ARGENTINA: FOREIGN MINISTER SEES WAY AHEAD ON

C O N F I D E N T I A L BUENOS AIRES 000621

SIPDIS

SIPDIS

WHA FOR CHARLES SHAPIRO, PATRICK DUDDY, DOUG BARNES, BRUCE
FRIEDMAN, DREW BLAKENEY
P FOR HEIDE BRONKE
EMBASSY VILNIUS FOR THOMAS P. KELLY

E.O. 12958: DECL: 03/30/2017
TAGS: PGOV PREL PARM MARR ECON AR
SUBJECT: ARGENTINA: FOREIGN MINISTER SEES WAY AHEAD ON
BILATERAL RELATIONS

Classified By: Ambassador E. Anthony Wayne for Reasons 1.4 (B) and (D)


1. (C) Summary: "Let's put recent events behind us and move
forward on our positive agenda" Foreign Minister Jorge Taiana
told Ambassador Wayne March 29, offering no rebuttal to the
Ambassador's conveyance of Washington's serious displeasure
with the GoA decision to allow Chavez's March 9 anti-US
rally. Taiana indicated that he wanted to avoid continued
public back and forth on the issue and focus on moving ahead
where it is in our common interest. When the Ambassador
indicated his worry about future outbursts of criticism from
President Kirchner, Taiana said that he knows "we have our
work cut out for us," and at the end of the meeting suggested
meeting on a regular basis every few weeks. Taiana noted the
positive tenor of recently concluded military-military
bilateral working group meetings between the Ministry of
Defense and the Defense Department. The Ambassador agreed
and thanked Taiana for his support in submitting authorizing
legislation for the upcoming UNITAS exercise in May. When
Ambassador informed Taiana that U.S. Interpol Executive
Committee representative Tom Fuentes would be visiting
Argentina in late April, Taiana suggested that it would be a
good opportunity to discuss next steps on the AMIA case as
the decision to publish the Red Notices is taken up by the
Interpol General Assembly in November.


2. (C) Taiana offered a brief readout of Senator and First
Lady Cristina Fernandez de Kirchner's trip to Venezuela and
Ecuador, stating that she was warmly received by the Jewish
community in Venezuela. He informed the Ambassador that the
First Lady has been invited to participate in a May 3
American Jewish Congress meeting along with Secretary Rice
and the Latvian President, and that the First Lady would
likely attend. He also noted that in Ecuador, she had
advised the Correa administration "not to default" on their
debt, and shared in some depth his views on Correa and his
team. When asked about President Kirchner's upcoming trip to
Venezuela, he downplayed the visit explaining that the trip
was to attend a regional energy summit long in the works. He
indicated that Kirchner's visit to Bolivia was not confirmed,
bu that he would likely look to finalize an agreement to
begin construction of the Argentine-Bolivian gas pipeline.
On the recent GoA decision to end the 1995 oil and gas accord
in the Falklands/Malvinas, Taiana went on at length asserting
that the UK frequently and erroneously characterizes
Argentina's actions to defend its sovereignty claims over the
disputed islands as "hostile", as if the actions were acts of
aggression. He reiterated that the GoA is bound to resolve
the Falklands/Malvinas dispute diplomatically in its 1994
constitution, but that it will continue to push its claims.
End Summary.

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Taiana and Ambassador Agree to Move Forward
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3. (C) "Let's put recent events behind us and move forward
on our positive agenda" Foreign Minister Jorge Taiana told
Ambassador Wayne March 29, offering no rebuttal to the
Ambassador's conveyance of Washington's serious displeasure
with the GoA decision to allow Chavez's March 9 anti-US rally
during President Bush's Uruguay visit. Taiana noted that
only he and Interior Minister Fernandez were the only ones to
respond to Under Secretary Burns' 3/22 Council of the
Americas criticism of the decision and stressed that he
wanted to avoid any continued public back and forth on the
issue. When the Ambassador indicated his worry about future
outbursts of criticism from President Kirchner, Taiana said
that he knows "we have our work cut for us," and agreed we
should move ahead where it is in our common interest.


4. (C) Referring to a March 27 Clarin story that alleged,
among other things, that the Ambassador had bypassed
Assistant Secretary Shannon and gone directly to higher
levels to recommend that the USG formally complain to
Argentina in response to the anti-U.S. rally, and a March 22
Buenos Aires Herald story that incorrectly reported that the
GoA barred U.S. landings and overflights during President
Bush's regional visit earlier this month, Taiana noted that
the press seemed to be intent on escalating U.S.-Argentine
tensions. He thanked the Ambassador for quickly clarifying
the Clarin story, adding that he was glad he did not have to
respond to the allegations in the story. The Ambassador
commented that the press always likes a good fight and
explained that Embassy had also submitted a correction to the
Buenos Aires Herald story, expressing appreciation for the
GoA's cooperation in facilitating the air transportation
logistics during President Bush's visit.


5. (C) Highlighting the positive aspects of our
relationship, the Ambassador and Taiana concurred this week's
MoD-DoD bilateral working group meetings were very positive.
The Ambassador stated that Deputy Assistant Secretary of
Defense Johnson was pleased with the exchange, and Taiana
said he had received a similar readout from Defense Minister
Garre. The Ambassador thanked Taiana for his support in
submitting authorizing legislation for the upcoming May
UNITAS exercise. Taiana said the exercise has a long
tradition in the region and noted that "even Venezuela
participates." He stressed that the Argentine military
values the opportunity to improve the interoperability of our
forces, especially at the technical level. The Ambassador
then noted that the positive outcome of the Interpol
Executive Committee decision on the AMIA case in Lyon on
March 15 is yet another example of how bilateral cooperation
can yield mutually beneficial results. When he informed
Taiana of U.S. Interpol Executive Committee Representative
Tom Fuentes' upcoming trip to Argentina in late April, Taiana
suggested that it would be a good opportunity to discuss
next steps on the AMIA case as the decision to publish Red
Notices is taken up by the Interpol General Assembly in
November.

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First Lady's Trips to Venezuela and Ecuador
--------------


6. (C) Taiana offered a brief readout of Senator and First
Lady Cristina Fernandez de Kirchner's trip to Venezuela and
Ecuador. He explained that the First Lady had been invited
to participate in a commemoration ceremony of the 40th
anniversary of the 15,000-strong Venezuelan Jewish
Association, and added that President Kirchner was honored
that his wife had been invited. He stated that the First
Lady has long been interested in the region's Jewish
communities and served on the Congressional committee charged
with monitoring the AMIA investigation. According to Taiana,
the First Lady's speech was "warmly received", at which point
he observed that her speeches tend to make him nervous
because she tends to speak extemporaneously as opposed to
read from prepared speeches. Taiana disclosed that while in
Venezuela, the American Jewish Congress extended an
invitation to the First Lady to participate in an early May
conference along with Secretary Rice and the President of
Latvia. He indicated that the First Lady would most likely
attend.


7. (C) Taiana said Fernandez de Kirchner's visit to Ecuador
also went well, noted that the First Lady advised the Correa
administration "not to default" on their debt. He stressed
that Correa is a "very pragmatic and good man" who bases his
decisions on common sense. Taiana asserted that Correa and
his team comes from outside the political system and so they
have not yet been corrupted. Correa and his team's naivet,
however, may prove to be Correa's biggest weakness, Taiana
cautioned, citing as an example Correa's decision not to run
any candidates in last year's Congressional elections.
Taiana noted that although Correa is firmly against
dollarization because it has resulted in high domestic prices
and has eroded Ecuador's export competitiveness, he will
maintain the policy as long as oil prices remain high and
remittances continue to flow in from abroad.

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Upcoming Kirchner Travel to Venezuela and Bolivia
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8. (C) When asked about President Kirchner's upcoming April
16-17 trip to Venezuela, Taiana downplayed the visit
explaining that the trip was to attend a regional energy
summit long in the works. He indicated that Kirchner's visit
to Bolivia was not confirmed, but that he would likely look
to finalize an agreement to begin construction of the
Argentine-Bolivian gas pipeline.

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Falklands/Malvinas Islands Dispute
--------------


9. (C) On the recent GoA decision to end the 1995 oil and
gas accord in the Falklands/Malvinas, Taiana went on at
length asserting that the UK frequently and erroneously
characterizes Argentina's actions to protest the
"colonization" of the disputed islands as "hostile," as if
the actions were acts of aggression. Taiana said he believed
such statements were political efforts designed to minimize
the legitimacy of the GoA's claims to the islands, but
worried that if the UK really believes the GoA intends to try
to forcefully gain control of the islands, "they really do
not understand what is going on in Argentina."


10. (C) The Ambassador told Taiana that the UK wants to
emphasize a positive agenda with regard to the islands.
Taiana reiterated that the GoA is committed to pursuing a
negotiated solution according to diplomatic norms,
international law, and as set forth in Argentina's 1994
constitution. He stressed the administration realizes that,
given the UK's political and military strength, it cannot be
forced to negotiate, but that the GoA will never give up its
claims to the islands. According to Taiana, moreover, the UK
has refused since 1994 to participate in the bilateral
defense working group, which he described as one of a series
of confidence building measures that could help smooth
diplomatic tensions. He maintained that both parties must
derive equal benefits from agreements related to the islands.
He also explained that the GoA rejected the UK's invitation
for a joint commemoration of the 25th anniversary of the
Falklands/Malvinas war because the events planned by the
British are more a "celebration" than a commemoration.


11. (C) Taiana also admitted that he was torn over the
efforts of the families of fallen Argentine soldiers to
commemorate the 25th anniversary of the war. He said a
committee representing the families had initiated a movement
to travel to the islands to visit the Argentine cemetary
there and erect a statue in memory of the war's victims, but
he was concerned that the UK was portraying these efforts as
its own initiative. Planning Minister Julio De Vido the same
day announced the GoA will ban oil companies who operate or
have operated on the islands from doing business in
Argentina. In concluding the meeting, Taiana suggested he
and the Ambassador meet on a regular basis every few weeks,
to which the Ambassador agreed.

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Comment
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12. (C) Taiana's comments reflect the MFA,s commitment to
work at damage control. The FM pointed out that only he and
Cabinet Chief Alberto Fernandez reacted to Under Secretary
Burn's 3/22 Council of the Americas remarks, criticizing the
GoA's decision to host Chavez's anti-U.S. rally, confirming
our hunch that the quick ministerial criticism was aimed at
avoiding a presidential response. So far, Kirchner has kept
mum, but we (and we believe the FM) do not discount the
possibility of a future public rebuke given his tendency to
lash out at the slightest provocation.
WAYNE