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### Viewing cable 06MONTEVIDEO345, MINISTER ASKS FOR SIGNAL OF USG OPENNESS TO AN FTA PRIOR TO VAZQUEZ-POTUS MEETING

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06MONTEVIDEO345 | 2006-04-11 19:04 | 2011-07-12 00:00 | CONFIDENTIAL | Embassy Montevideo

`

    VZCZCXYZ0013
    RR RUEHWEB

    DE RUEHMN #0345/01 1011904
    ZNY CCCCC ZZH
    R 111904Z APR 06
    FM AMEMBASSY MONTEVIDEO
    TO RUEHC/SECSTATE WASHDC 5662
    INFO RUCNMER/MERCOSUR COLLECTIVE
    RUEHLP/AMEMBASSY LA PAZ APR SANTIAGO 2825
    RUMIAAA/CDR USSOUTHCOM MIAMI FL
    RUEHC/DEPT OF AGRICULTURE WASHDC
    RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
    RUEATRS/DEPT OF TREASURY WASHDC
    RHEHNSC/NSC WASHDC

` `

    ,C O N F I D E N T I A L MONTEVIDEO 000345

    SIPDIS

    SIPDIS

    DEPT FOR WHA/AS SHANNON AND EB/AS WAYNE
    DEPT ALSO FOR WHA/BSC BARNES, CROFT AND MURRAY
    DEPT PLEASE PASS USTR
    TREASURY FOR OASIA FOR DOUGLAS
    COMMERCE FOR ITA/MAC BASTIAN
    NSC FOR FISK AND CRONIN
    SOUTHCOM FOR POLAD

    E.O. 12958: DECL: 04/11/2016
    TAGS: ECON ETRD PREL UY
    SUBJECT: MINISTER ASKS FOR SIGNAL OF USG OPENNESS TO AN FTA PRIOR TO VAZQUEZ-POTUS MEETING

    REF: A. MONTEVIDEO 0306

         ¶B. MONTEVIDEO 0229

    Classified By: Charge d'Affaires James D. Nealon
    for reasons 1.4 (b) and (d).

    ¶1. (U) This is an action request.  Please see Para #5.

    ¶2. (C) Summary:  Charge met with Industry Minister Lepra on
    April 10, shortly after Lepra's return from the Joint
    Commission on Trade and Investment (JCTI) meeting in
    Washington.  Lepra was positive about the JCTI's atmospherics
    but stressed that an FTA had to be the necessary next step.
    There is strong Cabinet consensus, he said, that ""this is the
    best thing we can do for our country.""  He was clearly
    worried, however, that time was running out and that, only
    three weeks away from the Vazquez-POTUS meeting, the GOU
    still did not know how the USG would respond to a Vazquez
    request to open negotiations on an FTA.  ""I don't want to
    throw my President into a pool without water,"" Lepra said.
    He requested a backchannel signal regarding U.S. openness to
    an FTA with Uruguay.  Lepra also mentioned that Vazquez
    intended to meet with USTR Portman, Commerce Secretary
    Gutierrez and a group of Republican senators ""favorably
    disposed towards Uruguay.""  Post requests Department guidance
    on the likely U.S. reply to Vazquez's expected FTA offer.
    End Summary.

    ¶3. (C) Charge met with Industry Minister Lepra on April 10,
    shortly after Lepra's return from the U.S., where he led the
    GOU delegation at the latest JCTI meeting.  Lepra was
    positive about the JCTI's atmosperics and looked forward to
    some progress on a few specific issues.  He stressed that an
    FTA had to be the next step, however, and repeatedly
    emphasized that now was the time for Uruguay to grab this
    opportunity, especially in view of next year's TPA
    expiration.  Lepra believed that the GOU's willingness to
    enter into negotiations and its preparation for this
    eventuality over the past several months would lead to quick
    agreement prior to year's end (Note:  This tracks with what
    we heard from Economy Ministry International Trade staff.
    End Note.)

    ¶4. (C) Asked about internal support for an FTA with the U.S.,
    Lepra stressed that there was a strong Cabinet consensus,
    with only ForMin Gargano (Socialist) and Social Programs
    Minister Arismendi (Communist) against.  He noted that even
    influential MPP leader and AgMinister Mujica was in favor.
    We are convinced this is the best we can do for our
    country,"" Lepra said.  When Charge asked how Mercosur would
    react to FTA negotiations with the U.S., Lepra said the GOU
    was convinced that the trade bloc would grant Uruguay the
    exception"" necessary to negotiate bilaterally with the U.S.
    Lula and Vazquez have good relations,"" he said, and he
    believed that Kirchner would approve it also.  He noted that
    a similar exception had been granted to Uruguay when it
    negotiated its bilateral FTA with Mexico, a negotiation led
    by now-Ambassador to the U.S. Carlos Gianelli.

    ¶5. (C) Lepra lsaid the GOU was holding back, due to the lack
    of clear signals from Washington about U.S. openness to an
    FTA with Uruguay.  While he admitted that neither he nor
    Ambassador Gianelli had formally asked for an FTA when in
    Washington, he noted they had talked at length with USG
    interlocutors about what FTA negotiations would entail, TPA
    timing and other related issues.  Lepra was clearly worried
    about the reply President Vazquez would receive in
    Washington.  ""I don't want to throw my President into a pool
    without water,"" he said.  He requested a backchannel signal
    from the USG about our receptivity to a Vazquez request.
    Vazquez is ready to ask for an FTA when in Washington, Lepra
    said, and he understands that the time has to be now (see ref
    B).  Charge replied that he would try to elicit some answer
    prior to Vazquez's departure for Mexico and the U.S. on April
    ¶25.  Post requests Department's guidance on reply to be
    relayed to GOU.

    ¶6. (C) Lepra then discussed Vazquez's schedule.  The
    presidential party will include ForMin Gargano, Economy
    Minister Astori and himself, and will spend April 26-28 in
    Mexico, and April 29-May 4 in Washington, before flying out
    through New York.  Lepra mentioned that Vazquez would request
    meetings with USTR Portman and Commerce Secretary Gutierrez,
    most probably on May 2 or 3.  A coffee was also being
    arranged with a group of Republican senators ""favorably
    disposed towards Uruguay"" on May 2 (Note:  We understand
    these may include Senators Lugar, Martinez and Coleman.  End
    Note.)  The presidential party will leave Washington for New
    York in the afternoon of May 4, after the POTUS meeting.

    ¶7. (C) Comment: Lepra and other GOU supporters of an FTA
    (among them Astori and Mujica) clearly believe that the FTA
    issue has come to a head, with the Vazquez-POTUS just three
    weeks away, and that the time to move forward is now, given
    TPA constraints.  GOU negotiators appear to have been
    preparing themselves for this eventuality for several months
    and believe that a negotiation could be quickly wrapped up.
    They believe that vazquez can handle any opposition from
    Mercosur partners through existing channels, as they did when
    they negotiated an FTA with Mexico.  For our part, we need to
    be able to convey a signal back to the GOU, whether positive
    or negative, prior to President Vazquez's departure on April
    ¶25.  End Comment.

    Nealon

`