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Viewing cable 06MONTEVIDEO306, VAZQUEZ SENDS STRONG SIGNAL ON FREE TRADE AGREEMENT

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Reference ID Created Released Classification Origin
06MONTEVIDEO306 2006-03-29 20:44 2011-07-01 00:00 CONFIDENTIAL Embassy Montevideo
VZCZCXYZ0000
PP RUEHWEB

DE RUEHMN #0306 0882044
ZNY CCCCC ZZH
P 292044Z MAR 06
FM AMEMBASSY MONTEVIDEO
TO RUEHC/SECSTATE WASHDC PRIORITY 5612
INFO RUCNMER/MERCOSUR COLLECTIVE
RUEHBO/AMEMBASSY BOGOTA 2502
RUEHCV/AMEMBASSY CARACAS 0400
RUEHLP/AMEMBASSY LA PAZ MAR SANTIAGO 2822
RUMIAAA/CDR USSOUTHCOM MIAMI FL//J-5//
RUEHC/DEPT OF AGRICULTURE WASHDC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEAWJA/DEPT OF JUSTICE WASHDC
RHEHNSC/NSC WASHDC
,C O N F I D E N T I A L MONTEVIDEO 000306 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR WHA/AS SHANNON AND EB/AS WAYNE 
DEPT ALSO FOR WHA/BSC BARNES, CROFT AND MURRAY 
DEPT PLEASE PASS USTR 
TREASURY FOR OASIA FOR DOUGLAS 
COMMERCE FOR ITA/MAC BASTIAN 
NSC FOR FISK AND CRONIN 
SOUTHCOM FOR POLAD 
 
E.O. 12958: DECL: 03/28/2016 
TAGS: PREL PGOV ETRD OVIP UY
SUBJECT: VAZQUEZ SENDS STRONG SIGNAL ON FREE TRADE AGREEMENT 
 
REF: MONTEVIDEO 00229 
 
Classified By: Charge D'Affaires James D. Nealon 
for reasons 1.4 (B) and (D) 
 
1. (C) Summary: Minister of Industry and Energy Jorge Lepra 
invited me to a private one-on-one meeting in order to 
transmit an urgent message from President Vazquez.  Lepra 
relayed that Vazquez has not wavered in his commitment to a 
Free Trade Agreement (FTA) with the U.S. and that he still 
expects to raise it with POTUS during the White House meeting 
scheduled for May 4.  Vazquez clearly wishes to gauge the 
prospects of concluding an FTA with us before he meets with 
President Bush.  End Summary. 
 
2. (C) On the night of March 28, Minister of Industry and 
Energy Lepra welcomed me to his home in order to allay U.S. 
fears over Vazquez' recent, public comments on an FTA, and to 
plan for the upcoming POTUS meeting. (Note: Lepra will lead 
Uruguay's delegation to the Joint Commission on Trade and 
Investment (JCTI) next week in Washington.  In addition, he 
is often used by President Vazquez as his surrogate Foreign 
Minister on matters relating to the United States.  End Note.) 
 
3. (C) Lepra told me that he had transmitted to Vazquez our 
unease and ""confusion"" over the President's remarks made two 
weeks ago in Caracas, in which he participated in a rambling 
press conference with Hugo Chavez and emphatically stated 
that he did not intend to sign an FTA with the United States. 
(Comment: In a face-to-face meeting a week earlier, Vazquez 
had explicitly told me (reftel) that he wished to pursue an 
FTA with us.  End Comment.) 
 
4. (C) According to Lepra, Vazquez wished to relay the 
following messages to the U.S. Charge d'Affaires: (a) That he 
(Vasquez) knows best how to manage the radicals within his 
governing Frente Amplio (FA) coalition, and that he sometimes 
needs to placate that crowd, and (b) that internal politics 
have little effect on his foreign policy overtures towards 
the United States. 
 
5. (C) Lepra went on to say that Vazquez' first step in his 
trade policy strategy for engaging the U.S. was to amend, 
sign and ratify the Bilateral Investment Treaty (BIT), a 
process which Uruguay completed last December.  The second 
step is to expand commercial ties through JCTI.  The third 
step entails beginning actual negotiations with the U.S. on 
an FTA.  Vazquez told Lepra that he had hoped to begin FTA 
discussions next year.  Lepra was then required to explain 
the issue of Trade Promotion Authority (TPA) and the critical 
timing and deadlines involved. (Note: Lepra has discussed 
this subject at length with Ambassador Gianelli in Washington 
and also with us. End Note.)  After the explanation, the 
President's response to Lepra was, ""Fine. If it has to be 
this year, it has to be this year.  I can discuss this with 
President Bush,"" referring to his scheduled May 4 meeting 
with POTUS. 
 
6. (C) I had the impression throughout the conversation that 
Lepra wanted assurances that we have the U.S. President's 
commitment to an FTA. 
 
Comment: 
-------- 
 
7. (C) We continue to find ourselves in an awkward position 
when we discuss an FTA with the GOU.  While the U.S. 
President's National Security Strategy, our own Western 
Hemisphere strategy document, and our agenda at the Summit of 
the America's all list free trade at the top of our agenda, 
we seem to have sent mixed signals to Uruguay regarding an 
FTA.  At least this is how President Vazquez perceives it. 
End Comment. 
Nealon