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Viewing cable 06BUENOSAIRES1631, CASTRO ATTENDS MERCOSUR SUMMIT IN ARGENTINA

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Reference ID Created Released Classification Origin
06BUENOSAIRES1631 2006-07-21 21:22 2011-08-26 00:00 UNCLASSIFIED Embassy Buenos Aires
VZCZCXRO8255
OO RUEHCD RUEHGA RUEHGD RUEHHA RUEHHO RUEHMC RUEHQU RUEHTM RUEHVC
DE RUEHBU #1631/01 2022122
ZNR UUUUU ZZH
O 212122Z JUL 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5331
INFO RUCNMRC/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS PRIORITY
RHMFISS/HQ USSOUTHCOM MIAMI FL PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/CJCS WASHDC PRIORITY
RUEAWJA/DEPT OF JUSTICE WASHDC PRIORITY
RUEHC/DEPT OF LABOR WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RHEFDIA/DIA WASHDC PRIORITY
UNCLAS SECTION 01 OF 02 BUENOS AIRES 001631 
 
SIPDIS 
 
SIPDIS 
 
NSC FOR DAN FISK 
TREASURY FOR DAS NANCY LEE 
USCINCSO FOR POLAD 
 
E.O. 12958: N/A 
TAGS: PREL ETRD ECON AR
SUBJECT: CASTRO ATTENDS MERCOSUR SUMMIT IN ARGENTINA 
 
REF: BUENOS AIRES 1566 
 
1.  (SBU) SUMMARY: The 30th Mercosur heads of state summit 
took place in Cordoba, Argentina July 20-21.  The summit 
marked Venezuela's debut as a full member of Mercosur. 
However, the arrival of Cuban leader Fidel Castro has 
overshadowed all other aspects of the gathering.  Castro, 
Venezuelan president Hugo Chavez and Bolivian president Evo 
Morales are scheduled to address a "people's summit" 
following the conclusion of the formal summit.  Some 
indications of the tensions within Mercosur did appear during 
the plenary session.  Uruguayan president Tabare Vazquez used 
his time to address the paper mill dispute with Argentina 
while Paraguayan president Nacanor Durate Frutos commented on 
the discrepancies between large and small-economy members. 
Embassy staff in Cordoba noted an almost carnival-like 
atmosphere in the city, with a small environmental protest 
going largely unnoticed.  Post will provide detailed analysis 
of summit in septel.  End Summary. 
 
2.  (U) The first day of the Mercosur summit (Thursday) was 
devoted largely to meetings of foreign ministers in 
preparation for Friday's plenary sessions.  The main 
substantive items on the agenda were the drafting of the 
summit declaration and finalizing of a commercial agreement 
with Cuba which would allow for the purchase of 2,700 
products at preferential prices.  (See reftel for more 
details of agreement.)  Economy ministers of the five full 
Mercosur member states agreed on to adopt a "common front" 
toward the IMF.  There will be a bloc meeting in Rio de 
Janeiro prior to the September IMF gathering in Singapore in 
order to arrive at the common position.  Argentina's Economy 
Minister Felisa Miceli proposed the creation of a Mercosur 
development bank, which would be headquartered in Argentina. 
The plans hit a bump when Brazil's Finance Minister Guido 
Mantega warned against creating new bureaucracies within 
Mercosur, according to press reports.  Meanwhile, Argentine 
Foreign Minister Jorge Taiana called for a ministerial to 
discuss the problems of Mercosur's smaller members.  The 
initiative was reportedly prompted by an Uruguayan proposal 
that Mercosur's smaller partners be allowed to individually 
negotiate trade agreements with other countries, a stance at 
odds with Mercosur decision 32/00. 
 
3.  (U) The most pressing question of the day, however, was 
whether Castro would, or would not, actually attend the 
summit.  Indeed, as late as noon on Thursday it had still not 
been publicly announced that the Cuban leader was actually on 
his way.  His arrival at Cordoba's international airport 
Thursday evening was carried live on Argentine television.  A 
frail and tired looking Castro slowly made his way down the 
airplane stairs to the tarmac where he was surrounded by a 
phalanx of security personnel and whisked away to his nearby 
hotel in his motorcade.  Upon arrival at his hotel, his 
security detail kept him in his car for several minutes until 
the crush of reporters could be pushed back.  (Comment: 
Argentine television reporters on the scene complained they 
could not get near the Cuban leader because the Venezuelan 
media had been given preferential access. End Comment.)  In 
his short walk to the hotel, an unidentified reporter asked 
if Castro had "any message for the Quinones family."  (Note: 
Roberto Quinones is the Argentine-resident son of Cuban 
dissident physician Hilda Molina.  End note.)  Castro said 
nothing.  This is Castro's first visit to Argentina since May 
2003 when he attended Kirchner's inauguration. 
 
4.  (U) The plenary session on Friday was for the most part 
predictable as the five Mercosur presidents were joined in 
their presentations by Chilean president Michelle Bachelet, 
Morales and Castro.  However, some of the long-standing 
tensions within Mercosur did come out during the 
presentations.  Uruguay's President Tabare Vasquez devoted 
most of his discourse to the pulp mill controversy in an 
effort to regionalize the issue.  He asked that his country 
at least be given the "benefit of the doubt" in constructing 
the plants.  More happily for the GoA, he told journalists 
July 20 that Uruguay would shut down the controversial pulp 
mills being built on the Uruguay river if they are found to 
"contaminate the environment" once they begin operation. 
 
BUENOS AIR 00001631  002 OF 002 
 
 
Paraguayan president Duarte Frutos, commenting on the 
inequalities between large and small Mercosur members, said 
his country did not want only "half the stadium celebrating 
the goals" and that if Mercosur was to have a future, all the 
countries needed to become a team.  Bachelet noted in her 
presentation that Chile had committed itself to diversify its 
energy supplies and to become energy self-sufficient -- an 
obvious reference to the recent Argentine announcement that 
it was increasing the price of gas exports to Chile. 
 
5.  (U) Brazilian president Lula da Silva said he did not 
share the view of a Mercosur undergoing a crisis.  He 
emphasized that Mercosur's main goals remained "as valid as 
ever," and that the customs union had to be its major 
objective.  However, he warned that Mercosur would have many 
problems if internal concerns (i.e. internal politics) 
determined relations among the states. 
 
6.  (U) Chavez spoke of the "renaissance" of Latin America. 
He thanked the other Mercosur members for making Venezuela's 
entry possible.  He said the "great battle of Mar del Plata" 
against the FTAA had made the Cordoba summit possible. 
Castro (in a 50-minute address) underscored the importance of 
the meeting and, in reference to the U.S., said that Latin 
American integration had had enemies for centuries and that 
these countries were not happy with the Cordoba meeting. 
(Comment: Dressed in a suit, Castro appeared alert and 
refreshed.  Referring to the secrecy surrounding his travel, 
he joked that not even he knew until the last moment whether 
he attend the summit.  End Comment). 
 
7.  (SBU) Comment: Post will provide analysis of summit 
proceedings following meetings with GoA and other embassy 
contacts next week.  End Comment. 
LLORENS