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Viewing cable 06BUENOSAIRES1288, MEETING READOUT WITH GOA ON TIG INSURANCE

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Reference ID Created Released Classification Origin
06BUENOSAIRES1288 2006-06-07 20:55 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Buenos Aires
VZCZCXYZ0019
RR RUEHWEB

DE RUEHBU #1288 1582055
ZNR UUUUU ZZH
R 072055Z JUN 06
FM AMEMBASSY BUENOS AIRES
TO SECSTATE WASHDC 4824
UNCLAS BUENOS AIRES 001288 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
WHA FOR WAYNE MIELE 
WHA/BSC FOR DOUG BARNES AND HEIDI GOMEZ 
 
E.O. 12958: N/A 
TAGS: ECON EINV PREL AR
SUBJECT: MEETING READOUT WITH GOA ON TIG INSURANCE 
 
 
1.  (U) This message is sensitive but unclassified and not 
for internet distribution. 
 
2.  (U) The DCM and Econoff (notetaker) met with Secretary of 
Economy for Legal and Administrative Affairs Estela 
Palomeque, and Advisors to the Secretary Carlos Arganaraz and 
Beatriz Pallares on June 7 to discuss the issue of GOA 
authorization to pay arbitration awards to TIG Insurance. 
The DCM presented a non-paper that briefly outlined the 
history of the arbitration awards, subsequent U.S. District 
Court rulings, and TIG Insurance's settlement offer in July 
2005.  Palomeque expressed a willingness to work on resolving 
the issue and requested post's assistance in assembling a 
list of names and positions of Ministry of Economy officials 
that post had worked with on this issue.  She said she would 
look closely at this issue and get back to us. 
 
3.  (U) Palomeque is a relative newcomer to the Kirchner 
administration, and the matter of the GOA's responsibility in 
this case appeared to come as news to her.  Nevertheless, 
Palomeque was serious in her evaluation of options with her 
advisers to bring an expeditious resolution of this case. 
She has been constructive in working on other USG interests 
and initiatives that post has discussed with her, such as the 
Trade Transparency Unit. 
 
------- 
Comment 
------- 
 
4.  (SBU) Post will continue working toward resolution of the 
TIG Insurance issue.  Post believes, however, that the 
inclusion of any language in the Foreign Operations Bill 
linking IMET program funds to the GOA's allocating of funds 
to TIG Insurance would be detrimental not only to U.S. 
security interests but also to any hope of TIG Insurance 
receiving payment.  Left-wing factions of the ruling Peronist 
party who strongly oppose close ties between U.S. and 
Argentine military forces will enthusiastically support any 
suspension of U.S. training for Argentina.  Consequently, 
this will ensure that these elements will resist any attempt 
to resolve the TIG case.  Post is hopeful that the Department 
will continue to work this issue with appropriate 
congressional staffs to ensure that IMET funding and the TIG 
Insurance case remain separated.  End Comment. 
 
5.  (U) To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sgov.gov/p/wha/buenosaires.< /a> 
GUTIERREZ