VZCZCXYZ0000
OO RUEHWEB

DE RUEHBU #0641/01 1531442
ZNY CCCCC ZZH
O 021442Z JUN 09
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3802
INFO RUCNMER/MERCOSUR COLLECTIVE
RUEHCV/AMEMBASSY CARACAS 1961
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RHMFISS/HQ USSOUTHCOM MIAMI FL
RUEATRS/DEPT OF TREASURY WASHINGTON DC

C O N F I D E N T I A L BUENOS AIRES 000641

SIPDIS

E.O. 12958: DECL: 05/29/2029
TAGS: PREL ECON EAIR MASS SENV AMGT VZ AR
SUBJECT: ARGENTINA: AMBASSADOR'S FAREWELL CALL ON FM TAIANA

REF: (A) BUENOS AIRES 0498 (B) BUENOS AIRES 0632 (C)
STATE 48493

Classified By: Ambassador E. Anthony Wayne for reasons 1.4 (b) & (d).

¶1. (C) Summary and introduction: Argentine FM Jorge Taiana
told the Ambassador, during the latter's May 28 farewell
call, that the GOA had no intention of following Venezuela's
lead on expropriations. Taiana expressed concern about the
visit of a team from the FAA and the prospect (which has
since receded) of a downgrade in the rating of Argentina's
civil aviation regime. The Ambassador updated Taiana on MOD
efforts to find new office space for the U.S. Military Group.
Taiana (protect) said he knows that Argentina, in a recent
submission regarding its Antarctic claim, left out the
language that was agreed with the USG and other key
governments in 2004 (ref C), but claimed the current
electoral climate in Argentina had made it impossible to
submit such specific language due to the Malvinas/Falklands
issue's continued prominence here. The Ambassador complained
to Taiana that an Argentine judicial investigation was
inadvertently holding up the re-exportation of cars belonging
to American diplomats. The Ambassador urged resolution of
Paris Club and private bondholder debts. Ref B reports
discussion of Cuba issue at the OAS General Assembly. End
summary.

Venezuela's Hugo Chavez
-----------------------

¶2. (C) The Ambassador indirectly asked if the the Argentine
business community's alarm regarding the latest wave of
Venezuelan expropriations (including several affecting
Argentina's Techint conglomerate) was giving the GOA pause
about Chavez. Taiana stressed that no one senior in the GOA
-- neither CFK, other ministers or Nestor Kirchner -- wanted
to follow Chavez's lead on expropriations. Taiana said Peron
had already gone through a nationalization phase in the
1940s, and the country had learned its lesson. Argentina may
favor a larger state role in the economy than does the United
States, but it still values the private sector and recognizes
the primacy of private property for propelling economic
growth and development. The GOA does not agree with what
Chavez was doing, Taiana reiterated. (Comment: These
comments tracked with Interior Minister Randazzo's public
comments on the week of May 25 that Chavez's expropriations
were "pre-Peronist. End comment.)

Civair
------

¶3. (C) Taiana said he was concerned about the visit of a team
from the FAA and the possibility of a downgrade in
Argentina's International Aviation Safety Assessment (IASA).
He noted that the transition from military to civilian
control of air traffic had been wrenching, with the military
trying to hold on to power. He said he hoped the FAA
assessment did not blow up publicly into a divisive issue.
The Ambassador noted that none of the FAA's recommendations
was difficult or unfeasible. (NOTE: An FAA team was in
Argentina May 27-29, completing the IASA evaluation begun in
March, 2009. While official results have yet to be released,
an informal readout from the team leader indicates that
Argentina will maintain its IASA Category I status. The FAA
provided similar information to GoA civil aviation
authorities.)

Military Group
--------------

¶4. (C) Taiana asked if the Ministry of Defense had offered
the U.S. Military Group alternate office space (per ref A
discussion). The Ambassador acknowledged the MOD had made an
offer, and that one Military Group component located at MOD
headquarters had moved out of that building to the Embassy.
The Ambassador explained that two other Military Group
components currently located at Air Force and Navy facilities
were hoping for a temporary reprieve pending a fuller
discussion of updating the 1964 agreement at joint
U.S.-Argentine talks in October. Taiana asked to be kept
informed of developments.

Antarctic
---------

¶5. (C) Taiana (protect) said he knows that Argentina, in the
data it submitted to the UN Commission on the Limits of the
Continental Shelf regarding its Antarctic claim, left out the
specific language that was agreed with the USG and other key
governments in 2004 (ref C). He claimed that the current
electoral climate in Argentina had made it impossible to
submit such language with the GOA data. Doing so would have
subjected the GOA to a storm of criticism for its "surrender"
of Argentine claims, and resulted in his removal from office.
"But if you read our submission carefully, you'll see our
language respects all Antarctic Treaty provisions," he said,
quickly adding that the prime issue for Argentina, of course,
was not Antarctica, but protecting its claim to sovereignty
over the Malvinas/Falkland Islands.

POVs
----

¶6. (C) The Ambassador explained to Taiana that an Argentine
judge investigating abuse by others of diplomatic importation
of vehicles had seized documents, effectively holding up the
export of privately owned vehicles (POVs) belonging to
American diplomats who had served in Argentina and are now
posted elsewhere. The Ambassador said Washington was very
concerned and looking into reciprocity measures. Taiana said
he was not aware of this latest development and would look
into it. (The Ambassador subsequently signed a letter to the
investigating judge, to be transmitted through the MFA, which
explains our serious concerns and seeks positive action.)

Paris Club
----------

¶7. (C) The Ambassador told Taiana that he had advised
President Kirchner the night before (ref B) that resolution
of Paris Club and private bondholder debts is clearly in
Argentina's long-term interest. Taiana agreed the GOA needed
to find a way to resolve the matter, and the Ambassador noted
that Planning Minister De Vido and others in the GOA seemed
to be moving toward that position as well.

WAYNE