Embarassing Argentine Farce - Argentina evacuates impounded frigate; Monday Timerman begins lobbying at the UN

The Argentine government ordered on Saturday the evacuation of the naval training frigate ARA Libertad impounded in Ghana by international creditors, following the warning made on Friday that complaints would be taken to the UN over the controversy.

Sombre faced ministers Puricelli and Timerman making the announcement

Foreign Minister Héctor Timerman and Defence Minister Arturo Puricelli gave a press conference Saturday evening from Government House in Buenos Aires, reading a communiqué sent by President Cristina Fernández, in which she ordered the evacuation of the ship

“President Cristina Fernandez has decided the immediate evacuation of all the crew members, Argentine and non Argentines so as to preserve their physical integrity and dignity leaving on board the Captain and a minimum number of sailors for the maintenance of the frigate while it remains retained” in the port of Tema, Ghana, said Minister Timerman.

The frigate has been retained since 2 October in Ghana on an injunction order from a New York court on request from New York and Caribbean based funds holders of Argentine defaulted sovereign bonds and which pretend to collect full principal and interests.

Timerman said that “Argentina makes the government of Ghana responsible for all and every damage that the frigate ARA Libertad might suffer until its release, as well as all the costs generated because of an illegal action that violates international law”.

The Argentine minister added that on Monday, on specific instructions from President Cristina Fernandez, he will be meeting with the president of the UN Security Council in New York, “as well as with all those committees that address violations of human rights, international treaties and financial crimes”.

“The ruling from the Ghana Justice which orders the retention of the Frigate ARA Libertad not only violates international treaties which oblige Ghana to guarantee the immunity of war vessels, but also has put at risk the human rights of the 326 crewmembers on board, among which citizens from Brazil, Chile, Uruguay, Paraguay, Venezuela, Ecuador, Bolivia and South Africa”, added the communiqué read by Timerman.

In direct criticism to the Ghana court ruling upholding the impound and banning ARA Libertad from bunkering, Timerman said that “the only reply from the magistrate to an Argentine request which contemplates the possibility of a tragedy, and the impossibility of providing the basic elements for any human being, was that we reach an agreement with the ‘vulture fund’ which presented the demand. It is then clear the intention of the magistrate to force a sovereign country to negotiate with an entity dedicated to financial piracy from its hideout in the Caribbean. That option, as was clearly stated yesterday (Friday) is the only unacceptable for Argentina”.

Standing next to Defence minister Arturo Puricelli Timerman concluded that an act “which ‘prima facie’ seemed a commercial impound has dropped its mask and is exposing the true face of the power of the ‘vulture funds’ that from their fiscal hideouts organize attacks which are none less than an abduction, an extortion and a piracy act against a sovereign country, founding member of the UN and of acknowledged participation in countless peace missions in the five continents”.

The ‘vulture funds’ in this particular case are demanding payment of over 300 million dollars in Argentine sovereign bonds which were not included in the voluntary restructuring of Argentina’s massive default in 2001. Between 2005 and 2010 Argentina managed to come to terms with 93% of bond holders, however there are still 7% pending most of them in the hands of these funds that precisely take advantage of these situations and try by all means (including impounding assets overseas) to collect the face value plus interests of those documents.

The defendant, in this case the Argentine Foreign Ministry, its representatives, agents including ARA Libertad Captain Lucio Salónica and the crew are barred from moving the vessel from the port of Tema without a new order from the court, according to last week’s ruling at the Accra High Court.

The plaintiff said it would accept a deposit bail of 20 million dollars to release the vessel but the Argentine government rejected the option point blank.

The Americas Defence ministers’ conference divided on Falklands/Malvinas issue

Argentina’s sovereignty claim over the Falklands/Malvinas Islands continues to generate discrepancies among countries of the Americas, as was exposed in the Declaration of Punta del Este, at the end of the X Conference of Defence Ministers of the Americas which took place in Uruguay.

Uruguayan Defence minister Fernandez Huidobro, “it remains a very controversial issue”

“The Malvinas issue is still very controversial for the Americas” admitted on Wednesday Uruguay’s Minister of Defence Eleuterio Fernandez Huidobro pro-tempore president and host of the event.

The Falklands/Malvinas issue and a peace zone in the South Atlantic, despite not being part of the official agenda of the meeting, was addressed by an ad hoc committee that held ‘long discussions’ during the four day meeting in an attempt to bring closer the different positions.

Nevertheless Argentina managed to include two articles in the final declaration on the issue, although 15 of the 34 countries from the Americas expressed some “degree of safeguard or reserve”.

All members agreed to subscribe Article 19 of the Declaration which points out that “in the framework of the peaceful character of the Americas continent nations, they express their willingness to promote peace and cooperation in the South Atlantic”.

This was followed by “recognition” of the “importance” of this year’s OAS AG/Dec70 declaration which “decided to continue examining the Malvinas Islands issue until its definitive solution, underlining that this is an issue of standing hemispheric interest”.

Regarding this text Argentina, Bolivia, Brasil, Ecuador, Guyana, Nicaragua, Peru, Suriname, Uruguay and Venezuela expressed “concern” over the “growing militarization” of the South Atlantic and exercises which include “firing missiles” as the ones taking place in the Malvinas Islands.

They also reiterated their “strong support” for the “legitimate rights” of Argentina in the sovereignty dispute over the Islands and the surrounding maritime spaces.

Chile, Colombia and Mexico coincided in the “support” to Argentine sovereignty claims over the Malvinas but with no reference to the “militarization of the South Atlantic” which is attributed to the UK.

The US pointed out that the Falklands/Malvinas issue does not correspond to the Defence ministers of the Americas forum, and Canada openly dissented with the inclusion of the paragraph arguing that it is a “bilateral issue” and underlined that the “population of the Falkland Islands have the right to determine their own future”.

The Declaration of Punta del Este also referred to the member-countries ‘conviction’ that democratic institutions are the “fundamental pillars” to achieve peace, security, social equality and development in the hemisphere countries.

They also pointed out the importance of cooperation in defence and security issues “to address the new challenges” and their support to measures that strengthen institutional capacities together with the commitment to update the inter-American defence system.

The need to modernize the Inter-American Reciprocal Assistance Treaty, (TIAR) going back to 1947 as well as the Inter-American Defence Board (JID), were the two issues of “ongoing strong debate” and with visions “quite distant” according to sources at the discussions.

In the final declaration the two visions were reflected in the request to the OAS Permanent Council ‘to program and advance”, with the participation of Defence ministries, of meetings “to discuss the future of the mission and functions” of the Inter-American defence system including the JID.

Ministers also pledged “to expand the dissemination process” of international humanitarian Law and human rights through “doctrine, training and education”, whatever the case, among the Armed and Security forces.

Finally the delegates of the 28 participants out of 34 country members voted for Peru to take over the pro tempore presidency of the eleventh defence ministers conference to be held in that country in 2014.

President Franco claims Venezuela regime supports terrorist group in Paraguay

Paraguayan president Federico Franco accused the Venezuelan regime of Hugo Chavez of ‘direct and malicious’ involvement in his country’s affairs in support of a ‘terrorist and criminal’ gang, the Popular Army of Paraguay, EPP, which has committed kidnappings, assaults and killings.

Franco made the statements during an interview with journalist Patricia Janiot from CNN in Spanish. He added that he has documents and other evidence to support his accusation of Venezuela interference in support of EPP.

According to the Paraguayan president the Chavez regime organized and developed training programs for members of EPP that have been involved in kidnapping for ransom, killings of police forces, assaults, arson and other criminal actions in Paraguay.

Franco said that some EPP terrorist group members were invited to Venezuela with scholarships for alleged agriculture training programs but once there “were not precisely involved in learning to till the land but rather in the use of weapons and guerrilla tactics”.

“We have evidence and documents to support what I am saying now” added Franco.

Asked what his administration was doing to confront the EPP, Franco said that it is based on two stages: immediate action and the long term.

“The first is to establish industries and agricultural activities to the north of the country with an effective participation of the State, the other, long term to combat the subversives”.

The interview took place at the Time-Warner studios in New York.

President Franco also had a brief encounter with British PM David Cameron in the UN grounds out of the two leaders’ agenda.

The Paraguayan president also met with Bill Clinton at the Clinton Global Initiative foundation Monday night.

Message to Mercosur: “Paraguay will never accept intervention by foreign powers in its internal affairs”

On what he described as the “first and last time” he will address the United Nations General Assembly, the President of Paraguay, Federico Franco, affirmed that his country will not abide by any infringement on its sovereignty.

 President Franco addressing the UN assembly recalled the holocaust of the Triple Alliance.

“Here, before humanity's highest assembly, I expressly declare that Paraguay will never accept intervention by foreign powers in its internal affairs,” President Franco told the 67th Assembly’s General Debate, at UN Headquarters in New York.

“We will continue building upon our democracy according to the will of the Paraguayan people, sovereignty exercised through our freely elected institutions,” he added.

In June, the landlocked South American country experienced a political crisis, with President Franco predecessor – Fernando Lugo – removed from office through an impeachment process instigated by the country’s National Congress.

Then serving as Vice President, Mr. Franco assumed the office of President. “Since then, in accordance with the oath of office, I govern Paraguay peacefully and democratically, fully respecting public liberties,” he noted.

The events led to a fact-finding mission led by the Organization of American States (OAS), as well as an extraordinary meeting of the Heads of State of the Union of South American Nations (UNASUR).

Subsequently, UNASUR, as well as MERCOSUR, adopted sanctions against Paraguay “without allowing it to exercise its right to defend itself, as clearly expressed in the international agreements that are invoked for the application of sanctions,” President Franco said.

“In violation of international treaties, these countries have attempted to become the custodians of Paraguayan democracy, putting aside the principle of non-intervention consecrated in our United Nations Charter,” he said. “But”, he underlined, “they will not defeat us”.

Throughout its history, he continued, Paraguay has suffered repeatedly as a result of “arrogant intervention” in its internal affairs.

“The holocaust known as the War of the Triple Alliance (1865/1870), resulting from an unjustifiable coalition (Brazil, Argentina and Uruguay) that decimated Paraguay's population and destroyed its economy has still not faded from the memory of my people,” he said, adding that every right enshrined in human rights agreements signed in the UN and OAS frameworks has been respected.

“In the short time of my government, our detractors have not been able to point out a single violation of the agreements we have mentioned,” he added.

Leadership is based on respect for International law. “Only this way can we have a common position to reform the Security Council, a long standing wish of this universal organization that hosts us”.

“Paraguay calls to prop and continue building the beautiful international utopia of a planetary organization ruled by the strong and the weak, by the large and the small, by the poor and the rich, all equal in this magna world assembly. Therefore Paraguay believes it is necessary to insist that the reform process must necessarily include the gradual elimination to the right of veto”.

In opposition to this utopia, the Brazilian president Dilma Rousseff at the opening of the General Assembly argued the need for the incorporation to the UN Security Council of more countries with the right to veto.

Other topics mentioned in President Franco’s speech included sustainable development, UN reform, transnational crime human rights, gender issues and UN peacekeeping, with the latter being an area in which Paraguay has contributed its troops.

Uruguay reacts with silence to repeated Argentine provocations

The Uruguayan government said on Monday there will be no public statements on the latest “situations” with Argentina, and Uruguay will keep to what was agreed at presidential level during the last (31 July) Mercosur extraordinary meeting in Brasilia.

 President Mujica’s conciliatory policy towards Cristina Fernandez collapsing

“We will keep to what was agreed by President (Jose) Mujica with Argentine President Cristina Fernandez when they met in Brazil last week and that was to lower the level of discrepancies and avoid having the media expose exchanges relative to the situation”, said the Executive Deputy Secretary Diego Canepa following Monday’s cabinet meeting.

The Argentine government is demanding that Uruguayan officials who allegedly claimed there was an attempt by the Dutch/Argentine Riovia company in charge of dredging the River Plate access channels to bribe them for an extension of a contract, to make those very statements before an Argentine court.

Argentina said that until then it will freeze all negotiations related to the dredging of the Martin Garcia canal that is vital for Uruguay’s exports of grains, oilseeds and pulp from the port of Nueva Palmira, but which the government of President Cristina Fernandez has been deliberately delaying because of the powerful interests of Buenos Aires that does not approve of a successful competitive terminal just across the River Plate.

The Argentine freeze was implemented by simply not accepting one of the bidders for the deep dredging of the agreed Martin Garcia tender which would then enable vessels to leave Nueva Palmira fully loaded. The bidder questioned by Argentina is precisely Riovía, allegedly involved in the bribe attempt and which for years has been doing the dredging of the River Plate canals.

The bribe attempt was informed by the Uruguayan officials to a special committee of the Uruguayan parliament and the bidding process for the deep dredging Martin Garcia canal was also questioned by Uruguay’s National Auditing Office, particularly the terms for the temporary contract extension for Riovia to keep working until the results of the tender.

End of the line: Foreign Minister Hector Timerman found the perfect excuse to further delay a long exhausting conciliatory effort from President Mujica to have Argentina accept the deep dredging of the Martin Garcia canal, and stated that he expected the bribe allegations to be presented before the Argentine justice.

The Uruguayan government all along tried to downplay the incident with the sole purpose of getting ahead with the dredging. At the time the Uruguayan officials involved also tried to calm the waters arguing the ‘bribe attempt claims’ were merely ‘here-says’.

But Timerman pointed his guns to Ambassador Francisco Bustillo who together with Argentine ambassador Roberto Garcia Moritán are responsible for the River Plate Administrative Commission, CARP which manages all issues relative to the world’s widest estuary, including the maintenance and dredging of the access canals.

Bustillo who was directly involved in the alleged bribe attempt claim said in a press interview that who introduced him to the RIovía representative was none less than his counterpart Garcia Moritán. Riovia all along has argued that it was more practical to have an extension of their contract that gets involved in a costly, complicated tender process.

But Bustillo before joining CARP was ambassador in Buenos Aires and during his time there was a scandal involving the import of luxury cars free of tax for diplomats which where then sold in the Argentine market. In the case of Ambassador Bustillo, according to Argentine claims in 2007 he imported two Porsche, valued at 98.000 dollars each and two BMW M3 and X5.

Now Timerman has resurfaced the case and is demanding Uruguay exempts Bustillo of his diplomatic immunity so he can face charges of smuggling in Argentina.

And last but not least Argentina has now resurrected claims dating back to September 2011 arguing that the Uruguayan UPM-Botnia pulp mill annual production “is well above the agreed million tons” to ensure protection of the environment.

The pulp mill controversy, built on the shared River Uruguay, soured Uruguay/Argentina relations during almost six years and was finally de-activated when President Mujica was elected who adopted an entirely conciliatory attitude towards President Cristina Fernandez and following a ruling from the International Court of Justice in The Hague which was mostly favourable to Uruguay.

Meanwhile in Montevideo Ambassador Bustillo has requested authorization from the Ministry of Foreign Affairs to press charges against Minister Timerman before a Uruguayan court for “political persecution” and Foreign Minister Luis Almagro said he would take to court all details referred to the Martin Canal bidding process.

However Uruguayan high ranking and former diplomats are recommending that ambassador Bustillo be removed from CARP and the canal negotiations, since he is “too irritating” for the Argentines, one of the few diplomatic cards left to overcome the escalating situation.

Members of the opposition have told President Mujica to forget his “conciliatory policy” towards Cristina Fernandez and have Uruguay unilaterally organize the dredging of the Martin Garcia canal for which he will have complete support from the entire Uruguayan political arch.