VZCZCXYZ0000
RR RUEHWEB

DE RUEHBU #1055/01 2131529
ZNR UUUUU ZZH
R 311529Z JUL 08
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 1660
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC
RUEHRC/DEPT OF AGRICULTURE USD FAS WASHINGTON DC
RUEHC/DEPT OF LABOR WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL
RUCNMER/MERCOSUR COLLECTIVE
RUEHCV/AMEMBASSY CARACAS 1831

UNCLAS BUENOS AIRES 001055 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PREL PHUM SENV MARR TSPA SCUL ECON AR
 
SUBJECT: U.S.-Argentine Bilateral Consultations Promote S&T, 
Cultural, Military and National Parks Cooperation 
 
Ref: (A) Buenos Aires 0910 and previous 
(B) Buenos Aires 0837 
(C) Buenos Aires 0761 
(D) Buenos Aires 0920 
(E) Buenos Aires 0911 
(F) Buenos Aires 0974 
(G) Buenos Aires 0975 
(H) Buenos Aires 0976 
 
------- 
Summary 
------- 
 
¶1. (SBU) USG-GOA bilateral consultations took place 
on July 10-11 and covered a range of topics including 
bilateral relations, human rights, science and 
technology, education and culture, cooperation on 
global issues, regional economic issues, and issues 
of hemispheric interest.  Four non-binding agreements 
were signed on nanotechnology, national parks, 
cultural cooperation and alternative energy, 
illustrating the potential for tangible benefits from 
increasingly positive relations between the two 
countries.  In advance of the next USG-GOA bilateral 
meeting this fall, both sides agreed to follow up 
with working groups on particular issues discussed 
during this bilateral meeting.  The intent of the 
working groups is to identify goals and then achieve 
progress on new and outstanding issues in the 
bilateral relationship.  The goal of the bilateral 
consultation process is to establish a solid working 
agenda which can provide a foundation not only for 
building cooperation but also for weathering strains 
in bilateral relations. Septel will cover lunch and 
dinner conversations.  End Summary. 
 
--------------------------------------------- ----- 
Review of Bilateral Relations, Latest Developments 
--------------------------------------------- ----- 
 
¶2. (SBU) In his opening remarks, Deputy Foreign 
Minister Victorio Taccetti briefly reviewed 
Argentina's current political-economic situation.  He 
noted the ongoing agricultural crisis in Argentina 
(ref a), and the recent debate in both houses of 
Congress, which he pointed to as an example of a 
"maturing democracy."  He said that despite the 
occasional "rancor," this was an overall positive 
development.  He indicated that the GOA had 
prioritized and made progress in the areas of human 
rights, economic development, and social inclusion. 
He acknowledged, however, that there was still a lot 
of work to be done.  He hailed Argentina's economic 
recovery and expansion, and said that he expected 
this to continue. 
 
¶3. (SBU) Taccetti stated that Argentina was in the 
process of moving beyond a commodity-led export 
economy toward a higher value-added and knowledge- 
based economy.  He observed tat the United States 
was an important driver for Argentina's own 
development and has played an important role in 
Argentina's technology and value-added economic 
growth.  Taccetti noted that small and medium-sized 
enterprises (SMEs) often lead the way in Argentina's 
economic growth, investment, and innovation.  He 
added that SMEs have benefited greatly from the U.S. 
Generalized System of Preferences by enabling them to 
enter the competitive U.S. market.  He also stressed 
the importance of gaining access for Argentine beef 
to the U.S. market. 
 
¶4. (SBU) Taccetti described the bilateral 
consultations as a follow-on to A/S Shannon's April 
2008 visit to Argentina.  He said that it was an 
excellent vehicle to promote and deepen our common 
and diverse agenda, including in the areas of science 
and technology, human rights, parliamentary 
exchanges, energy, defense, and national parks.  He 
said that he hoped that the consultations would be 
followed by subsequent commissions and meetings to 
"maintain momentum."  Finally, Taccetti expressed, on 
 
behalf of his government, his condolences for the 
recent attack on the U.S. Consulate in Istanbul, 
Turkey. 
 
¶5. (SBU) A/S Shannon thanked Taccetti for hosting the 
bilateral consultations and stressed that the U.S. 
government also looked forward to using the bilateral 
consultations as a vehicle to address important 
issues in the relationship.  He underscored President 
Bush's and Secretary Rice's commitment to Latin 
America as a whole, and Argentina in particular, and 
that he expected the next presidential administration 
to continue prioritizing the region.  In addition to 
our extensive shared economic and political 
interests, A/S Shannon noted the vast social and 
cultural ties between the U.S. and Argentina.  He 
stated that the United States and Argentina share a 
common interest in building more inclusive societies 
and robust democracies that deliver greater social 
justice and respond to the needs of its citizens.  He 
seconded DFM Taccetti's desire for more knowledge- 
based and innovative economies. 
 
-------------------------------------------- 
VISITS KEY TO IMPROVING MUTUAL UNDERSTANDING 
-------------------------------------------- 
 
¶6. (SBU) DFM Taccetti, Argentine Ambassador to the 
United States Hector Timerman, A/S Shannon, and 
Ambassador Wayne noted the level and frequency of 
high-level visitors to each country.  Both sides 
noted the recent senior Congressional visits to 
Argentina, including delegations led by Senator 
Christopher Dodd and Representative Eliot Engel. 
Ambassador Wayne also mentioned the visits of the 
Governors of Alabama and South Carolina, as well as a 
senior delegation from Texas.  He recapped the visits 
of several senior USG officials including FBI Deputy 
Director Pistole, the Deputy Director of National 
Intelligence, Department of Homeland 
Security/Immigration and Customs Enforcement A/S 
Julie Meyers, State Department's Ambassador-at-Large 
for Monitoring and Combating Trafficking in Persons 
Mark Lagon, the State Department's Special Envoy to 
Monitor and Combat Anti-Semitism Gregg Rickman, and 
the State Department's A/S for Educational and 
Cultural Affairs Ameri Goli.  Timerman recounted the 
recent visits of senior GOA officials to the United 
States including Foreign Minister Jorge Taiana, 
Energy Secretary Daniel Cameron, and Ministry of 
Defense Secretary of International Affairs Alfredo 
Waldo Forti, as well as the Governors of Salta and 
Rio Negro. 
 
¶7. (SBU) Noting his early and extensive contact with 
Congressional leaders and other USG officials upon 
assuming his Ambassadorship in Washington, Argentine 
Ambassador to the United States Hector Timerman 
expressed strong interest in greater government to 
government, parliamentary, state-to-state, and people 
to people exchanges, particularly in the areas of 
energy, security, and culture.  A/S Shannon strongly 
endorsed this idea, noting that exchanges need to 
take place not only between governments but between 
societies to enhance mutual understanding. 
 
------------------------------------------- 
IRS issue for Argentine Embassy Employees in the U.S. 
------------------------------------------- 
 
¶8. (SBU) Turning to administrative matters, Taccetti 
raised the issue of the ongoing Embassy of Argentina 
dispute with the Internal Revenue Service (IRS), over 
the latter's requirement that Embassy employees pay 
back taxes.  A/S Shannon noted that the IRS had been 
in regular contact with the Argentine Embassy on this 
matter and indicated that he would relay the GOA's 
concerns with colleagues at the IRS. 
 
-------------------- 
Military Cooperation 
-------------------- 
 
 
¶9. (SBU) On military issues, James G. Alverson III, 
Office of the Secretary of Defense, and Mr. Alfredo 
Waldo Forti, Secretary of International Affairs, GOA 
Ministry of Defense, reviewed the current status of 
military-military relations.  Alverson underscored 
that the Pentagon views U.S.-Argentine military ties 
as "excellent both in terms of quality and quantity 
at the Ministerial and Armed Forces levels".  He 
characterized the mil-mil relationship as a "true 
partnership" where "we learn from each other."  He 
noted that the successful April 2008 Pol-Mil meeting 
in Washington brought about new initiatives and 
agreements, including an MOU to promote more 
professional military education for students, 
professors, civilians and armed forces personnel. 
The April 2008 meeting also forged important new 
peacekeeping (PKO) agreements, for which a key 
component is further collaboration in Argentina's 
"world-class" joint PKO training center (CAECOPAZ). 
Alverson hailed Argentina's peacekeeping reputation, 
and noted that it will soon celebrate 60 years of 
participation in UN PKO efforts.  Alverson also 
praised US-Argentine collaboration in the Central 
American PKO center as well as our S&T cooperation. 
Alverson noted that the upcoming Defense Ministers of 
the Americas meeting in Canada in September, and the 
planned October 2008 visit to Argentina of DoD Deputy 
Assistant Secretary Steve Johnson represent further 
opportunities to strengthen and reaffirm the 
relationship. 
 
¶10. (SBU) In response, Forti stated that he looked 
forward to Johnson's visit, as well as future 
military exercises in 2009.  He characterized the 
U.S.-Argentine military relationship as "productive," 
noting our collaboration in military exercises and 
cooperation in the area of science and technology. 
He expressed interest in expanding S&T cooperation, 
particularly in the area of information security. 
 
¶11. (SBU) On Haiti, Forti highlighted Argentina's as 
well as other Latin American nations' commitment to 
MINUSTAH, while at the same time acknowledging that 
the situation is "very tough."  At the moment, 
MINUSTAH's priority is to minimize bloodshed; other 
basic needs such as institution-building and ensuring 
an adequate food supply were still challenges to be 
met, he said.  Forti underscored Argentina's regional 
peacekeeping role and its CAECOPAZ work, which 
includes several U.S. participants, and welcomed 
continued U.S. involvement in CAECOPAZ.  (Note: 
CAECOPAZ is the GOA facility which trains up to 3,000 
regional peacekeepers annually.  The USG helped 
finance construction of CAECOPAZ and has provided 
instructors.  A/S Shannon made a well-publicized 
visit to CAECOPAZ on July 12.  Forti accompanied 
Shannon as did the commander, Col. Alcedo.) 
 
¶12. (SBU) Turning to the recent return of the U.S. 
Navy's Fourth Fleet, Forti pointed out that the GOA 
was not notified in advance of the USG's public 
announcement, despite high-level exchanges 
immediately prior to the roll-out.  Forti also 
expressed concern that the Fourth Fleet had possibly 
added entirely new assets (i.e. ships, carriers, 
etc.).  He asked that there be "improved 
communication" in the future for initiatives of "this 
magnitude." 
 
¶13. (SBU) Alverson apologized for the lack of 
coordination and said that DoD should and could have 
communicated this event better to its friends.  He 
added that DoD had learned from this mistake, with 
SouthCom Commander Admiral James Stavridis expressing 
his regret about this miscommunication and publicly 
clarifying that the Fourth Fleet does not represent 
any increase in size of military assets, but rather a 
reorganization of existing assets.  The Fleet's 
mission, explained A/S Shannon, is primarily 
humanitarian and disaster relief and drug 
interdiction.  The Fleet does not have an offensive 
 
purpose, nor will it sail into territorial waters 
uninvited, he said, further explaining that its 
largest vessel is a hospital ship.  The Fourth 
Fleet's new mission is to support, promote and 
strengthen coalition building, develop partner nation 
capabilities, and deter aggression. 
 
---------------------- 
Science and Technology 
---------------------- 
 
¶14. (SBU) On S&T, Dr. Lino Baranao, Minister of 
Science, Technology and Productive Innovation, 
reviewed his recent trip to Washington.  He said that 
he is interested in expanding our S&T cooperation in 
concrete, specific, and productive areas.  He cited 
Argentina's work in nanotechnology, as well as his 
government's desire to harness its S&T capabilities 
to increase competitiveness and promote knowledge- 
based companies.  He said the USG-GOA joint 
declaration on nanotechnology is "emblematic" of the 
positive S&T cooperation between the U.S. and 
Argentina, and he noted that the joint declaration 
highlights several important goals of the S&T 
Ministry, such as greater protection for intellectual 
property rights (IPR). 
 
¶15. (SBU) Jeff Miotke, Deputy Assistant Secretary of 
State for Science, Space and Health, said that he was 
excited about strengthening U.S.-Argentine 
nanotechnology cooperation.  He noted that although 
the United States is one of the top three nations in 
the world in nanotechnology development, it can no 
longer excel alone.  He indicated that the U.S. can 
learn from others in areas "we cannot even imagine." 
He hailed the many areas of U.S.-Argentine S&T 
collaboration, such as nuclear energy, environment, 
and health, and noted how each side benefits from 
each other's experience.  Ambassador Wayne noted our 
cooperation in the area of alternative energy, and 
expressed his pleasure with the Memorandum of 
Understanding that was signed.  The Ambassador also 
noted his appreciation for GOA Energy Secretary 
Daniel Cameron's attendance at the recent Washington 
International Renewable Energy Conference (WIREC) in 
Washington, and the GOA's pledges/plans for more 
involvement in this area. 
 
------ 
Energy 
------ 
 
¶16. (SBU) Secretary of Energy Daniel Cameron 
highlighted the "large and important role" the energy 
sector has played in Argentina's strong economic 
growth in recent years.  The GOA, he said, has been 
working for the past five years on a number of energy 
sector-specific development plans, including 
initiatives in the areas of hydrogen, biofuels, and 
alternative/renewable energy.  Cameron also cited the 
GOA's peaceful development of nuclear energy, and 
noted that it is developing its third heavy water 
reactor, Atucha 2.  He cited President Cristina 
Fernandez de Kirchner's (CFK) energy-saving 
initiative unveiled in January 2008, and the GOA's 
overall initiative to "rationalize" its energy 
consumption.  He also cited his government's 
initiatives in the area of conservation, clean 
energy, efficiency, and noting that in all these 
areas we have common interests.  He said he enjoyed 
participating in the "excellent" Washington-hosted 
WIREC conference, at which he led the GOA delegation, 
and said that the GOA had followed up on this 
conference with a formal renewable energy pledge. 
 
-------------------------- 
National Parks Cooperation 
-------------------------- 
 
¶17. (U) DFM Taccetti remarked on the importance of 
U.S. tourism to Argentina, but noted that most U.S. 
visitors did not go beyond Buenos Aires.  The GOA 
 
would like to encourage greater numbers of U.S. 
tourists to visit Argentina's national parks. 
National Parks Administration (APN) Director Hector 
Espina opened with a brief history of Argentina's 
parks and spoke about their beauty and diversity. 
The effects of tourism have a ripple effect, 
benefiting surrounding towns and cities economically 
and thereby creating employment, he added.  Espina 
noted that the APN considers the U.S. National Park 
Service to be a model in its attention to visitors. 
Agreements such as the Memorandum of Understanding 
between the National Park Services and the APN are 
crucial for maintaining the integrity of parks for 
future generations.  Espina expressed enthusiasm for 
signing the agreement and invited the U.S. delegation 
to visit Argentina's parks. 
 
----------------------------- 
Human Rights Past and Present 
----------------------------- 
 
¶18. (SBU) DFM Taccetti emphasized the "central role" 
human rights plays in Argentine state policy, 
especially after the "errors" committed during the 
military dictatorship.  Although the GOA has reopened 
trials against those believed to be responsible for 
human rights abuses during this era, he lamented that 
it was still largely "impossible," with a few 
exceptions, to bring to justice most of the 
perpetrators of the worst crimes of this period. 
Argentine Ambassador Timerman expressed appreciation 
for the State Department's cooperation with the 
National Security Archives' Argentina 
Declassification Project, which declassified 
thousands of documents related to human rights abuses 
and political violence in Argentina during the 1976- 
83 military dictatorship. 
 
¶19. (SBU) MFA Director for the Human Rights Office 
Silvia Fernandez underscored Argentina's continued 
commitment to human rights in its foreign policy, as 
evidenced by its recent election to the UN Human 
Rights Council.  She indicated that the GOA hopes to 
be a constructive member of the Council.  She 
expressed disappointment with the USG's decision to 
disengage from the UNHRC, noting that although 
Argentina shares many of the USG's concerns with the 
Council, Argentina remains "optimistic" that it can 
still be a useful forum to discuss human rights 
issues.  She stated that Argentina found the UNHRC's 
Universal Periodic Review to be a useful instrument, 
for example. 
 
¶20. (SBU) Fernandez praised the excellent cooperation 
the GOA enjoys with the U.S. Embassy and USG, 
particularly in international, multilateral, and 
regional fora such as the UN and the OAS.  To 
facilitate USG and GOA discussions on human rights 
issues in multilateral fora, Fernandez proposed 
holding informal, periodic consultations once a year, 
in either capital or on the margins of multilateral 
meetings (e.g. Organization of American States, 
United Nations).  A/S Shannon endorsed the idea of 
such a USG-GOA regular human rights dialogue.  He 
also cited Argentina's "vigorous presence" in 
international fora and indicated that Argentina could 
offer insights to the United States into the "special 
dynamics" of these multilateral organizations. 
 
----------------------- 
HR Case: Victor Saldano 
----------------------- 
 
¶21. (SBU) Ms. Fernandez also raised the case of 
Argentine citizen Victor Saldano, currently sitting 
on death row in Texas.  As GOA interlocutors have 
previously noted, she reviewed the fact that 
testimony introduced at the sentencing phase of his 
trial was racially discriminatory and argued that 
this testimony may have influenced the court's 
decision to sentence him with the death penalty.  She 
noted that when this issue emerged during the appeals 
 
process, the Texas Attorney General -- representing 
the state in the federal court system - "confessed 
error," admitting that the introduction of race as a 
factor for determining future dangerousness violated 
Saldano's right to equal treatment before the law. 
Accordingly, in 2000, the Supreme Court vacated 
Saldano's sentence and sent the case back to the 
Texas Court of Criminal Appeals (TCCA) for "further 
consideration in light of the confession of error." 
In 2002 the TCCA upheld the death sentence, holding 
that the TCCA followed criminal procedures when 
sentencing Saldano.  In the wake of these decisions, 
the Texas state government passed "the Saldano law" 
banning the state from introducing testimony at trial 
that contends that race is a factor in determining 
future criminal conduct, Fernandez claimed.  She said 
that the GOA was preparing to submit an amicus brief 
on this case and asked that the USG support Argentina 
in this effort. 
 
¶22. (SBU) In response, A/S Shannon said that the USG 
"looks forward to speaking with the GOA about this 
issue at greater length" and that he would share this 
request with State's Legal Advisor.  He indicated, 
however, that the TCCA had determined that it 
followed criminal procedures correctly when 
sentencing Saldano.  Continuing, he observed that the 
Saldano case was very similar to a case that went to 
the International Court of Justice regarding Mexicans 
on death row in Texas who had not been informed of 
their right to consular notification.  He said that 
President Bush had asked the Texas Supreme Court to 
review the matter, but that the Court maintained that 
its criminal procedures were correct.  A/S Shannon 
stated that the USG is working with the Texas 
government to meet its obligations under the Vienna 
convention.  He also indicated that the USG had in 
recent years re-doubled its efforts to ensure that 
foreign national prisoners were afforded consular 
notification and access. 
 
------------------------ 
Human Rights Cooperation 
------------------------ 
 
¶23. (SBU) Ambassador Wayne then noted that both Human 
Rights Secretary Duhalde and INADI President Maria 
Jose Lubertino had raised the possibility of 
increased USG-GOA cooperation in the area of human 
rights (ref B).  He indicated U.S. interest in 
pursuing greater cooperation in human rights and 
suggested the MFA could consult with the Human Rights 
Secretariat and the INADI to explore areas of future 
cooperation.  The MFA agreed to do so. 
 
--------------------------------- 
Education and Culture Cooperation 
--------------------------------- 
 
¶24. (U) Ambassador Wayne recognized the efforts on 
the part of both governments in promoting the many 
exchanges - students, researchers, professors and 
specialists - taking place between the two countries. 
He proposed the establishment of a coordinating group 
to gather better information on educational exchanges 
and facilitate them.  He also called for the need to 
eliminate any impediments and specifically urged the 
GOA to develop a visa similar to the United States' 
"J" visa category for U.S. exchange participants who 
are not enrolled in a full-time program but are 
participating in a legitimate exchange, such as 
teacher trainers.  Overall, the establishment of a 
working group with Fulbright as an important partner, 
though not the only agent in the process, would be 
very good for the long-term basis of the 
relationship.  DFM Victor Taccetti agreed fully with 
this presentation and said student exchange 
exemplified the principle A/S Shannon made the 
previous day about the closeness of the two 
societies.  He emphasized that the working group 
should resolve issues that arise to ensure smooth 
travel. 
 
 
¶25. (U) Pablo Urquiza, of the Ministry of Education, 
agreed that exchanges strengthen the bilateral 
relationship and praised the long and fruitful 
relationship with the Fulbright program.  Many 
provinces are benefiting from English teaching, for 
example, and many young Argentines are teaching 
Spanish in the U.S.  Others are enrolled in post- 
graduate programs throughout the U.S.  He called to 
reinforce and broaden the program, which, he noted, 
operates under a co-financing arrangement and he 
requested that specific personnel be identified to 
work on Fulbright issues.  Urquiza raised the new 
educational law designed to meet new challenges by 
identifying priority themes, including: 
1) significantly increased emphasis on the science 
and technology curriculum; and 2) professional 
development for educators through expanded teacher 
training.  On the issue of visas, he acknowledged the 
gap and explained that the Ministry of Education had 
just about resolved a legal/logistical matter that 
would allow the establishment of the needed visa 
category.  He also made mention of the Young 
Ambassador's Program, stressing the importance of the 
program and the need to maintain it.  Ambassador 
Wayne reconfirmed that the USG shared these 
priorities and gave the example of our ongoing 
English teacher training program and said he looked 
forward to finding more resources for the Fulbright 
program which has been an excellent mechanism for 
exchange.  DFM Taccetti asserted that progress should 
be made on these education issues no later than the 
next session. 
 
¶26. (U) The MFA intervened next with regard to the 
Culture Agreement, which was ready to sign. Esther 
Malamud, of the Cultural Affairs office, noted that 
the principles for working together more fluidly had 
been laid.  She presented some possible ideas for a 
GOA-USG program to develop seminars on film and 
comparative immigration histories.  A/S Shannon said 
that this was an "important step forward."  He gave 
an example from a cultural exhibit of photographs by 
underprivileged youth he had seen when he last 
visited Buenos Aires as how culture transforms people 
in positive ways and that deepening cultural 
cooperation between our two countries would give us a 
better understanding of each other's societies. 
"Promoting cultural exchange is something we seek," 
he said.  The Memorandum of Understanding on Cultural 
Exchange and Cooperation was signed at the morning 
session on 11 July 2008. 
 
----------------------------- 
Counter-terrorism Cooperation 
----------------------------- 
 
¶27. (U) A/S Shannon commended the GOA delegation for 
being a strong global partner in counter-terrorism 
efforts, as well as for its leadership and 
participation in the 3+1 Security Mechanism for the 
Tri-Border Area (TBA).  He also praised 2007 
legislation formally criminalizing terrorism and 
terrorist financing.  The GOA, in his view, realizes 
the need to combat the structures of terrorism and 
wants to further develop training programs and 
technical assistance for this endeavor.  The ongoing 
cooperation and contact between numerous agencies 
demonstrates the depth and breadth of the 
relationship, he highlighted.  The Megaports 
Initiative is also important, he stated, and hopes 
that the agreement will be signed soon so as to 
facilitate the transfer of relevant equipment. 
 
¶28. (U) Minister Jose Ignacio Tobella, Special 
Representative on Terrorism, agreed that 
international terrorism is a threat to civilization, 
the global economy, human rights, and democracy.  The 
entire world needs to be involved:  global 
institutions, including the U.N., are necessary for 
eradicating terrorism, he said.  He summarized the 
GOA's contribution to the signing of 12 accords at 
 
the U.N. as well as an accord on nuclear terrorism. 
Tobella highlighted the positive nature of the 
relationship between both countries and the role that 
technical assistance and training plays in 
maintaining strong ties.  Contact with USEMB Buenos 
Aires and the Office of the Coordinator for Counter- 
terrorism at the Department of State is ongoing and 
fruitful, he stated, and agreed with A/S Shannon on 
the importance of recent legislation clearly 
outlawing terrorist financing.  Tobella spoke on the 
GOA participation in crisis simulation exercises.  In 
Argentina, he noted, domestic agencies are developing 
expertise in the crisis management area thru 
simulations.  He regards this as another important 
facet of the overall relationship, one that needs to 
be maintained.  He also spoke of a joint exercise 
with Canada. 
 
¶29. (U) Taccetti reminded the delegations that 
Argentina, too, has been a victim of terrorism, a 
fact often forgotten, he said.  The terrorist acts 
(1992 and 1994) hurt Argentina significantly, even 
from a commercial standpoint, citing the loss of 
$600-700 million USD in trade with Iran as a result. 
He also spoke about the lack of actual terrorist 
movement/operations in the tri-border area (TBA) and 
was critical about negative U.S. public press (2005) 
regarding the TBA and stated it does not reflect an 
accurate account of the current situation in the TBA. 
These are actually great tourist areas, he noted, and 
would appreciate if the U.S. could help transmit a 
more accurate account of the TBA. 
 
¶30. (U) A/S Shannon acknowledged the helpful exchange 
of information among the 3+1 partners in the TBA and 
regretted the negative press accounts of terrorism in 
the TBA.  He referred to the Megaports Initiative, 
designed to detect the transit of nuclear or 
radioactive materials through ports around the world. 
Worldwide application will make it successful, he 
said.  He hoped that the GOA could identify an 
appropriate agency to take the lead in this endeavor. 
 
¶31. (U) Ricardo Bocalandro, of the International 
Security Directorship on Nuclear and Space Issues, 
said that the GOA is firmly committed to counter- 
proliferation.  He referred to one example of such 
commitment as the ongoing seminars and courses on 
inspection that are provided by the U.S.  As such, 
the Megaports Initiative is under consideration and 
the GOA is favorably disposed, he said.  However, 
upon analyzing the Megaports Memorandum of 
Understanding, GOA officials are concerned about the 
confidentiality of the information obtained from 
container inspection at Argentine ports.  GOA 
officials need assurance of confidentiality and 
privacy.  Nevertheless, in principle, the GOA favors 
the idea, he said. 
 
¶32. (U) A/S Shannon stated the U.S. is willing to 
address, and respects, the GOA's confidentiality 
concerns regarding the Megaports Initiative.  He 
wants to work with the GOA to overcome any 
impediments that block approval of the initiative. 
He also spoke of the different U.S. offices involved 
in crisis management issues and hopes to be able to 
have agencies from both countries share experiences. 
 
----------------------------------------- 
Cooperation Against Narcotics Tafficking 
----------------------------------------- 
 
¶33. (U) A/S Shannon voiced appreciation for GOA 
support in the fight against drug trafficking.  He 
expressed U.S. openness to strengthening and 
furthering the relationship.  He was gratified by 
draft GOA legislation criminalizing precursor 
chemicals.  Synthetic drugs are related to precursor 
chemicals and thus important to fight, he said.  A/S 
Shannon also stated his appreciation for GOA 
legislation and stated that trafficking networks are 
evolving and we need to be sure we can respond 
 
quickly to their mutations.  Argentina's passage of 
legislation to combat financial crimes was also an 
important step in the overall process against 
narcotics trafficking. 
 
¶34. (U) Ricardo Roselli, of the General Directorship 
for International Drug Affairs, stressed the positive 
nature of cooperation in all areas of combating 
narcotics, including in bilateral and international 
fora.  Many common positions exist with the U.S. in 
the U.N. and the OAS, where we have ample 
cooperation, he said.  He noted that Paraguay and 
Bolivia are big producers and that working there is 
important.  Precursor legislation, he said, is 
necessary due to certain usage of precursor chemicals 
in synthetic drugs.  Lastly, he asked for the annual 
renewal of the Face Sheet Amendment to the 1994 MOU 
"for Reducing Demand, Preventing Abuse, and Combating 
Illicit Production and Traffic of Drugs and 
Psychotropic Substances." 
 
¶35. (SBU) A/S Shannon agreed on the need to renew the 
agreement.  He also recognized that the U.S. is part 
of the problem, citing U.S. demand for illicit drugs. 
Even though U.S. demand for cocaine is down, he said, 
demand for it is up in Europe and Brazil while 
synthetic drug demand is rising in the U.S.  A/S 
Shannon elaborated on U.S. concerns over Bolivia, he 
said there was still cooperation with the GOB on 
eradication and interdiction, but that President 
Morales was resisting on alternative development 
which was key to thwarting narcotics production in 
the long term.  He addressed the need to work with 
Bolivia to confront these issues. 
 
¶36. (U) Taccetti expressed gratitude for the 
information and hopes that the U.S. can come to an 
agreement with Bolivia.  He recognized that 
increasing drug use is an international problem and 
cited reasons for the spike in all Argentine social 
strata over the past several years.  Analysts, he 
said, associate rising drug use with the economic 
crisis of 2001, high levels of unemployment, and the 
deterioration of the family as a unit of social 
structure.  As such, he acknowledged that Argentina, 
too, is part of the global problem.  One of the GOA 
approaches to decreasing consumption of illicit drugs 
is to strengthen the family unit so that there can be 
more oversight and intervention by the family, he 
said. 
 
------------------------------------------ 
Cooperation against Trafficking in Persons 
------------------------------------------ 
 
¶37. (U) On trafficking in persons (TIP) issues, 
Ambassador Wayne began by noting that TIP is a 
serious challenge for all countries and an 
opportunity to deepen our cooperation.  He said that 
the recent visits by Department of Homeland Security 
(DHS) A/S Julie Meyers (ref c), two DHS Immigration 
and Customs Enforcement (ICE) experts, and G/TIP 
Ambassador-at-Large Mark Lagon (refs d and e) 
established a good basis for enhanced TIP cooperation 
between the U.S. and Argentina.  He praised Argentina 
for organizing the MERCOSUR TIP Congress in June, 
adding that this was a good example of international 
and multilateral cooperation.  Ambassador Wayne also 
indicated that Lagon had excellent conversations with 
the GOA and NGO community, and that Lagon left 
Argentina "confident in our working relationship." 
He underscored the USG's commitment to assist GOA 
efforts to end this terrible practice. 
 
¶38. (U) Special Envoy for Women's Affairs Magdalena 
Faillace indicated that the GOA has a "permanent 
relationship" with the U.S. Embassy.  She stated that 
the GOA recognizes that TIP is a problem in Argentina 
and cited the International Organization of 
Migration's (IOM) study that estimated 80% of all TIP 
victims in Argentina are Argentine women and children 
for the purposes of sexual exploitation.  TIP is not 
 
only a problem in Argentina, however, but also in the 
region, and it is for this reason that the GOA has 
taken the lead on placing this issue on the MERCOSUR 
agenda, she said. 
 
¶39. (U) Faillace noted Ambassador Lagon's meetings 
with FM Taiana, Justice Minister Anibal Fernandez, 
and Prosecutor General Esteban Righi.  She stressed, 
however, that the GOA continues to disagree with its 
Tier 2 Watchlist classification in the USG's 
rankings, arguing that the ranking does not seem to 
take into account many of the GOA's recent 
accomplishments: the creation of a National Plan to 
Assist Trafficking Victims established by Executive 
Decree in 2007; the passage of federal legislation 
criminalizing TIP; and the support the MFA and other 
government agencies gave to IOM's public awareness 
campaign.  She explained that many GOA agencies are 
involved in the fight against human trafficking, and 
that she had recently attended a meeting with 
agencies from the Ministry of Justice, the Prosecutor 
General (including the Office of Victim's Assistance- 
OFAVI), and the Ministry of Social Development, 
including the Secretariat for Children, Adolescents, 
and the Family to discuss next steps regarding the 
development of implementing regulations for the new 
anti-trafficking law. 
 
¶40. (U) A/S Shannon expressed appreciation for 
Argentina's passage of anti-TIP legislation and for 
its diplomatic efforts to place the fight against TIP 
on the Mercosur agenda.  He also praised Argentine 
civil society for their efforts to raise public 
awareness of the problem.  TIP is a huge problem for 
the U.S., he stressed.  The U.S. and Argentina have 
similar challenges in fighting TIP, including the 
need to implement new legal structures to prosecute 
traffickers through the federal court system.  He 
said he was grateful that FM Taiana met with 
Ambassador Lagon to see how the U.S. and Argentina 
can move forward on this issue.  He stated that he 
looked forward to working with the GOA in this area, 
adding that "we have a lot to learn from each other." 
 
¶41. (U) Silvina Zabala, a representative of the 
Ministry of Justice's Victims Against Violence 
Brigade (VAVB), announced that the MOJ has decided to 
open a new Office of Juridical Assistance for TIP 
Victims.  The MOJ has not yet staffed the office, but 
it will consist of 30 professionals, the majority of 
whom will be lawyers, she said.  A/S Shannon stated 
that this was "positive news." 
 
¶42. (U) DFM Taccetti replied that the GOA benefits 
from and needs cooperation from other countries to 
fight transnational crime, as the arm of the law is 
shorter than the reach of criminals.  He acknowledged 
that TIP is a serious problem, not only in the area 
of sexual exploitation but also forced labor.  He 
emphasized that it is important to cultivate and 
strengthen international cooperation, otherwise 
"we'll always lag behind the criminals." 
 
------------------------ 
Regional Economic Issues 
------------------------ 
 
¶43. (U) U.S. Treasury DAS O'Neill provided an 
assessment of the current U.S. economy, highlighting 
the measures the U.S. is taking to mitigate an 
economic downturn.  He sought to assuage the fears 
expressed by some in the GOA delegation that current 
economic conditions will have a detrimental effect on 
the countries of the region.  He noted that because 
we are not seeing a reduction in FDI in the region; a 
credit crunch of great proportions; or a decreased 
demand in U.S. export markets, the overall outlook is 
positive and thus emerging markets should fare well. 
O'Neill recognized the resilience of the Latin 
American economies, noting that they have absorbed 
the shock well and rebounded with little disruption. 
O'Neill also spoke about U.S. Treasury initiatives, 
 
 
highlighting the successful regional finance 
minister's meetings in Cancun (June 2008) and the 
Office of Technical Assistance's help in regional 
financial systems, such as successfully augmenting 
Paraguay's tax collection system. 
 
¶44. (U) Ambassador Stancanelli, of the Foreign 
Ministry's National Directorship for Bilateral 
Economic Negotiations, expressed gratitude for DAS 
O'Neill's visit and spoke about the 20 economic 
experts the GOA employs to follow global and national 
economic issues.  He is worried, he said, about 
America's twin deficits though he expressed relief to 
hear that rising U.S. exports have stabilized the 
current U.S. trade deficit.  Stancanelli expressed 
concern that U.S. investments abroad will suffer as a 
result of current economic conditions, specifically 
the sub-prime mortgage crisis, and that U.S. 
businesses may decide to reassess their investments 
abroad and possibly curtail the important investments 
already outstanding in Argentina.  He further noted 
that although the GOA must consider all the 
possibilities of a crisis in the U.S., their analysis 
from last year concluded that the U.S. would not fall 
into recession. 
 
¶45. (U) Stancanelli also stated that the Argentine 
economy, along with most Latin American economies, 
has been growing.  This despite a contraction of the 
Argentine economy this year from 9% to 7%; though 
Argentina will have grown (cumulative since the 
crisis) over 60% by year's end.  He realizes that 
growth depends on investment, hence his concern. 
Although many important investments have taken place, 
some sectors need continuing investment, specifically 
the energy sector, he said.  Developing road and 
transport infrastructure, he added, is necessary at 
the current time.  He also stressed the importance of 
properly backing the Argentine currency as well as 
consistent payment on foreign debt so as to maintain 
the GOA's credibility.  He closed by noting that 
economic stability is crucial for Argentina, and for 
the region, and that his team of experts investigates 
these topics as exhaustively as possible. 
 
---------------- 
Closing Comments 
---------------- 
 
¶46. (U) In reviewing the joint communique, the U.S. 
and GoA delegations agreed to meet again in 
Washington in the fall.  DFM Taccetti asked for the 
near term establishment of informal working groups to 
follow up on relevant topics discussed during the 
bilateral meetings.  These meetings, he said, will 
provide an opportunity for discernible gains in the 
bilateral relationship. 
 
¶47. (U) The Joint Press Communique reads as follows: 
 
Third Meeting of the Special Process of High-Level 
Regular Bilateral Consultations Between Argentina and 
the United States Buenos Aires, July 10-11, 2008 
 
As previously agreed by Foreign Minister Jorge Taiana 
and Assistant Secretary Thomas Shannon, the third 
Argentine-United States meeting of political 
consultations was held in Buenos Aires on July 10 and 
11, 2008. 
 
The delegations were headed by Deputy Foreign 
Minister Victorio Taccetti and Assistant Secretary 
Thomas Shannon, who stressed the values and interests 
shared by their countries with respect to democracy, 
the peaceful settlement of disputes, the defense of 
human rights, respect for the territorial integrity 
of States, and addressed a broad range of topics and 
initiatives that reflect the excellent cooperation on 
a mutually beneficial agenda. 
 
The Parties highlighted the importance of contacts 
between lawmakers, and deepening the ties between 
 
provinces and states in expanding the bilateral 
political dialogue.  As part of the effort to enhance 
the bond between the two countries, new initiatives 
and programs of common interest were agreed. 
 
Both delegations agreed that scientific and 
technological research constitutes a priority 
interest.  With that in mind, the Minister of 
Science, Technology and Productive Innovation, Dr. 
JosQ Lino Baranao and Assistant Secretary Thomas 
Shannon signed a statement on cooperation in the area 
of nanotechnology.  Likewise, Assistant Secretary 
Shannon signed a memorandum of intention on clean and 
renewable energies with Energy Secretary Daniel 
Cameron, and an Understanding on National Parks with 
the President of the National Park Administration, 
HQctor Mario Espina. 
 
Argentina and the United States, who have a long 
bilateral tradition of cooperation in education, 
agreed that education is essential for achieving 
social and economic progress and plays an important 
role in promoting mutual understanding.  It was 
agreed to look for ways to facilitate new and more 
frequent exchange programs by establishing a joint 
working group.  With this in mind, both governments 
signed a memorandum of understanding on cultural 
exchanges and cooperation in the field of the arts. 
 
Cooperation on topics of global interest is a key 
item on the bilateral agenda, and for that reason the 
two countries agreed to continue and to enhance 
efforts to fight international terrorism, drug 
trafficking and trafficking in persons, acting on the 
basis of international agreements and the rule of 
law. 
 
On the topic of human rights, which is a priority 
item for both countries, it was agreed to expand the 
dialogue by holding periodic bilateral consultations 
and to explore other ways to deepen cooperation. 
 
The meeting continued with a working luncheon offered 
by Deputy Foreign Minister Taccetti to Secretary 
Shannon and his delegation, during which issues of 
shared interest on the agenda were discussed in 
greater detail. 
 
Foreign Minister Taiana later hosted a dinner in 
honor of the visiting delegation.  Both delegations 
highlighted their willingness to take advantage of 
further opportunities to enhance the bilateral 
relationship. 
 
As part of the mechanism established for regular 
consultations between Argentina and the United 
States, it was agreed to hold a follow-up meeting on 
the various initiatives in the fall in Washington, 
D.C.  In the meanwhile, separate working groups will 
meet to address the tasks identified. 
 
President Cristina Fernandez de Kirchner received 
Assistant Secretary Shannon, Ambassador E. Anthony 
Wayne, and Deputy Assistant Secretary Brian O'Neill 
of the U.S. Treasury.  Also present were Cabinet 
Chief Minister Alberto Fernandez, Ambassador of 
Argentina in Washington Hector Timerman, and Deputy 
Foreign Minister Victorio Taccetti.  They exchanged 
views on bilateral, regional and global issues, and 
they welcomed the progress made in strengthening ties 
between Argentina and the United States. 
 
¶48. (U) This cable was cleared by WHA A/S Shannon. 
 
WAYNE 
WAYNE