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### Viewing cable 09BUENOSAIRES988, ARGENTINA'S CORDOBA GOVERNOR ON THE KIRCHNERS,

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09BUENOSAIRES988 | 2009-08-31 23:11 | 2011-02-04 21:09 | CONFIDENTIAL | Embassy Buenos Aires

`

    VZCZCXYZ0000
    PP RUEHWEB

    DE RUEHBU #0988/01 2432311
    ZNY CCCCC ZZH
    P 312311Z AUG 09
    FM AMEMBASSY BUENOS AIRES
    TO RUEHC/SECSTATE WASHDC PRIORITY 4293
    INFO RUCNMER/MERCOSUR COLLECTIVE PRIORITY
    RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC PRIORITY
    RUEAIIA/CIA WASHINGTON DC PRIORITY

` `

    C O N F I D E N T I A L BUENOS AIRES 000988

    SIPDIS

    E.O. 12958: DECL: 08/31/2039
    TAGS: PREL PGOV ECON EAGR AR
    SUBJECT: ARGENTINA'S CORDOBA GOVERNOR ON THE KIRCHNERS,
    2011 PRESIDENTIAL CANDIDATES, AND BUDGET WOES

    REF: A. 08 BUENOS AIRES 0980 AND PREVIOUS
    ¶B. BUENOS AIRES 0750

    Classified By: CDA Thomas P. Kelly for reasons 1.4 (b) & (d).

    ¶1. (C) Summary: Cordoba province Governor and Peronist
    dissident Juan Schiaretti engaged with the CDA on Argentina's
    First Couple, 2011 presidential candidates, and the
    province's budgetary woes. Schiaretti said that former
    President and First Spouse Nestor Kirchner (NK) sees a
    divided opposition as giving him the space necessary "to do
    what he wants" despite his defeat in the June 28
    congressional midterms (ref B). Schiaretti said the Peronist
    Party (PJ) needs to identify soon a 2011 presidential
    candidate. While he sees Santa Fe Senator Carlos Reutemann
    as the "best candidate," he described VP Julio Cobos as
    possibly Argentina's next President -- and spoke favorably of
    Cobos as well. Schiaretti said NK probably wants to run, but
    cannot win. Schiaretti believes his province is being
    singled out by President Cristina Fernandez de Kirchner (CFK)
    and NK because Schiaretti's provincial slate performed better
    than the Kirchner-allied Victory Front (FpV) slate in the
    June midterms in Cordoba. He said the province has
    repeatedly asked the government for the federal
    revenue-sharing funds it owes Cordoba. He noted he has
    warned the government that if they do not receive the funds,
    the province will issue scrip. Despite his province's
    current economic problems, he seemed upbeat and unfazed by
    the conflict with the national government. Schiaretti will
    visit Washington in late October and would welcome the
    opportunity to speak with USG officials. End Summary.

    ¶2. (SBU) The CDA met August 26 with Peronist dissident Juan
    Schiaretti of Cordoba Province, the Governor of Argentina's
    third largest electoral district. Schiaretti was elected to
    office with the First Couple's endorsement, but over the past
    year he has maintained shaky relations with President
    Cristina Fernandez de Kirchner (CFK) and former President and
    First Spouse Nestor Kirchner (NK) over the government's
    extended conflict with the agricultural sector (ref A), which
    has not gone over well with Cordoba's farm-dependent
    population. In the June midterms, Schiaretti and his allies
    withheld support from the Kirchner-allied Victory Front (FpV)
    alliance and ran on a separate ticket (ref B). The
    Schiaretti-backed ticket came in third with 26% behind the
    Radicals and the Civic Coalition, but well ahead of the
    Kirchner ticket (9%). Schiaretti told the CDA that he plans
    to travel to Washington in late October to visit the
    Inter-American Development Bank to discuss projects in the
    province, and would welcome the opportunity to speak with USG
    officials about Argentina.

    Views of the Kirchners
    ----------------------

    ¶3. (C) Schiaretti said that although the FpV lost the June
    midterms, NK sees a divided opposition as giving him the
    space necessary "to do what he wants." The Governor said
    that NK's problems and missteps with the farm sector stem
    from his origins in oil-dependent Santa Cruz province, where
    the agricultural sector barely registers. For NK, he said
    the farm sector, in particular the soy crop, is little more
    than a cash cow. Schiaretti described NK as a "special
    character," noting he cannot speak frankly with him and does
    not understand his mindset. On the other hand, Schiaretti
    confided that he continues to enjoy a constructive and fluid
    relationship with CFK. For example, he relayed that during
    his August 12 meeting with the President, he asked her what
    the government was doing with all its money, since the
    country has the same high levels of poverty and low
    investment. Schiaretti believes the CFK administration
    should focus on bringing credibility back to the national
    statistical agency, INDEC; establishing a secure investment
    climate; and resolving its disagreements with the IMF. He
    added "the big question is...will they do it?"

    Nestor Eyeing the 2011 Presidential Race
    ----------------------------------------

    ¶4. (C) Schiaretti said the Peronist Party (PJ) needs to
    identify soon a 2011 presidential candidate. He said he
    shares former President Eduardo Duhalde's concerns that if
    the PJ is not able to select a candidate from Argentina's
    fertile Pampas region, where 80 percent of the country's
    population lives, the party will lose the race. Schiaretti
    did not discount the possibility that NK is considering a
    2011 presidential bid, and said that he thought that the
    government's recent suggestion that the PJ presidential
    candidate be selected in a series of four regional primaries
    was intended to preserve the Kirchners' chances of

    prevailing. He explained that the primaries would be set
    first in smaller, poorer provinces, where the Kirchners could
    use the power of the purse to woo Peronist voters, then
    entering the larger primaries with political momentum.

    ¶5. (C) Schiaretti predicted, however, that if the PJ wants
    to win in 2011, it has to find another candidate. That is
    particularly true in Cordoba, he said, where the Kirchners,
    with an 85% disapproval rating, fare worse than anywhere else
    in the country. (Note: According to polling published in
    leading daily "Clarin" on August 23, only 2.5% of those
    polled identified NK as their top choice for President in
    2011, which is almost the same level of support garnered by
    unpopular former President Carlos Menem.)

    Cobos and Reutemann are Front-Runners
    -------------------------------------

    ¶6. (C) Schiaretti said Peronist dissident Senator Carlos
    Reutemann from Santa Fe is the best 2011 presidential
    candidate, but added that the Senator marches to a different
    drummer and is not likely to declare his candidacy any time
    soon. He said that Schiaretti agreed with Duhalde that
    Reutemann and the PJ would be better off if the Senator
    declared his intentions sooner rather than later; otherwise,
    he feared, the Peronist leadership would look for other
    champions, especially given Reutemann's reputation for
    indecisiveness. Unlike Duhalde, who earned a harsh public
    rebuke from Reutemann last week for his comments on that
    subject, Schiaretti said that he has not expressed his
    opinion publicly out of deference to Reutemann, whom he said
    had explicitly asked him to not pressure him on that score
    (septel on CDA's August 27 conversation with Reutemann).
    Schiaretti described Reutemann, a former Formula One racing
    champion whom he knows well, as "a very special person with a
    unique mindset." Stressing his point, he added, "there are
    only ten people on the planet who can drive a car at speeds
    of 300 km/hour." As to CFK's highly-popular Vice-President
    Julio Cobos, Schiaretti described Cobos as a "good person"
    and very possibly Argentina's next President.

    Cordoba's Economic Troubles
    ---------------------------

    ¶7. (C) Schiaretti discussed in depth his concerns about
    Cordoba's economy. He said his province is being singled out
    by CFK and NK because in the June midterms in Cordoba
    Schiaretti's provincial slate performed better than the FPV's
    slate (reftel A). Schiaretti added that if NK wants to
    strengthen Argentina's economy, then NK cannot help but
    invest national resources in Cordoba. Schiaretti said he has
    repeatedly asked the central government to provide the
    revenue-sharing funds it owes the province. He added, "We
    have a huge debt. If they do not send the funds, we will be
    in trouble," adding that there are ten provinces financially
    worse off than Cordoba. (Note: Newspaper-of-record "La
    Nacion" reported on August 27 that Cordoba is one of 13 (out
    of 23) provinces in addition to Buenos Aires City with
    particularly high levels of debt. As of 2008, Cordoba's debt
    was AR 8.1 billion pesos (estimated USD 2.1 billion).
    Economy Minister Amado Boudou told CDA that the national
    government will not allow Cordoba to issue bonds to help
    service its debt.) Schiaretti said he may have to delay
    payment for one week in September of government employees'
    salaries. In addition, he said if they do not receive the
    revenue-sharing funds, the province will be forced to issue
    scrip and can do so without permission from the national
    government. (Note: During the 2001 crisis, Cordoba was among
    15 provinces that issued scrip to meet its obligations.)

    Bio Data
    --------

    ¶8. (SBU) Schiaretti brings three decades of experience
    working at various levels in the Cordoba provincial
    administration. Schiaretti won the 2007 gubernatorial race
    with 37.17% of the votes under Cordoba Union, a coalition of
    parties backed by NK. (Note: NK also supported Schiaretti's
    main rival, Luis Juez, who came in second by a difference of
    0.8%. Both Schiaretti and Juez are bitter opponents of NK,
    though they also bitterly oppose each other.) Schiaretti
    served as Vice Governor of Cordoba Province from 2003 until
    assuming his current post. His previous public sector
    positions include: Minister of Production and Finance in
    Cordoba province (2002-2003); National Deputy for Cordoba
    (2001-2002); Minister of Production in Cordoba province
    (1999-2001); National Deputy for Cordoba (1995-1997); Federal
    Trustee in Santiago del Estero province (1994-1995); National
    Deputy for Cordoba (October-December 1993); Undersecretary
    for Latin-American Integration in the Ministry of Foreign

    Affairs (1989-1990); Secretary of Industry and Commerce in
    the Ministry of Economy (1991-1993); Legal Technician for the
    Implementation of the Industrial Promotion Law for Cordoba
    (1972-1974); and Budget Technician in the Agriculture
    Secretariat of Cordoba Province (1971-1972). Schiaretti has
    also worked in the private sector. In 1977, FIAT Company in
    Belo Horizonte, Brazil, hired him as a financial assistant.
    Schiaretti worked in the company for seven years, becoming
    its deputy director for management.

    ¶9. (SBU) Born on June 19, 1949 in Cordoba City, Governor
    Schiaretti earned an accounting degree from the National
    University of Cordoba in 1970. In 1997, Schiaretti married
    Alejandra Maria Vigo, then secretary general of the Cordoba
    section of the province-based Housewives' Union. Vigo, who
    served as a provincial legislator (2003-2007) for the
    dissident Peronist-aligned Cordoba Union coalition, lost her
    bid for a national deputy seat in the June 2009 midterms.
    The couple has two children.

    Comment
    -------

    ¶10. (C) As in past occasions, the Governor was a friendly and
    candid interlocutor. Despite his province's glum fiscal
    prospects, he seemed upbeat and determined in his
    confrontation with the national government over revenue
    sharing. Given that the Argentine Embassy is unlikely to
    help him get meetings in Washington, we would be pleased to
    arrange for Washington-based Argentina watchers to meet with
    this important politician.

    KELLY

`