ARGENTINA: SAN JUAN GOVERNOR SAYS STATE CAN

UNCLAS BUENOS AIRES 001569 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PINR PREL PGOV ECON AR SUBJECT: ARGENTINA: SAN JUAN GOVERNOR SAYS STATE CAN GUARANTEE RETIREMENT REF: A. BUENOS AIRES 0980 ¶B. BUENOS AIRES 0973 ¶C. BUENOS AIRES 0963 ¶D. BUENOS AIRES 0943 AND PREVIOUS ¶E. BUENOS AIRES 1521 AND PREVIOUS ¶1. (SBU) Summary: Ambassador Wayne and DCM Kelly met with San Juan Governor and Peronist Party member (PJ) Jose Luis Gioja on October 28, shortly before the Governor's travel to the U.S. to observe the presidential elections. Gioja said he maintains a positive dialogue with President Cristina Fernandez de Kirchner (CFK) and described her as less "militant" than her husband, former president Nestor Kirchner (NK) and more "reflexive and receptive." He remarked that the PJ needs to make a strong effort to unite ahead of the 2009 national mid-term legislative elections and acknowledged some concerns about the party's standing. Given the fragmentation of the opposition, however, he noted the party would need only 30 percent of the votes to win nationally and maintain electoral majorities in both houses. Regarding draft legislation to nationalize private pension accounts, Governor Gioja asserted that the State, as the people's defender, should administer the retirement system to guarantee that Argentines receive some kind of social security payment in their retirement. Gioja said he believes the national budget, approved by the Chamber of Deputies on October 16 and by the Senate on November 5, meets the needs of San Juan and other smaller provinces. End Summary. ¶2. (SBU) Ambassador Wayne and DCM Kelly met with San Juan Governor Jose Luis Gioja on October 28. A lifelong Peronist (PJ) party member, Governor Gioja maintains good relations with President Cristina Fernandez de Kirchner (CFK) and her husband and former President Nestor Kirchner (NK). Poloff (notetaker) also attended. -------------- Gioja's Views of Cristina -------------- ¶3. (SBU) Gioja said CFK did not handle the farm conflict well (ref A),but believed the GOA had learned some tough lessons. He noted that CFK had softened her abrasive manner when addressing people and described the effort as positive. He said that he maintains a positive dialogue with CFK, whom he said is available to meet with him when he needs to speak with her. He described CFK as less "militant" than NK and more "reflexive and receptive." -------------- PJ Party in 2009 Mid-term Elections -------------- ¶4. (SBU) The Governor expressed some concerns about the PJ's standing but said he felt confident it would recuperate and perform well in the mid-term legislative elections, particularly in San Juan and Buenos Aires provinces. Although the party is weakened by the dissidence of prominent politicians such as former President Carlos Menem and San Luis Governor and Peronist dissident Alberto Rodriguez Saa, Gioja said he believed the rest of the PJ would be able to overcome personality differences and unite ahead of the mid-term legislative elections in 2009. He acknowledged that it would be difficult for the PJ to garner support in Cordoba, Santa Fe, Mendoza, and the city of Buenos Aires. Given the fragmentation of the opposition, however, he noted the party would need only 30 percent of the votes to win nationally and would be able to maintain electoral majorities in both houses. -------------- Pension Nationalization Plan -------------- ¶5. (SBU) Referring to the GoA's plan (ref E) to nationalize private pension funds (known locally as AFJPs),Governor Gioja stressed that the State, as the people's defender, should administer the retirement system, guaranteeing that Argentines receive some kind of social security payment in their retirement. He recalled his experience as a national deputy in 1994 when the government moved to privatize the system, a decision he perceived as the best course of action at the time. However, he noted the system lacked sufficient controls, and the country's 2001 financial crisis further weakened it. The Governor predicted a healthy debate in the Chamber of Deputies over the system with the legislation passing, albeit with some minor changes. (Note: Indeed, after 16 hours of debate, the Chamber of Deputies approved the draft legislation -- 163 votes in favor to 75 against -- in the wee hours of November 7. The bill appears to include only cosmetic modifications, adding minor controls on the use of pension funds, such as a ban on investing overseas and slightly stronger oversight by the bicameral Congressional commission as well as vague language guaranteeing employment of AFJP non-executive employees. Also, it mentions that the GoA's Social Security Administration (ANSES) will not charge any fee for managing the funds. The bill is slated to reach the Senate floor November 20, and local press reports the vote may happen the same day.) ¶6. (SBU) Gioja said he believes the national budget, approved by the Chamber of Deputies on October 16 and by the Senate on November 5, meets the needs of San Juan and other smaller provinces. Recalling Argentina's 2001 financial crisis and its deep impact on San Juan, he said he hoped the government has learned some lessons in the process. He remarked that the country needs to focus on moving forward and not keep looking back. -------------- Bio Note -------------- ¶7. (SBU) Governor Gioja was reelected in August 2007 with 60 percent of the votes. Gioja served his first term as governor from 2003 to 2007. He was a national senator for two consecutive terms (1995-2001 and 2001-2003) and was elected Senate president pro-tempore in 2002. In 2000, he was elected president of the PJ Bloc in the national Senate and was reelected for the term 2001-2005, where he served until assuming his gubernatorial post in 2003. In 1995, during his first Senate term, he served as president of the Federal Tax Co-participation Committee. He was a national deputy for San Juan province from 1991 to 1995 and was reelected for 1995 to 1999, but resigned later to assume a seat in the national Senate. From 1987 to 1991, he served as provincial deputy, was vice-president of the PJ bloc in the province's Lower House, and chaired the Chamber's Mining, Public Works and Water Resources committees. In 1976, while he was working as the director of the Provincial Institute of Housing and as a personal adviser to then San Juan Governor Eloy Camus, Gioja was detained by military authorities and imprisoned for several months, where he claims he was tortured by Major Jorge Olivera. From 1973 to 1975, he served as secretary general of the PJ youth party. ¶8. (SBU) Born on December 4, 1949 in San Juan province, Gioja hails from a political family. He has five siblings, two of which hold congressional seats: his elder brother, Cesar, is a national senator, and his younger brother, Juan Carlos, is a national deputy. Gioja received an engineering degree, with a specialty in land surveys, from the University of Cuyo. He is married; the couple has three sons and a daughter. -------------- Comment -------------- ¶9. (SBU) The meeting provided an excellent opportunity to hear the views of a lifelong Peronist closely aligned to CFK. An interesting and fairly candid interlocutor, the Governor was warm and friendly with U.S. officials, expressing enthusiasm over his week-long trip to the U.S. to observe the presidential elections. In Washington, Gioja told the Ambassador he was really enjoying his opportunity to see the U.S. election process first-hand and to meet with a range of congressional, administration, and academic experts. Upon his return, Gioja told the press that, "There are positive reactions to the President-elect because he fosters palpable hope." According to San Juan press reports, the Governor later added that "one must be honest and acknowledge that Latin America is not the focus of the USG's attention." WAYNE