VZCZCXYZ0004
RR RUEHWEB

DE RUEHBU #0409/01 0971033
ZNR UUUUU ZZH  (CCY ADDED TEXT AD04EF142 MSI1753 508)
R 071033Z APR 09
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 3497
INFO RUCNMER/MERCOSUR COLLECTIVE

UNCLAS BUENOS AIRES 000409 
C O R R E C T E D  C O P Y - CORRECTED TEXT IN SECTION 2 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EIND EFIN PREL PGOV AR
SUBJECT: ARGENTINA: HUD SECRETARY DONOVAN MEETS WITH BUENOS AIRES 
CITY MAYOR AND VICE-MAYOR 
¶1. (SBU) Summary: Secretary of Housing and Urban Development (HUD) 
Shaun Donovan and Ambassador Wayne met with Buenos Aires Mayor 
Mauricio Macri, Vice-Mayor Gabriela Michetti, and urban planning 
 
officials on March 26 and 27.  Macri and Michetti presented an 
ambitious plan to tackle the city's growing problems, ranging from 
congested traffic to decaying infrastructure.  Macri and Michetti 
lamented the lack of cooperation from the federal government, which 
holds the purse strings for city finances.  They noted their 
commitment to sustainable development, and the Secretary suggested 
they contact his nominee for Deputy for collaboration on a 
conference on energy consumption that the city is planning to host. 
The visit provided an excellent opportunity to share views on urban 
development issues while opening the door for future bilateral 
collaboration on sustainability issues. End Summary. 
 
--------------------------------------------- 
Secretary Meets with Buenos Aires Mayor Macri 
--------------------------------------------- 
 
¶2. (SBU) The Secretary of Housing and Urban Development (HUD) Shaun 
Donovan and the Ambassador met with Buenos Aires City Mayor Mauricio 
Macri, co-founder of the center-right opposition party Republican 
Proposal (PRO), on March 26 at the Colon Theater (Teatro Colon), a 
Buenos Aires historic opera house and cultural landmark.  Macri 
explained that his administration is committed to completing the 
theater's renovation in time for Argentina's bicentennial in May 
¶2010. He lamented that he has to spend such a high percent of the 
city's available funds on this project, but it is symbolic for 
Argentina.  He stressed that his priority is to upgrade the city's 
infrastructure and to improve the government's efficiency.  He 
expressed confidence that his administration is making a difference 
in citizens' lives.  Macri noted the lack of investment in Buenos 
Aires over the past ten years and highlighted his administration's 
efforts to ramp up infrastructure investment.  He lamented the lack 
of support from the federal government, noting that it was 
intentionally underfunding the city for political reasons.  He noted 
that the federal government had refused to allow the City of Buenos 
Aires to issue a bond that would have funded public works and has 
refused to co-sign the city's major projects worked out with 
international financial organizations, such as the IDB, effectively 
blocking them. 
 
--------------------------------------------- --------- 
Constituents' Concerns, Domestic Economy, and Politics 
--------------------------------------------- --------- 
 
¶3. (SBU) On March 27, HUD Secretary and the Ambassador met with 
Vice-Mayor Gabriela Michetti, also of the PRO party, and members of 
Buenos Aires City's urban development team. Michetti observed that 
the Secretary was visiting at a politically dynamic time because 
national congressional elections had been moved up by four months to 
June 28.  She noted that Argentina's weak democratic institutions 
and political party system create challenges for the city government 
in achieving its goals.  When the Secretary asked about the public's 
top three concerns, Michetti and her team identified rising crime as 
the number one concern, followed by public transportation and the 
economy. 
 
------------------------------------ 
On the International Economic Crisis 
------------------------------------ 
 
¶4. (SBU) Michetti asked Secretary Donovan how he viewed the current 
economic situation in the United States.  The Secretary observed 
that there is enormous hope in the United States because of 
President Obama and the opportunity he presents for change.  He 
stressed that the government is working as quickly as possible to 
deal with the crisis and added that recent economic signs -- such as 
improvements in the housing market and in retail sales -- are 
encouraging if they continue. 
 
--------------------------------- 
Ambitious Urban Development Plans 
--------------------------------- 
 
¶5. (SBU) Architect Daniel Chain of the City's Ministry of Urban 
Development provided a detailed briefing on the city government's 
priorities and upcoming development projects.  Chain noted that the 
Macri administration is focused on sustainable practices in five key 
areas: the environment, culture, society, political administration, 
and the economy.  To that end, the city is planning projects to 
reduce traffic congestion by expanding subway lines and building 
bike lanes while also seeking to increase green spaces.  The city is 
also seeking to prevent the major flooding that often occurs after 
heavy rains by creating spillways to divert the waters of the 
Riachuelo River.  He cited southern Buenos Aires as the area with 
the greatest concentration of "informal employment" and the highest 
amounts of illiteracy.  He stressed that the City Hall's priority is 
to create a diverse and sustainable economy that integrates all 
classes. 
 
¶6. (SBU) Chain also noted that Macri would like to relocate City 
Hall to a poorer income neighborhood, which would bring needed 
economic vitality to that community while reducing commuter 
congestion in the City.  Macri has also proposed relocating foreign 
 
embassies to the area south of Puerto Madero, the city's principal 
port.  Chain said the city has made an offer on land in the poor 
district of La Boca to build homes for foster families and the 
elderly.  He explained that with these projects, the City hopes to 
live up to its promises, lamenting that Argentina has "a tradition 
of beautiful dreams that do not translate into achievements, but 
into frustrations."  Michetti and Chain noted they have been able to 
resolve differences with neighboring municipalities but echoed 
Macri's frustration with the federal government in gaining approval 
and needed funds. 
 
-------------------------------------------- 
Upcoming Conference on Energy Sustainability 
-------------------------------------------- 
¶7. (SBU) In closing, Chain mentioned that the City will be holding a 
regional conference on sustainable development and energy 
consumption.  He expressed interest in collaborating with the USG 
given the U.S. administration's interest in environmental issues. 
Secretary Donovan noted that HUD will create an office charged with 
collecting best practices on stabilization in urban development and 
that he would welcome their input. He suggested that city officials 
contact his Deputy-nominee Ron Sims, to discuss possible 
collaboration.  (Note:  The Embassy has provided local officials 
with Deputy Sims' contact information). 
------- 
Comment 
------- 
¶8. (SBU) City officials were warm and welcoming throughout the 
visit, including providing the Secretary a special behind-the-scenes 
look at the Colon Theater's renovation.  The visit provided an 
excellent opportunity to share views on urban development issues 
while opening the door for future bilateral collaboration on 
sustainability issues. 
¶9. (U) This cable has been cleared by HUD Secretary Donovan. 
WAYNE