CANADIAN AMBASSADOR ON ARGENTINE SUMMITRY, NUCLEAR

C O N F I D E N T I A L BUENOS AIRES 000067 SIPDIS E.O. 12958: DECL: 01/21/2019 TAGS: ECON EMIN KSUM PREL CA AR SUBJECT: CANADIAN AMBASSADOR ON ARGENTINE SUMMITRY, NUCLEAR ENERGY AND MINING POLICIES Classified By: Ambassador E. Anthony Wayne for reasons (B) and (D). ¶1. (SBU) A January 14 discussion between Ambassador Wayne and Canadian Ambassador Tim Martin covered Argentina's poor preparation for regional summits and the G-20, as well as Canada's nuclear energy and mining agenda with Argentina. ¶2. (SBU) Brazil's regional agenda and the Summit of the Americas: Martin said that he had gone to the Argentine MFA's assistant secretary for Latin America, Agustin Colombo, to express concern that Canada was not included in the summit Brazil was hosting for all countries in the hemisphere except the U.S. and Canada. Colombo told him that Argentina did not really have an idea of what the summit was intended to do except highlight Brazil's leadership ambitions. After the summit, Colombo told Martin that during the summit in Brazil, the GoA had sent him to a last-minute meeting where Lula and Calderon basically told those assembled what they planned to announce a follow-on summit in Mexico. Martin said that he had tried to engage the Argentines on the April Summit of the Americas but found them not very interested. Ambassador Wayne said that he had found the same thing when we had tried to engage them. Both ambassadors agreed to work together to try to move the Argentines in a positive direction as the summit approaches and as they both receive guidance from capitols. ¶3. (C) G-20: Martin said that his deputy minister who had been at the Washington G-20 meeting characterized Argentina's participation as a blown opportunity. Ambassador Wayne said that U.S. officials had told him that President Fernandez de Kirchner had spoken twice as long as other leaders and that her message had been very distinct from the other leaders, with a rhetorical and Argentine-centric bent. Martin said that unfortunately Fernandez de Kirchner has a tendency to give speeches that sound off on her views about the inequity of the world. In the case of the G-20, this did not reflect the practical, serious work of Central Bank Governor Redrado or her Finance Secretary. Her ""sherpa"", Ambassador Timerman, had also not been up to the substantive task. Ambassador agreed that Redrado especially had tried to take the opportunity for Argentina to contribute to this important process. Both ambassadors agreed to work together, perhaps along with other BA-based G-20 ambassadors, to encourage Argentina to play a more constructive role in the April G-20 meeting and in the working groups. ¶4. (SBU) Nuclear Cooperation: Canada is working hard to increase peaceful nuclear cooperation with Argentina. The Canadians are going to carry out a major rehab of the Embalse nuclear energy plant in Cordoba which should total about US$800 million. They are helping Argentina finish its Atucha II nuclear energy plant which has been under construction for years. And, they are competing to build a new nuclear plant about which they hope the Argentines will reach a decision in the next year. ¶5. (SBU) Mining Going OK: Martin said major Canadian mining companies are standing with their commitments to invest in Argentina despite the flare-up a year ago when the GoA surprised them with new export taxes. Since the tax announcement, the GoA, led by the Secretary of Mining, has worked quietly with Canadian companies to find ways to work around the new federal regulations. One of Canada's largest investments, Barick Gold's Pascua-Lama project in San Juan province, is still on hold however, because it straddles the Chile-Argentine border: the Canadian company does not want to proceed unless the two governments have agreed in writing on taxes. ¶6. (SBU) The Canadian embassy and mining companies also continue to work with provincial governments on environmental issues. In a number of cases, provincial legislatures have banned the use of chemicals in mining (e.g. the use of arsenic in leaching gold from lower grade ore),which Martin said are widely and safely used elsewhere. Finally, a number of smaller Canadian firms are packing up, basically because they can't get financing in these difficult times to continue their exploratory work. WAYNE