ARGENTINE RESPONSE TO U.S. REQUEST FOR GREATER

C O N F I D E N T I A L BUENOS AIRES 001178 SIPDIS ISN FOR D. MAHLEY AND P. DURHAM WHA FOR BSC J. SHOWELL AND M. DRUCKER E.O. 12958: DECL: 08/21/2018 TAGS: KSCA PARM PREL ETTC AR SUBJECT: ARGENTINE RESPONSE TO U.S. REQUEST FOR GREATER TRANSPARENCY IN SPACE LAUNCH VEHICLE PROGRAM REF: SECSTATE 50050 AND PREVIOUS Classified By: Charge d'Affaires a.i. Thomas P. Kelly, for reasons 1.4 (b) and (d). -------------- Making the Case for Transparency -------------- ¶1. (C) On June 30, ESTOff met with the Executive Director of the National Commission on Aerospace Activities (CONAE),Dr. Conrado Varotto and CONAE Secretary General Felix Menicocci, to deliver Ref set of conditions regarding the Argentine space launch vehicle (SLV) program. Varotto took careful notes, requesting clarification when necessary. At one point, Varotto paraphrased ESTOff by stating the USG would not ""intervene"" in their SLV program. ESTOff corrected Varotto, reading directly from a prepared statement that the USG would not ""block"" the GOA's SLV program. Varotto accepted the clarification and informed ESTOff that he would review the conditions with the relevant GOA authorities. Per Ref instructions, ESTOff emphasized that it was not the USG's intention to burden Argentina with a cumbersome set of restrictions, but rather to craft an agile transparency mechanism that would allow Argentina to continue to serve as an exemplar of a nonproliferation state. -------------- A Commitment to Full Compliance -------------- ¶2. (C) On July 31, ESTOff again met with Varotto and Menicocci in their CONAE offices. Varotto informed ESTOff that the GOA agreed to all ref terms and conditions. Varotto stated that, as the Director of CONAE, his statement of approval was authoritative and binding, and that further approvals from other GOA entities were not necessary. Varotto requested that the USG consider CONAE as the official interlocutor for all matters regarding the SLV program, and requested that the USG channel all communication through CONAE. Varotto stated that other GOA entities would be involved in the bilateral dialogue, but CONAE was the mission manager for the SLV program, and would serve as the focal point for the GOA. ¶3. (C) Varotto further requested that the first step in the transparency program, a one-time ""state of play"" presentation on the SLV program, occur after January 1, 2009, because CONAE was engaged in several time-sensitive and complex projects until that time. Varotto emphasized that this was a request, not a demand, and asked ESTOff to convey it to the appropriate authorities. Throughout the conversation, Varotto emphasized the collaborative nature of the US-Argentine bilateral aerospace relationship, and the shared interest in transparency. He stated that CONAE was ready to work with the USG to address any concerns over the SLV program, which he classified as wholly civilian in nature. ¶4. (C) On August 21, ESTCouns met at the MFA with Ricardo Bocalandro, Deputy Director for Nuclear and Special Issues. Bocalandro confirmed that CONAE's Executive Director Varotto has full authority to negotiate technical issues on behalf of the GOA, and that the Minister of Foreign Affairs, who sits on CONAE's Board of Directors, is informed and supportive of Varotto's committments on SLV transparency. Bocalandro also confirmed that Varotto is to be our interlocutor on all matters regarding the SLV program. -------------- Action Request -------------- ¶5. (C) We request further details on the timing and content of the ""state of play"" briefing Varotto has committed CONAE to provide in Washington, as well as initial thoughts about the timing of subsequent expert-level meetings in Washington and Buenos Aires. Having agreed to full compliance, Varotto and Menicocci are now interested in further discussions to iron out the details of the agreement. -------------- Comment -------------- ¶6. (C) Having made an unequivocal statement of compliance with our terms and conditions, it is likely Varotto will leverage any resulting goodwill to push the limits of existing control regimes and agreements to further Argentina's SLV and other aerospace programs. With Argentina a signatory to the Missile Technology Control Regime and other bilateral and multilateral nonproliferation agreements, Varotto sees his future negotiating position as one of strength, and he is likely to play heavily on Argentina's demonstrated history of transparency and compliance to gain U.S. approval for Argentina's resurgent aerospace program. End comment. KELLY