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DE RUEHBU #0140/01 0191723
ZNY CCCCC ZZH
R 191723Z JAN 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 3149
INFO RUEHSG/AMEMBASSY SANTIAGO 4887
RUEHLP/AMEMBASSY LA PAZ JAN ASUNCION 5297
RUEHMN/AMEMBASSY MONTEVIDEO 5262
RUEHBR/AMEMBASSY BRASILIA 5066
RHEBAAA/DOE WASHDC
RUCPDOC/USDOC WASHDC
RHMFISS/HQ USSOUTHCOM MIAMI FL

C O N F I D E N T I A L BUENOS AIRES 000140 
 
SIPDIS 
 
 
 
SIPDIS 
 
WHA/EPSC FOR KRIS URS 
EB/ESC/IEC FOR MATT MCMANUS 
USDOC FOR ALEXANDER PEACHER 
USSOUTHCOM FOR POLAD 
 
E.O. 12958: DECL: 01/18/2016 
TAGS: PGOV PREL ECON ENRG AR BL
SUBJECT: ARGENTINA, BOLIVIA DISCUSS BILATERAL RELATIONSHIP 
 
REF: A. BUENOS AIRES 97 
 
     ¶B. BUENOS AIRES 117 
 
Classified By: Ambassador Lino Gutierrez for reasons 1.4(b) and (d). 
 
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Summary 
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¶1. (U) President Kirchner met with Bolivian President-elect 
Evo Morales on January 17 in Buenos Aires.  The Morales visit 
to Argentina followed a series of meetings that he had 
conducted with leaders in Venezuela, Brazil, Cuba, France, 
Spain, South Africa and China.  Morales stated in a brief 
press conference after the meeting with Kirchner that he 
wants to pursue an "energy alliance" comprised of Bolivia, 
Argentina, and Venezuela to resolve "the energy problem" in 
the region.  The Kirchner-Morales meeting did not produce any 
official changes in the price or volume of Bolivian natural 
gas exports to Argentina.  The meeting appears to have served 
primarily to address the public perception of a rift between 
the two leaders.  End Summary. 
 
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Morales' Last Visit as President-Elect 
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¶2.  (U) President Nestor Kirchner dispatched an airplane to 
bring Bolivian President-elect Evo Morales to Buenos Aires 
for a meeting on January 17.  Kirchner had reportedly not 
extended Morales an invitation to visit Argentina when he 
called to congratulate the Andean president-elect on his 
victory in the December 18 election.  Press reports, however, 
characterized Kirchner's gesture as correcting an oversight 
by the Argentine Foreign Ministry in not suggesting to 
Kirchner that he invite the president-elect to make a stop in 
Argentina following his win in December.  Morales visited 
Argentina after meeting with leaders in Venezuela, Cuba, 
Brazil, Spain, France, South Africa and China.  Media 
coverage of the meeting with Kirchner has suggested that it 
was organized to dispel rumors that Morales distrusts or is 
sending a message on gas prices to Kirchner.  The discussion 
outlined general domestic and bilateral themes the incoming 
Morales administration will face.  Cabinet Chief Alberto 
Fernandez, Economy Minister Felisa Miceli, Foreign Minister 
Jorge Taiana, and Planning Minister Julio DeVido also 
participated in the meeting. 
 
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Morales Raises Energy, Integration 
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¶3.  (U) Foreign Minister Taiana appeared with Morales during 
a brief press event at the Casa Rosada that followed the 
meeting.  A journalist asked Morales whether Kirchner had 
given him advice on managing relations with the U.S.  Morales 
responded that Kirchner told him to defend Bolivian interests 
but, at the same time, emphasized the importance of being 
cautious.  Morales said that one of the themes of the meeting 
was the idea of forming an "energy alliance" that would 
include Argentina, Bolivia, and Venezuela.  He stated that 
the energy problem would be "one of the themes of the 
millennium, like water, and should be resolved."  Bolivia's 
first step toward the development of this "alliance" could be 
the barter exchange of natural gas for technology from 
Argentina to expand the distribution of natural gas within 
Bolivia.  Morales announced that "Bolivians cannot live on 
top of the gas and live without it.  This must end." 
Business daily "El Cronista Comercial" reports that, during 
the meeting with Kirchner, Morales received a copy of 
Argentina's agreement with Venezuela on the exchange of 
Venezuelan fuel oil for Argentina's agricultural technology 
and equipment. 
 
¶4.  (U) Press reports on January 6 quoted Bolivian Vice 
President-elect Alvaro Linera as saying that Morales would 
visit Argentina to "negotiate a regional market price (for 
natural gas) that fundamentally benefits Bolivia."  Morales 
explained during the press conference that Bolivia is 
"interested in strengthening energy agreements, we have a 
serious interest in increasing the volume of (natural gas) 
exports, and in increasing the price."  However, Morales said 
that he could not make any official changes in price or 
volume before he takes office on January 22. 
 
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GOA Comments on Bolivia 
----------------------- 
 
¶5.  (C) Both Kirchner and Taiana expressed their views to 
Assistant Secretary Shannon and the Ambassador on January 12 
that Bolivia under Morales was entering uncharted territory 
(Reftel A).  Neither was ready to offer a concrete GOA plan 
of action in support of the Morales government.  Kirchner 
noted that Argentina has multiple bilateral strategic 
interests with Bolivia and said that MERCOSUR was the best 
mechanism to address issues of economic and political 
stability in Bolivia.  Kirchner pledged during those meetings 
to work closely with President Lula to ensure the 
"consolidation of republican institutions" in Bolivia.  The 
only demonstration of support appears to be an offer of an 
energy-for-industrial-goods bartering arrangement similar to 
the current relationship Argentina has with Venezuela (para 
3).  Planning Minister DeVido made reference to GOA's 
willingness to establish a bartering arrangement with Bolivia 
during a January 12 meeting with Assistant Secretary Shannon 
and the Ambassador (Reftel B). 
 
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Comment 
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¶6.  (C) The January 17 Kirchner-Morales meeting appears to 
have been a protocol visit more than anything else.  There 
was no progress in establishing a price for future purchases 
of Bolivian natural gas.  The GOA did, however, manage to 
avoid the appearance of slighting, and of having been 
slighted by, Morales.  End Comment. 
 
¶7.  (C) To see more Buenos Aires reporting, visit our classified 
website at: http://www.state.sgov.gov/p/wha/buenosaires.< /a> 
GUTIERREZ