Identifier
Created
Classification
Origin
06BUENOSAIRES480
2006-03-01 16:40:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Buenos Aires
Cable title:  

DEMARCHE ON ARGENTINA IDB ABSTENTION

Tags:  ECON EFIN AR 
pdf how-to read a cable
VZCZCXYZ0052
OO RUEHWEB

DE RUEHBU #0480 0601640
ZNR UUUUU ZZH
O 011640Z MAR 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3650
INFO RHEHNSC/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS BUENOS AIRES 000480 

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR EB AS WAYNE, WHA AS SHANNON, PDAS SHAPIRO AND
WHA/BSC
NSC FOR DAN FISK
TREASURY FOR TIM ADAMS AND NANCY LEE

E.O. 12958: N/A
TAGS: ECON EFIN AR
SUBJECT: DEMARCHE ON ARGENTINA IDB ABSTENTION

REF: A. SECSTATE 32890


B. BUENOS AIRES 322

UNCLAS BUENOS AIRES 000480

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR EB AS WAYNE, WHA AS SHANNON, PDAS SHAPIRO AND
WHA/BSC
NSC FOR DAN FISK
TREASURY FOR TIM ADAMS AND NANCY LEE

E.O. 12958: N/A
TAGS: ECON EFIN AR
SUBJECT: DEMARCHE ON ARGENTINA IDB ABSTENTION

REF: A. SECSTATE 32890


B. BUENOS AIRES 322


1. (SBU) Per Ref A instruction, I called on MFA Director for
Political Affairs Ambassador Luis Cappagli (the number three
official in the MFA) at 10:45 a.m. local time (8:45 a.m.
Washington time) on March 1. Foreign Minister Taiana was at
the Congress for President Kirchner,s speech at the opening
of the legislative session, and Deputy FM Roberto Garcia
Moritan is at a UN meeting in New York.


2. (SBU) Using all the points in paragraph 6 of Ref A, I
informed Cappagli about the U.S. intention to abstain on the
IDB loan. I explained that the USG vote was based on our
need to send a clear message to the IDB, and that we remained
committed to working with Argentina in the international
financial institutions, as we had since 2003 to the present.
I reminded Cappagli that we had supported and encouraged the
disbursement of $22.5 billion in new approvals for IFI
assistance. I noted that we expected that the loan would be
approved by the IDB board notwithstanding our abstention, and
that we were committed to working with Argentina on its
economic reforms and public financial management.


3. (SBU) Cappagli said he was surprised by the U.S. decision
to abstain on the loan. He described the U.S. vote as a
"serious blow" ("golpe duro") to the relationship, coming as
it did at a time when there was a general perception that the
U.S.-Argentina relationship had been re-acquiring momentum
after the Mar del Plata Summit of the Americas. Cappagli
said that he had spent most of last Saturday working to
change Argentina,s vote at the ICAO board meeting in order
to support the U.S. candidate. This had involved breaking
ranks with the Latin ICAO group and reneging on a previous
commitment to back an Algerian candidate. Argentina had
undertaken this action as a "gesture of friendship and
affection." A U.S. abstention on an IDB loan for Argentina
at this time will be "very costly."


4. (SBU) I reiterated that the U.S. action was not directed
against Argentina, but meant to send a message to the IDB.
Cappagli said that the media would never understand the
nuance. He asked if there were any way that the U.S. could
reconsider its vote. I said I did not think so. We had not
taken the decision lightly, and it had been fully debated
within the USG.


5. (SBU) Earlier in the morning I had received a call from
Argentine ambassador to the U.S. Jose Octavio Bordon, who is
currently in Buenos Aires. Bordon had heard from his IDB
representative about the U.S. abstention. He too said this
would be viewed in the media as a U.S. action against
Argentina, and asked if we could reconsider. I gave the same
answer I gave Cappagli. Bordon said he lamented that the
U.S. had shifted course in its policy with respect to
Argentina and would now be joining the traditional position
of Japan and Italy in abstaining on IFI loans for Argentina.
I assured him that this was not the case, that our vote was
meant to send a message to the IDB on this particular loan
and nothing more.
GUTIERREZ