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### Viewing cable 07BUENOSAIRES1833, ARGENTINA: AMBASSADOR'S VISIT TO THE TRIBORDER AREA

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07BUENOSAIRES1833 | 2007-09-13 16:45 | 2011-07-11 00:00 | SECRET//NOFORN | Embassy Buenos Aires

`

    VZCZCXYZ0000
    OO RUEHWEB

    DE RUEHBU #1833/01 2561645
    ZNY SSSSS ZZH
    O 131645Z SEP 07
    FM AMEMBASSY BUENOS AIRES
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 9241
    INFO RUEHAC/AMEMBASSY ASUNCION IMMEDIATE 6568
    RUEHBR/AMEMBASSY BRASILIA IMMEDIATE 6433
    RUEHMN/AMEMBASSY MONTEVIDEO IMMEDIATE 6761
    RUEAIIA/CIA WASHINGTON DC IMMEDIATE
    RUEABND/DEA HQS WASHINGTON DC IMMEDIATE
    RUEHLP/DEA LA PAZ SEP IMMEDIATE
    RHMFISS/DEPT OF HOMELAND SECURITY WASHINGTON DC IMMEDIATE
    RHMFISS/DEPT OF JUSTICE WASHINGTON DC IMMEDIATE
    RUEATRS/DEPT OF TREASURY WASHINGTON DC IMMEDIATE
    RHEFDIA/DIA WASHINGTON DC IMMEDIATE
    RHMCSUU/FBI WASHINGTON DC IMMEDIATE
    RHMFISS/HQ USSOUTHCOM MIAMI FL IMMEDIATE

` `

    S E C R E T BUENOS AIRES 001833

    SIPDIS

    NOFORN

    SIPDIS

    E.O. 12958: DECL: 09/12/2027
    TAGS: PTER EFIN KCRM PREL PGOV SNAR AR PA BR
    SUBJECT: ARGENTINA: AMBASSADOR'S VISIT TO THE TRIBORDER AREA

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

    ¶1. (S/NF) Summary: On September 11, top Argentine
    intelligence officials and analysts briefed Ambassador on
    their perspective of the terrorist threat in the Tri-Border
    Area (TBA).  They noted that Hizballah maintains a real
    structure in the region, including experienced agents.  They
    detailed advantages of the triborder region, noted that U.S.
    Treasury designations had led Hizballah to become more
    circumspect in its practices, and expressed their
    frustrations at the challenges of trying to counter terrorism
    concerns with in three separate national jurisdictions.

    ¶2. (C) Ambassador met September 6 in Puerto Iguazu with the
    Argentine Gendarmeria's and Federal Police's (PF)
    counterterrorism units and was briefed on their "targets of
    interest," linked to terrorism financing and other illicit
    activities, operating in the TBA.  These mostly family-based
    business groups, with origins in and ties to Lebanon, are
    involved in the sale of contraband electronic goods,
    appliances, and clothing, but also deal in the trafficking of
    persons, drugs, and arms.  The money is either flown out in
    bulk or sent through a network of legal and illegal currency
    exchange house.

    ¶3. (C)  In Ciudad del Este, Paraguay, Ambassador together
    with Embassy Asuncion DCM Fitzpatrick, toured the bustling
    streets, witnessed the endless packaging of bundles on their
    way to Foz do Iguacu, and met with a Paraguayan federal
    economic prosecutor working to stem the illicit flow.
    Reported Septel, Ambassador and Embassy Asuncion DCM also
    visited the International Organization for Migration's
    regional anti-TIP program while in Ciudad del Este. End
    Summary.

    VIEW FROM THE BORDER
    --------------------
    ¶4. (C) Puerto Iguazu Federal Police and Gendarmeria
    counterterrorism units briefed Ambassador and EmbOffs
    September 6 on their activities in the TBA.  Their
    information on the organization and activities of the
    "targets of interest" operating in the TBA, individuals and
    family-based business groups of largely Lebanese origin, is
    extensive.  They noted the presence of individuals with
    experience working with the Hizballah in Lebanon.  Due to its
    proximity to Brazil and Argentina, the business of Paraguay's
    Ciudad del Este has long been in contraband goods, mostly
    electronics and appliances from the U.S. and Far East and
    locally produced pirated goods (DVDs, CDs, clothing).
    Although these business groups are
    largely of Middle Eastern origin, a number are owned and
    operated by Taiwanese-origin groups.  Most of the individuals
    are Brazilian and/or Paraguayan citizens who live in Foz do
    Iguacu, Brazil and run their businesses in Ciudad del Este,
    Paraguay.

    ¶5. (C) Several of their targets have been designated by U.S.
    Treasury for terrorism financing activities, and several are
    in jail or on trial in Paraguay for various infractions --
    some for drug trafficking, but most for tax and customs
    violations.  Ambassador noted the case of Al Capone in the
    United States, brought down by tax evasion charges rather
    than his violent crimes.  The Police and Gendarmeria
    officials agreed that this was the most effective way to go
    after these groups operating in the TBA.

    ¶6. (C) The contraband activity, though largely comprised of
    regular commercial items evading customs and tax duties, also
    includes drug and arms trafficking, document fraud, and
    trafficking in persons.  The profits are either flown out in
    bulk cash or wired out through legal and illegal networks of
    money exchange houses.  In Ciudad del Este, the Ambassador
    and Asuncion DCM met with a Paraguayan federal
    financial crimes prosecutor.  He related the difficult
    circumstances of his work (including pressures on his
    family), notably that his cases stall once they get to the
    courts, mostly due to corruption.  He said a key to success
    was in changing the practices of under-valuing customs
    declarations, including massive electronics imports from the
    U.S.  This practice, he argued, is essential to much of the
    contraband traffic.  Nevertheless, he noted some successes in
    prosecution and responded when asked that he was optimistic
    that authorities will eventually get the upper hand on the
    contraband trade.  He was extremely appreciative of continued
    strong USG support for vetted units such as his, which he saw
    as essential to success.

    VIEW FROM BUENOS AIRES
    ----------------------
    ¶7. (S/NF) On September 11, Argentine intelligence service
    analysts briefed Ambassador and EmbOffs on their perceptions
    of the terrorist threat.  Perhaps as a gesture on this
    important anniversary, the Secretary of Intelligence and his
    deputy who provides day-to-day leadership of the service
    participated.  The Argentines emphasized that Hizballah
    maintains a real structure in the Paraguayan and Brazilian
    portions of the TBA, which includes individuals who have been
    active Hizballah operatives in Lebanon and thus pose a higher
    potential threat.  They noted the TBA has many advantages: 1)
    relatively easy ways to make money; 2) easily available real
    "false" documents and easy immigration/residency/citizenship
    requirements; 3) very porous frontiers; and 4) the presence
    of many financial institutions and a large informal money
    flow.

    ¶8. (S/NF) The analysts noted that Hizballah has a second
    generation of leaders in the region and that they have made
    significant efforts to show themselves as good members of the
    community.  They also noted that once the U.S. Treasury
    designated several individuals in late 2006, local Hizballah
    members became very nervous and took steps to regularize
    their commercial practices and to pay their taxes.  They have
    generally become much more circumspect.

    ¶9. (S/NF) Comment:  Argentines at the border and in the
    Capitol were at pains to stress their desire to work as
    closely as possible with us.  The presence of the two top
    intelligence officials for the September 11 briefing signaled
    that.  However, it is also clear that the Argentines feel
    great frustration in the limits they face in cooperation with
    Paraguay and Brazil, and Uruguay too.  They know they have to
    work to make that cooperation better, but they clearly chafe
    at the current inefficiencies in going after the terrorist
    threat.

    WAYNE

`