Back and Forth with Washington

OPD 30 April 2014

Edited by Bora Mici

 

Ever since Vilma Martinez returned home, the United States has not had an ambassador in Argentina. The diplomatic mission is in the hands of the chargé d’affaires. In bilateral relations, the absence or withdrawal of an ambassador is a symptom of tensions. However, the lengthy vacancy in the U.S. Embassy in Buenos Aires is not necessarily a reflection on the clear bilateral differences between the Obama and Cristina Kirchner administrations.

A businessman, Noah Mamet, was a fundraiser for the Obama campaign. He was recognized with an assignment in Buenos Aires, a coveted destination in Latin America that brings the added benefit of living in the magnificent Bosch Mansion on Libertador Avenue.

It so happens that the Senate — in particular Senators McCain, the former Republican candidate, and Menendez — has blocked Obama’s ambassadorial designate. The hearing was a nightmare for Mamet, who admitted that he did not speak Spanish.

The Argentine ambassador in Washington is Cecilia Nahón, a political bureaucrat, who responds to Kicillof and maintains such a low profile with the media that she seems almost invisible, like the minister of security. Her appearance last week in Congress explains why.

The U.S. has signaled its support for Argentina in the U.S. Supreme Court case on vulture funds, giving the impression that the problems that caused distance between Washington and Buenos Aires had diminished.

It was an illusion. The U.S. Secretary of the Treasury Jack Lew appeared before Congress, and when he referred to the presentation to the Supreme Court justices, he said that “in general,” he would not defend Argentina’s behavior.

But, should there be any remaining doubt, Roberta Johnson of the Department of State, spoke to investors while at the Council of the Americas in New York, noting that U.S. support for the vulture funds deal “does not mean that we agree with Argentina’s decisions.”

Both of these clarifications were made precisely to dissipate any rumors of improving ties. The Obama administration’s concern, in any case, is linked to the impact that financial markets could experience if Argentina were forced to pay into the vulture funds 100 percent of the value of the bonds could have in financial markets. The Pari-passu clause, which establishes equal treatment of all bondholders, expires at the end of this year.

Relations between Argentina and the U.S. fell to their lowest level when Minister of Foreign Affairs Héctor Timerman, who became an American citizen during his exile to the United States, used a pair of clippers to open a case containing secret U.S. military codes brought by a plane that was sent to be used in a program of police cooperation.

Later, the agreement with Iran confirmed the poor relations.

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