VZCZCXYZ0005
RR RUEHWEB

DE RUEHMN #0718/01 3441943
ZNR UUUUU ZZH
R 101941Z DEC 09
FM AMEMBASSY MONTEVIDEO
TO RUEHC/SECSTATE WASHDC 0076
INFO MERCOSUR COLLECTIVE
RUEAIIA/CIA WASHINGTON DC

UNCLAS MONTEVIDEO 000718 
 
SENSITIVE 
SIPDIS 
FOR WHA/BSC MARY DASCHBACH 
 
E.O. 12958: N/A 
TAGS: PREL PGOV UY
SUBJECT: Uruguay: President-Elect Mujica's Debut at Mercosur Summit 
 
REF: MONTEVIDEO 489; MONTEVIDEO 468 
 
Summary 
 
----------- 
 
 
 
¶1. (U) The December 8-9 38th summit meeting of MERCOSUR, provided 
an appropriate platform for Jose Mujica's regional debut as 
president elect.  Mujica was warmly received by the delegates and, 
thanks in particular to high profile meetings with Christina 
Kirchner and Hugo Chavez, managed to attract the majority of the 
summit's domestic press coverage.  Mujica's expressed intent to 
further develop regional relations seems to have taken a purposeful 
first step.  End summary. 
 
 
 
Presenting Mujica 
 
---------------------- 
 
 
 
¶2. (U) Early on in his speech marking the official handover of the 
six-month MERCOSUR presidency from Uruguay to Argentina, Uruguayan 
President Tabare Vazquez took the opportunity to officially 
introduce President-Elect Mujica to the assembled heads of state. 
In response, Brazilian president Lula da Silva led a series of 
congratulatory statements from the delegates that described Mujica 
variously as "friend," "comrade," "beloved," and "admired."  In 
contrast to his electoral rival, ex-president Luis Alberto Lacalle, 
who had planned to lead a scaling back of MERCOSUR political 
initiatives, Mujica has publically supported increased integration 
(albeit with the qualification that Uruguay should keep "one paw in 
and one paw out"),and signaled his intention to deepen Uruguay's 
links with its neighbors throughout his campaign.  Mujica placed 
particular emphasis on Brazil, enjoying a high profile meeting with 
President Lula on August 4.  The two men seemed delighted to be 
reunited at the MERCOSUR meeting, and were able to talk privately 
for several minutes. 
 
 
 
Mujica and Kirchner- a new beginning? 
 
--------------------------------------------- -- 
 
 
 
¶3. (U) Mujica drew attention even before the summit began by 
meeting privately with Argentina's President Cristina Kirchner the 
night she and her delegation arrived (December 7).  Although 
historically close, recent relations between Uruguay and Argentina 
have been strained by the protracted Botnia paper mill dispute and 
related bridge blockades and several other issues (Ref A). 
Bilateral tensions have worsened gradually under Vazquez, but some 
commentators have been hopeful that Mujica's close relationship to 
the Kirchners (he has been their personal guest) could facilitate a 
rapid thawing.  The summit reinforced the idea that Mujica's 
electoral victory will improve relations.  The half-hour hotel 
meeting was reportedly "cordial" and "frank" and although according 
to media reports the topic of Botnia went untouched.  Kirchner 
nonetheless emerged remarking that "a new government implies new 
beginnings."  For his part, Mujica, who as early as the November 29 
second round elections had agreed with representatives of Kirchner 
to establish a binational commission aimed at reestablishing good 
relations between the two countries, has said he wishes to isolate 
the paper mill issue, leaving its resolution to the courts. 
Kirchner left Uruguay having turned down an invitation to dine with 
Mujica and Chavez, but with a promise to return for Mujica's March 
1 inauguration. 
 
 
 
Mujica and Chavez 
 
----------------------- 
 
 
 
¶4. (U) On December 8, press focus shifted to Venezuelan president 
Hugo Chavez's visit to a glass factory in the industrial park 
located in the working class "Cerro" district.  Accompanied by 
 
Mujica, Chavez inspected a factory that in 2005 had been saved from 
bankruptcy by a USD 4 million cash injection from his government. 
 
 
 
¶5. (SBU) Mujica and Chavez have met on several occasions over the 
years and are widely perceived to have clicked, a perception that 
Mujica, striving to present himself as a moderate, tried hard to 
downplay during the electoral campaign (Ref B).  While President 
Vazquez is generally considered to have maintained a careful middle 
line with the Venezuelan administration, many analysts anticipate 
that Mujica's government will foster closer ties with Chaveza 
prediction Chavez himself seemed keen to realize. 
 
 
 
¶6. (SBU) Stronger bilateral relations were the major theme in 
wide-raging speech Chavez gave to approximately 100 workers at the 
glass factory.  Holding forth for a relatively restrained 45 
minutes, Chavez managed to include (amongst other things): a eulogy 
to Mujica (which included the comment that Chavez would have been 
honored to have fought alongside Mujica in the "glorious" guerilla 
war in the 70's); congratulations to Evo Morales for his electoral 
victory in Bolivia;  a trademark broadside against "Yankee 
imperialism"; a potted history of petroleum in Venezuela; a 
condemnation of the recent elections in Honduras; and even a 
passable a cappella rendition of a song in praise of Simon Bolivar. 
Chavez made headlines by announcing he will provide as much oil as 
Uruguay needs for 100 years, a reference to his intention to build 
on the Caracas Energy Agreement, signed by President Vazquez in 
2005, that allows Uruguay to pay back 75 percent of the cost of the 
oil supplied by Venezuela over 15 years with the balance being made 
up in Uruguayan goods and products.  Under Chavez's new proposal, 
Uruguay would be able to use its goods and services to substitute 
up 50 percent of the cost, an arrangement that Chavez declared 
would allow Venezuela to meet Uruguay's oil needs "for the next 100 
years."  The promise of Uruguay's energy needs being met seemed to 
have a soothing effect on Mujica, who quietly dozed off behind him. 
 
 
 
 
Comment 
 
------------ 
 
 
 
¶7. (SBU) We expect Mujica will focus his early foreign policy 
energies close to home, and his first such effort seems to have 
been well received.  While international relations was perceived as 
a weakness in his presidential bid, Mujica held his own.  With 
Chavez and Lula, he is in his element talking about issues, such as 
regional integration and social justice, which are close to his 
heart.  End Comment. 
MATTHEWMAN