VZCZCXYZ0000
RR RUEHWEB

DE RUEHBU #0311/01 0721052
ZNR UUUUU ZZH
R 121052Z MAR 08
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 0432
INFO RUCNMER/MERCOSUR COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS BUENOS AIRES 000311 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
ECA FOR NINA BISHOP 
 
E.O. 12958:  N/A 
TAGS: PREL ECON PGOV PINR SCUL AR
SUBJECT: ARGENTINE GOVERNOR OF SALTA CALLS ON THE AMBASSADOR 
 
 
¶1. (SBU) Summary:  The Ambassador met with Salta Governor Juan 
Manuel Urtubey, Argentina's youngest governor, and discussed areas 
for cooperation, including promotion of trade and investment, 
cultural exchanges, and his upcoming trip to Miami, Washington, and 
New York in April.  The Governor described Salta's promising 
prospects in various sectors, including energy exploration and 
agro-industry.  He also laid out his concerns about the situation in 
Bolivia, which borders his province.  Urtubey was very supportive of 
Nestor Kirchner's campaign for leadership of the Peronist Party.  He 
mentioned he plans to visit Miami in April in connection with the 
Annual Meeting of the IDB Board of Governors, and then New York and 
Washington.  The Ambassador asked about Salta's recovery from recent 
floods, and the Governor described the scope of the devastation and 
the government's relief efforts.  The Ambassador also noted that he 
hoped to find ways to support Salta's interest in baseball, given 
the thriving league in the province.  End summary. 
 
Trade and Investment in Salta 
----------------------------- 
 
¶2. (SBU) Juan Manuel Urtubey, 39, the Kirchner-allied governor of 
Argentina's northern province of Salta, called on the Ambassador 
March 6.  He is an up-and-comer in the Peronist Party (PJ), 
supported by Cabinet Chief Alberto Fernandez and reportedly 
favorably viewed by both Kirchners.  He acknowledged that Salta had 
long been one of Argentina's poorer provinces, with strong social 
and historic ties to the Andean cultures of Bolivia and Peru.  With 
Bolivia, it shared a rich natural gas basin that had not been 
developed on the Argentine side for lack of investment.  Urtubey 
hoped to encourage active exploration in this area. 
 
¶3. (SBU) The Ambassador congratulated Urtubey on Salta's favorable 
investment climate.  Urtubey said he hoped to promote Salta's rule 
of law ("juridical reliability") and social stability as key factors 
for attracting value-added export industries to his province. 
Small- and medium-sized business would be key, and agro-industry 
(including Salta's well-established vineyards) also had great 
potential.  Cattle-raising had doubled in the last four years, and 
he thought it could quadruple in the next four.  Urtubey noted that 
real estate development was also taking off.  He claimed Salta could 
grow even faster, but he was concerned about the social costs of 
growth that was too accelerated.  He noted, for example, that he had 
encountered much criticism for hosting Walmart's roll-out at the 
governor's palace and for the tax and other incentives granted to 
Walmart.  For that reason, he was pleased that Walmart had expressed 
support for purchasing local products for distribution in its 
stores.  The Ambassador offered the Embassy's assistance in 
fostering greater trade and investment between Salta and the United 
States. 
 
Concerns about Neighboring Bolivia 
---------------------------------- 
 
¶4. (SBU) Urtubey noted that Salta's border with Bolivia was the 
major crossing point for Bolivians to Argentina, and increasingly 
for narco-trafficking and trafficking in persons.  Bolivia's 
socio-economic indicators had long been cause for concern, and Salta 
was bearing some of the burden.  For example, up to 50% of medical 
patients treated at Salta's state-run medical facilities were 
Bolivian nationals.  Recent political tensions in Bolivia had been 
alarming.  Urtubey claimed that business people from Bolivia 
(primarily from Tarija and Santa Cruz) were moving their capital and 
operations to Salta in case unrest in the country become too 
disruptive, but that in the last 30-40 days he had noted a reduction 
in tensions and fear on the Bolivian side of the border.  He said 
Salta's leaders were worried by the prospect of a crisis in Bolivia 
that could lead 150,000 to 170,000 refugees to stream across the 
border.  Salta was not prepared to receive such a large number of 
refugees. 
 
Indigenous Devastated by Floods 
------------------------------- 
 
¶5. (SBU) The Ambassador asked about recent highly publicized floods 
in Salta.  Urtubey said recovery efforts had been slow and 
difficult.  He noted that residents of the area between the 
Pilcomayo and Bermejo rivers were 70% indigenous, and that 
communication with those speaking Wichi or Tobar was challenging. 
Many of those displaced by the current floods were fishermen who had 
been moved away from the river banks but ultimately insisted on 
taking up residence again by the rivers where they fished. 
 
Peronist Party Politics 
----------------------- 
 
¶6. (SBU) Urtubey was full of praise for former president Nestor 
Kirchner and his ongoing campaign to lead and reorganize the 
Peronist Party (PJ).  Urtubey said the Peronists would give Kirchner 
the PJ presidency by acclamation in recognition of how he had 
revived the PJ's prospects by rescuing Argentina from the depths of 
its 2001-02 crisis and setting it on an "irreversible" path of 
growth and recovery.  Kirchner was "indispensable" for the party's 
future, and Urtubey would be pleased to accept (as rumored) a spot 
on Kirchner's slate as one of several PJ vice-presidents.  Urtubey 
noted that he had worked closely with President Cristina Fernandez 
de Kirchner (CFK) and with leading opposition figure Elisa Carrio 
when all three of them were on the Constitutional Affairs Committee 
in the Chamber of Deputies and knew them well.  He claimed that 
there was a generational change underfoot, and predicted greater 
tolerance of diversity in the Argentine polity.  On March 8 in 
Mendoza, Urtubey told the Ambassador that the PJ's March 7 
organizational meeting had proceeded without a hitch, and Kirchner 
was headed to election as the PJ's new leader. 
 
Travel to the U.S. and Interest in Business Development 
--------------------------------------------- ---------- 
 
¶7. (SBU) Urtubey said he planned to visit Miami April 4-8 in 
connection with the annual IDB Board of Governors meetings, April 
8-10 to New York, and April 10-11 in Washington.  The Ambassador 
offered to work to assist the Governor with any appointments he 
might want and the Commercial Counselor offered to set up a meeting 
for the Governor with the DAS/WH at USDOC.  The Governor expressed 
his appreciation for the offer and said he would follow-up if 
necessary.  He also said that the Argentine Embassy in Washington 
was in the process of arranging some meetings for him, and he 
mentioned that his wife's family had ties to the U.S. Chamber.  The 
Governor will be accompanied by, Marcelo Elizondo, the head of the 
Argentine Export Promotion Agency (Fundacion Exportar) on his visit 
to Miami.  Elizondo was recently reconfirmed as head of Exportar and 
told the Embassy Commercial Counselor that he was assisting the 
Governor with some appointments.  The Governor told the Ambassador 
that one of his main business interests would be to speak with 
potential investors for the development of natural gas assets in the 
province. 
 
Baseball 
-------- 
 
¶8. (SBU) The Ambassador recalled that Salta had an unusually active 
interest in baseball, with a league that had its roots in the 
enthusiasm of a few young boys in Salta 60 years ago who undertook 
to learn and spread the sport after seeing a popular movie about 
Babe Ruth.  The Ambassador said he hoped to find ways to support 
Salta's interest in baseball, given the thriving league in the 
province. 
 
Biographic Info 
--------------- 
 
¶9. (SBU) Urtubey was regarded as a protege of provincial Peronist 
stalwart Juan Carlos Romero in Salta, yet he also cultivated an 
excellent relationship with Cristina Fernandez de Kirchner during 
his years in Congress. This fact led him to distance himself from 
the Peronist party in the province, and, after 12 years under 
Romero's government, Salta witnessed a highly competitive election 
in October 2007.  Urtubey broke from the governing party and 
presented himself as a candidate of the Kirchners' Victory Front 
(FPV). He defeated Romero's vice-Governor Walter Wayar, a 
traditional provincial politician, by only 5000 votes. 
 
¶10. (SBU) Prior to becoming governor, Urtubey served in the Congress 
as a National deputy from 1999 through 2007.   Young, articulate and 
charismatic, Urtubey takes advantage of mass-media to reach out to 
voters. In his campaign, he focused on modern leadership and 
eliminating the corruption of the Romero government.  He comes from 
a political family.  His father, Rodolfo Urtubey, is a prominent 
jurist known for his conservative ideas, and worked for former 
Governor Romero.  His uncle, Julio Mera Figueroa, served in the 
cabinet of Carlos Menem and as an advisor to Governor Saadi in 
Catamarca. 
 
Comment 
------- 
 
¶11. (SBU) Governor Urtubey conveyed a genuine interest in developing 
a stronger relationship with the U.S. Embassy and developing a broad 
range of contacts in the United States.  He requested this meeting 
so that he could take advantage of his trip to Buenos Aires for the 
Peronist Party's reorganization meetings and came to the Embassy 
immediately before going to the start of those meetings.  His wife 
has relatives in the United States and he recognizes the potential 
benefits of increased trade and investment with the United States. 
FMC has a lithium mine in Salta and Wal-Mart is working with the 
Salta business community to locate provincial products that can be 
sold in its growing number of stores throughout Argentina, which 
would be an economic benefit to this beautiful, though distant, 
province in Argentina's arid northwest.  He is reported to have good 
contacts with the Kirchners and could eventually be a good 
interlocutor for the USG with a bright future in national politics. 
Urtubey invited the Ambassador to visit Salta.  The Ambassador said 
he had already done so but would love to do so again. 
 
¶12. (SBU) Another interesting aspect of this conversation:  When 
referring to the prior governor, a former strong ally and now more 
distant colleague since he joined the Kirchners' Victory Front (FPV) 
movement, Urtubey was careful to say that the province and his 
administration were benefiting from the high-quality leadership and 
management of his predecessor.  That is not a common comment in 
Argentine politics. 
 
WAYNE