VZCZCXYZ0001
PP RUEHWEB

DE RUEHBU #0008/01 0021838
ZNR UUUUU ZZH
P 021838Z JAN 09
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC PRIORITY 2819
INFO RUCNMER/MERCOSUR COLLECTIVE PRIORITY
RUEAIIA/CIA WASHINGTON DC PRIORITY
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC PRIORITY

UNCLAS BUENOS AIRES 000008 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL OREP PGOV ECON SNAR PTER AR
SUBJECT: ARGENTINA: DEPUTIES ENGAGE WITH CODEL MEEKS ON 
STRENGTHENING RELATIONS 
 
REF: BUENOS AIRES 1235 
 
¶1. (SBU) Summary: Argentine Members of Congress meeting with 
CODEL Meeks December 17 saw the beginning of a new U.S. 
administration as a "window of opportunity" to strengthen 
bilateral relations while bemoaning what they characterized 
as the USG's past focus on confronting "problem" countries 
instead of building relations with allies.  The Argentine 
deputies encouraged the USG to respond to the global economic 
crisis in a "multilateral" rather than "unilateral" fashion. 
Representative Meeks and his colleagues emphasized the 
importance of Argentina to the United States, and requested 
continued Argentine cooperation in fighting terrorism and the 
drug trade, with Representative Meeks sharing his hope that 
bilateral ties would improve under the new U.S. 
Administration.  The visit received positive press coverage 
and generated evident enthusiasm among the deputies, as 
reflected by their abundance that evening at a reception for 
the CODEL hosted by the Ambassador at his residence.  End 
Summary. 
 
¶2. (SBU) Ambassador Wayne and U.S. Representatives Gregory 
Meeks (D-NY), Ruben Hinojosa (D-TX), and Paul Ryan (R-WI) met 
on December 17 with 11 deputies from the lower House Foreign 
Affairs Committee and the U.S. Friendship Congressional 
Caucus during the CODEL's December 16-18 visit to Argentina. 
Vice-President of the Lower House Patricia Vaca Narvaja, a 
member of the Kirchners' Victory Front alliance (FpV), 
chaired the meeting, which included a mix of deputies from 
the governing FpV and the opposition. The chair of the Lower 
House's Foreign Relations Committee, FpV deputy Ruperto 
Godoy, and the chair of the Friendship Caucus, FpV deputy 
Manuel Baladron, spoke.  Also present were national deputies 
representing the Buenos Aires capital district -- Civic 
Coalition deputy Patricia Bullrich, Republican Choice (PRO) 
bloc leader Federico Pinedo, and PRO deputy Luis Galvalisi, 
in addition to Civic and Social Front deputy Genaro Collantes 
from Catamarca and FpV deputies Zulema Daher from Salta, Raul 
Solanos from Entre Rios, and Amanda Susana Genem from Mendoza. 
 
--------------------------- 
A Brighter Bilateral Future 
--------------------------- 
 
¶3. (SBU) Representative Meeks underscored U.S. congressional 
interest in strengthening relations with Argentina and with 
the region at large during the new Obama administration.  He 
relayed that Congress, with an eye to increasing regional 
ties, has two caucuses -- the Dialogue Caucus to promote 
greater engagement with other parliamentarians and a caucus 
to focus on relations with OAS member countries.  He also 
highlighted Argentina's regional importance and sustained 
cooperation with the USG in fighting terrorism and drug 
trafficking.  For their part, the Argentine deputies saw the 
beginning of a new U.S. administration as a "window of 
opportunity" to strengthen bilateral relations, while 
bemoaning the USG's alleged past focus on "problem" countries 
instead of building relations with potential allies. 
 
¶4. (SBU) While expressing hope that congressional exchanges 
would increase over time, the Argentine deputies said they 
would develop a work agenda for 2009 to present to their U.S. 
counterparts for discussion.  Foreign Affairs Committee Chair 
Godoy relayed that his committee would like to make the 
United States its first destination in a series of 
congressional outreach trips.  Friendship Caucus Chair 
Baladron said he looked forward to deepening relations, 
remarking that his committee held fruitful exchanges with the 
Ambassador, visiting U.S. legislators, and Congressional 
staff (reftel). 
 
----------------------------- 
International Economic Crisis 
----------------------------- 
 
¶5. (SBU) The U.S. Representatives noted that 2009 will be a 
difficult year for the world, but expressed hope that the new 
U.S. administration would deploy the right economic policies 
to ensure a strong recovery in 2010.  Deputy Pinedo opined 
that the United States has the challenge and the advantage of 
confronting a deep economic crisis under a new President. 
Pinedo added that President-elect Obama has an opportunity to 
address the economic crisis in a multilateral manner, 
avoiding "unilateral attitudes" that could deepen the 
economic crisis.  Rep. Hinojosa noted that the economic 
crisis has already been quite challenging, with a 6% U.S. 
unemployment rate predicted to exceed 8%, continued tight 
access to capital, and high foreclosures on home mortgages. 
Rep. Ryan cited monetary policy and protecting jobs as 
 
critical issues that consume the attention of the U.S. 
Congress.  Civic Coalition Deputy Bullrich noted that 
Argentina's Congress is focused on economic measures needed 
to sustain the economy and keep employment strong. 
 
-------------------------------- 
Argentina's 2001 Economic Crisis 
-------------------------------- 
 
¶6. (SBU) Deputy Godoy briefed CODEL Meeks on Argentina's 
recovery from its 2001-2 financial crisis when unemployment 
rose above 24%, foreign reserves were wiped out, and 64% of 
the population fell below the poverty line.  He said that by 
2007, as a result of "strong political decisions," the 
economy had revived with reduced unemployment, reserves as 
high as USD 50 billion, declining poverty levels, and twin 
fiscal and trade surpluses.  He added that, by the time the 
global international economic crisis hit full stride in the 
third quarter of 2008, Argentina was in a better position to 
increase employment and improve economic activity by 
increasing demand and consumption.  Deputy Bullrich briefed 
on how the Argentines handled mortgages to allow people to 
stay in their homes during the crisis. 
 
¶7. (SBU) Comment:  Local press coverage of the meeting was 
highly positive and highlighted the Argentine congressional 
deputies' interest in strengthening relations by developing a 
work agenda and visiting the United States.  The visit 
generated evident enthusiasm among the deputies, manifested 
by their abundance later that day at a reception for the 
CODEL hosted by the Ambassador at his residence.  Although 
the deputies seemed genuine in their desire to improve 
relations, competing priorities -- including congressional 
consideration of GoA economic stimulus proposals to 
ameliorate the impact of the global economic crisis and 
preparations for upcoming October 2009 mid-term legislative 
elections (which have the potential to reduce the FpV's 
majority in the Chamber of Deputies) -- may make it difficult 
to sustain their focus on bilateral relations. 
 
¶8. (U) This cable was cleared by the CODEL. 
 
WAYNE