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Viewing cable 06BUENOSAIRES480, DEMARCHE ON ARGENTINA IDB ABSTENTION

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Reference ID Created Released Classification Origin
06BUENOSAIRES480 2006-03-01 16:40 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Buenos Aires
VZCZCXYZ0052
OO RUEHWEB

DE RUEHBU #0480 0601640
ZNR UUUUU ZZH
O 011640Z MAR 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3650
INFO RHEHNSC/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS BUENOS AIRES 000480 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EB AS WAYNE, WHA AS SHANNON, PDAS SHAPIRO AND 
WHA/BSC 
NSC FOR DAN FISK 
TREASURY FOR TIM ADAMS AND NANCY LEE 
 
E.O. 12958: N/A 
TAGS: ECON EFIN AR
SUBJECT: DEMARCHE ON ARGENTINA IDB ABSTENTION 
 
REF: A. SECSTATE 32890 
 
     B. BUENOS AIRES 322 
 
1.  (SBU) Per Ref A instruction, I called on MFA Director for 
Political Affairs Ambassador Luis Cappagli (the number three 
official in the MFA) at 10:45 a.m. local time (8:45 a.m. 
Washington time) on March 1.  Foreign Minister Taiana was at 
the Congress for President Kirchner,s speech at the opening 
of the legislative session, and Deputy FM Roberto Garcia 
Moritan is at a UN meeting in New York. 
 
2.  (SBU) Using all the points in paragraph 6 of Ref A, I 
informed Cappagli about the U.S. intention to abstain on the 
IDB loan.  I explained that the USG vote was based on our 
need to send a clear message to the IDB, and that we remained 
committed to working with Argentina in the international 
financial institutions, as we had since 2003 to the present. 
I reminded Cappagli that we had supported and encouraged the 
disbursement of $22.5 billion in new approvals for IFI 
assistance.  I noted that we expected that the loan would be 
approved by the IDB board notwithstanding our abstention, and 
that we were committed to working with Argentina on its 
economic reforms and public financial management. 
 
3.  (SBU) Cappagli said he was surprised by the U.S. decision 
to abstain on the loan.  He described the U.S. vote as a 
"serious blow" ("golpe duro") to the relationship, coming as 
it did at a time when there was a general perception that the 
U.S.-Argentina relationship had been re-acquiring momentum 
after the Mar del Plata Summit of the Americas.  Cappagli 
said that he had spent most of last Saturday working to 
change Argentina,s vote at the ICAO board meeting in order 
to support the U.S. candidate.  This had involved breaking 
ranks with the Latin ICAO group and reneging on a previous 
commitment to back an Algerian candidate.  Argentina had 
undertaken this action as a "gesture of friendship and 
affection."  A U.S. abstention on an IDB loan for Argentina 
at this time will be "very costly." 
 
4.  (SBU) I reiterated that the U.S. action was not directed 
against Argentina, but meant to send a message to the IDB. 
Cappagli said that the media would never understand the 
nuance.  He asked if there were any way that the U.S. could 
reconsider its vote.  I said I did not think so.  We had not 
taken the decision lightly, and it had been fully debated 
within the USG. 
 
5.  (SBU) Earlier in the morning I had received a call from 
Argentine ambassador to the U.S. Jose Octavio Bordon, who is 
currently in Buenos Aires.  Bordon had heard from his IDB 
representative about the U.S. abstention.  He too said this 
would be viewed in the media as a U.S. action against 
Argentina, and asked if we could reconsider.  I gave the same 
answer I gave Cappagli.  Bordon said he lamented that the 
U.S. had shifted course in its policy with respect to 
Argentina and would now be joining the traditional position 
of Japan and Italy in abstaining on IFI loans for Argentina. 
I assured him that this was not the case, that our vote was 
meant to send a message to the IDB on this particular loan 
and nothing more. 
GUTIERREZ