VZCZCXYZ0013
RR RUEHWEB

DE RUEHBU #0158/01 0421722
ZNR UUUUU ZZH
R 111722Z FEB 08
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 0220
INFO RUEHSG/AMEMBASSY SANTIAGO 1029
RUEHBR/AMEMBASSY BRASILIA 6701
RUEHAC/AMEMBASSY ASUNCION 6805
RUEHLP/AMEMBASSY LA PAZ 5093

UNCLAS BUENOS AIRES 000158 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL EMIN SENV KPAO EINV AR
SUBJECT: Argentina: San Luis Governor Discusses His Province's 
Economic Turnaround 
 
 
¶1. (U) Summary: San Luis Governor Jose Luis Gioja briefed the 
Ambassador February 7 on San Juan's infrastructure development, 
investment climate, and environmental protection measures.  The 
Ambassador congratulated the Governor on San Juan's impressive 
export growth -- particularly in the mining and agricultural sectors 
-- 
and conveyed his desire to visit San Juan.  Gioja was accompanied by 
Ruperto Godoy, chairman of the Foreign Affairs Committee in the 
National Chamber of Deputies.  With Diputado Godoy, the Ambassador 
discussed upcoming visits to Argentina by U.S. congressional 
delegations, and extended an invitation for Argentine 
parliamentarians to visit Washington.  End Summary. 
 
Electoral Mandate 
----------------- 
 
¶2. (SBU) Gioja, who comes from a traditional family of Peronist 
politicians in San Juan, expressed to the Ambassador great 
satisfaction at being reelected in October with a record-breaking 
60% of the vote, but claimed this would be his last term as 
governor.  (Note:  In the press, Gioja has been vocal in his support 
of efforts to draft former president Kirchner as the head of the 
Justicialist Party, referring to him as the most representative 
citizen in the party, and "perhaps, in Argentine politics."  His 
alignment with the Kirchners' "Victory Front" has been rewarded with 
increased attention to the province by the national government, 
including recent visits by senior Cabinet members.  End note.) 
 
Economic Turnaround 
------------------- 
 
¶3. (U) Gioja spoke about the harshness of the 2001-2002 crisis in 
San Juan, where poverty, crime, and education indices are all worse 
than the national average.  He said the province had learned from 
this experience and is working to improve its infrastructure, and 
San Juan is now ranked the fourth most competitive province in 
Argentina.  The Ambassador congratulated Gioja for San Juan's 
impressive export growth and economic rebound.  Gioja said that 
during his first term, San Juan's export earnings increased 
dramatically, from $140 million in 2003 to $800 million in 2007. 
San Juan is well known for its wines, and has more than doubled 
their export value since 2006.  It is also the world's leading 
exporter of grape juice.  Gioja noted that San Juan was exporting 
grape juice concentrate to the United States despite a 17% U.S. 
tariff.  Gioja noted that San Juan's agricultural potential was 
limited by its mountainous topography and dry climate.  The majority 
of its recent economic success is due to increased mining activity. 
The largest project is a US$2 billion gold and silver mine that 
straddles the Argentine/Chile border and is being developed by the 
Canadians.  The Ambassador asked how local authorities were ensuring 
environmental protection.  Gioja said the province was seeking to 
study and address environmental impact concerns in the most 
transparent manner possible, including via participation by all 
interested groups, and build the state's oversight capacity. 
 
Looking West - Chile and the Pacific Rim 
---------------------------------------- 
 
¶4. (U) Gioja referenced Chile as a valuable model for economic 
growth, legal reform, and environmental protection.  He mentioned 
his meeting with Chilean President Michelle Bachelet one week prior 
to secure her commitment in collaborating to build a 13-km tunnel to 
facilitate trade between both countries.  The tunnel proposal was 
still being vetted for technical feasibility and financial 
viability.  Gioja noted that the tunnel could become a link in a 
land route that ultimately could connect Porto Alegre in Brazil with 
Coquimbo in Chile and run through some of the richest parts of 
Argentina.  The Ambassador observed the psychological importance of 
such access in directing the development of business relationships 
in this direction, and noted the great demand in the Pacific Rim 
market for commodities, which is one of Argentina's strengths. 
Diminished transport costs would make this more feasible and 
attractive. 
 
A World-Class Scientific Anchor 
------------------------------- 
 
¶5. (U) San Juan is home to a national astronomical observatory which 
thrives in San Juan's clean air and clear nights protected by the 
180,000 acre El Leoncito National Park.  The Ambassador observed 
that the astronomical complex (CASLEO) is internationally known, and 
that there is significant participation by U.S. universities.  The 
complex houses a unique Submillimeter Solar Telescope installed in 
1999, permitting observation of previously unexplored frequencies. 
Gioja spoke of the excellent exchange of information generated by 
the observatory. 
 
¶6. (U) Gioja invited the Ambassador to visit San Juan, and the 
 
Ambassador agreed in principle.  The Ambassador spoke of the 
potential for further cooperation and the Embassy's interest in 
strengthening ties. 
 
Congressional Ties 
------------------ 
 
¶7. (U) Turning to Godoy, a national deputy from San Juan allied with 
Gioja, the Ambassador said he expected in the weeks and months ahead 
some possible visits to Argentina by U.S. congressional delegations. 
 Godoy welcomed the prospect of some congressional delegations and 
the strengthening of parliamentary ties.  The Ambassador encouraged 
reciprocal visits to Washington by members of the Argentine 
Congress. 
 
WAYNE