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Viewing cable 08BUENOSAIRES866, ARGENTINA: CFK RESUMES TALKS WITH FARMERS

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Reference ID Created Released Classification Origin
08BUENOSAIRES866 2008-06-24 21:59 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Buenos Aires
VZCZCXYZ0005
OO RUEHWEB

DE RUEHBU #0866 1762159
ZNR UUUUU ZZH (CCY ADX0AA39CF WSC2534 611)
O 242159Z JUN 08
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1410
INFO RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL
RUCNMER/MERCOSUR COLLECTIVE
UNCLAS BUENOS AIRES 000866 
 
C O R R E C T E D  C O P Y - ADDED SENSITIVE 
 
USDA FOR FAS/OA/OCRA/ONA/OGA/OFSO 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV PREL EAGR ECON AR
SUBJECT: ARGENTINA: CFK RESUMES TALKS WITH FARMERS 
 
 
1. (SBU) Summary.  President Cristina Fernandez de Kirchner (CFK) 
and representatives of the four main agricultural associations who 
have led protests against variable export taxes on agricultural 
products met on June 23, following 71 days of hostile public 
exchanges since their last meeting on April 11.  Both the Government 
and the farmers' leaders described the meeting as "positive," but 
reported no substantive progress on the issues generating the 
conflict. The Argentine Congress's Deputies Committees on 
Agriculture and Budget also held their first joint session to debate 
the issue.  Meanwhile, "pro-government" and "pro-farmers" activists 
have set up competing tents in front of the Congress to keep the 
pressure on.  END SUMMARY. 
 
--------------------------------------------- 
A "positive" meeting with no tangible outcome 
--------------------------------------------- 
 
2. (SBU) President Cristina Fernandez de Kirchner and 
representatives of the main four agricultural associations met on 
June 23, following 71 days of hostile public exchanges since their 
last meeting on April 11.  In an hour-and-a-half meeting, the 
President repeated her criticism for the "lockout" that caused 
severe food shortages and claimed that the agriculture sector still 
made a larger profit in the first six months of 2008 than it did for 
the same period last year.  The President also scolded the 
agricultural leaders for their protest methods, asking the leaders 
"not to bang their pots in front of Olivos" (i.e., the presidential 
residence) but to "knock on her door to discuss the problems." 
 
3. (SBU) During the meeting, the farm leaders asked the President to 
suspend controversial variable export taxes pending Congress's 
review, but they reportedly received a frosty response.  CFK 
indicated that the Congress would debate the matter with the current 
export tax regime in force and have the final word on the issue. 
When asked about the necessary debate in Congress, CFK quipped that 
only the Argentine Civil Code had been voted without debate. (The 
Argentine Civil Code was passed in 1871.  Since then, there have in 
fact been many laws passed "a libro cerrado" with little debate.) 
 
-------------------------------------- 
Committees start looking into the bill 
-------------------------------------- 
 
4. (SBU) On June 23, the Argentine Congress's Deputies Committees on 
Agriculture and Budget held their first joint session to debate the 
bill introduced by the Executive branch that would ratify Resolution 
125 which set up the variable export tax scheme.  In a room packed 
with legislators, farm representatives, advisors, and journalists, 
the first two-hour session turned into a heated debate over the 
bill, but did not include alternate bills introduced by opposition 
legislators. 
 
------------------ 
The "war of tents" 
------------------ 
 
5. (SBU) Meanwhile, "pro-government" activists erected tents in 
front of the Congress to influence the debate inside.  Buenos Aires 
City Chief of Cabinet Horacio Rodriguez Larreta stated in a press 
conference that the activists had not requested the proper 
permissions to set up the tents, and had not followed the proper 
safety requirements for their installation.  Calls by the Buenos 
Aires City Government (which is led by conservative Mayor Mauricio 
Macri) to the Federal Police to remove the tents went unanswered -- 
not surprising considering that the Federal Police falls under the 
national government's Ministry of Justice and Security.) 
"Pro-farmers" activists responded the next day (June 24) by pitching 
their own tent in front of the Congress, adjacent to their rivals. 
 
 
------- 
COMMENT 
------- 
 
6. (SBU) Both sides appeared eager to describe CFK's meeting with 
the agricultural leaders as "positive" even though no substantive 
progress towards a negotiated settlement seemed to occur.  The fact 
that the two sides are meeting face-to-face, moreover, is a clear 
sign of progress.  The tone and tenor of CFK's comments, however, 
indicate that the GOA has no intention of giving any early ground on 
the variable export tax scheme.  It is clear that a resolution 
acceptable to all sides will require real debate in the Congress and 
probably some substantive modification to the government's current 
tax and incentive regimes.  Otherwise, the rural protests could 
resume.  END COMMENT. 
 
KELLY