ARGENTINA: AMBASSADOR'S FAREWELL CALL ON CFK

C O N F I D E N T I A L BUENOS AIRES 000632 SIPDIS E.O. 12958: DECL: 05/29/2019 TAGS: PREL ECON AR SUBJECT: ARGENTINA: AMBASSADOR'S FAREWELL CALL ON CFK REF: BUENOS AIRES 593 Classified By: Classified by Ambassador E. Anthony Wayne for reasons 1. 4 (b) & (d). ¶1. (C) Summary and introduction: During his one-on-one May 27 farewell call on Argentine President Cristina Fernandez de Kirchner (CFK),the Ambassador orally delivered a message from the President of appreciation for Argentine cooperation at the recent summits (para 5). CFK thanked the Ambassador for the message (para 6),saying she was gratified to see the United States re-engage with the world, and reiterated that she wanted closer relations with the United States. She particularly praised President Obama's recent speech on Guantanamo issues and his engagement on the Middle East and suggested the U.S. consider launching an infrastructure initiative for the Western Hemisphere. CFK was very pleased with the President's intention to nominate Vilma Martinez as next ambassador to Argentina. She mildly criticized Hugo Chavez, but said she hoped to see U.S.-Venezuelan and U.S.-Bolivian relations improve. The Ambassador raised the need for the GOA to address Paris Club debt and bond holdouts; CFK said she remained committed to a solution, but explained the circumstances that make additional delay likely. Media coverage was extensive and positive. This late night meeting was clearly intended as a gesture toward the United States: to our knowledge CFK has not held a farewell call for another Ambassador. End summary. Pleased by Martinez's Nomination -------------- ¶2. (C) Argentine President Cristina Fernandez de Kirchner (CFK) told the Ambassador during his May 27 farewell call at Casa Rosada that she considered the White House nomination of Vilma Socorro Martinez ""an honor for Argentina"" due to her distinguished legal career, particularly her work in defense of civil rights, and she considered the appointment of a woman ambassador a ""strong personal gesture"" toward her as well. She seemed genuinely pleased (confirmed independently the next day by Foreign Minister Taiana.) Taking on Chavez -------------- ¶3. (C) CFK said she had always wanted good relations with the United States. This, she said, had been more difficult with the previous administration in part because of its very negative image in Argentina and the region, but President Obama was opening new doors and establishing better relations throughout the hemisphere. The Ambassador thanked the President for taking issue with Hugo Chavez during a joint press conference May 15 when Chavez questioned President Obama's commitment to change (reftel). CFK said she thought Chavez was wrong, and that he often speaks without thinking. ""We all need to be more careful with what we say in public,"" she added. ¶4. (C) The Ambassador said he did not understand Chavez's mentality. CFK said he was ""Caribbean"" and ""full of surprises."" She said she was hopeful for the future of U.S.-Venezuelan relations. She also said she was pleased to see that WHA A/S Shannon had gone to Bolivia and hoped that visit augured well for U.S.-Bolivian relations. (CFK also said it was a great honor for Brazil that Shannon should be nominated as next U.S. Ambassador there, and that this appointment seemed logical and natural to her, given Shannon's stature and experience and Brazil's importance.) Presidential Message Delivered... -------------- ¶5. (C) The Ambassador orally delivered a message (authorized by the NSC staff) expressing President Obama's gratitude for Argentine cooperation at the G-20 Summit in London and the Summit of the Americas; Argentina's important role in a number of issues important to his administration, including peacekeeping and combating terrorism and narcotics trafficking; and President Obama's looking forward to deepening the dialogue between our two governments and working in partnership on new areas of common interest, such as alleviating poverty, energy, and climate change. ...and Appreciated -------------- ¶6. (C) CFK thanked the Ambassador for the presidential message. She said she was happy about the extent of coordination on the two summits, and hopes to expand cooperation in new directions. She said she also hopes there will be more top-level visits and exchanges. CFK said she sees a change in the tenor of U.S. engagement with the world. She considered President Obama's speech the previous week on Guantanamo to be ""outstanding"" in its explication of U.S. values and for laying out a reasonable process for putting Guantanamo behind us. She said she was very, very pleased to see President Obama ""re-engage"" on the Middle East, saying she thought the USG had neglected the region for years. She said this engagement is essential for peace in the region and the world and that existence of a Palestinian state living peacefully with Israel will be a tremendous advance in the fight against terrorism. She offered Argentina's assistance in anyway possible in the Middle East, noting Argentina was home to sizable Jewish, Syrian, and Lebanese communities. Debts to be Settled (Someday) -------------- ¶7. (C) The Ambassador noted that the global financial crisis has clearly complicated GoA efforts to resolve outstanding debt liabilities with creditors. However, he argued that resolution of not only Paris Club and private bondholder debts, but also the many arbitration cases pending against Argentina under the International Center for the Settlement of Investment Disputes, is clearly in Argentina's long-term interest. CFK responded that she completely agreed and emphasized her continuing intent to move forward on both the Paris Club and the so-called ""holdout"" bondholders. However, she noted that the international and domestic financial markets would need to improve before the GoA could move on either issue. She also commented that a complicating factor in negotiations with bondholders is that Argentine law requires that any deal must be no better than the arrangement that 76% of Argentina's private creditors accepted during the 2005 debt exchange. Fighting for jobs and the challenge of protectionism -------------- ¶8. (C) CFK said that GoA contra-cyclic economic interventions have helped save Argentina from the worst of the global crisis and that the common global focus must now be to fight protectionist tendencies that are the natural response to any economic downturn. Argentina's focus, she emphasized, is to sustain domestic employment, and it doesn't matter whether these jobs come from domestic or foreign companies operating here. In this context, she confirmed she will visit GM's Buenos Aires province automobile manufacturing plant June 4 to announce new GoA financing (septel) that will help Argentina's ailing auto sector maintain and grow jobs. She said the real challenge of the next year will be fighting protectionism. ""We all face many protectionist pressures."" Thus the importance of keeping the G-20 process working well, she said. Regional Infrastructure Initiative -------------- ¶9. (C) The President said she hoped President Obama would consider launching, with the IDB and others, a regional initiative to build infrastructures. This kind of initiative would make concrete differences in people's lives and win much good will for the United States. CFK argued for the need for multilateral development banks to expand their support for the kinds of major infrastructure development projects that offer populations both employment opportunities and concrete benefits. The World Bank, she said, has introduced a number of changes to facilitate the flow of financial support for infrastructure project development. She hoped that the USG could support and build on these World Bank efforts. Media Coverage Positive -------------- ¶10. (SBU) The Ambassador's late-night meeting with President Fernandez de Kirchner concluded shortly before 10:00 pm, after which the Embassy issued a press release. Earlier the same day, the Ambassador hosted 100 journalists and delivered a message on free press. As a result, the meeting with CFK was reported as part of stories on the free-press message at the midday reception in dailies ""Clarin,"" ""Pagina 12"" and ""El Cronista Comercial,"" which managed to pick up the news before final edition. State-run news agency Telam issued a wire. Radio shows the following day also referred to the Ambassador's farewell call on President Fernandez de Kirchner and generally reflected a positive tone. The Ambassador was quoted on his principal message, that as he prepares to depart the country, the bilateral relationship with the government of Argentina is at ""a good moment."" WAYNE