Discomfort, surprise, unease, and confusion. The public call of the
United States for the national and provincial authorities to reach an
"appropriate solution" to the situation of the Kraft Foods Company,
with its base of north american capital, has sounded an alarm to the
government of Cristina Kirchner and has thrown a blanket of doubt onto
the future of serpentine, bilateral relations with Washington.

One day after this diplomatic call was put out by the administration
of Barack Obama, and in an atmosphere of social tension--with workers'
marches in distinct points of the country and with the conflict still
unresolved--the Pink House abruptly suspended yesterday a scheduled
meeting between the Head of the Cabinet, Anibal Fernandez, and the
North American Ambassador to Buenos Aires, Vilma Socorro Martinez.

The meeting was scheduled for 11 o'clock yesterday, according to
Fernandez' office, and had been arranged between the parties ten days
before with the objective of opening a channel for dialogue between
the embassy and one of the principal cabinet ministers. But at 9:30 it
was cancelled.

The official explanation of the Government was that the head of the
Cabinet received a call from President Kirchner, and was forced to
modify his schedule to go to the residence in Olivos. The peculiar
part of this case is that the minister shares an office with the Head
of State, and literally works side by side with the President. "This
has no relation to the Kraft case", was the first statement given by
ministry spokespersons.

Meanwhile, in the north american embassy there reigned the usual
prudence with respect to diplomatic ruptures. "The embassy does not
comment on the details of the ambassador's schedule or that of other
functionaries", was the concise explanation offered to LA NACION by
the north american diplomatic corps.

In the subtle language of diplomacy, this signifies that Washington
has decided to take the most deliberate measures to evaluate the
impact of the first gesture by Martinez in Argentina, that, to be
sure, had strong political transcendence.

By evening, the Pink House sought to smooth over the rupture and said
that the head of the Cabinet would communicate during the work day
with the embassy to schedule a new date for the meeting with Martinez,
which is still undefined.

Kraft Foods had reached a boiling point with the dismissal of 157
employees, which then led to more forceful measures that included the
workers' takeover of the plant in General Pacheco for more than 20
days, and their subsequent ousting with repressive force by the
police, leaving a dozen injured and 70 detained.

Faced with this scenario, the embassy expressed yesterday its concern
to the Government for the future of the company, and the day before
yesterday it made public that its intention was "to protect north
american investments that has been a source of employment for 155,000
argentines". In diplomatic jargon, this represents a loud and
comprehensive signal of the White House's concern faced with eventual
outbreaks of union conflict in other businesses represented by north
american capital.

The delivery of this north american gesture was the first official
mission by Martinez in Argentina, after having arrived there less than
one month ago.

Last night, the uncertainty of future bilateral relations worked its
way to the Foreign Ministry.  The present Minister, Jorge Taiana,
expressed concern
among his colleagues for the tone of the north american complaint,
according to sources among his most intimate circle. The uneasiness is
responding, more than anything else, to the open expectations created
by the progressive profile of Ambassador Martinez, with which it was
hoped to arrive at a more empathetic understanding, in order to
overcome the ruptures which has characterized relations with the White
House since the ascension to power of Christina Kirchner.

Yesterday, the Government stated officially that it would not accept
"pressure" from the north american embassy to resolve the conflict of
the ex-Terrabusi, and declared that the diplomatic representation can
only establish the difficult situation which the company is going
through.

The Minister of Labor, Carlos Tomada, explained the situation. "All of
our ambassadors, when there are expressed interests of argentine
businesses, intervene only to verify the case, but not to apply
pressure or intervene directly, not like that", affirmed the
functionary.

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