Identifier
Created
Classification
Origin
06BUENOSAIRES766
2006-04-04 15:21:00
CONFIDENTIAL
Embassy Buenos Aires
Cable title:  

READOUT ON ARGENTINE PRESIDENT'S MEETING WITH

Tags:  PREL ENRG AR CI 
pdf how-to read a cable
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C O N F I D E N T I A L BUENOS AIRES 000766 

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/31/2016
TAGS: PREL ENRG AR CI
SUBJECT: READOUT ON ARGENTINE PRESIDENT'S MEETING WITH
CHILEAN PRESIDENT

REF: 05 BUENOS AIRES 1555

Classified By: Ambassador Lino Gutierrez, Reasons 1.4(b) and (d).

C O N F I D E N T I A L BUENOS AIRES 000766

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/31/2016
TAGS: PREL ENRG AR CI
SUBJECT: READOUT ON ARGENTINE PRESIDENT'S MEETING WITH
CHILEAN PRESIDENT

REF: 05 BUENOS AIRES 1555

Classified By: Ambassador Lino Gutierrez, Reasons 1.4(b) and (d).


1. (C) POLOFF met March 31 with Oscar Fuentes Lira, First
Secretary at the Chilean Embassy in Buenos Aires, for a

SIPDIS
readout of Chilean President Michelle Bachelet's March 21
meeting with President Nestor Kirchner in Buenos Aires.


2. (C) Lira said the meeting had gone well and that the two
Presidents had signed a wide-ranging accord that identified
areas of future cooperation. The agreement made general
references to topics ranging from border integration, to
energy, mining, and military cooperation. It also identified
five specific infrastructure goals that would increase
"connectivity" across the Andes mountain range: A) announce
a simultaneous international tender by July 31, 2006 for the
reconstruction of the Central Transandean Railroad; B)
Conclude feasibility studies for a transborder tunnel at Agua
Negra pass (reftel); C) complete infrastructure projects
expanding links between the Argentine and Chilean sides in
Tierra del Fuego; D) Upgrading the Paso Pehuenche frontier
pass; and E) Begin feasibility studies for the
Transcontinental Patagonian Railroad.


3. (C) Despite the apparently concrete goals, Lira said that
Chile is wary of Argentina's habit of making political
gestures that are never followed up. He said, however, that
the Chileans wanted to move beyond infrequent, protocolary
meetings between the two presidents towards regular working
meetings to follow up on pending projects.


4. (C) Lira said that the two presidents also discussed
Bolivia. Although he did not give details of the
conversation, Lira said that in general Chile is also looking
for Argentina to moderate Morales. He said that the two
presidents did not discuss Venezuela.


5. (C) The only real bilateral problems, according to Lira,
deal with the reliability of Argentine gas sales to Chile and
a continuing disagreement on exactly where the border lies in
the southernmost part of the Andes. Regarding the gas,
Chile, which imports 100% of its gas from Argentina, does not
wish to see a repeat of 2005, when Argentina suddenly reduced
its exports by half during Argentina's domestic gas shortage.
(Bachelet and Kirchner agreed to let a bilateral committee
work on a long-term solution to the gas supply issue.) On
the border dispute, a technical commission is working this,
but Lira said ultimately "someone will lose." More
generally, Lira said that Chile is constrained in how far it
can accommodate Argentine political and economic desires,
especially those that are anti-free trade.


6. (U) Comment: The reliability of Argentine natural gas
exports varies from month to month depending on seasonal
fluctuations in domestic energy demand and supply. A
combination of these factors led to severe cuts in natural
gas exports to Chile during the winter of 2004. By contrast,
the winter of 2005 was manageable and the winter of 2006 is
expected to be similar.


7. (C) Comment continued: A local diplomat told DCM in the
wake of the visit that a close friend and Bachelet staffer
told him that the Chileans were not as upbeat about the visit
and found the Kirchner Administration without a clear plan of
government and handicapped by incoherent economic policies.
End Comment.


8. Reftel available at
http://www.state.sgov.gov/p/wha/buenosaires.< /a>

GUTIERREZ