VZCZCXYZ0006
PP RUEHWEB

DE RUEHBU #1465/01 2982050
ZNR UUUUU ZZH (540)
P 242050Z OCT 08
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC PRIORITY 2318
INFO RUCNMER/MERCOSUR COLLECTIVE
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC

UNCLAS BUENOS AIRES 001465 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV ECON AR
SUBJECT: ARGENTINA: LEGISLATORS SUPPORT CLOSER 
CONGRESSIONAL TIES 
 
REF: AMBASSADOR E. ANTHONY WAYNE FOR REASONS 1.4 (B) 
     AND (D) 
 
¶1. (SBU) Summary: Five members of the Argentine Lower House 
in three meetings with the Ambassador shared their 
impressions of recent political developments in Argentina and 
expressed support for greater collaboration with the U.S. 
Congress.  Opposition members of the Argentine Lower House 
"U.S. Friendship" Caucus described Cabinet Chief Massa's 
tightly scripted first address to Congress on October 1 as a 
missed opportunity to promote a more substantive dialogue and 
so improve the government's image.  They also expressed 
disappointment over the October 16 Chamber of Deputies' vote 
on the national budget, noting that the Cristina Fernandez de 
Kirchner (CFK) administration gave the opposition little 
opportunity to modify objectionable provisions.  Caucus 
chairman and FpV ruling party member Baladron, in contrast, 
was pleased with the high turnout of deputies for the vote 
which easily passed the CFK administration's budget.  He said 
greater economic anxiety among the Argentine public was 
eroding popular support for farmers.  He acknowledged that 
the government needs the farmers' support, but described the 
sector as closed to dialogue.  The Ambassador also met 
September 10 with national deputy Paula Bertol (PRO), who 
outlined her priorities as chairwoman of the Special 
committee on Parliamentary Modernization, stressing her 
commitment to transparency and incorporating the best 
practices of other parliaments.  The "U.S. Friendship" Caucus 
members expressed interest in enhancing the bilateral 
dialogue on renewable energy, democratic governance issues, 
and national budget development and implementation provide a 
useful agenda for our continued outreach to this 
under-performing Argentine branch.  End Summary. 
 
¶2. (SBU) Ambassador Wayne met with members of the Lower House 
Caucus for Friendship with the United States, including 
national deputies Federico Pinedo (PRO), Patricia Bullrich 
(Civic Coalition), and Luis Alberto Galvalisi (PRO) on 
October 15 and committee president Manuel Baladron (FpV) on 
October 16.  The Ambassador met with national deputy Paula 
Bertol (PRO) on September 10.  Polcouns and poloff 
(notetaker) attended as well. 
 
------------------------ 
The 2009 National Budget 
------------------------ 
 
¶3. (SBU) Deputies Federico Pinedo, Patricia Bullrich and Luis 
Alberto Galvalisi shared their impressions of the October 16 
vote on the national budget.  Deputy Pinedo described the 
vote as "superfluous" because the executive branch determines 
its budget and the legislature has limited authority to 
modify it or oversee spending.  He claimed that in the 
previous year, the presidency had issued 80 executive orders 
to transfer between accounts over 30% of the budget.  The 
Kirchners, he said, had also routinely sent forth budgets 
that intentionally under-estimated revenues, since actual 
revenues in excess of budget estimates could be spent at the 
discretion of the executive without minimal Congress 
oversight.  (Note:  After more than 12 hours of debate, the 
budget was approved 149 in favor to 87 against.  236 out of 
256 deputies cast their vote following a ten-hour general 
debate.  The budget went to the Senate for debate on October 
21 and the full Senate is expected to vote on the bill 
on/about November 12.) 
 
------------------------------------------ 
Cabinet Chief's First Congressional Report 
------------------------------------------ 
 
¶4. (SBU) Regarding Cabinet Chief Sergio Massa's first tightly 
scripted report before Congress on October 1, Deputy Pinedo 
said his address "did not change anything" and "was not 
useful."  According to Deputy Galvalisi, Massa missed an 
opportunity to improve the administration's image by being 
forthcoming with congress and appears to have lost sight of 
his cabinet chief coordination responsibilities.  He noted 
that although Massa discussed narcotrafficking and inflation, 
he did not address other central issues, such as the 
country's growing debt and its financing needs.  Bullrich 
added that, because deputies were allowed only three minutes 
per question, they had to prepare concise questions and were 
hoping for concrete responses from Massa.  The Ambassador 
remarked that in the U.S. system, officials prepare 
extensively prior to testifying before congress yet in 
Argentina only the cabinet chief is summoned.  Bullrich 
relayed that in the past, ministers appeared more regularly 
before congress, recalling her specific experience as a 
minister testifying on an Aerolineas Argentina issue. 
 
 
Bullrich noted that she had had ten advisers to assist her in 
providing detailed responses. 
 
------------------------------ 
Working with the U.S. Congress 
------------------------------ 
 
¶5. (SBU) The Ambassador said he hoped to work with the 
Committee to identify potential areas for collaboration with 
the new U.S. administration, underscoring that U.S. 
Congressional interest in Latin America would continue.  As 
examples of bipartisan issues that would remain of interest, 
Polcouns cited the agreements on energy, nanotechnology, 
educational exchanges, and the MOU on national parks signed 
during A/S Shannon's bilateral consultation visit to 
Argentina in July.  Polcouns relayed that a new round of 
consultations is scheduled for November 12 in Washington and 
noted interest in an agreement on cancer research.  The 
Ambassador said dialogue on agricultural issues is another 
possibility and that the Department welcomes their ideas. 
Deputy Pinedo suggested cooperation on renewable energy, 
pointing out the ongoing close U.S. cooperation with Brazil 
in this area.  The Ambassador relayed that the Embassy has 
worked to raise U.S. and Argentine interest in collaborating 
in this key area and convened a bilateral USG/GOA alternative 
energy working group in September.  Deputy Patricia Bullrich 
raised the possibility of a seminar on democratic governance, 
which would compare and contrast the experiences and 
institutions of Argentina and the United States.  Pinedo 
added that learning more about the role of the Congressional 
Budget Office and the Office of Management and Budget in 
analyzing the national budget and other legislative 
initiatives with budgetary implications would be very useful. 
 
--------------------------------------------- ---- 
Caucus Chairman on the Budget and Revenue-Sharing 
--------------------------------------------- ---- 
 
¶6. (SBU) In a separate meeting, caucus chairman and FpV 
ruling party member Baladron, who met with the Ambassador 
following the Chamber of Deputies' approval of the budget, 
said he was pleased with the high turnout of deputies for the 
vote.  He thought congressional extension of "superpowers" 
delegating to the executive branch greater discretionary 
authority on the budget was even more justifiable this year 
than in previous years due to rapidly deteriorating external 
factors.  He claimed the budget was truly "federal," and it 
took into account the needs of smaller provinces. 
 
¶7. (SBU) The Ambassador noted the widely-reported complaints 
of some provincial governments about their share of federal 
revenues or delays in collecting from the GOA the funds due 
to their provinces.  Baladron said that Nestor Kirchner and 
Carlos Menem, as former governors of lesser provinces, well 
understood the plight of small provinces and had undertaken 
during their administrations to meet their needs.  Baladron 
recalled his own experience as vice- governor of sparsely 
populated La Pampa and mayor of Santa Rosa.  He was 
unstinting in his praise of the Rodriguez-Saa brothers as 
governors of neighboring San Luis province, crediting their 
hands-on management for the remarkable progress made over the 
last 25 years in what had previously been a backward 
province.  Baladron noted that the quality of provincial 
government made a substantial difference in the execution of 
federal programs.  He claimed that housing built under the 
National Housing Fund (FONAVI) in then-Governor Kirchner's 
Santa Cruz, Governor Rodriguez-Saa's San Luis, or Governor 
Marin's La Pampa was far superior to shoddy FONAVI-funded 
housing built elsewhere. 
 
-------------------- 
On the Farm Conflict 
-------------------- 
 
¶8. (SBU) Baladron said he perceives greater uncertainty and 
tension among the Argentine public due to worries about 
global economic conditions, and he thought this was why the 
public had not rallied behind farmers when they attempted 
October 3-8 to resume their strike actions, and the protest 
failed.  He relayed that he told one of his farm sector 
friends from La Pampa province that it was not the right 
moment for a strike and that the government needed the 
farmers' support.  Baladron explained that being from La 
Pampa, he understands the farm sector, which he describes as 
"individualistic" and therefore disinclined to organize or 
negotiate.  The Ambassador said he was struck by polls 
indicating the agricultural sector was the most popular and 
respected in Argentina.  He observed that there is an 
impression that the GOA unilaterally increased the 
 
agricultural export taxes without seeking any consultations 
beforehand.  Baladron remarked that although he thinks the 
GOA has handled the farm conflict well, it has learned some 
lessons in the process, such as the need to adopt a less 
confrontational approach.  "All governments have their ups 
and downs, but you can't pick a fight with everyone at once 
and expect to win," he said.  He called the Argentine public 
"demanding" and requiring the State's constant attention, and 
added that the government cannot be "everything for 
everyone."  He observed that the federal government needed to 
delegate greater authority and responsibility to the 
provinces and cities. 
 
------------------------------ 
Identifying a Bilateral Agenda 
------------------------------ 
 
¶9. (SBU) Deputy Baladron said he planned to convene a caucus 
meeting in the near future to identify such an agenda.  He 
opined that "friendship caucuses" have gained a reputation 
for tourism rather than work purposes.  Polcouns noted our 
strong support for congressional visits as an opportunity to 
deepen officials' understanding of Argentina.  The Ambassador 
noted that House Agriculture Committee Chairman Peterson is 
highly interested in Argentina and has visited twice during 
the Ambassador's tenure.  The Ambassador recalled that during 
Peterson's recent trip in September, his delegation visited 
Rosario in Santa Fe province and Rio Cuarto in Cordoba 
province. 
 
-------------------- 
Modernizing Congress 
-------------------- 
 
¶10. (SBU) The Ambassador met September 10 with national 
deputy Paula Bertol (PRO) and her advisor Alejandra Svetaz. 
She outlined her priorities as chairwoman of the Special 
committee on Parliamentary Modernization, stressing her 
commitment to transparency and incorporating the best 
practices of other parliaments.  The Ambassador noted Embassy 
financial support for an award by the Legislative Directory 
Foundation to recognize the best proposal submitted by a 
senator or deputy to improve the functioning of the national 
congress.  The prize was to include a one-week trip to 
Washington to visit public institutions, particularly the 
U.S. Congress.  Bertol expressed great interest and 
appreciation for the award's potential in advancing the cause 
of modernizing the congress, and in a subsequent meeting she 
told polcouns she had submitted a proposal to the foundation. 
 
 
¶11. (SBU) Bertol asked the Ambassador about the implications 
for U.S.-Argentine relations of the Miami trial of Venezuelan 
citizen Franklin Duran on charges of acting in the U.S. as an 
unregistered agent of the BRV.  (A central figure in the case 
was Alejandro Antonini-Wilson, whose extradition the GOA had 
requested in connection with the attempted smuggling into 
Argentina in August 2007 of $800,000 from Venezuela.)  The 
Ambassador noted the independence of U.S. prosecutors and the 
judicial system, that the case concerned the alleged 
violation of U.S. law by Duran and others, that GOA officials 
were not a target of the investigation, and that the case 
should not be allowed to harm bilateral relations, which were 
positive. 
 
¶12. (SBU) Bertol said she hoped to visit the U.S. to observe 
the November elections.  She said she had received an 
invitation from the Center for Strategic International 
Studies (CSIS) and the University Foundation of the River 
Plate (FURP) to join a study group visiting Washington 
November 3-6.  She asked if the Embassy could convey to the 
congressional leadership its support for the CSIS-FURP 
program, and the Ambassador undertook to write the president 
of each chamber. 
 
¶13. (SBU) Comment:  As noted in these meetings with various 
members of the "U.S. Friendship Caucus" in the Chamber, the 
caucus is a potential ally for strengthening bilateral 
relations.  We will seek to follow up on their interest in 
renewable energy, democratic governance, and budget processes. 
 
WAYNE