VZCZCXYZ0000
RR RUEHWEB

DE RUEHBU #0632/01 1491730
ZNY CCCCC ZZH
R 291730Z MAY 09
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 3793
INFO RUEHCV/AMEMBASSY CARACAS 1958
RUCNMER/MERCOSUR COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC

C O N F I D E N T I A L BUENOS AIRES 000632 
 
SIPDIS 
 
E.O. 12958: DECL: 05/29/2019 
TAGS: PREL ECON AR
SUBJECT: ARGENTINA: AMBASSADOR'S FAREWELL CALL ON CFK 
 
REF: BUENOS AIRES 593 
 
Classified By: Classified by Ambassador E. Anthony Wayne for reasons 1. 
4 (b) & (d). 
 
 
¶1. (C) Summary and introduction:  During his one-on-one May 
27 farewell call on Argentine President Cristina Fernandez de 
Kirchner (CFK), the Ambassador orally delivered a message 
from the President of appreciation for Argentine cooperation 
at the recent summits (para 5).  CFK thanked the Ambassador 
for the message (para 6), saying she was gratified to see the 
United States re-engage with the world, and reiterated that 
she wanted closer relations with the United States.  She 
particularly praised President Obama's recent speech on 
Guantanamo issues and his engagement on the Middle East and 
suggested the U.S. consider launching an infrastructure 
initiative for the Western Hemisphere.  CFK was very pleased 
with the President's intention to nominate Vilma Martinez as 
next ambassador to Argentina.  She mildly criticized Hugo 
Chavez, but said she hoped to see U.S.-Venezuelan and 
U.S.-Bolivian relations improve.  The Ambassador raised the 
need for the GOA to address Paris Club debt and bond 
holdouts; CFK said she remained committed to a solution, but 
explained the circumstances that make additional delay 
likely.  Media coverage was extensive and positive.  This 
late night meeting was clearly intended as a gesture toward 
the United States: to our knowledge CFK has not held a 
farewell call for another Ambassador. End summary. 
 
Pleased by Martinez's Nomination 
-------------------------------- 
 
¶2. (C) Argentine President Cristina Fernandez de Kirchner 
(CFK) told the Ambassador during his May 27 farewell call at 
Casa Rosada that she considered the White House nomination of 
Vilma Socorro Martinez ""an honor for Argentina"" due to her 
distinguished legal career, particularly her work in defense 
of civil rights, and she considered the appointment of a 
woman ambassador a ""strong personal gesture"" toward her as 
well.  She seemed genuinely pleased (confirmed independently 
the next day by Foreign Minister Taiana.) 
 
Taking on Chavez 
---------------- 
 
¶3. (C) CFK said she had always wanted good relations with the 
United States.  This, she said, had been more difficult with 
the previous administration in part because of its very 
negative image in Argentina and the region, but President 
Obama was opening new doors and establishing better relations 
throughout the hemisphere.  The Ambassador thanked the 
President for taking issue with Hugo Chavez during a joint 
press conference May 15 when Chavez questioned President 
Obama's commitment to change (reftel).  CFK said she thought 
Chavez was wrong, and that he often speaks without thinking. 
""We all need to be more careful with what we say in public,"" 
she added. 
 
¶4. (C) The Ambassador said he did not understand Chavez's 
mentality.  CFK said he was ""Caribbean"" and ""full of 
surprises.""  She said she was hopeful for the future of 
U.S.-Venezuelan relations.  She also said she was pleased to 
see that WHA A/S Shannon had gone to Bolivia and hoped that 
visit augured well for U.S.-Bolivian relations.  (CFK also 
said it was a great honor for Brazil that Shannon should be 
nominated as next U.S. Ambassador there, and that this 
appointment seemed logical and natural to her, given 
Shannon's stature and experience and Brazil's importance.) 
 
Presidential Message Delivered... 
--------------------------------- 
 
¶5. (C) The Ambassador orally delivered a message (authorized 
by the NSC staff) expressing President Obama's gratitude for 
Argentine cooperation at the G-20 Summit in London and the 
Summit of the Americas; Argentina's important role in a 
number of issues important to his administration, including 
peacekeeping and combating terrorism and narcotics 
trafficking; and President Obama's looking forward to 
deepening the dialogue between our two governments and 
working in partnership on new areas of common interest, such 
as alleviating poverty, energy, and climate change. 
 
...and Appreciated 
------------------ 
 
¶6. (C) CFK thanked the Ambassador for the presidential 
message.  She said she was happy about the extent of 
coordination on the two summits, and hopes to expand 
cooperation in new directions.  She said she also hopes there 
will be more top-level visits and exchanges.  CFK said she 
sees a change in the tenor of U.S. engagement with the world. 
 She considered President Obama's speech the previous week on 
Guantanamo to be ""outstanding"" in its explication of U.S. 
values and for laying out a reasonable process for putting 
Guantanamo behind us.  She said she was very, very pleased to 
see President Obama ""re-engage"" on the Middle East, saying 
she thought the USG had neglected the region for years.  She 
said this engagement is essential for peace in the region and 
the world and that existence of a Palestinian state living 
peacefully with Israel will be a tremendous advance in the 
fight against terrorism.  She offered Argentina's assistance 
in anyway possible in the Middle East, noting Argentina was 
home to sizable Jewish, Syrian, and Lebanese communities. 
 
Debts to be Settled (Someday) 
----------------------------- 
 
¶7. (C) The Ambassador noted that the global financial crisis 
has clearly complicated GoA efforts to resolve outstanding 
debt liabilities with creditors.  However, he argued that 
resolution of not only Paris Club and private bondholder 
debts, but also the many arbitration cases pending against 
Argentina under the International Center for the Settlement 
of Investment Disputes, is clearly in Argentina's long-term 
interest.  CFK responded that she completely agreed and 
emphasized her continuing intent to move forward on both the 
Paris Club and the so-called ""holdout"" bondholders.  However, 
she noted that the international and domestic financial 
markets would need to improve before the GoA could move on 
either issue.  She also commented that a complicating factor 
in negotiations with bondholders is that Argentine law 
requires that any deal must be no better than the arrangement 
that 76% of Argentina's private creditors accepted during the 
2005 debt exchange. 
 
Fighting for jobs and the challenge of protectionism 
----------------------------------- 
 
¶8. (C) CFK said that GoA contra-cyclic economic interventions 
have helped save Argentina from the worst of the global 
crisis and that the common global focus must now be to fight 
protectionist tendencies that are the natural response to any 
economic downturn.  Argentina's focus, she emphasized, is to 
sustain domestic employment, and it doesn't matter whether 
these jobs come from domestic or foreign companies operating 
here.  In this context, she confirmed she will visit GM's 
Buenos Aires province automobile manufacturing plant June 4 
to announce new GoA financing (septel) that will help 
Argentina's ailing auto sector maintain and grow jobs.  She 
said the real challenge of the next year will be fighting 
protectionism.  ""We all face many protectionist pressures."" 
Thus the importance of keeping the G-20 process working well, 
she said. 
 
Regional Infrastructure Initiative 
------------------------- 
 
¶9. (C) The President said she hoped President Obama would 
consider launching, with the IDB and others, a regional 
initiative to build infrastructures.  This kind of initiative 
would make concrete differences in people's lives and win 
much good will for the United States.  CFK argued for the 
need for multilateral development banks to expand their 
support for the kinds of major infrastructure development 
projects that offer populations both employment opportunities 
and concrete benefits.  The World Bank, she said, has 
introduced a number of changes to facilitate the flow of 
financial support for infrastructure project development. 
She hoped that the USG could support and build on these World 
Bank efforts. 
 
Media Coverage Positive 
----------------------- 
 
¶10. (SBU) The Ambassador's late-night meeting with President 
Fernandez de Kirchner concluded shortly before 10:00 pm, 
after which the Embassy issued a press release.  Earlier the 
same day, the Ambassador hosted 100 journalists and delivered 
a message on free press.  As a result, the meeting with CFK 
was reported as part of stories on the free-press message at 
the midday reception in dailies ""Clarin,"" ""Pagina 12"" and ""El 
Cronista Comercial,"" which managed to pick up the news before 
final edition.  State-run news agency Telam issued a wire. 
Radio shows the following day also referred to the 
Ambassador's farewell call on President Fernandez de Kirchner 
and generally reflected a positive tone.  The Ambassador was 
quoted on his principal message, that as he prepares to 
depart the country, the bilateral relationship with the 
government of Argentina is at ""a good moment."" 
WAYNE