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DE RUEHBU #0171/01 0232026
ZNR UUUUU ZZH
P 232026Z JAN 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC PRIORITY 3202
INFO RUEHPE/AMEMBASSY LIMA 1749
RUEHBR/AMEMBASSY BRASILIA 5077
RUEHSG/AMEMBASSY SANTIAGO 4899
RUEHLP/AMEMBASSY LA PAZ JAN MONTEVIDEO 5274
RUEHAC/AMEMBASSY ASUNCION 5310
RUEHCV/AMEMBASSY CARACAS 0825

UNCLAS BUENOS AIRES 000171 
 
SIPDIS 
 
WHA/EX FOR TOM SHANNON 
WHA/BSC FOR DOUG BARNES 
NSC FOR DAN FISK AND SUE CRONIN 
OPIC FOR GEORGE SCHULTZ AND RUTH ANN NICASTRI 
 
SIPDIS 
CODEL 
 
E.O. 12958: N/A 
TAGS: PHUM PINR CODEL SNAR AR
SUBJECT: CODEL MCCONNELL FACT-FINDING MISSION TO ARGENTINA 
 
REF: (BUENOS AIRES 119) 
 
¶1. SUMMARY: From January 10 to 12, Senator Mitch McConnell 
(R-KY), accompanied by Senators Mel Martinez (R-FL), Richard 
Burr (R-NC), and John Thune (R-SD) held a series of fact- 
finding and orientation meetings in Buenos Aires, Argentina. 
Following a country team brief chaired by Ambassador Lino 
Gutierrez, the delegation met with Foreign Minister Jorge 
Taiana, Minister of Planning Julio De Vido, Minister of the 
Interior Anibal Fernandez, a group of leading Argentine 
Senators, and members of the American Chamber of Commerce 
(AMCHAM).  All of the meetings were frank and open, covering 
a range of issues including trade, economy, security, 
bilateral relations, internal and regional security, counter 
terrorism and narcotics interdiction.  END SUMMARY. 
 
--------------------------------------------- -------- 
Meeting with Foreign Minister Jorge Taiana 
--------------------------------------------- -------- 
 
¶2. On January 10, CODEL McConnell met with Foreign Minister 
Jorge Taiana, Deputy Foreign Minister Roberto Garcia Moritan 
and the Argentine Ambassador to the United States, Jose 
Octavio Bordon. 
 
¶3. Opening the meeting, Senator McConnell congratulated the 
GOA on its remarkable economic recovery during the last 
three years.  He then noted that while the U.S. decision to 
depose Saddam Hussein was not popular in Argentina, our two 
countries shared a common interest in combating terrorism as 
both had been the victims of international terrorist 
incidents, the U.S. in 2001 and Argentina in 1992 with the 
bombing of the Israeli Embassy and in 1994 with the bombing 
of the Argentine Jewish Cultural Center (AMIA).  Senator 
McConnell asked whether the culprits of these crimes would 
be brought to justice.  Foreign Minister Taiana said both 
attacks remained unpunished and called this lack of justice 
a "debt we owe to society."  He said the fact the cases were 
unresolved was attributable to failures throughout the GOA 
but primarily within the Argentine judicial system.  He said 
President Nestor Kirchner was committed to achieving justice 
and highlighted to the Senators the international 
connections in the AMIA bombing and the investigative 
procedures now underway which pointed to the involvement of 
Senior Iranian government officials and Hizbollah 
operatives. 
 
¶4. Following up on the subject of international terrorism, 
Senator Burr thanked the GOA for their cooperation in 
monitoring the Tri-border region and their participation in 
the three plus one counterterrorism initiative.  He also 
said the U.S. wanted to support increased economic 
cooperation and trade integration in the hemisphere.  He 
noted there was a widespread concern that Venezuelan 
president Hugo Chavez was an obstacle to this integration 
and asked Taiana how we should proceed so these negotiations 
were not "hijacked" by a third party.  Taiana responded the 
current political situation in South America was "complex" 
and in a "state of flux."  He conceded that while some of 
the trends were democratic, there was also the danger of an 
authoritarian trend.  He said that while different nations 
would take different routes to achieve their goals, it was 
important to maintain shared values and to cooperate on 
economic issues. 
 
¶5. Senator Thune noted that Argentina's economic and 
political recovery increased the GOA's platform for exerting 
leadership and influence in countries such as Bolivia and 
Venezuela.  Taiana said the situation in Bolivia was 
"difficult and unprecedented."  He said Bolivia had many 
difficulties to overcome and that the GOA was "obviously" 
interested.  In addition to the impact on the Argentine 
border region, he opined that the outcome of events in 
Bolivia could have a major influence on Peru, Ecuador and 
even Colombia. 
 
¶6. Senator Martinez stated the GOA should continue to insist 
on democratic values throughout the hemisphere.  Taking note 
of the GOA's strong support of human rights, he urged Taiana 
(who himself had been an imprisoned dissident) to publicly 
recognize the role of dissidents in countries such as Cuba 
and their efforts to achieve a democratic society. 
 
----------------------------------- 
Meeting with Executives of US Firms 
------------------------------------ 
 
¶7. Members of the CODEL met Minister of Planning Julio De 
Vido to discuss a wide range of economic issues (septel) and 
attended a working lunch hosted by the local American 
Chamber of Commerce (AMCHAM).  The lunch was attended by the 
presidents and executives of many of the largest U.S. 
companies operating in Argentina including General Motors, 
Merck, Monsanto, Nextel, Coca-Cola, Esso and CMS Energy. 
The businessmen discussed Argentina's economic crisis and 
recovery, and provided the Senators with a clear view of the 
opportunities and obstacles they face in Argentina.  The 
businessmen all agreed that while there were great 
investment and business opportunities in Argentina, the 
Kirchner government's sometimes hostile stance toward 
business, frequent changes in regulations, enforcement of 
utility rate caps, and the charging of high retentions on 
exports all negatively impact the business climate and 
limited direct foreign investment.  While many sectors were 
doing well as the Argentine economy grew at a blistering 
pace, others--notably the energy and power sectors--had 
significant problems. The Senators promised to raise the 
businessmen's' concerns in the rest of their meetings in 
Argentina and to share what they had learned back in 
Washington. 
 
-------------------------------------------- 
Meeting with Members of the Argentine Senate 
-------------------------------------------- 
 
¶8. The CODEL met with Argentine National Senators Miguel 
Angel Pichetto, Jose Pampuro, Jorge Capitanich, Mario 
Daniele and Luis Viana.  Senator Pichetto from Rio Negro is 
the head of the ruling Peronist Party (PJ) bloc.  Jose 
Pampuro is the former Defense Minister and was First Lady 
Cristina Fernandez de Kirchner's running mate in the October 
elections in Buenos Aires province.  Jorge Capitanich from 
Chaco is the President of the Budget and Treasury Committee. 
Mario Daniele from Tierra del Fuego is the head of the 
Intelligence Committee.  Luis Viana was just elected to his 
first term as a National Senator from Misiones province. 
 
¶9. Senator Pichetto thanked the CODEL for their visit and 
explained the functioning of the Argentine Senate.  The 
Argentine Senators discussed the budget process, political 
campaigning and typical weekly schedule for the Argentine 
Congress.  There was a frank discussion on the similarities 
and differences between the U.S. and Argentine Senate. 
 
¶10. Senator Burr noted the good relations between the U.S. 
and Argentina and on the need for close cooperation between 
the two nations in the war on terror.  Senator Pampuro 
highlighted the close security cooperation he had as Defense 
Minister with U.S. Secretary of Defense Rumsfeld.  He noted 
that 60 percent of Argentina's military budget is spent in 
the Tri-border region that has been a focus of U.S. and 
multinational counterterrorism efforts for several years. 
Senator Viana, from Misiones Province, on the Argentine side 
of the Tri-border, reiterated the importance of U.S. and 
Argentine counterterrorism cooperation. 
 
¶11. Senator McConnell raised the issue of the 1994 AMIA 
bombing in Buenos Aires and asked about the status of the 
investigation.  Pampuro replied that although it is widely 
known who was behind the attack, the goal of finally getting 
convictions has been a judicial problem.  Pichetto noted 
that the roots of the AMIA bombing are in the Middle East 
and there is a limit to Argentina's ability to prosecute 
those responsible because they are no longer in Argentina. 
Pampuro noted that the AMIA case is not a big issue 
currently in Argentine politics, but at the same time the 
GOA could not ignore the plight of the victims' families 
that are still seeking justice for the loss of their loved 
ones. 
 
¶12. Senator Martinez noted his Hispanic heritage, the 
growing importance of the Latino population in the U.S. and 
the importance of U.S. relations with the region.  Senator 
Martinez highlighted the fact that the Hispanics are now the 
largest minority in the U.S. He offered himself as a link 
between the Argentine senators and the U.S. Senate, and 
called for stronger ties between the two groups. 
 
¶13. Senator Thune asked about checks and balances and the 
Argentine Congress' role in intelligence oversight. 
Pichetto said that the Argentine Constitution was modeled on 
the U.S. Constitution and the role of the Argentine Congress 
in the system of checks and balances was also the same. 
Senator Daniele explained that Argentina has a civilian 
intelligence service, a law enforcement intelligence 
organization, and a military intelligence service.  Daniele 
noted that the military intelligence service is prohibited 
from being involved in domestic intelligence activities.  He 
said his committee would soon release the first-ever report 
on Argentine intelligence spending. 
 
¶14. Senator Capitanich detailed Argentina's economic 
recovery over the past three years and Argentina's 
perspective of its trade relationships.  Capitanich also 
highlighted President Kirchner's efforts to reduce 
Argentina's debt burden through the private debt exchange 
last year and the payoff of the IMF debt earlier this month. 
Capitanich said that the U.S. is one of Argentina's top 
trade partners.  He said Mercosur was Argentina's most 
important trade relationship, followed closely by NAFTA. 
Capitanich concluded by discussing the challenges the GOA 
faces with rising health care costs, while noting that 
Argentina spends a higher percent of GDP on health care than 
any other country in the region. 
 
¶15. During a brief press conference following the meeting, 
Senator Martinez and Argentine Senators expressed the hope 
that this meeting would be the beginning of a closer 
relationship between the two legislatures. 
 
--------------------------------------------- --- 
Meeting with Interior Minister Anibal Fernandez 
--------------------------------------------- --- 
 
¶16. Members of the CODEL and Ambassador Gutierrez discussed 
immigration, narcotics control, counter terrorism, the Tri- 
border area, and the challenges to private U.S. investment 
in Argentina with Minister of Interior Anibal Fernandez. 
Senator McConnell opened the meeting by thanking Fernandez 
for receiving the delegation and commenting on the warm 
reception and many useful meetings they had already had. 
Fernandez thanked the CODEL for visiting Argentina and 
stated that in the 1990's Argentine foreign policy was 
closely aligned with the U.S. but that since taking office 
President Kirchner had set out to establish an independent 
foreign policy.  He opined that in a Latin American context, 
those who advocate a foreign policy not aligned with the 
U.S. were seen as being anti-U.S.  He stated that his role 
has been to stress that while Argentine foreign policy is 
not aligned with the U.S. it is also not aligned against the 
U.S. In his opinion relations between the two countries are 
currently better than in the 90's era of "carnal relations." 
He added that one example of these strong relations was what 
he termed the positive meeting between President Kirchner 
and President George Bush during the recently completed 
Summit of the Americas held in Argentina. 
 
¶17. Senator Burr praised Argentina's economic and social 
recovery since the country's economic turmoil and asked the 
Minister to comment on the Interior Ministry's efforts to 
normalize the status of Argentina's over one million illegal 
immigrants.  Fernandez stated that until Kirchner took 
office Argentina did not have a coherent immigration policy 
and that any realistic approach to the problem had to first 
address those already living illegally in Argentina.  As a 
first step, authorities dealt with aliens from outside the 
region (predominantly from Asia).  He pointed to the 13,485 
Asian immigrants recently normalized as an example of the 
GOA's efforts in this area.  He added that the GOA was now 
focusing on illegal immigrants from Peru and MERCOSUR 
countries and predicted that by the end of 2006 all those 
currently residing in Argentina illegally will have had an 
opportunity to become legal. 
 
¶18. In responses to a question about the status of narcotics 
control efforts Fernandez stated that while each of the 
forces involved in the struggle were making big efforts, 
without greater coordination they would be unable to 
succeed.  He highlighted the Interior Ministry's plans to 
increase interagency coordination and the assistance 
provided by the DEA in this area.  He added that his 
Ministry enjoys a close working relationship with the U.S. 
Embassy and that he encourages the DEA to work directly with 
individual agencies involved in narcotics interdiction. 
 
¶19. Senator McConnell pointed out that one of the 
similarities between Argentina and the U.S. was that 
Argentina is the only country in the region that has 
suffered a terrorist attack linked to the Middle East.  He 
also asked Fernandez to update the CODEL on the GOA's 
ongoing investigation into the AMIA bombing.  Fernandez 
stated that those now responsible for the investigation were 
making a great effort, but that a long time had past since 
the tragic event.  He acknowledged that the GOA's inability 
to bring those responsible to justice for more than ten 
years was hard to explain to the people of Argentina, but 
asserted that prior governments' inept handling of the case 
made the current government's task extremely difficult. 
 
¶20. Senator Thune expressed concerns he had heard from U.S. 
businessmen in Argentina regarding GOA economic polices that 
disadvantaged foreign companies and discouraged foreign 
direct investment.  Fernandez countered by explaining that 
currently Argentina benefits from exports to the U.S and 
wished to profit from U.S. imports as well.  He added that 
for many years prior to Kirchner becoming president 
lucrative government contracts were never awarded to U.S. 
firms because those firms would not pay bribes.  He pointed 
to the GOA's contract with Motorola for the purchase of 
radio equipment for the Federal Police as proof both of an 
increase in participation by U.S. companies in Argentina and 
the GOA's fight against corruption.  He added that if the 
Senator encountered a particular piece of legislation that 
unfairly inhibited a U.S. company he would personally 
resolve the issue. 
 
------------------------------------ 
Reception at Ambassador's Residence 
------------------------------------ 
 
¶21. The CODEL concluded its fact finding mission in 
Argentina with a reception hosted by Ambassador Gutierrez at 
his official residence.  The guest list included over two- 
hundred business leaders, politicians, political analysts, 
former and current Argentine officials, U.S. Embassy 
personnel, and foreign dignitaries.  The reception provided 
the Senators with an opportunity to discuss the issues 
raised during their time Argentina with embassy contacts and 
experts from across the Argentine political spectrum. 
Ambassador Gutierrez thanked the Senators for including 
Argentina in their schedule and wished them success on the 
remainder of their mission.  Senator McConnell thanked the 
Ambassador for his hospitality and underscored the positive 
relationship that exists between Argentina and the United 
States, he also promised to share his impression and 
experiences with his colleagues in the Senate. 
 
-------- 
Comment 
-------- 
 
¶22. CODEL McConnell was the first major visit since the 
Summit of the Americas and the GOA response clearly 
demonstrated the GOA's eagerness to maintain close and 
constructive relations with the U.S.  Prior to the arrival 
of the CODEL, which coincided with the visit of Assistant 
Secretary Tom Shannon, there had been speculation in the 
 
SIPDIS 
local press that the U.S. had downgraded relations with 
Argentina.  The number and positive tone of all the high- 
level meetings offered by the GOA during the height of the 
local vacation season clearly indicated that the GOA is 
seeking to demonstrate its desire to maintain excellent 
relations with the U.S..  The presence of such a high-level 
CODEL was seen by both the GOA and local media as an 
indication that Argentina is an important part of U.S. 
policy consideration in the region.  The message 
consistently delivered by the CODEL, that the U.S. was 
pleased the economic recovery of Argentina and valued 
Argentina as an important partner for stability in the 
region, demonstrably advanced U.S.-Argentine relations. 
 
GUTIERREZ