VZCZCXYZ0000
PP RUEHWEB

DE RUEHBU #1569/01 3222220
ZNR UUUUU ZZH
P 172220Z NOV 08
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC PRIORITY 2482
INFO RUCNMER/MERCOSUR COLLECTIVE PRIORITY
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC PRIORITY
RUEAIIA/CIA WASHINGTON DC PRIORITY

UNCLAS BUENOS AIRES 001569 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PINR PREL PGOV ECON AR
SUBJECT: ARGENTINA: SAN JUAN GOVERNOR SAYS STATE CAN 
GUARANTEE RETIREMENT 
 
REF: A. BUENOS AIRES 0980 
     ¶B. BUENOS AIRES 0973 
     ¶C. BUENOS AIRES 0963 
     ¶D. BUENOS AIRES 0943 AND PREVIOUS 
     ¶E. BUENOS AIRES 1521 AND PREVIOUS 
 
¶1. (SBU) Summary:  Ambassador Wayne and DCM Kelly met with 
San Juan Governor and Peronist Party member (PJ) Jose Luis 
Gioja on October 28, shortly before the Governor's travel to 
the U.S. to observe the presidential elections.  Gioja said 
he maintains a positive dialogue with President Cristina 
Fernandez de Kirchner (CFK) and described her as less 
"militant" than her husband, former president Nestor Kirchner 
(NK) and more "reflexive and receptive."  He remarked that 
the PJ needs to make a strong effort to unite ahead of the 
2009 national mid-term legislative elections and acknowledged 
some concerns about the party's standing.  Given the 
fragmentation of the opposition, however, he noted the party 
would need only 30 percent of the votes to win nationally and 
maintain electoral majorities in both houses.  Regarding 
draft legislation to nationalize private pension accounts, 
Governor Gioja asserted that the State, as the people's 
defender, should administer the retirement system to 
guarantee that Argentines receive some kind of social 
security payment in their retirement.  Gioja said he believes 
the national budget, approved by the Chamber of Deputies on 
October 16 and by the Senate on November 5, meets the needs 
of San Juan and other smaller provinces.  End Summary. 
 
¶2. (SBU) Ambassador Wayne and DCM Kelly met with San Juan 
Governor Jose Luis Gioja on October 28.  A lifelong Peronist 
(PJ) party member, Governor Gioja maintains good relations 
with President Cristina Fernandez de Kirchner (CFK) and her 
husband and former President Nestor Kirchner (NK).  Poloff 
(notetaker) also attended. 
 
------------------------- 
Gioja's Views of Cristina 
------------------------- 
 
¶3. (SBU) Gioja said CFK did not handle the farm conflict well 
(ref A), but believed the GOA had learned some tough lessons. 
 He noted that CFK had softened her abrasive manner when 
addressing people and described the effort as positive.  He 
said that he maintains a positive dialogue with CFK, whom he 
said is available to meet with him when he needs to speak 
with her.  He described CFK as less "militant" than NK and 
more "reflexive and receptive." 
 
----------------------------------- 
PJ Party in 2009 Mid-term Elections 
----------------------------------- 
 
¶4. (SBU) The Governor expressed some concerns about the PJ's 
standing but said he felt confident it would recuperate and 
perform well in the mid-term legislative elections, 
particularly in San Juan and Buenos Aires provinces. 
Although the party is weakened by the dissidence of prominent 
politicians such as former President Carlos Menem and San 
Luis Governor and Peronist dissident Alberto Rodriguez Saa, 
Gioja said he believed the rest of the PJ would be able to 
overcome personality differences and unite ahead of the 
mid-term legislative elections in 2009.  He acknowledged that 
it would be difficult for the PJ to garner support in 
Cordoba, Santa Fe, Mendoza, and the city of Buenos Aires. 
Given the fragmentation of the opposition, however, he noted 
the party would need only 30 percent of the votes to win 
nationally and would be able to maintain electoral majorities 
in both houses. 
 
---------------------------- 
Pension Nationalization Plan 
---------------------------- 
 
¶5. (SBU) Referring to the GoA's plan (ref E) to nationalize 
private pension funds (known locally as AFJPs), Governor 
Gioja stressed that the State, as the people's defender, 
should administer the retirement system, guaranteeing that 
Argentines receive some kind of social security payment in 
their retirement.  He recalled his experience as a national 
deputy in 1994 when the government moved to privatize the 
system, a decision he perceived as the best course of action 
at the time.  However, he noted the system lacked sufficient 
controls, and the country's 2001 financial crisis further 
weakened it.  The Governor predicted a healthy debate in the 
Chamber of Deputies over the system with the legislation 
passing, albeit with some minor changes. (Note: Indeed, after 
16 hours of debate, the Chamber of Deputies approved the 
draft legislation -- 163 votes in favor to 75 against -- in 
 
the wee hours of November 7.  The bill appears to include 
only cosmetic modifications, adding minor controls on the use 
of pension funds, such as a ban on investing overseas and 
slightly stronger oversight by the bicameral Congressional 
commission as well as vague language guaranteeing employment 
of AFJP non-executive employees.  Also, it mentions that the 
GoA's Social Security Administration (ANSES) will not charge 
any fee for managing the funds.  The bill is slated to reach 
the Senate floor November 20, and local press reports the 
vote may happen the same day.) 
 
¶6. (SBU) Gioja said he believes the national budget, approved 
by the Chamber of Deputies on October 16 and by the Senate on 
November 5, meets the needs of San Juan and other smaller 
provinces.  Recalling Argentina's 2001 financial crisis and 
its deep impact on San Juan, he said he hoped the government 
has learned some lessons in the process.  He remarked that 
the country needs to focus on moving forward and not keep 
looking back. 
 
-------- 
Bio Note 
-------- 
 
¶7. (SBU) Governor Gioja was reelected in August 2007 with 60 
percent of the votes.  Gioja served his first term as 
governor from 2003 to 2007.  He was a national senator for 
two consecutive terms (1995-2001 and 2001-2003) and was 
elected Senate president pro-tempore in 2002.  In 2000, he 
was elected president of the PJ Bloc in the national Senate 
and was reelected for the term 2001-2005, where he served 
until assuming his gubernatorial post in 2003.  In 1995, 
during his first Senate term, he served as president of the 
Federal Tax Co-participation Committee.  He was a national 
deputy for San Juan province from 1991 to 1995 and was 
reelected for 1995 to 1999, but resigned later to assume a 
seat in the national Senate.  From 1987 to 1991, he served as 
provincial deputy, was vice-president of the PJ bloc in the 
province's Lower House, and chaired the Chamber's Mining, 
Public Works and Water Resources committees.  In 1976, while 
he was working as the director of the Provincial Institute of 
Housing and as a personal adviser to then San Juan Governor 
Eloy Camus, Gioja was detained by military authorities and 
imprisoned for several months, where he claims he was 
tortured by Major Jorge Olivera.  From 1973 to 1975, he 
served as secretary general of the PJ youth party. 
 
¶8. (SBU) Born on December 4, 1949 in San Juan province, Gioja 
hails from a political family.  He has five siblings, two of 
which hold congressional seats: his elder brother, Cesar, is 
a national senator, and his younger brother, Juan Carlos, is 
a national deputy.  Gioja received an engineering degree, 
with a specialty in land surveys, from the University of 
Cuyo.  He is married; the couple has three sons and a 
daughter. 
 
------- 
Comment 
------- 
 
¶9. (SBU) The meeting provided an excellent opportunity to 
hear the views of a lifelong Peronist closely aligned to CFK. 
 An interesting and fairly candid interlocutor, the Governor 
was warm and friendly with U.S. officials, expressing 
enthusiasm over his week-long trip to the U.S. to observe the 
presidential elections.  In Washington, Gioja told the 
Ambassador he was really enjoying his opportunity to see the 
U.S. election process first-hand and to meet with a range of 
congressional, administration, and academic experts.  Upon 
his return, Gioja told the press that, "There are positive 
reactions to the President-elect because he fosters palpable 
hope."  According to San Juan press reports, the Governor 
later added that "one must be honest and acknowledge that 
Latin America is not the focus of the USG's attention." 
 
WAYNE