VZCZCXYZ0000
RR RUEHWEB

DE RUEHBU #2214/01 3191254
ZNR UUUUU ZZH
R 151254Z NOV 07
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 9702
RUCPDOC/USDOC WASHINGTON DC
INFO RUEHAC/AMEMBASSY ASUNCION 6686
RUEHCV/AMEMBASSY CARACAS 1584
RUEHMN/AMEMBASSY MONTEVIDEO 6895
RUEHSG/AMEMBASSY SANTIAGO 0904
RUEHBR/AMEMBASSY BRASILIA 6568
RUEHLP/AMEMBASSY LA PAZ NOV USSOUTHCOM MIAMI FL
RHMFIUU/DIRJIATF SOUTH

UNCLAS BUENOS AIRES 002214 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: AR ECON EINV ENRG BEXP PREL OTRA TPHY TSPA SCUL
SNAR, OVIP, OSCI, OEXC, OPRC 
SUBJECT: Ambassador Attends Post-Election Business Conference, 
Discusses Anti-Americanism, Military Cooperation in Mar del Plata 
 
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Summary 
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¶1. (SBU) During Argentina's major private sector conference, 
November 7-8, former Brazilian President Cardozo subtly warned about 
the need to control inflation, and Argentine business leaders 
discussed privately with the Ambassador whether president-elect 
Christina Fernandez de Kirchner will carry out needed policy 
changes.  Ambassador Wayne took advantage of this visit to Mar del 
Plata to meet with local Fulbright scholar alumni to discuss how to 
improve the U.S. image in Argentina.  He also visited the Mar Del 
Plata Naval Base, headquarters of Argentina's Atlantic fleet, and 
held an off-the-record session with the owner and editorial staff of 
Mar Del Plata's largest newspaper, La Capital. 
END SUMMARY. 
 
--------------------------------------------- ------ 
Private Sector Conclave Mulls Cristina's Next Steps 
--------------------------------------------- ------ 
 
¶2. (U) The 43rd Annual Institute for the Business Development of 
Argentina (IDEA) conference, traditionally the largest single 
gathering of private sector leaders in Argentina, drew a record 800 
attendees to Mar del Plata for a 3-day conference.  Ambassador 
attended the November 7 opening dinner where former Brazilian 
President Cardoso addressed the "plague" of inflation and recounted 
Brazil's own successful efforts to deal with it.  While Cardoso 
never referred directly to burgeoning inflationary pressures in 
Argentina, he made clear that this is an issue that the GoA would do 
well to address via the full range of macro-policy tools at its 
disposal.  Ambassador also attended portions of the November 8 
plenary session, where the head of Argentina's investment promotion 
agency, Beatriz Nofal, stressed the importance of a prompt GoA 
reconciliation with the Paris Club.  She said Argentina is facing a 
unique opportunity to move from a stage of economic development to 
one of sustained growth, but she noted this will require renewed 
Argentine access to competitive sources of international financing. 
In that same session, IDB President Alberto Moreno reviewed the 
Bank's new lending initiatives in Argentina, including a move to 
support the development of a deeper mortgage lending market. 
 
¶3. (SBU) Other key themes highlighted at the IDEA conference 
included likely U.S. foreign policy priorities in the next 
administration (addressed by former U.S. Deputy Secretary of State 
and current head of the Brookings Institute Strobe Talbott), the 
linkages between Argentine institutional weaknesses and corruption, 
and Argentina's energy supply problems. 
 
¶4. (SBU) Businessmen took the opportunity of the meeting to 
speculate whether and how quickly president-elect Christina 
Fernandez de Kirchner would initiate needed economic policy changes 
to control inflation, encourage investment and address energy 
shortages.  There was plenty of skepticism as well as hope in 
private conversations with the Ambassador had but very little 
concrete information among businessmen leaders. 
¶5. (SBU) Sub-cabinet-level official Nofal was the most senior GoA 
official in attendance, as Christina Kirchner was attending the 
Ibero-American summit in Chile and her daughter's confirmation. 
Media reports of the conference noted the lack of senior 
minister-level GoA engagement at this forum and highlighted the 
defensive response of Cabinet Chief Alberto Fernandez to criticisms 
of GoA energy supply policies. 
 
----------------- 
Mayor Daniel Katz 
----------------- 
 
¶6. (SBU) At the IDEA colloquium, Ambassador had dinner with outgoing 
Mar del Plata Mayor and national congressman-elect Daniel Katz and 
his wife, Gabriela Bilevich.  Katz had earlier been supportive of 
President Bush's visit to Mar del Plata, the seventh largest city in 
Argentina, for the 2005 Summit of the Americas.  Katz, who is one of 
the so-called "K Radicals" who has publicly supported Kirchner over 
the past two years, was "excommunicated" from the Radical Party for 
his decision to run for Congress on the Kirchner-aligned, 
Peronist-led ruling Victory Front ballot.  Katz expressed his 
affection for the U.S and said he hoped to work closely to 
strengthen bilateral ties. 
 
--------------------------------------------- -------- 
 
Turning Around the U.S. Image: Views from the Seaside 
--------------------------------------------- -------- 
 
¶7. (U) Ambassador hosted a lively November 8 breakfast roundtable 
discussion with nine local Fulbright Scholars from a broad range of 
academic, teaching, and artistic disciplines.  The scholars came 
prepared to discuss how the U.S. image in Argentina could be 
improved and how they could further this effort by acting as 
good-will ambassadors.  Ambassador opened the session with a review 
of polls that show that anti-American sentiment in Argentina is 
among the highest in Latin America and invited the participants to 
give their suggestions of how to address this.  Many felt that the 
negative U.S. image stems from popular association of U.S. interests 
with those of the IMF, which the average Argentine blames for 
instigating the nation's devastating economic crisis of 2001/2.  In 
addition, they felt that President Kirchner's incessant negative 
comments about the United States in the press have been damaging. 
All believed that more personal contact with Americans was needed 
and that increasing exchange programs, like the Fulbright program, 
was critically important.  The scholars said that their time in the 
United States has positively influenced how they teach U.S. culture, 
government, and history.  They suggested that by increasing teacher 
exchange programs, many more Argentine students will be exposed to a 
positive view of the United States. 
 
¶8.  (U) In addition, the group felt exchange programs work to 
destroy negative stereotypes.  Referring to the fact that, in 
Argentina, Americans are seen as self-centered, arrogant and cold, 
and Argentines change their opinion of Americans once they get to 
know them, the group advocated for short- or long-term exchanges, 
either in the United States or in Argentina.  Several commented on 
the importance of programs for high school-aged young people, since 
attitudes towards the United States are being formed at this time. 
One described an innovative exchange research program between 
Argentine and U.S. high school students who are emailing each other 
with questions about each other's culture, government, and history. 
 
 
¶9.  (U) The group also suggested that the embassy secure positive 
press for U.S. support of NGO projects, particularly in the area of 
health or education.  Ambassador Wayne explained that the embassy is 
currently trying to obtain more resources to support teacher 
training and the distribution of English language teaching materials 
as well as increased youth exchanges  All participants were grateful 
the Ambassador was interested in their opinions, and stated that 
they would email the Embassy's public affairs officers with 
additional suggestions. 
 
------------------------ 
Mar del Plata Naval Base 
------------------------ 
 
¶10. (SBU) Ambassador and Embassy Naval Attache visited the Mar Del 
Plata Naval Base, headquarters of the Argentine Atlantic Fleet and 
the only submarine base in Argentina.  Ambassador and Attache was 
greeted with full honors by Rear Admiral Delfor Ferraris, Commander 
of the Atlantic fleet; Captain Daniel Alberto Enrique Martin, 
Commander of the submarine force; and Captain de Frigata Gustavo 
Piccardo, Director of the Submarine and Divers School.  Captain 
Martin led a tour of the ARA Salta, a type 209 submarine built in 
Germany, and of the base's submarine and divers school.  No training 
classes were in session during the visit and it appeared that the 
submarine and diving school is underutilized.  Admiral Ferraris 
expressed interest in conducting exercises while the aircraft 
carrier USS George Washington is passing through Argentine waters on 
May 5-6. 
 
---------------------------------------- 
Off-the-Record Press Event at La Capital 
---------------------------------------- 
 
¶11. (SBU) Ambassador engaged in a frank, off-the-record discussion 
with La Capital owner Florencio Aldrey Iglesias and three of the 
paper's editorial staff.  The century-old newspaper is the biggest 
and most influential in Mar del Plata.  Aldrey also owns the daily 
La Prensa in Buenos Aires and runs seven local radio stations and a 
cable TV channel.  Aldrey said that he has complete trust in the 
Governor-elect of Buenos Aires Province, current Vice-President 
Daniel Scioli, who recently won 48% of the provincial vote.  At the 
same time, he voiced his disappointment in Mayor Katz, whom he 
charged had abandoned his city to run for a National Deputy position 
 
on the Kirchner administration's Victory Front ticket.  The group 
discussed two key issues facing Mar del Plata - the sale and 
consumption of the inexpensive cocaine processing derivative drug 
known as Paco and rampant crime.  The beach resort city, which 
doubles in size from 500,000 to one million during the Argentine 
summer months of January through March, struggles to provide work or 
services for the temporary workers who remain after the season.  The 
city is growing quickly without adequate urban planning, and the 
police force has not received adequate resources or training to 
handle the population surge and growing drug problem. 
 
¶12. (U) Ambassador discussed La Capital's headline story that day 
about Interpol' arrest warrants for six Iranians in connection with 
the 1994 bombing of the Buenos Aires Jewish community center. 
Aldrey expressed satisfaction with the Argentine judicial system's 
efforts to bring justice to those responsible for the AMIA attack. 
Participants also discussed the poor U.S. image in Argentina, and 
the persistent allegation that the USG is trying to control the 
waters of South America.  Aldrey was hopeful that U.S.-Argentine 
relations will improve under the new administration, noting the good 
opportunities for cooperation and collaboration.  La Capital 
journalists expressed concern about the stability of democratic and 
economic institutions in an incoming Cristina Fernandez de Kirchner 
administration, noting that "absolute power corrupts absolutely." 
 
WAYNE