VZCZCXYZ0000
RR RUEHWEB

DE RUEHBU #0776/01 1832149
ZNR UUUUU ZZH
R 022149Z JUL 09
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 3988
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHRC/DEPT OF AGRICULTURE USD FAS WASHINGTON DC
RUEHC/DEPT OF LABOR WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL
RUCNMER/MERCOSUR COLLECTIVE

UNCLAS BUENOS AIRES 000776 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV ECON EFIN SNAR KCOR AR
SUBJECT: Argentina: Transport Secretary Resigns; Other Key Changes 
Rumored 
 
Ref: A) Buenos Aires 0752, B) BUENOS AIRES 0742 
 
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Summary 
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¶1. (SBU) Ricardo Jaime, Argentine Secretary of Transportation, 
resigned on July 1 in the face of numerous criminal charges on 
grounds of alleged corruption.  His replacement is close to one of 
the President's most trusted advisors.  Several other changes are 
rumored to be close, or even to have already happened, but aside 
from Health Minister Ocana's resignation on June 29 (Ref A), none 
have yet materialized, and the rumored replacements are generally 
administration insiders.  Though clearly facing more opposition than 
before losing their Congressional majority in mid-term elections 
June 28, the GoA has not given any clear indications that it is 
changing course.  End Summary 
 
--------------------------------------- 
 
 
 
¶2. (SBU) On July 1, controversial Secretary of Transport Ricardo 
Jaime resigned from his position.  His replacement will be Juan 
Pablo Schiavi, the current head of the GoA's Railroad Infrastructure 
Administration (AIF).  Jaime, who is widely seen as having answered 
directly - and only - to former President Nestor Kirchner, is 
presently facing at least 25 criminal charges for alleged corruption 
during his tenure in Transport.  One such case involves cocaine 
smuggled from Argentina to Spain on a now-defunct cargo airline in 
2005, and another because Jaime has been frequently seen as a 
passenger on a $4 million Lear jet.  While the resignation was 
reportedly due to "personal reasons" and his own choice rather than 
at the behest of one or both Kirchners, the criminal charges likely 
played a role.  According to an article in La Nacion on July 2, 
three government ministers once heard President Cristina Fernandez 
de Kirchner (CFK) yell at her husband, Nestor, "How long have I been 
telling you that you'll end up in jail because of Jaime?" 
 
¶3. (SBU) While Jaime apparently took orders from Nestor Kirchner, he 
ostensibly answered to Planning Minister Julio De Vido.  Jaime's 
replacement, Schiavi, appears more closely linked to De Vido, 
according to press reports.  In 2003 Schiavi managed the 
unsuccessful mayoral campaign of current Buenos Aires Mayor Mauricio 
Macri, but broke those ties in 2005.  He became Minister of Planning 
for the city of Buenos Aires in 2006, and supposedly developed his 
close ties to De Vido while in that role.  He assumed his current 
role in 2008 at De Vido's request, when the AIF was created. 
 
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¶4. (SBU) Jaime's resignation comes amid a swirl of rumors of other 
resignations and reassignments within the Kirchner administration. 
Among these is the potential resignation of the polemical Secretary 
of Internal Commerce Guillermo Moreno, long seen as the enforcer of 
GoA efforts to control prices and limit capital outflows, both 
through direct pressure on companies and by manipulation of official 
statistics.  Moreno is reported to have offered his resignation to 
CFK July 1, but she refused to accept it.  In press reports, rumors 
of his resignation had been greeted with rejoicing by several 
members of the private sector. 
 
¶5. (SBU) Minister of Economy Carlos Fernandez is also rumored to be 
on his way out.  Potential replacements include current Minister of 
Production Debora Giorgi, current AFIP (IRS equivalent) Director and 
Nestor Kirchner confidant Ricardo Echegaray, and Argentine Central 
Bank President Martin Redrado.  Former Economy Minister Miguel 
Peirano, now President of state-owned bank BICE, was asked to return 
to his old post and refused, according to what former National 
Director of Industry (under Peirano) Carlos Kadich told Econoff July 
¶2. 
 
¶6. (SBU) Although the President said in her June 29 press conference 
that she was not planning any immediate major cabinet reshuffle, the 
rumor mill has remained in overdrive.  There has been speculation 
for ten months about a possible exit by Cabinet Chief Sergio Massa, 
and his potential replacements now include Interior Minister 
Florencio Randazzo, Labor Minister Carlos Tomada, and even former 
president Nestor Kirchner.  Eduardo Fellner, current President of 
the Chamber of Deputies, and Justice Minister Anibal Fernandez are 
rumored to be possible replacements for Randazzo as Minister of 
Interior.  Fernandez has also been mentioned as a possible 
replacement for Defense Minister Nilda Garre. 
 
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Comment 
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¶6. (SBU) While Jaime's departure, given the numerous criminal 
allegations against him, was welcomed by many, the fact that his 
replacement is close to De Vido, and that many of the possible 
replacements for other potential departures are Kirchner insiders, 
suggests that GoA policy is not about to take a significant new 
turn. 
 
KELLY 
 
 
 
 
 
2