TOUR D'HORIZON WITH URUGUAYAN FM FERNANDEZ

C O N F I D E N T I A L MONTEVIDEO 000505

SIPDIS

FOR WHA/BSC
WH PLEASE PASS USTR KATE DUCKWORTH

E.O. 12958: DECL: 09/01/2018
TAGS: PREL PGOV MOPS CJAN TBIO GG UY
SUBJECT: TOUR D'HORIZON WITH URUGUAYAN FM FERNANDEZ

REF: A) MVD 488 B) MVD 479

Classified By: AMBASSADOR FRANK BAXTER, FOR REASONS 1.4 (B) & (D)

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Summary
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1 (SBU) In a private dinner meeting on August 28, six months
after his move from the Presidency to the Foreign Ministry,
Gonzalo Fernandez discussed the goals he hopes to achieve in
the next year and a half. Although President Vazquez
continues to look to him as a key advisor, Fernandez is
increasingly focused on foreign policy, delegating other
government priorities to the appropriate Cabinet Ministers.
He provided an overview of Uruguay,s foreign and domestic
policy challenges, including a preview of issues he plans to
raise with USG officials during his upcoming visit to New
York for the UNGA (Sept 20-30) and Washington (Oct 1-3). End
Summary.

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Peacekeeping
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2. (C) On August 29, Uruguay played host to a quarterly
meeting of the vice ministers of defense and state of the
nine Latin American countries involved in peacekeeping in
Haiti -- those are Argentina; Bolivia; Brazil; Chile;
Ecuador; Guatemala; Paraguay; Peru; and Uruguay. Colombia
also participated, as an observer. The vice ministers agreed
to request an extension of the current MINUSTAH mandate,
framing it as a way to assist Haiti's social and economic
recovery. Comment: The Uruguayan government continues to
grapple with its ambivalence over Uruguayan military
involvement in peacekeeping, particularly in Haiti. While
the military itself is supportive because of the financial
advantages for individual soldiers and the military as a
whole, leftist political leaders have framed PKO work as an
unwelcome militarization. The GOU has, for some time now,
sought U.S. and Canadian (and at our suggestion, OAS),
financial support for a vaguely defined democracy assistance
project. End Comment.

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Regional Politics
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3. (C) On the status of the OAS efforts to calm tensions
between Colombia/Ecuador, Fernandez said that all appears to
be quiet under the surface, pointing to the fact that Ecuador
was the second country to agree to the involvement of
Colombia in the peacekeeping meeting. Regarding Venezuela,
Fernandez commented that Venezuelan Foreign Minister Maduro
brought 40 people to his one day meeting in Montevideo on
August 17, an indication that the GOV is finally planning to
live up to its promises. Despite reservations about Chavez,
the GOU felt it had to be pragmatic and work with him.


4. (C) Uruguayans were enraged by Ecuador,s nomination of
Nestor Kirchner to be the Secretary General of Unasur, seeing
it as a betrayal, despite Uruguay,s nuanced stance vis-a-vis
Ecuador in its dispute with Colombia. Fernandez is quietly
lobbying Peru and Colombia to oppose the involvement of an
ex-President in this role. He said that Uruguay can,t
object alone to Kirchner's nomination, because &the revenge
would be too dangerous.8 Fernandez hopes to balance the
weight of Argentina and Brazil by expanding the membership of
Unasur.

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Georgia
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5. (C) Ambassador laid out the USG position on Georgia and
urged Fernandez to condemn the Russian recognition of
Abkhazia and South Ossetia. Fernandez noted that he had also
received heavy pressure from Germany on this issue, but, as
with Kosovo, Fernandez expects to keep Uruguay out of the
fray by not taking a stand. The GOU sees little to gain from
going out on a limb on an issue that divides the Security
Council (Ref A).

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National Politics
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6. (C) Fernandez is concerned that Senator Jose Mujica
(former Tupamaro guerrilla and Minister of Agriculture under
Vazquez until February 2008) will ignore President Vazquez,s
preferences, run for the Frente Amplio party,s presidential
nomination, and win handily against Minister of Economy
Astori, who is blamed by the middle class for the
introduction of the new income tax about a year ago.
Although there have been some calls for President Vazquez to
run again (it would require a change of the Constitution) or
for other candidates to emerge, Fernandez considers this
unlikely. Fernandez predicts that the opposition nationalist
party nomination will likely go to Senator Jorge Larranaga
(who Fernandez views as too inexperienced for the job);
former President Luis Alberto Lacalle is gaining in the polls
but ultimately will not overcome dissatisfaction in some
quarters with his previous tenure as President. In a contest
between Larranaga and Mujica, many believe Larranaga would
pool together enough votes from the opposition parties and
Frente Amplio moderates to win.

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U.S.-Uruguay Bilateral Relations
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7. (C) Trade: Fernandez would like to sign annexes to our
Trade & Investment framework agreement dealing with trade and
environment cooperation and trade facilitation during his
coming trip to the U.S. (probably in Washington at the end of
September). Fernandez also would like to sign a biofuels
cooperation MOU with State during this visit. Finally, in
the trade area, Fernandez said that Brazil is making another
push for Doha; if this fails, Brazil will advocate for a
Mercosur-European Union trade agreement.


8. (U) Science and Technology: Fernandez is looking forward
to seeing U/S for Global Affairs Paula Dobriansky in New York
to discuss areas for cooperation on science and technology.
The ambassador explained that our key areas of focus are
helping establish a National Cancer Institute in Uruguay and
increased information exchange.

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Pending Extradition Request
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9. (C) Fernandez noted that the GOU is taking steps to
prepare for a possible State Department decision to extradite
former banker Juan Peirano-Basso to Uruguay in mid-September.
Fernandez also repeated the GOU,s request for a
humanitarian pardon for former honorary consul Richard
Stanham (currently in jail in Texas). Stanham continues to
have health problems, Fernandez said. Ambassador explained
that the pardon request had been conveyed to the appropriate
office in the Department of Justice, and is being considered.

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Bio Note
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10. (SBU) The Foreign Minister,s wife Cecilia is an active
criminal defense attorney (primarily liability law),just as
the Minister was prior to joining the government. Her other
interests are architecture, art, and music, but she says her
work dominates her time. She recently underwent treatment
for breast cancer, and has been cancer free for a year.

Baxter