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Viewing cable 07BOGOTA7239, AMBASSADOR'S OCTOBER 1 CALL ON FINANCE MINISTER

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Reference ID Created Released Classification Origin
07BOGOTA7239 2007-10-09 12:59 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Bogota
VZCZCXYZ0022
RR RUEHWEB

DE RUEHBO #7239 2821259
ZNR UUUUU ZZH
R 091259Z OCT 07
FM AMEMBASSY BOGOTA
TO RUEHC/SECSTATE WASHDC 9362
INFO RUEHCV/AMEMBASSY CARACAS 9390
RUEHLP/AMEMBASSY LA PAZ OCT LIMA 5474
RUEHQT/AMEMBASSY QUITO 6075
RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS BOGOTA 007239 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EFIN ECON PREL VZ PE CO
SUBJECT: AMBASSADOR'S OCTOBER 1 CALL ON FINANCE MINISTER 
ZULUAGA 
 
REF: A) BOGOTA 7088 B) BOGOTA 7019 
 
1. (SBU) Summary.  Finance Minister Zuluaga reiterated to the 
Ambassador, on October 1, GOC support for Treasury Secretary 
Paulson's informal consultative process with like-minded 
Latin American finance ministers.  He concurred with the 
Ambassador's suggestion that our governments pursue an 
expanded economic agenda under the Total Economic Engagement 
(TEE) process.  Zuluaga highlighted growing investor 
confidence in Colombia, but cautioned that failure to approve 
the Colombia-U.S. Trade Promotion Agreement (CTPA) would 
dampen progress and complicate Colombian efforts to fight 
narco-terrorism.  The Minister urged the USG to remain vocal 
in fora sponsored by international financial institutions 
(IFIs) and explain that Latin American support for market 
driven policies still outweighs support the Chavista economic 
model.  End Summary. 
 
2.  (SBU) Finance Minister Oscar Ivan Zuluaga, a close 
political ally of President Uribe, expressed to the 
Ambassador on October 1 firm GOC support for the consultative 
process with Latin American finance ministers initiated by 
Secretary Paulson.  Zuluaga regretted that he could not 
 
SIPDIS 
attend the July meeting in Montevideo along with his 
counterparts from Mexico, Chile and Uruguay, but emphasized 
that a previous commitment in Colombia precluded his 
participation.  He assured the Ambassador that his absence 
did not relate to dissatisfaction with the process or the 
bilateral relationship.  Colombia "remains firm" behind this 
process, he continued, and he would welcome a chance to 
continue consultations during the upcoming Bank/Fund meetings 
in Washington. 
 
3.  (SBU) The Ambassador presented the USG vision of an 
expanded bilateral agenda that went beyond the CTPA to 
include additional financial, trade, commercial and social 
elements.  He suggested -- as he had during his call on Trade 
Minister Plata (Ref B) -- that we form a working group to 
flesh out an agenda.  Zuluaga concurred, calling the 
initiative an important strategic step.  The U.S. will 
continue as Colombia's principal commercial partner, and 
there remain many avenues for expanded economic engagement. 
The Minister highlighted the GOC proposal to attract second 
home owners to Colombia, medical tourism, expanded insurance 
coverage, and expansion of investment fund activities as 
themes to put on the table.  Zuluaga also made a pitch for 
USG assistance to augment infrastructure finance and to 
conduct next the Colombian census. 
 
4.  (SBU) Ambassador Brownfield congratulated the GOC for the 
immensely successful first round of partial privatization of 
Ecopetrol (Ref A).  Zuluaga underscored the message of 
confidence that this represents in the Colombian investment 
climate.  Building investment confidence remains one of the 
central tenets of President Uribe's governance, he continued, 
and the results so far have not disappointed.  FDI reached $6 
billion in 2006, and should exceed $8 billion in 2007.  While 
the U.S. represents the largest source of FDI (approximately 
25%), other countries such as Brazil and Chile increasingly 
look to Colombia as a sound place to invest. 
 
5.  (SBU) Zuluaga recounted his recent visit to Lima to 
appear at an IMF forum.  He expressed surprise and concern at 
the number of invited parliamentarians from the region who 
were aligned with the Chavez economic model.  We must not 
allow IFIs and other international organizations to foment 
this notion as the principal narrative in Latin American 
economic circles.  He urged vigilance from the USG to 
guarantee that international economic and financial meetings 
genuinely reflect the dominant thought in the region, i.e. 
that the free-market, private-sector driven economic model 
offers the best opportunity for job creation and improvements 
in social welfare. 
 
 
Brownfield