VZCZCXYZ0000
RR RUEHWEB

DE RUEHBU #1178/01 2341829
ZNY CCCCC ZZH
R 211829Z AUG 08
FM AMEMBASSY BUENOS AIRES
TO SECSTATE WASHDC 1852

C O N F I D E N T I A L BUENOS AIRES 001178 
 
SIPDIS 
 
ISN FOR D. MAHLEY AND P. DURHAM 
WHA FOR BSC J. SHOWELL AND M. DRUCKER 
 
E.O. 12958: DECL: 08/21/2018 
TAGS: KSCA PARM PREL ETTC AR
SUBJECT: ARGENTINE RESPONSE TO U.S. REQUEST FOR GREATER 
 TRANSPARENCY IN SPACE LAUNCH VEHICLE PROGRAM 
  
 REF: SECSTATE 50050 AND PREVIOUS 
  
 Classified By: Charge d'Affaires a.i. Thomas P. Kelly, 
 for reasons 1.4 (b) and (d). 
  
 -------------------------------- 
 Making the Case for Transparency 
 -------------------------------- 
  
 ¶1. (C) On June 30, ESTOff met with the Executive Director of 
 the National Commission on Aerospace Activities (CONAE), Dr. 
 Conrado Varotto and CONAE Secretary General Felix Menicocci, 
 to deliver Ref set of conditions regarding the Argentine 
 space launch vehicle (SLV) program.  Varotto took careful 
 notes, requesting clarification when necessary.  At one 
 point, Varotto paraphrased ESTOff by stating the USG would 
 not ""intervene"" in their SLV program.  ESTOff corrected 
 Varotto, reading directly from a prepared statement that the 
 USG would not ""block"" the GOA's SLV program.  Varotto 
 accepted the clarification and informed ESTOff that he would 
 review the conditions with the relevant GOA authorities. Per 
 Ref instructions, ESTOff emphasized that it was not the USG's 
 intention to burden Argentina with a cumbersome set of 
 restrictions, but rather to craft an agile transparency 
 mechanism that would allow Argentina to continue to serve as 
 an exemplar of a nonproliferation state. 
  
 ------------------------------- 
 A Commitment to Full Compliance 
 ------------------------------- 
  
 ¶2. (C) On July 31, ESTOff again met with Varotto and 
 Menicocci in their CONAE offices.  Varotto informed ESTOff 
 that the GOA agreed to all ref terms and conditions.  Varotto 
 stated that, as the Director of CONAE, his statement of 
 approval was authoritative and binding, and that further 
 approvals from other GOA entities were not necessary. 
 Varotto requested that the USG consider CONAE as the official 
 interlocutor for all matters regarding the SLV program, and 
 requested that the USG channel all communication through 
 CONAE.  Varotto stated that other GOA entities would be 
 involved in the bilateral dialogue, but CONAE was the mission 
 manager for the SLV program, and would serve as the focal 
 point for the GOA. 
  
 ¶3. (C) Varotto further requested that the first step in the 
 transparency program, a one-time ""state of play"" presentation 
 on the SLV program, occur after January 1, 2009, because 
 CONAE was engaged in several time-sensitive and complex 
 projects until that time.  Varotto emphasized that this was a 
 request, not a demand, and asked ESTOff to convey it to the 
 appropriate authorities.  Throughout the conversation, 
 Varotto emphasized the collaborative nature of the 
 US-Argentine bilateral aerospace relationship, and the shared 
 interest in transparency.  He stated that CONAE was ready to 
 work with the USG to address any concerns over the SLV 
 program, which he classified as wholly civilian in nature. 
  
 ¶4. (C) On August 21, ESTCouns met at the MFA with Ricardo 
 Bocalandro, Deputy Director for Nuclear and Special Issues. 
 Bocalandro confirmed that CONAE's Executive Director Varotto 
 has full authority to negotiate technical issues on behalf of 
 the GOA, and that the Minister of Foreign Affairs, who sits 
 on CONAE's Board of Directors, is informed and supportive of 
 Varotto's committments on SLV transparency.  Bocalandro also 
 confirmed that Varotto is to be our interlocutor on all 
 matters regarding the SLV program. 
  
 -------------- 
 Action Request 
 -------------- 
  
 ¶5. (C) We request further details on the timing and content 
 of the ""state of play"" briefing Varotto has committed CONAE 
 to provide in Washington, as well as initial thoughts about 
 the timing of subsequent expert-level meetings in Washington 
 and Buenos Aires.  Having agreed to full compliance, Varotto 
 and Menicocci are now interested in further discussions to 
 iron out the details of the agreement. 
  
 ------- 
 Comment 
 ------- 
  
 ¶6. (C) Having made an unequivocal statement of compliance 
 with our terms and conditions, it is likely Varotto will 
 leverage any resulting goodwill to push the limits of 
 existing control regimes and agreements to further 
 Argentina's SLV and other aerospace programs.  With Argentina 
 a signatory to the Missile Technology Control Regime and 
  
 other bilateral and multilateral nonproliferation agreements, 
 Varotto sees his future negotiating position as one of 
 strength, and he is likely to play heavily on Argentina's 
 demonstrated history of transparency and compliance to gain 
 U.S. approval for Argentina's resurgent aerospace program. 
 End comment. 
 KELLY