VZCZCXYZ0000
RR RUEHWEB

DE RUEHBU #0829/01 1692150
ZNR UUUUU ZZH
R 172150Z JUN 08
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 1355
INFO RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL
RUCNMER/MERCOSUR COLLECTIVE

UNCLAS BUENOS AIRES 000829 
 
USDA FOR FAS/OA/OCRA/ONA/OGA/OFSO 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958:  N/A 
TAGS: EAGR ECON EINV PGOV ELAB PHUM AR
 
SUBJECT: ROUND 4 - ARGENTINE FARM STRIKE RESUMES 
 
REF: (A) Buenos Aires 0803 and previous 
 
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Summary 
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¶1. (SBU) Argentina experienced an intense 3-day weekend of protests 
and counter demonstrations after the government sent federal highway 
and border police (gendarmerie) to clear a roadblock in Gualeguaychu 
on June 14, on the main highway to Brazil and Uruguay, and 
temporarily arrested prominent farm leader Alfredo de Angeli.  The 
farm groups leading the rural protest responded to the increase in 
tension by resuming the farm strike (the fourth strike since March) 
until June 18, and called for a peaceful public protest on that day. 
 They will block sales and marketing of all agricultural products, 
except dairy and other perishable products. On June 16 thousands of 
Argentines took to the streets in the capital and other cities in 
support of the farmers.  President Fernandez de Kirchner showed no 
flexibility on basic issues raised by the farmers in a speech to the 
nation on June 17, but she said she would send the "export taxes" to 
Congress for approval (septel). END SUMMARY 
 
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The Arrest and Protests 
----------------------- 
 
¶2. (SBU) The highly public arrest of Argentine farm leader Alfredo 
de Angeli during the GOA's attempt to use its federal highway and 
border police (gendarmerie) to clear farm protestors from the 
highway in Gualeguaychu, Entre Rios province, led to an intense 
3-day weekend of protests throughout the country.  Additional 
protestors took to the streets and highways in rural areas and 
Buenos Aires after the arrest, blocking major highways throughout 
the country.  De Angeli was subsequently released, and the 
gendarmerie, was forced to back off on its attempt to clear the 
highway in Gualeguaychu as additional protesters arrived from the 
surrounding countryside and cities.  The gendarmerie has since 
withdrawn its forces from Gualeguaychu. 
 
¶3. (SBU) On the evening of June 14, the GOA responded to the 
"cacerolazo" protests on the streets of Buenos Aires by organizing a 
demonstration in support of the government in the Plaza de Mayo, in 
front of the Casa Rosada (presidential palace), led by cabinet 
officials and former president Nestor Kirchner.  Around 100 
government supporters also clashed with protestors close to the 
presidential residence in Olivos, forcing them from the area.  The 
GOA subsequently announced that it will organize a pro-government 
rally in the Plaza de Mayo on June 18.  This announcement was met by 
additional large protests by sympathetic citizens throughout the 
country on the evening of June 16.  Thousands poured out onto the 
streets in most major cities and many smaller cities.  The 
Presidential compound in Olivos was the scene of noisy protests 
until early morning hours. 
 
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On Strike Again 
--------------- 
 
¶4. (SBU) The farm groups leading the agricultural protest met late 
on June 14 and agreed to resume the farm strike that evening, 
continuing through June 18. They will block sales and marketing of 
all agricultural products, except dairy and other perishable 
products.  They have asked protesters to allow the movement of 
private vehicles and public transportation, as they do not wish to 
erode public support for the strikes. The farm groups also called 
for public protests on June 18 in support of the rural sector in its 
dispute with the government, but they made it clear they wanted 
these events to be peaceful and avoid any clashes with government 
supporters who will gather the same day in Buenos Aires. 
 
¶5. (SBU) While the farm groups are seeking to limit the extent of 
the road blockades, it is not clear that all protest groups in rural 
areas will stick to these guidelines.  Of particular importance are 
truckers in rural areas, who for over a week and a half have been 
blocking movement of trucks in numerous areas to pressure the farm 
groups and government to reach an agreement.  The extended conflict 
left truckers that transport grain with little work since the start 
of the conflict in March.  The road blockades by the truckers have 
left many rural areas and cities of the interior without fuel and 
other supplies, causing the economy in many rural areas come to a 
halt and leading to scenes of long lines of vehicles around service 
stations and empty supermarket shelves in the Argentine media 
(septel). 
 
¶6. (SBU) Contacts in the private sector report that marketing of 
grains and oilseeds for export continues to be paralyzed due to the 
farm strike and protests by truckers.  Virtually no grains or 
oilseeds are moving into the processing and export terminals, and 
stocks held at the ports have generally been exhausted due to the 
extended dispute.  While the farm groups officially lifted the 
strike from June 9 to 14, almost no grains or oilseeds moved to the 
ports during the truce and this is not expected to change in the 
absence of an agreement between the farm groups and the government. 
Press reports also carry extensive speculation about what could 
happen if fuel and other trucks continue to be blocked and are 
unable to provide needed supplies. 
 
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Comment 
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¶6. (SBU) The escalation of the farm dispute is contributing to a 
decline in consumer confidence (septel) while the intransigence of 
both sides is upping the political stakes.  An attempt to facilitate 
an agreement between the GOA and farm groups by Hugo Moyano (a vice 
president of the ruling Partido Justialista, and leader of the 
General Confederation of Workers as well as the main truckers union) 
on June 12 reportedly failed after the government decided to 
discontinue the dialogue and continue with a more hard-line position 
(including the attempt to use force to clear rural road blockades). 
President Fernandez de Kirchner and ex-President Nestor Kirchner 
both spoke June 17.  Neither showed any flexibility on the issues 
raised by farmers.  But the President said she would send the export 
taxes to Congress, for approval we presume, and both she and her 
husband spoke at length about the need to respect democracy and 
institutions rather than blocking roads (more details septel). 
 
WAYNE