News Center

US not in a recession, officials tell Argentine ministers
Agence France-Presse
July 14, 2008

BUENOS AIRES (AFP) The United States is not in a recession and remains in a position to play a vital economic role with South American nations, senior US officials told Argentine authorities Friday during a visit to Buenos Aires.

US Assistant Secretary of State for Western Hemisphere Affairs Tom Shannon and Treasury deputy assistant secretary Brian O'Neill made the points in meetings with Argentina's foreign and economy ministers and the head of the central bank, US ambassador Hector Timerman told reporters.

"Despite the talk, the United States has not entered into recession and this helps other economies," said Timerman, who acted as spokesman for the talks.

Shannon, O'Neill and a delegation of other US officials were on the second day of a visit to Buenos Aires designed to revive languishing bilateral ties.

Shannon told reporters in a brief encounter at the foreign ministry that the discussions "helped very much to build a consensus in the Americas on how to tackle financial and economic problems."

On his arrival Thursday, Shannon was forced to assure Argentine President Cristina Kirchner that a recent decision to reactivate the US Fourth Fleet to patrol waters off Latin America was in no way an aggressive move, after several nations in the region including Argentina, Cuba and Venezuela voiced concerns.

Shannon stressed that the fleet, which had been in slumber for nearly six decades, had no aircraft carrier or large warships in its composition and was thus not configured for offensive operations. It would not violate countries' territorial waters, he said.

Other US officials have said the unit, which restarted operations on July 1, would primarily be used for humanitarian missions and to fight drug smuggling.

Shannon said his talks Friday with Argentine Foreign Minister Jorge Taiana, Economy Minister Carlos Fernandez and central bank governor Martin Redrado were productive.

"We had an excellent meeting with Fernandez, with whom we had the opportunity to talk about the overall world economic and financial situation, especially the impact of the subprime crisis in the United States and its effect on markets in different places," he said.

The discussions also examined the impact of rising inflation on emerging economies, Timerman said.

That is a sensitive topic in Argentina, where inflation is estimated to be among the highest in South America, running over 20 percent -- although government figures put it at half that.

Argentina, under President Kirchner and her predecessor and husband Nestor Kirchner, has prickly relations with the United States.

Washington fears Argentina may be aligning itself with Venezuelan President Hugo Chavez, an outspoken critic of the United States.

US allegations in December that Chavez had illegally sent 800,000 dollars to Argentina with a US-Venezuelan businessman to finance Cristina Kirchner's election plunged ties to a new low.