CODEL Shelby discusses bilateral relationship, TIP, and

UNCLAS BUENOS AIRES 000425 SIPDIS SIPDIS SENSITIVE E.O. 12958: N/A TAGS: PREL PGOV GTIP PTER KTFN ECON OREP AR SUBJECT: CODEL Shelby discusses bilateral relationship, TIP, and Terrorism with Argentina's Justice Minister Ref: (A) Buenos Aires 173 and previous -------------- Summary -------------- ¶1. (SBU) During a March 25 meeting with Justice Minister Anibal Fernandez, a delegation of four U.S. Senators and one Representative, led by Senator Shelby (R-AL),noted U.S. Congressional interest in Argentina's efforts to combat terrorism, terrorism financing, and money laundering, particularly in the tri-border area. They also inquired about the status of Trafficking in Persons (TIP) legislation. Fernandez emphasized the improving bilateral relationship, thanked the USG for its support of the GoA's pursuit of Interpol Red Notices related to the 1994 AMIA bombing, noted that Argentina is still a potential target for terrorist attacks, and predicted the Argentine Congress would pass the TIP law within 20 days. End Summary. -------------- Focus on Terrorism, Trafficking in Persons -------------- ¶2. (U) Senator Richard Shelby (R-AL),ranking member of the Senate Banking Committee, Senator Judd Gregg (R-NH),Senator Bob Corker (R-TN),Senator Mike Crapo (R-ID),and Congressman Bud Cramer (D-AL),capped a successful visit to Buenos Aires with meetings on March 25 with Minister of Justice, Security, and Human Rights, Anibal Fernandez, Central Bank President Martin Redrado, and representatives from U.S. financial institutions operating in Argentina (see septels). ¶3. (SBU) Senator Shelby started off highlighting the importance of building bilateral ties and thanked the Minister for giving the CODEL the important opportunity to learn more about Argentina. Other CODEL members echoed these sentiments, with Senator Gregg commenting that many in Congress viewed Argentina as the lynchpin to South America, so it was imperative for the U.S. and GoA to continue good relations. Shelby noted U.S. Congressional interest in the Tri-Border Area (Argentina, Brazil, Paraguay),and sympathized that it was a difficult area for the three countries' governments to control. Senator Shelby expressed interest in Argentina's efforts to combat money laundering and terrorism finance, and acknowledged the difficulties involved in distinguishing between legitimate financial flows and those going to finance terrorism. -------------- -------------- Fernandez: Secret of Good Relations is "Respect" -------------- -------------- ¶4. (SBU) Fernandez emphasized the improving bilateral relationship, calling it increasingly solid and mature, based on mutual respect, with each side being candid about areas of disagreement but also coordinating closely on issues of mutual interest. He contrasted this with relations in the 1990s, when then-President Menem characterized U.S.-Argentine relations as "carnal." Fernandez commented that the current GoA leadership had always disliked that characterization, and it had also proven untrue over time. By example, despite the "nice words" of that period, Fernandez noted that U.S. companies were under-represented in multinational company bids for early 1990s GoA privatizations, largely because they refused to pay bribes to Menem's government. (Comment: Similar reflections have been made to Ambassador and Econoffs by Planning Minister De Vido and Internal Commerce Secretary Moreno, praising U.S. company track records of playing by the rules in Argentina and encouraging expanded U.S. investment.) ¶5. (SBU) Now, Fernandez argued, these over-the-top phrases have been replaced by a more honest relationship, with each side defending its own interests. He said the secret to a good relationship is respect, and the USG and GoA are now open about their disagreements with each other's policies or actions. For example, he noted that the GoA had strongly opposed the invasion of Iraq, but had raised its objections in the appropriate forum (UN) and had not attempted to build or support opposition to the action. Interestingly, he said, it is under this more open and honest relationship that U.S. companies are increasingly winning Argentine government contracts (as an example, Fernandez pointed to Motorola's winning an important contract to provide radio communication systems to Federal Police forces in Argentina). He added that U.S.-Argentina cooperation is becoming so normal that the Argentine press no longer treats his meetings with the Ambassador as a big news event; they are now part of the regular working agenda. -------------- --- Interpol Red Notices, Terrorism, Tri-Border Area -------------- --- ¶6. (SBU) Fernandez expressed appreciation for USG efforts to support the GoA's successful pursuit of Interpol "Red Notices" (international capture notices) for five of the eight current and former Iranian government officials and Lebanese national (and senior member of Hizballah) Imad Fayez Mughniyah, indicted in the July 18, 1994, terrorist bombing of the Argentine-Jewish Mutual Association (AMIA). Fernandez noted that after Mughniyah was killed in a car bomb blast on February 12, Hizballah had threatened retaliation against Israeli interests worldwide. He said the GoA sees Argentina as a likely target, so considers counter-terrorism efforts a high priority. ¶7. (SBU) Nevertheless, Fernandez pointed out that the GoA has to be cautious when discussing terrorism, terrorism financing, and the tri-border area (TBA),in order not to antagonize or stigmatize Muslims in Argentina. The Argentine Muslim population is relatively small and moderate, he argued, and has excellent relationships with other communities in Argentina, including the Jewish community. Fernandez also argued that it is incorrect to speak in general terms about problems in the TBA since there are no supra-national laws applying to the region and since each of the three countries faces distinct challenges. He called it more appropriate to avoid generalizations and to attribute specific TBA problems to specific TBA countries. (Comment: Argentina is often lumped in with Brazil and Paraguay on TBA issues, even though the majority of questionable TBA financial transactions are believed to take place in Paraguay. This was likely Fernandez' attempt to differentiate Argentina from its neighbors when it comes to money laundering and, especially, terrorism finance. End Comment) ¶8. (SBU) Fernandez reassured the CODEL that the GoA is serious about its counter-terrorism efforts. He said Argentine intelligence and law enforcement forces were working closely with USG counterparts, and emphasized that the GoA's objective was to analyze any activities, including financial movements, whose aim could be to facilitate or finance terrorism. On that note, he said the government was currently "obsessed" with the issue of terrorism finance, and was in the process of making dramatic changes to its oversight of financial transactions. The goal, he said, was to ensure that all suspicious transactions are fully analyzed and investigated. -------------- TIP Law Expected Soon -------------- ¶9. (SBU) Fernandez said he hoped and expected the Argentine Lower House (the Senate has already passed this version of the bill) would pass the TIP law within 20 days, and he noted that under the new law, a notable advance is that the federal government will have jurisdiction over TIP, instead of individual provincial governments. Nevertheless, he spent most of the discussion on TIP recounting in great detail his dissatisfaction with the role of the State Department's G/TIP officer, who insisted at a lunch hosted by FBI Assistant Director of International Operations (during Fernandez' visit to Washington last year) that the law pending before the Argentine Congress was inadequate. He blamed this USG official's involvement for delaying the passage of TIP legislation. (Comment: This has become a frequent refrain of Fernandez. G/TIP and Post have raised a number of shortcomings in this version of the bill, as have a number of Argentine members of Congress and the NGO community. It is these latter two groups, however, exercising their prerogatives in the democratic system, which have "delayed" passage in their attempts to obtain a more comprehensive bill. Post has reported details in past cables. See Reftel.) ¶10. (U) CODEL Shelby cleared this message. WAYNE