina had always had good relations with Venezuela and
that Venezuela had always stood by Argentina -- even during
the 1982 Falkland/Malvinas war. More recently, Venezuela had
been helpful to Argentina in energy matters and by purchasing
Argentine bonds. Taiana said he understood U.S. concerns
about Chavez but believed that isolating Chavez was not the
solution. He maintained it was important to talk with
Chavez, giving as an example GoA and Brazilian efforts to
bring Venezuela closer to MERCOSUR.


12. (SBU) Senator Sarbanes asked Taiana about relations with
Bolivia and Chavez' influence in that country. Without
commenting on Chavez, Taiana said the objective of the GoA
was to ensure that Bolivian president Evo Morales does well
as failure could have serious consequences both in Bolivia
and regionally. He said the Bolivian leadership has very
little government experience, noting that the president of
the Bolivian senate was an illegal worker in Argentina nine
years ago. He said the GoA was working directly with the
Bolivian government on health issues and was negotiating on
the price of natural gas supplies.


13. (U) This cable was cleared by CODEL Shelby.
GUTIERREZ