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Cablegate: U.S. No Vote On Idb Satellite Loan: Embassy

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RR RUEHWEB

DE RUEHBU #2038 2511005
ZNR UUUUU ZZH
R 081005Z SEP 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 5833
INFO RUEHAC/AMEMBASSY ASUNCION 5653
RUEHBO/AMEMBASSY BOGOTA 1395
RUEHBR/AMEMBASSY BRASILIA 5478
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RUEHDG/AMEMBASSY SANTO DOMINGO 0217
RUEHTG/AMEMBASSY TEGUCIGALPA 0085
RUEHSO/AMCONSUL SAO PAULO 2965
RUEAIIA/CIA WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHMFISS/HQ USSOUTHCOM MIAMI FL
RHEHNSC/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUCPDOC/USDOC WASHDC

UNCLAS BUENOS AIRES 002038

SIPDIS

SENSITIVE
SIPDIS

E FOR THOMAS PIERCE, WHA FOR WHA/BSC AND WHA/EPSC
PASS NSC FOR JOSE CARDENAS
PASS FED BOARD OF GOVERNORS FOR PATRICE ROBITAILLE
EX-IM BANK FOR MICHELE WILKINS
OPIC FOR GEORGE SCHULTZ AND RUTH ANN NICASTRI
PASS USTR FOR SUE CRONIN AND MARY SULLIVAN
TREASURY FOR AFAIBISHENKO,AJEWELL
USDOC FOR ALEXANDER PEACHER AND JOHN ANDERSEN
US SOUTHCOM FOR POLAD

E.O. 12958: N/A
TAGS: EFIN ECON ETRD AR
SUBJECT: U.S. NO VOTE ON IDB SATELLITE LOAN: EMBASSY
DEMARCHE

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REF: STATE 147037

1. (U) Post delivered reftel talking points to Foreign
Ministry North America Director Ambassador Vicente Espeche
Gil, to Ministry of Economy Director for International
Organization Projects Gerardo Hita and to the Foreign
Ministry's CONAE (NASA-equivalent) Executive Director Conrado
Varotto. Prior to the IDB vote, the gist of these points had
been conveyed by Charge to Deputy Foreign Minister Roberto
Garcia Moriton.

2. (SBU) GoA officials took on board our points that the
U.S. no vote on the IDB satellite project does not/not
reflect a change in U.S. policy towards Argentina but rather
a belief that MDBs should focus their resources on countries'
more immediate development needs. The GoA, however, appeared
not to accept this argument. The Foreign Ministry took the
unusual step of issuing a September 6 public statement
expressing satisfaction with the IDB decision; regretting
views expressed by ""certain"" BID member countries; hoping for
an ""evolution"" in these member countries' views to recognize
the significant impact high technology efforts can have on
broad social and economic development objectives; and casting
the satellite project as an ambitious joint effort with Italy
that will contribute to the global catastrophe early warning
and prevention system. CONAE's Varotto told Emboff the U.S.
vote ""will make my life difficult."" He explained that, while
all of Argentina's space projects are designed to promote
economic and social development, this development message
will now be more difficult to convey to those in the GoA who
determine the space agency's budget.

3. (SBU) The media has uniformly cast this as a negative
vote and a negative signal from the United States to
Argentina, the result of tensions in the bilateral
relationship. Journalists clearly obtained and noted official
U.S. statements, but lent them little weight as the real
rationale for the decision.
MATERA

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