

Currently released so far... 12648 / 251,287
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
2011/05/01
2011/05/02
2011/05/03
2011/05/04
2011/05/05
2011/05/06
2011/05/07
2011/05/08
2011/05/09
2011/05/10
2011/05/11
2011/05/12
2011/05/13
2011/05/14
2011/05/15
2011/05/16
2011/05/17
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sapporo
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
AORC
AF
AU
ASEC
AMGT
AS
APER
AR
AG
ARF
AJ
AA
AINF
APECO
AODE
ABLD
AMG
ATPDEA
AE
AEMR
AMED
AGAO
AFIN
AL
ASUP
ASECKFRDCVISKIRFPHUMSMIGEG
AID
ASCH
AM
AORL
ASEAN
APEC
ADM
AFSI
AFSN
ADCO
ABUD
AN
AY
AIT
AGR
ACOA
ANET
ASIG
AMCHAMS
AGMT
AADP
ADPM
ATRN
ALOW
ACS
APCS
AFFAIRS
ADANA
AECL
ACAO
AORG
AROC
AO
ACABQ
AX
AMEX
AFGHANISTAN
AZ
AND
ARM
AQ
ATFN
AMBASSADOR
ACBAQ
AC
AUC
ASEX
AER
AVERY
AGRICULTURE
AFU
BR
BTIO
BY
BO
BA
BU
BL
BN
BM
BF
BEXP
BK
BG
BB
BTIU
BBSR
BRUSSELS
BD
BIDEN
BE
BH
BILAT
BC
BX
BT
BP
BMGT
BWC
CS
CA
CH
CD
CO
CE
CU
CVIS
CASC
CJAN
CI
CPAS
CMGT
CDG
CIC
CAC
CBW
CWC
COUNTER
CW
CT
CY
CNARC
CACM
CG
CB
CM
CV
CIDA
CLINTON
CHR
COE
CR
CIS
CDC
CONS
CF
CODEL
COPUOS
CIA
CFED
CARSON
CL
CROS
CAPC
CTR
CACS
CN
CBSA
CEUDA
COM
CONDOLEEZZA
CICTE
COUNTRY
CBE
CKGR
CVR
COUNTERTERRORISM
CITEL
CLEARANCE
CARICOM
CSW
CITT
CDB
CJUS
CTM
CAN
CLMT
CBC
EAID
ECON
EFIS
ETRD
EC
ENRG
EINV
EFIN
EAGR
ETTC
ECPS
EINT
ES
EIND
EAIR
EU
EUN
EG
EPET
ELAB
EWWT
EMIN
ECIN
ESA
ER
ETRDEINVECINPGOVCS
EAIG
ET
ETRO
ELTN
EI
EN
EUR
EK
EUMEM
EPA
ENGR
EXTERNAL
EUREM
ELN
EUC
ENERG
ENIV
EZ
ERD
EFTA
ETRC
ETRN
EINVECONSENVCSJA
EEPET
EUNCH
ESENV
ENNP
ENVI
ETRDECONWTOCS
ECINECONCS
EFINECONCS
ELECTIONS
ENVR
EXIM
ERNG
ECA
EINVEFIN
ETC
EAP
ECONOMY
EINN
ECONOMIC
EXBS
ECUN
ENGY
ECONOMICS
EIAR
EINDETRD
ECONEFIN
EURN
EDU
ETRDEINVTINTCS
ECIP
EFIM
EAIDS
EREL
EINVETC
ECONCS
ETRA
IC
IV
IAEA
IR
IO
IT
IN
IS
IZ
IMO
IPR
IWC
ICAO
ILO
ID
ICTY
ICJ
INMARSAT
INDO
IL
IMF
IRS
IQ
IA
ICRC
IDA
IAHRC
IBRD
ISLAMISTS
IGAD
ILC
ITU
ITF
INRA
INRO
IDP
ICTR
IEFIN
IRC
ITRA
ITALY
INRB
INTELSAT
IBET
IRAQI
ISRAELI
IIP
ITPGOV
ITALIAN
INTERNAL
INTERPOL
IEA
INR
IZPREL
IRAJ
IF
ITPHUM
ISRAEL
IACI
KBTR
KPAO
KOMC
KCRM
KDEM
KHIV
KBIO
KTIA
KMDR
KNNP
KSCA
KTIP
KWMN
KIPR
KCOR
KRVC
KFRD
KPAL
KWBG
KE
KTDB
KUNR
KSPR
KJUS
KGHG
KAWC
KCFE
KGCC
KOLY
KSUM
KACT
KISL
KTFN
KFLU
KSTH
KMPI
KHDP
KS
KHLS
KMRS
KID
KN
KU
KAWK
KSAC
KCOM
KAID
KIRC
KWMNCS
KMCA
KNEI
KCRS
KPKO
KICC
KPOA
KV
KDRG
KIRF
KSEO
KVPR
KSEP
KTER
KBCT
KFIN
KGIC
KCIP
KZ
KG
KWAC
KRAD
KPRP
KTEX
KNAR
KPLS
KPAK
KSTC
KFLO
KSCI
KIDE
KOMS
KHSA
KSAF
KPWR
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KFSC
KRIM
KVRP
KENV
KNSD
KCGC
KDDG
KPRV
KTBT
KWMM
KMFO
KMOC
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KPAI
KO
KVIR
KREC
KX
KR
KCRCM
KBTS
KOCI
KGIT
KNUP
KPAONZ
KNUC
KNNPMNUC
KERG
KTLA
KCSY
KTRD
KNPP
KJUST
KCMR
KRCM
KCFC
KCHG
KREL
KFTFN
KLIG
KDEMAF
KICA
KHUM
KSEC
KPIN
KESS
KDEV
KWWMN
KOM
KWNM
KRFD
KMIG
KRGY
KIFR
MARR
MOPS
MASS
MX
MNUC
MCAP
MO
MR
MEPP
MTCRE
MAPP
MEPN
MZ
MT
ML
MA
MY
MIL
MD
MASSMNUC
MU
MK
MTCR
MUCN
MAS
MEDIA
MAR
MC
MI
MQADHAFI
MPOS
MTRE
MASC
MG
MARAD
MRCRE
MW
MP
MOPPS
MTS
MLS
MILI
MEPI
MEETINGS
MERCOSUR
MCC
MIK
MAPS
MV
MILITARY
MDC
NATO
NZ
NL
NO
NK
NU
NPT
NI
NG
NEW
NSF
NA
NPG
NSG
NE
NSSP
NS
NDP
NSC
NAFTA
NH
NV
NP
NPA
NSFO
NT
NW
NASA
NORAD
NATIONAL
NGO
NR
NIPP
NZUS
NC
NRR
NAR
NATOPREL
OEXC
OTRA
OPRC
OVIP
OAS
OIIP
OSCE
OREP
OPIC
OFDP
OMIG
ODIP
OVP
OSCI
OIC
OECD
OIE
OPDC
ON
OCII
OPAD
OBSP
OFFICIALS
OPCW
OHUM
OES
OCS
OTR
OSAC
OFDA
PGOV
PREL
PM
PHUM
PTER
PINR
PINS
PREF
PARM
PL
PK
PU
PBTS
PBIO
PHSA
PE
PO
PROP
PA
PNAT
POL
PLN
POLITICAL
PARTIES
PCUL
PAK
PGGV
PAO
PSA
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PAS
PGIV
PHUMPREL
PCI
PG
POGOV
PHUMPGOV
PEL
POLITICS
POLICY
PINL
PP
PREO
PAHO
PBT
PMIL
POV
PRL
PDOV
PTBS
PRAM
PREFA
PSI
PAIGH
POSTS
PALESTINIAN
PARMS
PROG
PTERE
PRGOV
PORG
PS
PGOF
PKFK
PSOE
PEPR
PPA
PINT
PMAR
PRELP
PINF
PNG
PFOR
PUNE
PGOVLO
PHUMBA
PSEPC
PNR
POLINT
PGOVE
PHALANAGE
PARTY
PDEM
PECON
PROV
PGOC
PY
PHUH
PF
PHUS
RU
RS
RO
RW
RP
RFE
REGION
REACTION
REPORT
ROOD
RCMP
RM
RSO
ROBERT
RICE
RSP
RF
RIGHTS
RIGHTSPOLMIL
RUPREL
RELATIONS
SENV
SU
SCUL
SOCI
SNAR
SL
SW
SMIG
SP
SY
SA
SHUM
SZ
SYRIA
SF
SR
SO
SARS
SN
SC
SIPRS
SI
SYR
SEVN
SG
SPCE
SK
STEINBERG
SH
SNARCS
SAARC
SCRS
SENVKGHG
SAN
ST
SIPDIS
SNARIZ
SNARN
SSA
SPCVIS
SOFA
SEN
SANC
SWE
SHI
TW
TU
TBIO
TSPL
TPHY
TRGY
TC
TT
TSPA
TINT
TERRORISM
TX
TR
TS
TN
TD
TH
TIP
TNGD
TI
TZ
THPY
TP
TBID
TF
TL
TV
TK
TO
TRSY
TURKEY
TFIN
TAGS
UN
UK
UNSC
UNGA
US
UNESCO
UP
UNHRC
UNAUS
USTR
UNDP
UNEP
UY
UNCHR
UG
UZ
UNPUOS
USEU
UNMIK
UNDC
UNICEF
UV
UNHCR
UNCHC
UNCSD
USOAS
UNFCYP
USUN
USNC
UNIDROIT
UNO
UNCND
USPS
USAID
UE
UNVIE
UAE
UNODC
UNCHS
UNFICYP
UNDESCO
UNC
Browse by classification
Community resources
courage is contagious
Viewing cable 06BUENOSAIRES1594, ARGENTINA: KIRCHNER AT THREE YEARS
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06BUENOSAIRES1594.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
06BUENOSAIRES1594 | 2006-07-18 21:16 | 2011-03-27 00:00 | SECRET | Embassy Buenos Aires |
Appears in these articles: http://www.lanacion.com.ar/1360704-de-vido-eje-de-las-sospechas-de-eeuu |
VZCZCXRO2557
PP RUEHCD RUEHGA RUEHGD RUEHHA RUEHHO RUEHMC RUEHQU RUEHTM RUEHVC
DE RUEHBU #1594/01 1992116
ZNY SSSSS ZZH
P 182116Z JUL 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC PRIORITY 5265
INFO RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/CJCS WASHDC PRIORITY
RUEHNA/DEA WASHDC PRIORITY
RUEAWJA/DEPT OF JUSTICE WASHDC PRIORITY
RUEHC/DEPT OF LABOR WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RUCNMRC/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
S E C R E T SECTION 01 OF 05 BUENOS AIRES 001594
SIPDIS
SIPDIS
STATE FOR WHA TOM SHANNON, JOHN MAISTO, AND CHARLES SHAPIRO
NSC FOR DAN FISK
TREASURY FOR DAS NANCY LEE
USCINCSO FOR POLAD
E.O. 12958: DECL: 07/19/2016
TAGS: PGOV PHUM PREL AR
SUBJECT: ARGENTINA: KIRCHNER AT THREE YEARS
REF: A. 05 BUENOS AIRES 02728
¶B. 05 BUENOS AIRES 03056
¶C. BUENOS AIRES 00293
¶D. BUENOS AIRES 01403
¶E. BUENOS AIRES 00097
¶F. BUENOS AIRES 01566
Classified By: Ambassador Lino Gutierrez for Reasons 1.4 (B) and (D).
-------
SUMMARY
-------
¶1. (C) Coming to power after one of the worst economic,
political and social crises in Argentina's history, President
Nestor Kirchner has had a successful first three years in
office. He is seen as a strong and decisive leader and is
credited with restoring governability to the executive branch
and promoting Argentina's impressive economic recovery.
Kirchner has high public approval ratings and has restored
public optimism in Argentina. Despite these major successes,
Kirchner continues to face considerable challenges in dealing
with poverty, crime, inflation, and the need to attract more
foreign investment and resolve Argentina's long-term energy
shortage. Although Kirchner started his presidency by
strengthening the independence of the Supreme Court, Kirchner
has since then failed to strengthen Argentina's institutional
democracy, and in many cases has weakened it. Kirchner's
reliance on presidential decrees, manipulation of the
electoral system, tightened control over the Judiciary, and
pursuit of permanent "super" budgetary powers have enhanced
presidential power at the expense of Argentina's already weak
institutional framework. Kirchner campaigned in 2003 on a
strong anti-corruption message and his first Justice
Minister, Gustavo Beliz, championed the cause of rooting out
official corruption, but the GOA has placed less emphasis on
fighting corruption since Beliz was fired in 2004. On the
foreign policy front, President Kirchner's lack of attention
and understanding in the international relations arena has
resulted in an erratic GOA foreign policy. The Kirchner
administration's most important foreign policy theme is the
promotion of regional integration, which in practice has
meant the strengthening of relations with Venezuela and
Brazil. End Summary.
-------------------------
KIRCHNER'S MANY SUCCESSES
-------------------------
¶2. (C) Coming to power after one of the worst economic,
political and social crises in Argentina's history, President
Nestor Kirchner has had a successful first three years in
office. When Kirchner first took office in May 2003, many
analysts doubted he would finish his term. Since that time,
Kirchner has gained full control of the Peronis Party (PJ),
asserted his authority over the military, largely co-opted
the piquetero movement that threatened the stability of past
governments, won control of Congress in the October 2005
elections and maintained high public approval ratings. Not
only is Kirchner's survival no longer in doubt, polls show
that Kirchner would easily win reelection if elections were
held today. Kirchner controls Argentina's political system
and faces a weak and divided opposition. Kirchner has also
proven adept at the traditional Peronist art of co-opting key
elements of the opposition, including a majority of the
opposition governors.
¶3. (C) He is seen as a strong and decisive leader and is
credited with restoring governability to the executive branch
and promoting Argentina's impressive economic recovery.
Polls show that the Argentine public views Kirchner as a
decisive leader who was able to take charge and turn the
country around during a difficult time in Argentine history.
The wave of public demonstrations that stemmed from the
2001-2002 economic crisis that brought presidential authority
in Argentina to one of its lowest ebbs has subsided and
Kirchner has adeptly managed relations with protest leaders.
On the economic front, Argentina has strongly rebounded from
the crisis, with GDP growth rates of 9 percent for the past
BUENOS AIR 00001594 002 OF 005
three years. Through the GOA's private sector debt deal and
by paying off Argentina's IMF debt, Argentina's external debt
has been brought to a manageable level for the first time in
a decade. Under Kirchner's watch, Argentina has amassed
record budget surpluses. The tax collection system -- a
perennial problem for Argentine governments -- has been
significantly improved, albeit aided by the use of
distortionary taxes like the financial transaction tax and
the export tax. Argentina's move to a market-based exchange
rate regime in 2002 has triggered an export-led boom during
Kirchner's presidency that has been the driving factor behind
robust growth, accompanied by significant declines in
unemployment and poverty levels.
¶4. (C) Kirchner has high public approval ratings and has
restored public optimism in Argentina. Kirchner's approval
ratings stand at 65-75 percentage points -- depending on the
poll and how the question is asked -- a historical high for
an Argentine president three years into his term. Polls by
leading Argentine pollsters show that Kirchner receives high
marks for his handling of the economy and for promoting
political stability. Argentines also have developed a
renewed sense of optimism under Kirchner's administration.
In recent polling by a leading opinion research firm, a
plurality of respondents -- 44 percent -- thought that
conditions in Argentina would improve over the coming year,
while only 12 percent thought things would get worse. In
March 2003, the month Kirchner was elected, polling by the
same firm showed that only 29 percent of the population
thought things would get better in the coming year, while 30
percent thought things would get worse.
-----------------
CHALLENGES REMAIN
-----------------
¶5. (C) Despite these major successes, Kirchner continues to
face considerable challenges in dealing with persistent
poverty and high crime. Poverty rates have been nearly
halved from almost 60 percent of the population at the height
of the economic crisis to 34 percent today. At the same
time, however, reducing poverty in this traditionally
affluent country continues to be a major social policy
imperative for the Kirchner administration. The continued
problem of inflation -- which stood at 12.3 percent in 2005
and is on track to maintain a double digit rate in 2006 -- is
also of a top GOA concern. The GOA has resorted to price
controls, bullying producers to lower prices, and even banned
the export of beef as a means to control inflation. (See
Septel on evaluating Kirchner's economic policy.) Crime
continues to be a major public focus according to opinion
surveys. Argentines accustomed to minimal crime rates,
particularly in the Greater Buenos Aires area, have since the
economic crisis faced a major problem with street crime, home
invasions, kidnappings and other types of violent crime. The
Capital has had several recent cases of shootings, robberies
and rapes that have garnered a lot of media attention, giving
the public the sensation of a surge in crime. Interior
Minister Anibal Fernandez recently stated that GOA statistics
in fact show that crime is down, but this assertion is
impossible to verify because the GOA has not published
national crime statistics since 2004.
¶6. (C) On the economic front, sustained growth requires
increasing infusions of foreign investment, dealing with the
energy shortage and controlling inflation. Private Direct
Foreign Investment has increased significantly since the
crisis, particularly in the tradable goods and services
industries. Nevertheless, other sectors (e.g. public
services) are badly in need of investment in order to sustain
continued growth. A strategic flaw in the economic equation
continues to be the energy sector. The Kirchner
administration has faced serious pressure from utility
companies and the G-7 to raise utility rates that have been
pesified and then frozen for residential users since the peso
devalued in 2002. So far, the GOA has been unwilling to
raise utility rates for residential users, but Kirchner
recently said he is open to discussions on the issue,
although he made no promises. Without a utility rate
BUENOS AIR 00001594 003 OF 005
increase, it is doubtful that Argentina will see major new
foreign investments in public utilities in the short-term.
Argentina's gas and electricity production has not kept up
with the rapid growth of demand due to the absence of market
incentives (price) to invest or expand production. (Comment:
Kirchner's unorthodox methods of controlling inflation,
frozen utility rates and hardball tactics with the private
sector may earn Kirchner short-term benefits, but they are
not long-term solutions to Argentina's economic problems
because they scare away foreign investment that Argentina
needs to sustain its economic growth. End Comment.)
--------------------------------------------- -------
KIRCHNER WEAK ON SUPPORT FOR INSTITUTIONAL DEMOCRACY
--------------------------------------------- -------
¶7. (C) Although Kirchner began his presidency by
strengthening the independence of the Supreme Court, his
record since then on institutional-democracy building has
been poor. Upon assuming office, Kirchner moved quickly to
clean up former President Carlos Menem's "automatic majority"
Supreme Court that was widely regarded as corrupt. Kirchner
and his supporters in Congress forced three Menem-era Supreme
Court justices to resign and impeached two others. Kirchner
then appointed four well-respected jurists to succeed them.
However, since that time Kirchner has failed to fill the
remaining vacancies on the high court -- a second vacancy
opened up after another justice retired -- reducing the
effectiveness of the court. (Note: Rulings still require the
support of five justices, which is more difficult to achieve
with only seven instead of nine on the bench. End Note.) A
proposal by legal experts to reduce the number of Supreme
Court justices from nine to five, as it was before Menem's
1990 controversial judicial reform, has not been pursued by
the Kirchner administration.
¶8. (C) Over the past year, Kirchner has instigated a number
of actions that have further debilitated Argentina's already
weak democratic institutions. Kirchner has issued hundreds
of presidential decrees during his presidency, preferring to
avoid discussion or delay in Congress, and signed more
decrees in his third year of his presidency than laws
approved by Congress. A new law sponsored by his wife,
Cristina Fernandez de Kirchner, nominally is designed to
regulate the presidential-decree-making process. The bill,
which will likely be signed into law shortly, would authorize
presidential decrees that are not voted down by both houses
of Congress. The proposed bill does not set a time limit on
when Congress is required to vote after a presidential decree
is issued and allows decrees to remain in force pending a
congressional vote. (Note: Senator Cristina Kirchner
proposed a bill in 2000 designed to regulate presidential
decrees when Fernando de la Rua of the Radical Civic Union
(UCR) was President. Unlike her current bill, the 2000
Cristina Kirchner bill required Congress to vote on
presidential decrees within 20 days of their issuance and
made the decrees invalid if just one house of Congress voted
against them. Senator Kirchner's bill was not approved in
2000, but UCR Senator Rodolfo Terragno reintroduced
Kirchner's exact bill in the Senate earlier this year, to
which Senator Kirchner responded with the current modified
version of the bill. End Note.) (Comment: Congress'
regulation of presidential decrees is a long-overdue action
that was supposed to be addressed shortly following the 1994
constitutional reform. The current bill will serve to
legitimate what has become an arbitrary use of presidential
powers. Kirchner is not the first president to abuse the use
of presidential decrees, but he has taken their use to new
levels. End Comment.)
¶9. (C) Kirchner and his supporters' manipulation of the
electoral system before and after the October 2005
legislative elections gained them more power in Congress, but
sometimes ran counter to voters' wishes and the spirit of the
Constitution and electoral law. In the October elections,
the ruling PJ party split in five of the eight provinces that
were electing national senators, allowing them to gain all
three Senate seats in the five provinces. (Note: By dividing
in several provinces, and in most cases reuniting after the
BUENOS AIR 00001594 004 OF 005
election, the PJ circumvented a constitutional provision
reserving a portion of the Senate seats to miniority parties.
Electoral law further stipulates that those parties that
cannot agree on a unified electoral list hold primary
elections to choose candidates, which the PJ did not do in
most provinces. See Reftel A. End Note.) Kirchner's allies
in Congress also prevented right-wing Paufe leader Luis Patti
from taking his seat in Congress due to as yet unproven
allegations of human rights abuses when Patti was a police
commissioner during the last military dictatorship. Patti
was prevented from taking his seat despite a ruling by the
National Electoral Committee prior to the election that there
was nothing preventing Patti from assuming office and despite
the nearly 400,000 people that voted for him in Buenos Aires
province (See Reftel B).
¶10. (C) Kirchner and his allies have used other questionable
tactics that contradicted voters' intentions and have
supporting provincial allies in overturning term limits.
Cabinet Chief Alberto Fernandez drew newly-elected
congressman for the opposition Republican Proposal (PRO)
Eduardo Lorenzo Borocoto over to Kirchner's bloc by offering
his son a lucrative government job. Several Kirchner
congressmen elected in October never assumed their seats,
such as Jorge Taiana, who became Foreign Minister, and La
Rioja Governor Angel Maza, who left his newly-won Senate seat
to his sister, Ada Maza. Tucuman Governor Jose Alperovich,
with Kirchner's blessing, recently changed his province's
constitution to allow himself to run for reelection.
Kirchner is supporting similar efforts by friendly Governors
in Jujuy and Misiones, and Buenos Aires Governor Felipe Sola
is in discussions with Kirchner to allow him to change the
Buenos Aires Constitution or ensure a favorable legal ruling
so he also can run for reelection next year.
¶11. (C) Kirchner has achieved an unprecedented
centralization of decision-making, but has weakened
Argentina's system of checks and balances in the process. In
February 2006, Kirchner and his allies in Congress succeeded
in modifying the Council of Magistrates that regulates the
Argentine judicial system, strengthening the Casa Rosada's
control over the judiciary (See Reftel C). Congress is also
likely to shortly approve granting Cabinet Chief Alberto
Fernandez permanent "super" budgetary powers that will enable
him to freely move funds from one area of the budget to
another without approval from Congress. The opposition in
Congress claim the proposed law will strip Congress of its
fundamental democratic role of controlling the budget and
that these powers are no longer necessary because the
economic crisis is over. The opposition further argues that
the measure is simply designed to allow the GOA to spend
money however it wants during an election year, pointing out
that Alberto Fernandez reassigned ARP 500 million to social
and public works projects just two weeks before the October
2005 legislative elections using these same powers. The
Kirchners have lashed out repeatedly at the press and the
opposition for their criticism of the Casa Rosada's recent
actions in Congress. The GOA claims these are necessary
powers to ensure the smooth functioning of the government.
Regardless of the opposition's objections, the Casa Rosada
appears to have the necessary votes to approve the measure by
early August. (Note: These "super" budgetary powers were
first granted by Congress to the GOA at the start of the
economic crisis in 2001 and were re-approved every year
through the 2005 budget. They were not included in the 2006
budget -- passed before the October elections gave Kirchner
control of Congress -- because of opposition resistance. The
current bill would make these special budgetary powers
permanent. End Note.)
¶12. (S) Kirchner campaigned in 2003 on a strong
anti-corruption message and his first Justice Minister,
Gustavo Beliz, came with impeccable credentials and
championed the cause of rooting out official corruption.
Unfortunately, the GOA has placed less emphasis on fighting
corruption since then. In fact, since Beliz was fired in
2004, Kirchner has avoiding speaking publicly about official
corruption and the much-vaunted new Office of Anti-Corruption
has failed to live up to its envisioned potential. There
BUENOS AIR 00001594 005 OF 005
also have been credible allegations that Planning Minister
Julio De Vido, a key Kirchner insider, has been involved in
questionable federal and provincial public works contracts
during Kirchner's presidency (See Reftel D).
--------------------------------------------
KIRCHNER FOREIGN POLICY SUFFERS FROM NEGLECT
--------------------------------------------
¶13. (C) President Kirchner's lack of attention and
understanding in the international relations arena has
resulted in an erratic GOA foreign policy. President
Kirchner is not skilled at international diplomacy and relies
on an ever-shrinking group of long-time advisors who lack
foreign policy expertise to make key decisions. Kirchner has
touted Mercosur as a regional alternative to the FTAA, but
his conflict with Uruguay over the construction of two paper
plants has caused a crisis within the trading bloc.
President Kirchner has recently sought closer relations with
Spain, even as he is putting more pressure on Spanish
companies with major investments in Argentina, such as Repsol
and Aerolineas Argentinas. Kirchner has repeatedly thanked
the U.S. for its support to Argentina during the crisis and
sought to strengthen the bilateral relationship after
short-circuits during the Summit of the Americas, but took
the opportunity during a recent press conference in Madrid to
criticize the U.S. and claim that the U.S. left Argentina to
face the crisis alone (See Reftel E).
¶14. (C) The Kirchner administration's most important foreign
policy theme is the promotion of regional integration, which
in practice has meant the strengthening of relations with
Venezuela and Brazil. Argentina's most important goal during
its recent presidency of Mercosur was the integration of
Venezuela into the trading bloc (See Reftel F). Kirchner's
top officials have repeatedly told Embassy officials that the
GOA's relationship with Venezuela is based on economics and
Mercosur. Kirchner sees Venezuela as a solution for
Argentina's energy and financing problems. Kirchner, who
normally places a low priority on foreign relations, in the
past 12 months has traveled twice to Caracas and hosted
Chavez three times in Argentina. Kirchner will host Chavez
again for the July 20-21 Mercosur Summit in Cordoba,
Argentina. Kirchner has also sought to strengthen relations
with Brazil, recently endorsing Brazilian President Lula's
reelection and signing an accord on automobile sales between
the two countries.
¶15. (C) To his credit, Kirchner has remained committed to
OAS efforts to return Haiti to stability and constitutional
democracy. Senior GOA officials assure us that Argentine
peacekeepers will remain on the island for the long-term.
-------
COMMENT
-------
¶16. (C) President Kirchner has numerous successes to show
after three years in office. The economy is booming and
Argentines feel a level of stability and dignity has been
restored to their country which was lost in the political,
economic and social disaster of 2001-2002. In Kirchner's
first years in office, Argentina needed a strong hand to lead
it out of the depths of crisis. History has shown that
long-term, broad-based economic growth needs to be
accompanied by a strong institutional framework. Now that
the crisis has past, the country needs a leader that is
willing to spend some of his built-up capital to strengthen
Argentina's weak democratic institutions. To date, it is
unclear whether Kirchner has the will or capacity to make
this transition. End Comment
GUTIERREZ