ARGENTINES PLEASED WITH VPOTUS-CFK MEETING

C O N F I D E N T I A L BUENOS AIRES 000370 E.O. 12958: DECL: 03/30/2029 TAGS: PREL ECON AR SUBJECT: ARGENTINES PLEASED WITH VPOTUS-CFK MEETING Classified By: Ambassador E. Anthony Wayne for reasons 1.4 (b) & (d). ¶1. (C) Summary. Argentine media gave highly positive coverage to President Cristina Fernandez de Kirchner's (CFK) March 27 bilateral with Vice President Biden, and Argentine Ambassador to the United States Hector Timerman confirmed to the Ambassador that the GOA was very pleased with the meeting. Timerman and FM Jorge Taiana told the press that there was substantial agreement on the steps to take in the face of the economic crisis. The successful outcome in Santiago will reinforce the recent improvement in the U.S.-Argentine relationship. End summary. ¶2. (SBU) Argentine media gave highly positive coverage to President Cristina Fernandez de Kirchner's (CFK) March 27 bilateral with Vice President Biden. Under the headline ""Gestures of getting closer with the U.S.,"" newspaper of record ""La Nacion"" reported that ""after six years of public spats, the Kirchner regime reached its first points of clear and categorical agreement with the United States"" at the summit meeting in Chile of progressive leaders. According to ""La Nacion,"" CFK and Vice President Biden agreed it was important that the Obama Administration approach Latin America ""above all else on the need to reform the international financial institutions to make more money flow to emerging countries."" ¶3. (SBU) FM Taiana and Argentine Ambassador the U.S. Hector Timerman told the press the bilateral was ""highly satisfactory,"" ""positive,"" and ""useful."" Taiana said, ""The most important thing is that we think alike about how to deal with the crisis. The President (CFK) and Biden agreed that IFIs should help increase global demand, and that this does not conflict with the priority some European countries (France and Germany, for example) put on improving the oversight of funds. Both things can and should take place simultaneously."" ¶4. (SBU) ""La Nacion"" said CFK urged the lifting of tariff barriers in the United States, and that VP Biden replied that ""the Obama Administration was not 'protectionist' but was facing 'too much internal pressure.'"" According to ""La Nacion,"" this was ""a tactful rejection"" by VP Biden of CFK's request. ¶5. (SBU) Leading circulation daily ""Clarin"" ran a photograph on page one March 28 of CFK and VP Biden shaking hands and smiling, and the headline ""Cristina and Biden agree to work in the G-20 to overcome the crisis."" The ""Clarin"" correspondent dwelled on the positive atmospherics in the bilateral meeting, and said it focused on the global crisis. According to ""Clarin,"" Timerman said VP Biden and CFK agreed on the need to stimulate global demand ""but that while Biden indicated that one way was to increase the working capital of IFIs, the President (CFK) said, 'yes, but with reforms.' Biden answered her that he knew she was pushing for reforms and that the United States was counting on her experience."" ¶6. (SBU) According to Taiana and Timerman, CUBA and Venezuela were addressed indirectly. ""Clarin"" asked if CFK requested an end to the Cuban embargo and Cuba's rejoining the OAS, and Taiana reportedly said she did not specifically raise Cuba, but that ""she asked that the United States review its Latin America policy to take into account the new reality of the region."" Timerman reportedly said ""VP Biden told the President (CFK) that President Obama was disposed to speak at the Summit of the Americas about any topic"" without taking any subject off the table. Timerman Glowing in Private -------------- ¶7. (C) In a March 29 telephone conversation, Timerman told the Ambassador that the bilateral meeting with VP Biden was outstanding, and that Argentina is supportive of U.S. G-20 positions on everything except IMF reform (septel reports on this and other likely GOA positions at the G-20 summit). Timerman said CFK had listened attentively, and that VP Biden had taken a very effective tack at the outset by urging CFK to put past U.S.-Latin American relations behind us and to look forward. Timerman said VP Biden had very effectively addressed USG openness to discussion on Venezuela and Cuba, leaving CFK with no need to say anything. There was also very substantial agreement, he said, on the steps to take in the addressing the economic crisis. Timerman said the broader summit meeting of progressive leaders was also excellent, and that VP Biden's ideas were well-accepted by other leaders. Timerman thought the only semi-dissonant voice belonged to President Lula, whom he thought may have been feeling ""competitive"" with VP Biden. Comment -------------- ¶8. (C) The euphoric reaction from the GOA and local press to VP Biden's meeting with CFK underscores that we are on an upswing in our bilateral relations in the month that has passed since the controversy over the DCIA's comments about Argentina's stability. Timerman joked to the Ambassador that ""now we'll be criticized for being so pro-American,"" but we think he was trying to convey a new GOA willingness and intent to strike a more positive tone and develop a more constructive relationship with Washington. Timerman added his strong hope that CFK and President Obama would be able to have at least a 5-7 minute pull-aside in London to help solidify the constructive relationship. We believe our continued engagement with CFK will substantially increase the odds that her government will play a marginally useful role in the upcoming summits and within the region rather than a vexingly troublesome one. WAYNE