Identifier
Created
Classification
Origin
06BUENOSAIRES1288
2006-06-07 20:55:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Buenos Aires
Cable title:  

MEETING READOUT WITH GOA ON TIG INSURANCE

Tags:  ECON EINV PREL AR 
pdf how-to read a cable
VZCZCXYZ0019
RR RUEHWEB

DE RUEHBU #1288 1582055
ZNR UUUUU ZZH
R 072055Z JUN 06
FM AMEMBASSY BUENOS AIRES
TO SECSTATE WASHDC 4824
UNCLAS BUENOS AIRES 001288 

SIPDIS

SENSITIVE
SIPDIS

WHA FOR WAYNE MIELE
WHA/BSC FOR DOUG BARNES AND HEIDI GOMEZ

E.O. 12958: N/A
TAGS: ECON EINV PREL AR
SUBJECT: MEETING READOUT WITH GOA ON TIG INSURANCE


UNCLAS BUENOS AIRES 001288

SIPDIS

SENSITIVE
SIPDIS

WHA FOR WAYNE MIELE
WHA/BSC FOR DOUG BARNES AND HEIDI GOMEZ

E.O. 12958: N/A
TAGS: ECON EINV PREL AR
SUBJECT: MEETING READOUT WITH GOA ON TIG INSURANCE



1. (U) This message is sensitive but unclassified and not
for internet distribution.


2. (U) The DCM and Econoff (notetaker) met with Secretary of
Economy for Legal and Administrative Affairs Estela
Palomeque, and Advisors to the Secretary Carlos Arganaraz and
Beatriz Pallares on June 7 to discuss the issue of GOA
authorization to pay arbitration awards to TIG Insurance.
The DCM presented a non-paper that briefly outlined the
history of the arbitration awards, subsequent U.S. District
Court rulings, and TIG Insurance's settlement offer in July

2005. Palomeque expressed a willingness to work on resolving
the issue and requested post's assistance in assembling a
list of names and positions of Ministry of Economy officials
that post had worked with on this issue. She said she would
look closely at this issue and get back to us.


3. (U) Palomeque is a relative newcomer to the Kirchner
administration, and the matter of the GOA's responsibility in
this case appeared to come as news to her. Nevertheless,
Palomeque was serious in her evaluation of options with her
advisers to bring an expeditious resolution of this case.
She has been constructive in working on other USG interests
and initiatives that post has discussed with her, such as the
Trade Transparency Unit.

--------------
Comment
--------------


4. (SBU) Post will continue working toward resolution of the
TIG Insurance issue. Post believes, however, that the
inclusion of any language in the Foreign Operations Bill
linking IMET program funds to the GOA's allocating of funds
to TIG Insurance would be detrimental not only to U.S.
security interests but also to any hope of TIG Insurance
receiving payment. Left-wing factions of the ruling Peronist
party who strongly oppose close ties between U.S. and
Argentine military forces will enthusiastically support any
suspension of U.S. training for Argentina. Consequently,
this will ensure that these elements will resist any attempt
to resolve the TIG case. Post is hopeful that the Department
will continue to work this issue with appropriate
congressional staffs to ensure that IMET funding and the TIG
Insurance case remain separated. End Comment.


5. (U) To see more Buenos Aires reporting, visit our
classified website at:
http://www.state.sgov.gov/p/wha/buenosaires.< /a>
GUTIERREZ