ARGENTINA: CRISTINA HOSTS HUGO CHAVEZ, BUT BEGS TO

C O N F I D E N T I A L BUENOS AIRES 000593

SIPDIS

E.O. 12958: DECL: 05/19/2029
TAGS: PGOV PREL ECON VZ AR
SUBJECT: ARGENTINA: CRISTINA HOSTS HUGO CHAVEZ, BUT BEGS TO
DIFFER ON OBAMA

REF: BUENOS AIRES 0091

Classified By: Ambassador E. Anthony Wayne for reasons 1.4 (b) & (d).


1. (C) Summary and introduction: Hugo Chavez paid a visit to
Argentina May 15-16 to kick off a bilateral consultative
process, sign some agreements, and see some sights near the
Kirchners' home in El Calafate, Santa Cruz. During a
100-minute joint press conference, CFK denied she plans to
sell any bonds to Venezuela, but Chavez said Venezuela
remained disposed to buy Argentine debt. According to the
press, the only divergence between the two was over President
Obama, with CFK attempting to distance herself from Chavez's
skepticism about President Obama's intentions, and his call
on President Obama to show "respect" for Latin America and
lift the "blockade" on Cuba. Chavez expressed support for
the Kirchner government's slate of candidates in the June 28
congressional mid-term elections. End summary.

Chavez Comes to Visit
--------------


2. (C) Argentine President Cristina Fernandez de Kirchner
(CFK) received Venezuelan President Hugo Chavez for 80
minutes May 15 at Casa Rosada in fulfillment of their
commitment to consult quarterly. After the meeting in CFK's
Casa Rosada office, the two signed several agreements and
held a 100-minute press conference. (Note: CFK's last solo
press conference was August 2, 2008.) The official GOA news
wire service Telam said the agreements covered "science and
technology, trade, culture and industrial complementarity."
A Bolivarian News Agency wire story reported the signing of:
an agreement for the re-gasification in Argentina of liquid
natural gas from Venezuela; an agreement between Venezuela's
petroleum parastatal, PDVSA, and the Argentine GNC Galileo
for a joint venture to manufacture compressors for vehicles;
and an agreement between PDVSA and Fluviomar (an Argentine
transportation company) calling for joint operations in the
River Plate basin.


3. (C) During the press conference, CFK praised Chavez for
calling elections more than once a year since taking office
and thereby taking the pulse of his nation. Chavez
repeatedly and sharply criticized Venezuelan media, and CFK
nodded in agreement when he said, "Don't be surprised if the
State takes a decision with some media which keep practicing
terrorism." Chavez also expressed support for the candidacy
of former president Nestor Kirchner in the June 28
congressional mid-term elections, although he said he did not
want to meddle in internal affairs.


4. (C) As she has on previous occasions, CFK called for
Mercosur to admit Venezuela as a full member promptly in
order "to close the energy equation" in the region. The two
leaders also spoke of the urgent need to capitalize the "Bank
of the South." Chavez said it was urgent for South American
nations to create their own financial fund so they could help
each other out in times of need. CFK denied she plans to
sell any bonds to Venezuela, but Chavez said Venezuela
remained disposed to buy Argentine debt.

CFK Stands Up for Obama
--------------


5. (C) According to the press, the only point of divergence
between the two leaders at the press conference was over
President Obama. Chavez expressed skepticism about President
Obama's intentions to change U.S. relations with the region,
saying, "We have a lot of reasons to doubt there will be a
real change," adding that "the proof is in the pudding."
Chavez called on President Obama to show "respect" for Latin
America, asking "What is Obama waiting for to lift the
blockade on Cuba," after "all the countries of the Americas"
had asked him at the Summit of the Americas to do so. CFK,
however, said, "I think we can all agree it is clear that the
Obama administration has absolutely nothing to do with the
Bush administration." She also said, "I think that at the
last meeting in Trinidad and Tobago -- and I think, Hugo,
that you will agree with me -- it was a first approach by
President Obama that was good, positive."


6. (U) Despite that exchange, some local media outlets
thought the Chavez visit signaled a thaw in a relationship
that had cooled in recent months, and at least one thought
that it reflected growing Kirchner disappointment at the lack
of attention from Washington. According to "La Nacion,"
although "Casa Rosada does not want to distance itself from
the American president, the growing impression in Olivos (the
presidential residence) is that (President Obama) will not be

so benign with Argentina as they imagined when he first took
office. And in that Chavez agrees. Thus, the May 15
encounter sought to consolidate the alliance with Bolivarian
socialism." However, in her appearance at a Microsoft
seminar a few days before, CFK went out of her way to add
remarks comparing her support for high-tech industries to the
positions taken by President Obama, and after her remarks she
walked directly to the Ambassador to express her good wishes
for President Obama, among other topics.

Sightseeing in the Kirchner Backyard
--------------


6. (U) After the press conference, Hugo Chavez, two
daughters, and a large delegation flew to El Calafate, the
tourist destination in southern Santa O/'Be:
t
--------------


7. (C) Chavez makes little effort to conceal his efforts to
sway Argentine voters. His visit repeats a familiar pattern
in which the Venezuelan leader visits Buenos Aires in advance
of elections to express support for the Kirchners. Chavez
visited Buenos Aires in August 2007, a few months before the
presidential election that swept CFK into the Casa Rosada.
That visit coincided with the "valijagate" scandal in which a
Venezuelan-American national was intercepted with an $800,000
cash contribution intended for the CFK campaign. That
scandal, and the ensuing prosecution of Venezuelans who tried
to cover up the scandal while on U.S. territory, led to a
serious crisis in our bilateral relationship.


8. (C) We're guessing that the Kirchners will be more
careful this time, but wonder how their continued
collaboration with the Bolivarian caudillo will play with the
Argentine electorate this time around. Chavez used to be the
most popular foreign leader in Argentina, which encouraged
the Kirchners to play up their association with him. The
valijagate scandal, falling oil prices, and other factors
have diminished his appeal here, and today, Argentines'
favorite foreign leaders are President Obama and Brazilian
President Lula.
WAYNE