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Viewing cable 08BUENOSAIRES687, ARGENTINE PRESIDENT'S LOW-PROFILE PARTICIPATION IN EU - LAC

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Reference ID Created Released Classification Origin
08BUENOSAIRES687 2008-05-20 21:20 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Buenos Aires
VZCZCXYZ0000
RR RUEHWEB

DE RUEHBU #0687/01 1412120
ZNR UUUUU ZZH
R 202120Z MAY 08
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 1103
INFO RUCNMER/MERCOSUR COLLECTIVE
RUEHBS/USEU BRUSSELS
RUEHPE/AMEMBASSY LIMA 2300
RUEHMD/AMEMBASSY MADRID 2072
RUEHBS/AMEMBASSY BRUSSELS 0116
RUEHTC/AMEMBASSY THE HAGUE 0190
RUEHLJ/AMEMBASSY LJUBLJANA 0004
RUEHME/AMEMBASSY MEXICO 1580
RUEHFR/AMEMBASSY PARIS 1416
RUEHDL/AMEMBASSY DUBLIN 0022
RUEHRL/AMEMBASSY BERLIN 1105
RUEHQT/AMEMBASSY QUITO 1086
RUEHLO/AMEMBASSY LONDON 1252
UNCLAS BUENOS AIRES 000687 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: PREL PGOV EAGR ECIN ECON ENRG ETRD ETTC SOCI TSPL
XM, EU, AR 
SUBJECT: ARGENTINE PRESIDENT'S LOW-PROFILE PARTICIPATION IN EU - LAC 
SUMMIT 
 
REF: (A) BUENOS AIRES 642, (B) BUENOS AIRES 660, (C) BUENOS AIRES 
496 
 
1. (SBU) Summary:  President Cristina Fernandez de Kirchner (CFK) 
met (low) expectations (ref A) at the Summit Meeting of Leaders of 
the European Union - Latin America and the Caribbean ( EU - LAC), 
holding a number of bilateral meetings but dodging the press.  In 
the Mercosur - EU bilateral, CFK reportedly clashed with Commission 
head Jose Manuel Durao Barroso over tariff concessions, with CFK 
reportedly insisting the EU owed Mercosur asymmetric concessions 
because of the EU's wealth and Barroso calling for a broader view of 
gains to be made with a Doha agreement.  In a short meeting with 
Chancellor Merkel of Germany, CFK discussed the economic 
relationship between the EU and Mercosur.  President Zapatero of 
Spain used his time with her to defend Spanish businesses in 
Argentina, including those with a controlling interest in Aerolineas 
Airlines (ref B).  On a more positive note, a short meeting with 
Bolivian president Evo Morales produced an announcement from his 
nation's Minister of Hydrocarbons and Energy that promised a flow of 
natural gas to Argentina.  Also, in the closing session of the 
summit, CFK and Chilean President Michelle Bachelet together called 
for an alliance between Latin America and the European Union to 
jointly confront the global food crisis.  Whether clashing or 
cooperating with counterparts at the summit, the Kirchner delegation 
shut out the media, offering no press releases, background or on the 
record briefings.  END SUMMARY. 
 
Bilaterals Live Up to Low Expectations 
-------------------------------------- 
 
2. (SBU) As predicted by post contacts, CFK's bilateral meetings 
produced little in the way of concrete results (ref A).  An 
eighteen-minute meeting with Chancellor Merkel of Germany prior to 
the start of the summit consisted of a general conversation about 
"the economic relationship between both countries, bilateral 
questions, and the relationship between the European Union and 
Mercosur."  In the wake of a deal to "argentinize" a portion of 
Spanish company Marsans' stake in Aerolineas Airlines, President 
Zapatero of Spain commented after his meeting with CFK that "the 
relationship between the government of Spain with the government of 
Argentina is an extraordinarily fluid relationship, but announced 
that his country was "going to defend" its business interests in 
Argentina. 
 
3. (SBU) The Mercosur-EU bilateral reportedly produced a clash 
between the Argentine president and head of the European Commission 
Jose Manuel Durao Barroso over tariff concessions.  He stated that 
"the countries of Mercosur have much to gain in agriculture, but 
they are not going to gain this if they do not make concessions in 
the area of industry and services."  Press reports indicate that his 
meaning between the lines was that any trade accord, including one 
reached through Doha talks, would require Latin American tariff 
reductions on industry and services to balance tariff reductions on 
Mercosur agricultural products.  CFK agreed that "if you reduce one 
side you reduce the other," but apparently firmly opposed balanced 
concessions, arguing that Latin America's lower level of development 
and higher poverty levels meant it should shoulder a lesser burden. 
An EU diplomat in Buenos Aires told us EU staff got the impression 
that CFK, who showed up without any other Mercosur partners, was 
"winging it" with her arguments. 
 
4. (SBU) To address domestic energy concerns, CKF held a private, 
15-minute conversation with Bolivian president Evo Morales in which 
she pledged support for his political reorganization and upcoming 
referendum on his political mandate.  Afterward, Morales expressed 
to the press his appreciation for his "companera Cristina" and his 
Minister of Hydrocarbons and Energy Carlos Villegas announced that 
"we are going to guarantee the production of gas, as we indicated to 
Argentine authorities."  The Buenos Aires Herald characterized 
Bolivia's assurances regarding winter natural gas supplies to 
Argentina as "a meaningless pledge," noting that Morales has failed 
to live up to contractual obligations before. 
 
5. (U) During the summit discussion on "Poverty, inequality, and 
social inclusion," CFK and Chilean president Michelle Bachelet 
jointly called attention to the problem of rising food prices. 
President Kirchner called for a joint effort between Europe and 
Latin America to link EU investment and technology with Mercosur 
energy resources and food production capacity.  The two leaders' 
call was written into the Lima Declaration, which stated that the 
leaders agreed "immediate measures are needed to assist the most 
vulnerable countries and populations" and they support "the 
development of the 'Latin America and the Caribbean without hunger' 
FAO initiative." 
 
6. (SBU) CFK did not hold a bilateral meeting with Hugo Chavez.  In 
a brief press interview, the Venezuelan leader explained this was 
because the summit was not the best place to talk.  He went on to 
state that he and CFK are "strategic allies and close friends," and 
that the nationalization of Sidor (ref C) had not affected 
Venezuelan-Argentine relations.  In his words, bilateral relations 
with the GOA "are at their maximum and best level," and he 
highlighted the upcoming groundbreaking of a regasification plant to 
provide Argentina with Venezuelan natural gas.  Chavez also claimed 
he had asked CFK to foster his reconciliation with Merkel, whom he 
had publicly claimed was "to the right of Hitler."  By way of 
apology, Chavez approached Merkel when she was sitting next to CFK 
and told the two that whenever he misbehaved, CFK slapped him on the 
wrist.  According to "La Nacion," CFK smiled at Chavez's joke, but 
Merkel did not. 
 
Radio Silence and a Skeleton Crew 
--------------------------------- 
 
7. (U) The press noted that CFK and her delegation maintained almost 
complete silence over the course of the summit, not offering a 
single press conference or press release.  By comparison, other 
leaders, including Bolivia's Morales, Spain's Zapatero, and 
Germany's Merkel held court more than once with international press. 
 Argentine pundits are calling this a strategic move to control 
outcome and message, likely advised by her husband.  They gave a 
similar interpretation to CFK's tendency at the summit to attend 
meetings alone or accompanied only by Foreign Minister Jorge Taiana 
or Ambassador to Peru Dario Alessandro.  The one quote attributed to 
CFK, on the run between meetings, was her half-in-jest remark 
directed at Argentine journalists:  "You are going to behave 
yourselves, aren't you?" 
 
Comment 
------- 
 
8. (SBU) The GOA had been hoping that CFK's participation at the 
EU-LAC Summit would advance her goal of reinserting Argentina onto 
the international stage, or at least give her a break from pressing 
problems at home.  But Argentine press portrayal of CFK's 24 hours 
in Lima stressed Argentina's lingering estrangement from the 
Europeans, due to unresolved investment disputes and fallout from 
Argentina's debt default.  It also noted that she was primarily 
preoccupied with developments at home regarding the GOA's ongoing 
conflict with the striking agricultural sector. 
 
WAYNE