China Backs Argentina Against the Vultures; Guarantees Loans for Nuclear, Infrastructure Projects

China Backs Argentina Against the Vultures; Guarantees Loans for Nuclear, Infrastructure Projects

September 3, 2014 • 8:31AM

China has delivered a deft blow to the British Empire’s vulture funds that have been trying, unsuccessfully, to bring Argentina to its knees. reported Tuesday that on Aug. 29, Chinese government officials made clear they will have nothing to do with the fishing expedition launched by NML Capital vulture fund, owned by billionaire Paul Singer’s Elliott Associates, which on Aug. 28 subpoenaed information from the New York offices of the Bank of China and the Industrial and Commercial Bank of China on their planned investments in key Argentine infrastructure projects.

During his July 18-21 state visit to Argentina, President Xi Jinping and his delegation signed agreements to provide $4.7 bn. in financing for the Nestor Kirchner-Jorge Cepernic hydroelectric complex; $2.5 billion for the Belgrano Cargas railroad, and had agreed to help build Argentina’s fourth nuclear reactor, Atucha III. Elliott Associates claims the Chinese investments are “assets” that can be seized as part of its crazed attempt to collect $1.6 billion on defaulted Argentine bonds, which New York Federal Judge Thomas Griesa says NML and allied vultures are “owed.”

Bank of China has indicated that it will not provide information to NML, pointing out that its Wall Street offices aren’t even involved in any financial transactions with Argentina. The vultures were particularly eyeing the $11 billion currency swap agreement which Bank of China signed with the Argentine Central Bank (BCRA).

During three days of meetings in Beijing Sept. 1-3 with members of a high-level Argentine government delegation, including Finance Minister Axel Kicillof, Planning Minister Julio De Vido, and head of the Argentine Atomic Energy Commission (CNEA) Norma Boedo, Chinese government officials confirmed that the loans agreed on in July are in no way jeopardized by the vulture fund onslaught against Argentina or threats against Chinese financial and government entities. Xin Jinping’s government, in fact, has offered its “full support” to Argentina in its battle against the financial predators.

Of particular importance during these meetings was the agreement signed between the head of China’s National Nuclear Corporation (CNNC), Qian Zimin, and Argentine Planning Minister Julio De Vido, guaranteeing financing for the building of Argentina’s fourth nuclear reactor, Atucha III. This was the only agreement that hadn’t been fully completed during Xi Jinping’s July visit.

Argentina Expects to “Very Quickly” Up Food Exports to Russia

Argentine Agriculture Minister Carlos Casamiquela reports that the Moscow meeting of the Mixed Russian-Argentina Binational Commission on Sept. 15-16 will be the venue for completing agreements for expanded Argentine food exports to Russia.

Casamiquela, who was in Moscow with Argentina’s Industry Minister Debora Giorgi ten days ago as part of a high-level government delegation, told Radio Del Plata that these agreements can be concretized “relatively quickly…within 15 to 20 days. There are Argentine companies able to export to Russia, and we’re urgently concluding the paperwork with the Russian government and other companies.” The expectation is that Argentina will be able to increase its agricultural exports by between $1.8 and $2 billion.

Aside from the Sept. 15-16 meeting of the binational commission, Moscow will also be the location of the “World Food Moscow” fair, to which Argentina will be sending representatives of 105 agro-industrial and other companies, iProfesional reported Sept. 1. Argentina will have a large stand at the fair, and officials expect to meet with wholesale and retail buyers, distributors, businessmen, and other representatives from Baltic, Eastern European, and Central Asian countries. The Russian-Argentine Chamber of Commerce and Industry (CACIAR) reports it has received many requests from Russian businesses interested in buying Argentine food products to supply Russian supermarkets.

Dairy, fresh fruit, vegetables, poultry, wine, fish, and beef are the major categories being discussed for export to Russia. In terms of beef exports, Casamiquela noted that Russia is interested in very high-quality, premium cuts, and that Argentina is confident it can meet their requirements. However, he added, the government will proceed cautiously in this area. In the recent period, he noted, cattle producers have sold more to the internal market rather than for export, due to very high demand and competitive prices. Care must be taken, he underscored, not to disrupt the domestic supply, as this could cause unwanted price increases. He explained that certain “structural” problems in the cattle industry must also be addressed.

These agreements with Russia have provoked hysteria at the European Union’s headquarters in Brussels, where loud protest was heard on Aug. 21 over the sending of a high-level Argentine delegation to Moscow to discuss the expanded food exports. In Buenos Aires, at least 12 EU ambassadors paraded through the Foreign Ministry to register their complaints, and reportedly became enraged when Foreign Minister Hector Timerman sent only a low-level official to meet with them.

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