AMBASSADOR WAYNE PRESENTS CREDENTIALS TO FOREIGN

C O N F I D E N T I A L BUENOS AIRES 002509

SIPDIS

SIPDIS

WHA FOR A/S SHANNON
SOUTHCOM FOR POLAD

E.O. 12958: DECL: 11/06/2016
TAGS: PREL PGOV ECON AR
SUBJECT: AMBASSADOR WAYNE PRESENTS CREDENTIALS TO FOREIGN
MINISTER TAIANA

Classified By: Ambassador E. Anthony Wayne for Reasons 1.4 (b) and (d).


1. (C) Summary: Argentine Foreign Minister Taiana used
Ambassador Wayne's presentation of credentials to stress his
desire for good cooperation and open dialogue with the U.S.
In his 45 minute private meeting with Wayne, Taiana stressed
that the U.S. is a "friend" of Argentina and that Argentina
needs its friends to secure democracy and prosperity. He
underscored our productive work together on counterterrorism,
peacekeeping, non-proliferation and counternarcotics. Given
our shared values, Taiana argued, differences with the U.S.
are more often than not over tactics and urged frank and
honest dialogue to work those through. He said he wanted to
work with us to help correct the anti-American sentiment
evident in Argentine opinion polls.


2. (C) Taiana spent a good deal of time explaining his view
of Argentina's mistakes over the past fifty years. He argued
that Argentina had learned its lessons the hard way and
stressed that President Kirchner and his government are
firmly committed to democracy, and that Kirchner, himself,
believes strongly in maintaining a fiscal surplus and in the
need to cure Argentina of being "addicted" to fiscal
irresponsibility. Taiana described what he sees as an
opportunity for Argentina to sustain its economic growth
because of a favorable international environment and an
extended period of political stability. He added that
Argentines need to take advantage of the situation by
attracting investment and increasing productivity. In the
context of this opportunity and overcoming anti-American
sentiment, the Foreign Minister expressed hope that the U.S.
would not revoke Argentina's GSP benefits. He argued that,
whatever the reality, such a U.S. action would inevitably be
interpreted in Argentina as a political decision aimed at
punishing the country.


3. (C) Wayne told Taiana that the U.S. administration looked
forward to working concretely and productively with Argentina
from strengthening democracy in the region, to encouraging
long-term investment and trade, to fighting terrorism. He
said the GSP review process is proceeding as a fact-based
process within the Administration. On counterterrorism, the
Ambassador discussed with Taiana the need to be prepared for
a coordinated international effort should the responsible
Argentine federal judge issue international arrest warrants
in the AMIA bombing case. Recounting other international
efforts against terrorism, Wayne stressed the importance of
building international support for the findings of
Argentina's investigation and underscored that the United
States stood ready to support and work with Argentina to that
end. End Summary.


4. (C) Ambassador E. Anthony Wayne presented copies of his
letter of credentials to FM Taiana on November 6, one day
after his arrival in Buenos Aires. (Note: In Argentina,
ambassadors are considered fully accredited upon delivering
copies of their letters of credentials to the foreign
minister. Because of his distaste for protocol events,
President Kirchner delegates the formal accreditation
ceremony to Vice President Scioli at a time when he is acting
president, i.e. when Kirchner is traveling outside the
country. End Note.) Ambassador Wayne met privately with
Taiana for approximately 45 minutes.


5. (C) In welcoming Ambassador Wayne, Taiana spoke of the
similarities between the U.S. and Argentina, noting that both
were frontier countries, both had faced serious internal
conflicts and both had long histories of receiving
immigrants. Both also shared similar values and principles.
However, while the U.S. had continued to progress and
develop, Argentina "made mistakes" and had gotten off track
and "clearly done a number of things wrong." He said the
administration of former president Arturo Frondizi (1958-62)
had been the last opportunity to recover and build upon the
times when Argentina's poverty rate was only ten percent and
the middle class was over 50 percent of the population.

Instead, it was followed by nearly 20 years of military
dictatorship, the hyperinflation of 1989-90 ("an earthquake
for the people"),and, finally, the crisis of 2001-02 which,
he said, was not only an economic crisis but also a social
and political crisis. Taiana acknowledged that the 1990s had
brought change and new openings to the Argentine economy and
society, but argued that it had not been done well. He said
many in Argentina equate these changes with the destruction
of industry and jobs as well as with close ties with the U.S.
Therefore, when the crisis of 2001-2002 hit, many were not
only angry with the leaders of their country but very
disillusioned with the previous relationship with the U.S.


6. (C) Taiana then highlighted the areas in which he
believed the GoA and the U.S. were already cooperating
closely and could continue to deepen our work together,
namely, the fight against global terrorism, international
security, non-proliferation issues, and the fight against
narcotics trafficking. He claimed any differences with the
U.S. on these issues were more a matter of tactics than
policy. He said Argentina was a relatively small country
and, therefore, might at times take a more multilateral
approach on issues. The U.S., he acknowledged, needed more
room to maneuver. "We realize this can be difficult," he
said, adding that the GoA had tried to be "prudent" in its
public comments on policy in areas like Iraq where there were
differences with the U.S.


7. (C) Turning to trade and economic issues, Taiana
acknowledged GoA differences with the U.S. He said these
differences were a product of Argentina's history and
development. "We have a different perspective on regional
free trade," he said. On free trade agreements, Taiana
opined there was a coincidence between those countries that
deeply "feared" Chinese expansion into domestic markets and
those who had looked for free trade agreements with the U.S.
However, he acknowledged that Chile and Brazil were
exceptions, "Chile trades with everyone" and then added that
for Argentina, Brazil is our "next door neighbor China."


8. (C) Of most importance to Argentina, Taiana said the
current international economic situation had created an
opportunity for Argentina to have sustained long-term
economic growth for the first time since the 1930s. In
Argentina, this growth can be driven by both a high-tech
revolution, which had led to the possibilities of increased
productivity, and a sustained demand for basic products,
especially from countries such as China.


9. (C) Equally important, Argentina now also had the
opportunity for sustained political stability. The message
from society during the 2001-02 crisis had been for "more and
better democracy." Taiana said that President Kirchner was
seen as the individual best embodying the solution to that
crisis. Taiana said that the Kirchner administration was not
a typical Peronist government. While believing in the
regulatory role of the state, this government was more
capitalist and also believed in the role of the market.
Taiana said the Kirchner administration did agree with the
traditional Peronist social concerns but to this Kirchner had
added a strong belief in fiscal responsibility. Kirchner is
committed to a fiscal surplus, high reserves and a careful
fiscal policy. He noted that Kirchner had said that
Argentines were "addicted" to overspending and that there was
a need to maintain fiscal surpluses and control over
government spending for at least 10 to 15 years to break that
addiction. Taiana said the GoA could not accept a large or
growing income inequality in society, however, as this had
been one of the big mistakes of the 1990s. Therefore, the
government was talking to companies and encouraging them to
raise salaries above the inflation rate. To keep the
inflation rate at acceptable levels, productivity rates
needed to increase, he acknowledged. Another key factor is
investment. Argentine businessmen have to break free from
the short-term mentality created by the crises of the last 40
years. They and foreign investors need to gain confidence in

a longer-term prospect for Argentina.


10. (C) Turning to the high level of anti-Americanism in
Argentina, Taiana said this was rooted in disappointment with
the outcome of the economic and social changes of the 1990s.
The U.S. was popular then, he said, but had become tied up in
the collapse. He said he wanted to work to address this
negative perception. There are many voices ready to
criticize the U.S. in Argentina, he said. In this context,
the Minister argued that he hoped the U.S. would not
eliminate GSP benefits for Argentina. He argued that though
the economic effects would be manageable, the political
damage would be profound. Elimination of GSP would be
interpreted widely as a political decision to punish
Argentina.

11. (C) Taiana said Argentines have a lively debate with the
U.S. about everything. "This is the way we are," he said.
"Don't get upset." He told the Ambassador that he looked
forward to an "open dialogue" and underscored that he wanted
to work well with the U.S. "We are much more reasonable than
we seem to be." He said Argentina needed friends and that
Argentina believed in democracy and basic freedoms. "We
believe in democracy and basic freedoms. We won't get away
from this. We learned this the hard way." He said the GoA
would be frank with the U.S. and that the U.S. should be
frank with the GoA. On dealing with Kirchner, Taiana said
the President was always very careful not to promise more
than he could deliver. He described Kirchner as "very
direct."


12. (C) Ambassador Wayne assured Taiana of his desire for a
frank and open dialogue with the GoA. He said the U.S.
looked to build on our bilateral relationship based on a
long-term perspective of economic and political stability.
In response to Taiana's expression of concern over loss of
GSP preferences, the Ambassador noted he was optimistic as
the Administration is handling this issue in a fact-based
manner.


13. (C) The Ambassador addressed the GoA's ongoing legal
efforts to bring to justice the perpetrators of the 1994 AMIA
bombing and the need for the U.S. and Argentina to continue
working together on this issue. He congratulated the GoA for
the recent release of special prosecutor Nisman's report on
the AMIA bombing, which included indictments of eight former
Iranian government officials and Hezbollah leaders. He said
that given his own experience in rallying coalitions of
nations on terrorism issues, it would be important for the
MFA to join a coordinated international effort to publicize
and build support for the findings of the report if arrest
warrants are issued by Argentine federal judge Canicoba
Corral. The U.S. stands ready to support and work with
Argentina in this effort. Taiana expressed thanks for this
offer.
WAYNE