ARGENTINA, BOLIVIA DISCUSS BILATERAL RELATIONSHIP

C O N F I D E N T I A L BUENOS AIRES 000140 SIPDIS SIPDIS WHA/EPSC FOR KRIS URS EB/ESC/IEC FOR MATT MCMANUS USDOC FOR ALEXANDER PEACHER USSOUTHCOM FOR POLAD E.O. 12958: DECL: 01/18/2016 TAGS: PGOV PREL ECON ENRG AR BL SUBJECT: ARGENTINA, BOLIVIA DISCUSS BILATERAL RELATIONSHIP REF: A. BUENOS AIRES 97 ¶B. BUENOS AIRES 117 Classified By: Ambassador Lino Gutierrez for reasons 1.4(b) and (d). -------------- Summary -------------- ¶1. (U) President Kirchner met with Bolivian President-elect Evo Morales on January 17 in Buenos Aires. The Morales visit to Argentina followed a series of meetings that he had conducted with leaders in Venezuela, Brazil, Cuba, France, Spain, South Africa and China. Morales stated in a brief press conference after the meeting with Kirchner that he wants to pursue an "energy alliance" comprised of Bolivia, Argentina, and Venezuela to resolve "the energy problem" in the region. The Kirchner-Morales meeting did not produce any official changes in the price or volume of Bolivian natural gas exports to Argentina. The meeting appears to have served primarily to address the public perception of a rift between the two leaders. End Summary. -------------- Morales' Last Visit as President-Elect -------------- ¶2. (U) President Nestor Kirchner dispatched an airplane to bring Bolivian President-elect Evo Morales to Buenos Aires for a meeting on January 17. Kirchner had reportedly not extended Morales an invitation to visit Argentina when he called to congratulate the Andean president-elect on his victory in the December 18 election. Press reports, however, characterized Kirchner's gesture as correcting an oversight by the Argentine Foreign Ministry in not suggesting to Kirchner that he invite the president-elect to make a stop in Argentina following his win in December. Morales visited Argentina after meeting with leaders in Venezuela, Cuba, Brazil, Spain, France, South Africa and China. Media coverage of the meeting with Kirchner has suggested that it was organized to dispel rumors that Morales distrusts or is sending a message on gas prices to Kirchner. The discussion outlined general domestic and bilateral themes the incoming Morales administration will face. Cabinet Chief Alberto Fernandez, Economy Minister Felisa Miceli, Foreign Minister Jorge Taiana, and Planning Minister Julio DeVido also participated in the meeting. -------------- Morales Raises Energy, Integration -------------- ¶3. (U) Foreign Minister Taiana appeared with Morales during a brief press event at the Casa Rosada that followed the meeting. A journalist asked Morales whether Kirchner had given him advice on managing relations with the U.S. Morales responded that Kirchner told him to defend Bolivian interests but, at the same time, emphasized the importance of being cautious. Morales said that one of the themes of the meeting was the idea of forming an "energy alliance" that would include Argentina, Bolivia, and Venezuela. He stated that the energy problem would be "one of the themes of the millennium, like water, and should be resolved." Bolivia's first step toward the development of this "alliance" could be the barter exchange of natural gas for technology from Argentina to expand the distribution of natural gas within Bolivia. Morales announced that "Bolivians cannot live on top of the gas and live without it. This must end." Business daily "El Cronista Comercial" reports that, during the meeting with Kirchner, Morales received a copy of Argentina's agreement with Venezuela on the exchange of Venezuelan fuel oil for Argentina's agricultural technology and equipment. ¶4. (U) Press reports on January 6 quoted Bolivian Vice President-elect Alvaro Linera as saying that Morales would visit Argentina to "negotiate a regional market price (for natural gas) that fundamentally benefits Bolivia." Morales explained during the press conference that Bolivia is "interested in strengthening energy agreements, we have a serious interest in increasing the volume of (natural gas) exports, and in increasing the price." However, Morales said that he could not make any official changes in price or volume before he takes office on January 22. -------------- GOA Comments on Bolivia -------------- ¶5. (C) Both Kirchner and Taiana expressed their views to Assistant Secretary Shannon and the Ambassador on January 12 that Bolivia under Morales was entering uncharted territory (Reftel A). Neither was ready to offer a concrete GOA plan of action in support of the Morales government. Kirchner noted that Argentina has multiple bilateral strategic interests with Bolivia and said that MERCOSUR was the best mechanism to address issues of economic and political stability in Bolivia. Kirchner pledged during those meetings to work closely with President Lula to ensure the "consolidation of republican institutions" in Bolivia. The only demonstration of support appears to be an offer of an energy-for-industrial-goods bartering arrangement similar to the current relationship Argentina has with Venezuela (para 3). Planning Minister DeVido made reference to GOA's willingness to establish a bartering arrangement with Bolivia during a January 12 meeting with Assistant Secretary Shannon and the Ambassador (Reftel B). -------------- Comment -------------- ¶6. (C) The January 17 Kirchner-Morales meeting appears to have been a protocol visit more than anything else. There was no progress in establishing a price for future purchases of Bolivian natural gas. The GOA did, however, manage to avoid the appearance of slighting, and of having been slighted by, Morales. End Comment. ¶7. (C) To see more Buenos Aires reporting, visit our classified website at: http://www.state.sgov.gov/p/wha/buenosaires.< /a> GUTIERREZ