VZCZCXYZ0000
RR RUEHWEB

DE RUEHBU #1092 2192058
ZNR UUUUU ZZH
R 062058Z AUG 08
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 1722
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC
RUCNMER/MERCOSUR COLLECTIVE
RUEHCV/AMEMBASSY CARACAS 1851
RHMFIUU/USSOCOM SCSO J3 MACDILL AFB FL
RHMFIUU/HQ USSOUTHCOM MIAMI FL

UNCLAS BUENOS AIRES 001092 
 
PASS NSC FOR MICHAEL SMART 
US SOUTHCOM FOR POLAD 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PREL AR BR VE
SUBJECT: Argentina: President Kirchner Cancels Trip to Bolivia, 
Chavez Fulminates Against "Fifth Column" 
 
Ref: BUENOS AIRES 1089 
 
¶1. (U) In the face of protests in Tarija, Bolivia and reportedly at 
the request of Bolivian Foreign Minister Choquehuanca, President 
Cristina Fernandez de Kirchner Kirchner and visiting Venezuelan 
President Hugo Chavez cancelled August 5 their planned trip to meet 
with Bolivian President Evo Morales in the Bolivian departmental 
capital.  The abrupt change of plans led CFK to preside over her 
second press conference in three days to explain the decision.  In 
her remarks, she emphasized a continuing commitment to support the 
institutions of the Bolivian government -- and by extension, 
Morales.  She also underscored that the cancellation would not 
affect contracted Bolivian gas sales to Argentina. 
 
¶2. (SBU) President Chavez gave the Argentine press a more colorful 
and lengthy explanation for the cancelled trip.  He blamed the 
disturbances in Tarija and other parts of Bolivia on the United 
States ("el imperio" -- the empire), warning the alleged 
U.S.-sponsored "fifth column" in Bolivia that they would suffer as 
well for using force and violence to undermine democratic processes. 
 "I believe the imperialists are getting desperate," he said, 
"sending fourth fleets and activating fifth columns."  Chavez also 
held the United States responsible for media reports of differences 
among Kirchner, Chavez, and Brazilian President Lula.  The Argentine 
press, Chavez insisted, was filled with powerful tools of the 
oligarchy, exploited by the United States (more "quinta columnas"). 
The United States, he said, "establishes the arguments and its 
lackeys obey."   Chavez's exposition included references to 
President Kennedy's assassination by the "imperial establishment", 
warnings about U.S. bank solvency, and swipes at the IMF over 
conditionality. 
 
¶3.  (SBU) Shortly before leaving Buenos Aires on August 5, Chavez 
confirmed that the GoV had purchased an additional US$ 1 billion in 
Argentine "Boden 2015" bonds at an effective yield of between 14 and 
15 percent.  "We have great confidence in the Argentines," Chavez 
said.  This is Venezuela's second bond purchase this calendar year, 
bringing total Venezuelan purchases of Argentine sovereign debt to 
US$ 7.6 billion (cash value). 
 
 ¶4. (SBU) Comment: The cancelled trip likely undermines whatever 
domestic gains CFK hoped to accrue through this round of foreign 
policy activism.  Cancellation was evidently the right call, but it 
cannot mask the profound mistake of planning to wade into Bolivian 
politics arm-in-arm with Hugo Chavez.  Argentina's press, meanwhile, 
clearly benefited from the good copy offered by the Bolivarian 
leader.  End Comment.