VZCZCXYZ0000
OO RUEHWEB

DE RUEHBU #0415 0942049
ZNR UUUUU ZZH
O 032049Z APR 08
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0626
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL
RUCNMER/MERCOSUR COLLECTIVE

UNCLAS BUENOS AIRES 000415 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
TREASURY FOR LTRAN AND MMALLOY 
E FOR THOMAS PIERCE 
PASS USTR FOR DUCKWORTH 
USDOC FOR 4322/ITA/MAC/OLAC/PEACHER 
US SOUTHCOM FOR POLAD 
 
E.O. 12958: N/A 
TAGS: EAGR ECON ETRD PGOV AR
SUBJECT: ARGENTINA: AGRICULTURE SECTOR SUSPENDS STRIKE 
 
REF:  BUENOS AIRES 0408 AND PREVIOUS 
 
¶1.  (SBU) Summary: Argentina's four main agricultural organizations 
lifted their strike on April 2 for 30 days to hold discussions with 
the GOA.  Roadblocks have been lifted throughout the country and 
food supplies are arriving in Buenos Aires and other major cities. 
Local papers report that basic food items such as meat, dairy 
products, fruit, and vegetables will return to grocery store shelves 
over the next few days.  Agrarian groups, nevertheless, vowed to 
block the roads again if they do not reach an agreement with the 
government.  End Summary. 
 
------------------------ 
Calling it Off...For Now 
------------------------ 
 
¶2.  (U) Agriculture sector representatives spoke at a rally April 2 
in Gualeguaychu in front of an estimated 35,000 producers and 
announced the suspension of the strike for 30 days.  The decision to 
lift the strike follows the Government announcement of additional 
new measures in support of small farmers on March 31 (reftels) and a 
massive demonstration in support of the government in Buenos Aires 
on April 1.  Contacts in the sector indicate that the main reason 
for lifting the strike was that the farmers have gotten as much as 
they can from the GoA at this time; they fear that a continuation of 
the strike would damage the rural sector and risk losing the public 
support that it has enjoyed so far. 
 
¶3.  (U) Leaders of the sector cited concerns about increasing public 
frustration over food shortages in local stores as a factor in the 
decision, with further shortages threatening the widespread public 
support they have had up to now.  The representatives called the 
shortages a "consequence, not an objective" of the road blocks. 
They also strongly rejected CFK's characterization of the farmers as 
coup-plotting "golpistas."  To drive the point home, FAA (Federacion 
Agraria Argentina) president Eduardo Buzzi cited farmers who were 
"disappeared" during the 1976-82 military dictatorship. CRA 
(Confederaciones Rurales Argentinas) president Maria Llambias vowed 
to keep an "alert and mobilized" state and return to the road blocks 
if the sector is left "empty-handed" after 30 days. 
 
¶4.  (SBU) Ambassador met April 2 with Gustavo Grobocopatel, the 
General Manager of the largest soybean producer in Argentina, who 
called the current suspension of the farm strike temporary and 
easily resumed at the end of the 30-day suspension.  He said farmers 
were anxious to return to their farms and harvest their crops (the 
strike has delayed the harvest of corn and soybeans by two weeks). 
He noted that much will depend on the quality of dialogue in the 
weeks ahead. 
 
¶5.  (U) The GOA's Minister of the Interior Florencio Randazzo 
welcomed the sector's decision and urged a quick resumption of 
dialogue.  Randazzo pledged the GoA would fulfill its promise to 
compensate small and medium producers.  Ruling National Victory 
Front congressmen Carlos Kunkel and Agustin Rossi also welcomed the 
lifting of the strike, but lamented the "political declarations" the 
agricultural representatives made. A source close to the Casa Rosada 
said there was much relief expressed last night be senior officials 
that their gambit had prevailed for now. 
 
¶6.  (SBU) Comment:  The truce is a cause for celebration by most 
Argentines, with food deliveries to grocery stores resuming as early 
as yesterday.  Some within the GoA view the resolution of the crisis 
as a victory for CFK in which she has grown out of her husband's 
shadow.  Most analysts consider this dispute to be a major setback 
for the government, with the rural sector more united and vocal than 
at any time in almost 100 years.  As one leader of the agricultural 
sector said to the press, the farmers decided to be the adults in 
this situation, ignoring the provocations in CFK's April 1 speech in 
order to get back to work.  Having antagonized the rural sector, the 
GoA's negotiating skills will be put to the test in addressing the 
farmers' substantial complaints and preventing a return to 
roadblocks in May.  There is a lot of skepticism about whether the 
government will be up to the test.  End Comment. 
WAYNE