Menem's First Administration

During the first Administration of Argentine President Carlos Saul Menem, the US applied pressure to officials in the Argentine government to pass a patent law for pharmaceuticals. At the time, Argentina was plagued by enormous sums of foreign debt accrued during the 1980s and severe bouts of hyperinflation. Because the process and composition of pharmaceuticals have historically been considered a public good in Argentina, they were not eligible for patents. This lack of patent protection facilitated the success of a large Argentine non-research-based pharmaceutical industry that copied and produced foreign drugs to the dismay of the research-based multinational drug industry, which insisted upon compensation for its research and development of new drugs.

July 8th, 1989

• Argentine President Carlos Saul Menem is inaugurated early after the resignation of President Alfonsin. A member of the Peronist party, Menem was elected based on a campaign platform emphasizing improved conditions for the poor and working class. Once in office, however, he pursued liberalization, privatization, and stabilization policies that sometimes bore significant costs to the Argentine lower classes.

August 10th, 1989

• Argentine Secretary of Industry and Foreign Trade Oscar Saggese sends US Ambassador Terence Todman a note from Argentine Under Secretary of Health Matilde Menendez announcing that her secretariat is designing a non-discriminatory and transparent system for the registration of new pharmaceuticals in Argentina. The note says that Dr. Manuel Limeres, Menendez's Undersecretary of Regulations and Control, will survey pharmaceutical industry members in order to incorporate their concerns in the drafting of the new registration process.

  See American Embassy, Buenos Aires, "Progress Stalls on Pharmaceutical Registration Reform," Cable 1614 to the US Secretary of State, February 1990.

September 1989

• According to a later US Embassy communication, the Argentine government commits to enacting a patent law for pharmaceuticals within two years.

  See American Embassy, Buenos Aires, Cable 3101 to the US Secretary of State, March 1990.

• Dr. Manuel Limeres, Undersecretary of Regulations and Control at the Department of Health and Social Welfare obtains the signatures of the three key pharmaceutical associations in Argentina (CAEME, CILFA, and COOPERLA) on a letter to Argentine Minister of Health and Social Action Antonio Erman Gonzalez calling for a change in the registration process. CAEME represents the foreign labs operating in Argentina; larger domestic firms are incorporated into CILFA while smaller domestic firms are represented by COOPERLA.

  See American Embassy, Buenos Aires, "Progress Stalls on Pharmaceutical Registration Reform," Cable 1614 to the US Secretary of State, February 1990.

December 11th, 1989

• Dr. Limeres meets with an economic officer of the US Embassy in Buenos Aires. Limeres tells the officer that his drafted letter is on Minister Gonzalez's desk, awaiting his signature.

  See American Embassy, Buenos Aires, "Progress Stalls on Pharmaceutical Registration Reform," Cable 1614 to the US Secretary of State, February 1990.

December 18th, 1989

• Former Minister of Health and Social Welfare Antonio Erman Gonzalez becomes Minister of Economy; he is replaced by Eduardo Bauza.

  See American Embassy, Buenos Aires, "Progress Stalls on Pharmaceutical Registration Reform," Cable 1614 to the US Secretary of State, February 1990.

December 1989

• Jorge Pereyra de Olazabal takes over as Secretary of Industry and Foreign Trade in Argentina. He plans to begin what the US Embassy calls "an extended battle" to open the Argentinean economy to trade.

  See American Embassy, Buenos Aires, "New Secretary of Industry and Foreign Trade: Towards a More Open Economy," Cable 0584 to the US Secretary of State, DC, January 1990.

• The rapid appreciation of the US dollar and the slow response of the Argentine executive branch in reevaluating pharmaceutical price controls lead pharmaceutical labs to cut production. Many pharmacies run out of antibiotics and other medicines.

  See American Embassy, Buenos Aires, "Pharmaceutical Industry Adjustment and Implications for Patent Issue," Cable 0092 to the US Secretary of State, January 1990.

• Secretary of Health Matilde Menendez meets with pharmaceutical industry representatives including the Chamber of Argentine Specialty Medicines (CAEME), which represents multi-nationals. The group agrees to a 55% price increase for prescription drugs for drugs produced locally, which account for 70% of the market.

  According to a source from the multinational pharmaceutical industry who met with the Embassy's economic counselor, the agreement involved a 25% increase in the price of prescription drugs and a 24% savings on suppliers' credits for pharmaceutical companies. Earlier, the Argentine government had mandated that pharmaceutical companies give pharmacies interest-free credits for up to 18 days; the new agreement allows firms to charge market interest rates for these loans. The Argentine government also agrees to a 125% increase in the pharmodollar, the exchange rate for pharmaceuticals, which will be maintained until January 21st, 1990. The same industry source expressed satisfaction with the agreement, but predicted that all drug prices would reach the price ceiling, "despite the low cost of production for the large majority of these products" because of uncertainty created by the price control system.

  See American Embassy, Buenos Aires, "Pharmaceutical Industry Adjustment and Implications for Patent Issue," Cable 0092 to the US Secretary of State, January 1990.

Early January, 1990

• Radio reports claim that Argentina is experiencing a shortage of insulin.

• With pharmacies and labs still closed, Secretary of Domestic Trade Pablo Challu threatens to apply the anti-hording law, which enables him to take over any business that refuses to serve the market.

  See American Embassy, Buenos Aires, "Pharmaceutical Industry Adjustment and Implications for Patent Issue," Cable 0092 to the US Secretary of State, January 1990.

• US Ambassador Terence Todman sends a cable describing Argentina's pharmaceutical supply problems to Secretary of State James Baker.

  On the structural adjustment side, pharmaceutical price and exchange rate controls in the midst of a rapid rise in the dollar (A650 to A1550) and surging inflation caused local producers in mid-December to cut off the supply of drugs to the local market. This action got the GOA's attention and led to the approval of sizzable (sic) price increases for prescription drugs. The GOA also took the opportunity to eliminate a market distorting forced loan requirement. However, by early January price disorientation caused pharmacies to again close. This time the root of the problem shifted to the retail level, and the government threatened to apply the anti-hording law. The closure of the pharmacies and access to drug has become a significant social issue, drawing considerable media attention. The willingness of national labs to cut off the supply of drugs to the local market in mid-December flies in the face of their argument that the absence of patent protection allows them to ensure Argentine consumers a constant supply of medicine.

  See American Embassy, Buenos Aires, "Pharmaceutical Industry Adjustment and Implications for Patent Issue," Cable 0092 to the US Secretary of State, January 1990.

January 10th, 1990

• The first resolution published by the new Ministry of Economy announces that Argentina will reduce ad valorem tariffs.

  See American Embassy, Buenos Aires, "New Secretary of Industry and Foreign Trade: Towards a More Open Economy," Cable 0584 to the US Secretary of State, January 1990.

January 12th, 1990

• In an introductory meeting with new Argentine Secretary of Industry and Foreign Trade Jose Pereyra de Olazabal, the US Embassy's economic counselor brings up bilateral trade issues in pharmaceuticals. Pereyra de Olazabal agrees that a delegation from the Pharmaceutical Manufacturers Association (PMA), an organization of American research-based pharmaceutical companies, should visit Argentina. He says he will meet with the group if they come.

  See American Embassy, Buenos Aires, "New Secretary of Industry and Foreign Trade: Towards a More Open Economy," Cable 0584 to the US Secretary of State, January 1990.

Mid-February, 1990

• Dr. Manuel Limeres meets February 14th with a US Embassy economic officer. Even though Limeres's letter calling for new registration procedures was ready for signature in December, he says, the draft has not been signed by new Argentine Secretary of Health and Welfare Eduardo Bauza. He asks the US Embassy to work with the association of foreign labs (CAEME) in pushing for a signature.

  See American Embassy, Buenos Aires, "Progress Stalls on Pharmaceutical Registration Reform," Cable 1614 to the US Secretary of State, February 1990.

• Around the same date, the US Embassy discusses prospects for registration reform with industry executives, one of whom blames corruption, not discrimination toward foreign products, for continuing registration delays. Embassy official Thomas Austin Forbord reports in a cable to the US Secretary of State:

  The local head of a major US pharmaceutical said that foreign labs had noticed some improvement, but that foreign labs had registration applications that still had not moved. He claimed that this was not due to discrimination, but only to the need to payoff Secretary Menendez to have products registered. Other than Menendez, he had no idea how high or deep such payoffs went.

  See American Embassy, Buenos Aires, "Progress Stalls on Pharmaceutical Registration Reform," Cable 1614 to the US Secretary of State, February 1990.

• The economic counselor at the US Embassy in Buenos Aires calls Trade Negotiations Undersecretary Raul Ochoa at the Department of Trade and Industry February 15th to discuss the "lack of progress in eliminating the premonograph requirement." Ochoa promises to pursue the issue.

  See American Embassy, Buenos Aires, "Progress Stalls on Pharmaceutical Registration Reform," Cable 1614 to the US Secretary of State, February 1990.

March 23rd, 1990

• US Ambassador to Argentina Terence Todman meets with Argentine Foreign Minister Domingo Cavallo to discuss bilateral issues, including pharmaceutical trade issues. Cavallo reaffirms Argentina's September 1989 commitment to enact a patent law on pharmaceuticals within two years. Minister Cavallo says that his discussions with foreign and local labs led him to conclude that a patent system would not result in a significant price change for pharmaceuticals in Argentina. With regard to the registration process, Minister Cavallo promises to raise the issue of increasing transparency at a May 24th cabinet meeting.

  See American Embassy, Buenos Aires, "Ambassador, Cavallo Review Bilateral Issues," Cable 3101 to the US Secretary of State, March 1990.

May 11th, 1990

• Representatives from the economic section of the US Embassy in Buenos Aires meet with COOPERLA, an association of small local pharmaceutical firms. The organization's president, Juan Dominguez, says he expects that, despite the strength of CILFA's lobbying against patents, he is convinced that patents will come, and has decided to reluctantly embrace opportunities to consult with the US: according to a cable from US Ambassador Terence Todman to US Secretary of State James Baker, Dominguez "said the best strategy now was 'if you can't beat 'em join 'em." Dominguez then asked about the specifics of US requirements for a new patent system and pressed Embassy officials about opportunities for Argentine labs to work with small US firms. The text of Ambassador Todman's May 1990 cable reads:

  Dominguez emphasized that his labs were interested in making contact with labs of similar size in the states. He thought such American labs were dynamic and doing research that some of his membership might be able to hook into. His membership did not have the capital to do primary research, but some were capable of doing investigations into additional uses for already discovered molecules. He also pointed out that the laws regulating research and testing in Argentina were much more flexible than in the US, providing US firms with the possibility to complete tests more quickly than might be done in the states. He also pointed out that the Argentine labs have capable scientists willing to work at much lower costs.

  Ambassador Todman concludes from his meeting with Dominguez that incentives for small Argentine labs to support patent legislation may provide a route for US influence on Government considerations. He comments in his cable to Secretary Baker:

  We are encouraged that the GOA may be gearing up to move on a patent law. While the general direction is favorable, we take Dominguez's warning seriously that CILFA still has not given up its opposition. This leaves us concerned about the contents of such a law. We still need to build allies among the national labs, and COOPERALA provides such an opportunity. At this point the PMA should be encouraged to look for some potential carrots so that we can use them to show the GOA and the local labs there can be tangible, near-term benefits from the adoption of product patent protection. It would be most useful if the PMA could provide use with contacts among its smaller members who would be interested in hearing out COOPERALA about what such labs could offer the Americans in cooperative arrangements once a strong product patent protection law is in place in Argentina. It would also be useful to include such members in the PMA delegation to visit Argentina.

  See American Embassy, Buenos Aires, "National Labs Prepare for Patent Law Change," Cable 4964 to the US Secretary of State, May 1990.

May 12th, 1990

• La Nacion, a Buenos Aires daily newspaper, reports that Undersecretary of Industry and Commerce Jorge Pereyra de Olazabal is determined to find a resolution to the continuing debate on pharmaceutical patents before the visit of US President George Bush in September.

  See American Embassy, Buenos Aires, "National Labs Prepare for Patent Law Change," Cable 4964 to the US Secretary of State, May 1990.

June 8th, 1990

• US Trade Representative Carla Hills visits Buenos Aires. Her proposed schedule, drafted by the American Embassy in Buenos Aires, includes a meeting with Minister of Economy Erman Gonzalez, Undersecretary of Industry Jorge Pereyra de Olazabal and Undersecretary of Agriculture Felipe Sola on trade disputes and a meeting with the Minister of Health and Social Action, Eduardo Bauza, on a pharmaceutical patent law. She is scheduled to have lunch with several Argentine Congressmen; as Ambassador Todman notes, "we will need their support in approving a new product patent law as well as any agreement in the GATT round."

  See US Embassy, Buenos Aires, "Proposed Schedule for the Visit of Ambassador Hills to Buenos Aires," Cable 5012 to the US Secretary of State, May 1990.

  Minister of Health and Social Action Eduardo Bauza will later (August 9th, 1990) tell the Clarin, a Buenos Aires daily newspaper, that during her visit, Ambassador Hill threatened Argentine government officials with a tariff on all Argentine exports to the United States if no changes to Argentine patent policy have been made by September 1991. The same issue of the Clarin quotes Ambassador Hill as saying during her visit that without patent protection for pharmaceuticals, Argentina will not have access to foreign investment and no anti-protectionist agricultural agreement will be incorporated in the Uruguay Round.

  See US Embassy, Buenos Aires, "Pharmaceutical Patents: Press Reports GOA Willing to Comply with US Request," Cable 8145 to the US Secretary of State, August 1990.

June 19th, 1990

• Eduardo Bauza, Argentine Minister of Health and Social Action, and his Undersecretary of Health Matilde Menendez meet with Ambassador Todman and representatives from the economic office of the US Embassy in Buenos Aires.

  Secretary Bauza tells Ambassador Todman that the Argentine cabinet has created an interagency committee on patents. In a June 1990 cable to US Secretary of State James Baker, Ambassador Todman asks for the input of Washington agencies and the Pharmaceutical Manufacturers of America in advance of a July meeting with the committee.

  The cable also reports that Menendez told economic section officials in a side conversation that registrations, which she claimed had been on hold while the ministry considered reforms, would be recommenced at the end of the month. However, a comment from Ambassador Todman in the cable suggests another reason for the halting of registrations:

  The registration process had been halted by Bauza after the Ambassador raised the issue of corruption in the registration process with both Foreign Minister Domingo Cavallo and Bauza in separate meetings.

  See American Embassy, "Pharmaceutical Discussion with Minister of Health," Cable 6246 to the US Secretary of State, June 1990.

  Note: The Embassy's concerns about possible corruption stem from a mid-February discussion with an industry executive who reported that increasing the speed of the registration process required paying a bribe to Secretary Menendez.

  See American Embassy, Buenos Aires, "Progress Stalls on Pharmaceutical Registration," Cable 1614 to the US Secretary of State, February 1990.

  During the June 19th meeting, Menendez also promises Embassy officials that the Ministry will "issue the new lists requested by the Embassy and local members of the PMA."

  Ambassador Todman's comments on the meeting in his cable to Secretary Baker demonstrate optimism in his ability to persuade Bauza of the need for patent recognition and call for industry leadership in the continued drive to "convert" Bauza and other lobbying efforts:

  While the meeting seemed to start with the Minister looking for ways to modify the GOA's promise on patent, by the end he was discussing ways to sell the issue to patent opponents. Nevertheless, the conversion of Minister Bauza is far from complete. We will be looking forward to a persuasive and concise reply form the PMA on prices and other benefits for Argentina to keep the ball rolling with the Minister as well as for use on Congressmen, the press, and in the GOA interagency committee.

  See American Embassy, "Pharmaceutical Discussion with Minister of Health," Cable 6246 to the US Secretary of State, June 1990.

June 20th, 1990

• La Nacion a Buenos Aires daily newspaper, reports a statement by Buenos Aires Minister of Health Gines Gonzalez Garcia that "the government needs to be very careful with the pharmaceutical patent issue" and that "the domestic industry is the best there is outside a developed country."

  See American Embassy, "Pharmaceutical Discussion with Minister of Health," Cable 6246 to the US Secretary of State, June 1990.

August 3rd, 1990

• Ambassador Todman meets with Michael May, Assistant Vice President of the International Division of the Pharmaceutical Manufacturers of America (PMA), Carlos R. Novo, President and General manager of John Wyeth Labs, Alejandro Daireaux, General Manager of Abbott Labs, and Jose Carlos Bilares, President and General Manager of Cyanamid de Argentina. The Ambassador bemoans the recent victories of CILFA in the Argentine media and accuses the PMA of overlooking the Argentine market. The Ambassador requests that the PMA send a representative to speak at a seminar on intellectual property September 25th held by the Buenos Aires College of Lawyers. The US industry representatives acknowledge that they have neglected the Argentine patent issue; however, they state their intention to undertake an active public campaign on patent protection which will begin in 30-60 days. The group plans to collaborate with CAEME, which represents the local branches of foreign firms, and CEDIQUIFA, another pro-patent group, in leading the campaign.

  Ambassador Todman complains in an August, 1990 cable to US Secretary of State James Baker that foreign labs continue to delay their public response to anti-patent arguments by CILFA, the association of large local labs, in the Argentine press:

  We remain concerned that that the foreign labs continue to delay the presentation of their case for patents to the Argentine public. The foreign labs had been talking for the last two months about running ads against the anti-patent press campaign but the further delay of 30-60 days has left the public and Congress with little but the CILFA propaganda to consider. We need more than moral support and promises from the PMA if we are to ensure a satisfactory resolution to the patent issue in Argentina.

  See US Embassy, Buenos Aires, "Pharmaceutical Issue," Cable 8143 to the US Secretary of State, August 1990.

August, 1990

• The August 9th edition of the Clarin, a prominent Argentine newspaper, publishes an August 8th public statement by Undersecretary of Industry and Trade Jorge Pereyra de Olazabal says that the Argentine government will comply with US requests to recognize patents for pharmaceutical products in exchange for the reduction of US obstacles to Argentine exports. Pereyra de Olazabal says he has asked CILFA, the association of large local labs, and CAEME, the association of foreign labs, to submit proposals for resolving the patent issue.

  The Clarin report includes a statement by Minister of Health Eduardo Bauza that in July, US Trade Representative Carla Hill had threatened that a lack of progress in pharmaceutical patents by September 1991 would result in a import tariff surcharge on all Argentine exports to the United States. The article quotes Ambassador Hill as saying that without patents, Argentina would face a decreased supply of foreign investment and a removal of the discussion of anti-protectionist agricultural agreement in the GATT from the realm of possibility.

  See US Embassy, Buenos Aires, "Pharmaceutical Patents: Press Reports GOA Willing to Comply with US Request," Cable 8145 to the US Secretary of State, August 1990.

• Following Peyeyra de Olazabal's statements, Raul Zavalla Carbo of CILFA, the association of large Argentine labs, speaks with President Menem. Carbo later says President promised him that any patent legislation would reflect a consensus of local and foreign industry, not just US demands.

  See American Embassy, Buenos Aires, "Press Reactions to Announcement of Intended Pharmaceutical Patent Recognition," Cable 8686 to the US Secretary of State, August 1990.

• Foreign Minister Domingo Cavallo confirms that the executive branch plans to recognize patents for pharmaceuticals within the next year.

  See American Embassy, Buenos Aires, "Press Reactions to Announcement of Intended Pharmaceutical Patent Recognition," Cable 8686 to the US Secretary of State, August 1990.

• Coverage of the issue in the Argentine press focuses on the negative reaction of local industry to Peyeyra de Olazabal's announcement. Ambassador Todman urges the PMA to "lead an active publicity campaign, at least to counter the CILFA propaganda."

  See American Embassy, Buenos Aires, "Press Reactions to Announcement of Intended Pharmaceutical Patent Recognition," Cable 8686 to the US Secretary of State, August 1990.

September 7th, 1990

• The economic counselor and an economic officer at the US Embassy in Buenos Aires and his staff members meet with new Undersecretary of Health Dr. Daniel Perlusky, who confirms his commitment to the passage of a new patent law for pharmaceuticals, saying that countries lacking intellectual property protection are backward.

  Perlusky tells the Embassy officials that he attended a recent meeting between CILFA and President Menem, who refused to reverse his decision to introduce a patent law despite CILFA's assertion that such a law would bankrupt its members. Dr. Perlusky conveyed to US officials his skepticism toward CILFA's claims of financial endangerment.

  The Embassy economic counselor asks Perlusky about a recent statement by Minister Cavallo that the Argentine government is considering asking for an Inter-American Development Bank (IDB) loan to assist local labs in adapting to a patent system. Perlusky says that the government is considering making such a request, but that no specifics have been discussed with the IDB.

  See American Embassy, Buenos Aires, "First Impressions of the New Under Secretary for Health: Pharmaceutical Patents," Cable 9427 to the US Secretary of State, September 1990.

September 10th, 1990

• Dr. Perlusky meets with the executive director of CAEME, an association representing the local branches of multinational pharmaceutical labs, who later reports to Embassy officials that Perlusky promised to eliminate price controls and normalize the drug registration process.

  See American Embassy, Buenos Aires, "First Impressions of the New Under Secretary for Health: Pharmaceutical Patents," Cable 9427 to the US Secretary of State, September 1990.

November 6th, 1990

• At the request of Ambassador Todman, Argentine President Carlos Menem meets with a delegation of the Pharmaceutical Manufacturers Association (PMA). The visitors include Daniel Pritchard of Cyanamid, Hector Lopez Pardo of Merck, Sharpe and Dohme, and Reinhold Buxhoeden, President of CAEME. Ambassador Todman, US Embassy Economic Officer John Riddle, Argentine Minister of Economy Erman Gonzalez, Minister of Foreign Affairs Domingo Cavallo and Minister of Health Alberto Kohan join the group.

  Ambassador Todman reports in a November, 1990 cable to US Secretary of State Jim Baker:

  Pritchard opened the substantive portion of the meeting by explaining the benefits that a sound patent law would bring Argentina: new investment and the gainful employment in significant research of Argentina's scientific talent. Anticipating questions on pricing, Pritchard pointed to the Italian case where pharmaceutical prices rose slower than prices overall following the enactment of a sound pharmaceutical law.

  Speaking for the CAEME labs, Buxhoeden said that his members were ready to work to improve Argentina's pharmaceutical industry. Among other efforts, his members would be willing collaborators in developing a program as in the past to provide medicine to the poor, who are outside the social security system. In addition the foreign labs are disposed to expand their research activities in Argentina. Lopez Pardo praised the new direction for Argentina, mentioning that a sound patent law would encourage foreign labs to expand their cooperation in research and licensing with local labs. (Comment: Several of the foreign labs report that they are already negotiating licensing agreements with CILFA members, who want to be better positioned for pharmaceutical patents. End comment.)

  Menem pointed out that Argentina was working on a solution to the patent issue in compliance with the GOA's commitment to present patent legislation to the Congress by September 1991. This effort is in accord with this government's larger goal of eliminating all non-transparent processes. The presence of his three ministers, he pointed out, demonstrated his administration's serious commitment to the issue. He welcomed CAEME's willingness to participate in a program to help the poor obtain needed pharmaceuticals.

  The foreign minister said that the GOA (sic) has moving forward on the issue in the context of the GATT round ______________________________________________________________________ _________________________________________________. He encouraged the PMA members and CAEME to deepen their dialogue with key CILFA members to head off such tactics. Minister Gonzalez added that during his short period as Minister of Health, he successfully brought the domestic and foreign labs together to agree on a change in the registration processes. He hoped the same could occur now for the patent (issue) to keep this form developing into and ideological (division) in the Congress.

• After the meeting, participants discuss the pharmaceutical issue in the Argentine media. Minister Kohan describes the meeting as "good" to a local radio station and as Ambassador Todman reports in his cable to the Secretary of State, "recognized the importance of the patent issue to Argentine companies but said that in the long run, Argentina has to bring itself into the world economy." Minister Gonzalez and the PMA delegates appear on a popular Argentine TV show. Gonzalez also demonstrates support for patents: Todman paraphrases him as saying that "if there is no patent law this is robbery."

• In his cable to the Secretary of State, Ambassador Todman reflects with optimism that "there is little more to obtain from Menem in the way of political commitments on a new patent law."

• Ambassador Todman's cable also requests information from the US Mission in Geneva about the activities of Pablo Challu, who is in Geneva for the GATT trade round.

  See American Embassy, Buenos Aires, "Menem Receives PMA Vice Presidents," Cable 11509 to the US Secretary of State, November 1990.

November 30th, 1990

• Reinhold B. Buxhoeveden and Alberto Irigoyen of Camara Argentina de Especialidades Medicinales (CAEME) write to Michael May, Assistant Vice President of the International Division of the Pharmaceutical Manufacturers of America (PMA), asking for the PMA position on Argentine patent law and advice on possible meetings between CAEME and CILFA.

  See May, Michael A., Letter to Reinhold Buxhoeveden and Alberto Irigoyen, Buenos Aires, 11 December 1990.

December 11th, 1990

• Michael A. May, Assistant Vice President of the International Division of the Pharmaceutical Manufacturers of America, responds to CAEME's letter of November 30th. He states that PMA's Latin America Regional Committee discussed the letter and recommended that CAEME refrain from meeting with CILFA in accordance with a PMA policy of "refusing to meet with any national association that refuses to recognize pharmaceutical patents and especially one that is engaged in a massive public disinformation campaign." May enumerates PMA's "principal criteria for an adequate world class patent law," which include:
  • Both product and process patent protection for pharmaceutical products
  • Patent terms of 20 years from the firm's filing or 17 years from the grant of a patent
  • No provisions for compulsory licensing
  • Patent protection for products already patented elsewhere but not yet marketed in Argentina
  • No delay in the implementation of the law
  • No provisions for parallel importation
  • Strict enforcement of patents

  See May, Michael A., Letter to Reinhold Buxhoeveden and Alberto Irigoyen, Buenos Aires, 11 December 1990.

December 14th, 1990

• A daily Argentine financial newspaper, Cronista Comercial, prints an article entitled "Analyzing the Italian Case." Ambassador Todman writes in a subsequent cable to the US Secretary of State Jim Baker that this is the first article on the patent issue in the local media that has not presented an anti-patent view to counter pro-patent arguments.

  See American Embassy, Buenos Aires, "Italian Pharmaceutical Patent Case Understudy in GOA," Cable 12881 to the US Secretary of State, December 1990.

January 11th, 1991

• In an interview published today in the Buenos Aires Herald, Pablo Challu of CILFA argues that strong patent legislation is against the national interest of Argentina. Challu advocates a limited patent system with strong provisions for compulsory licensing. He states that because of the continuing instability of the Argentine economy, foreign firms will increase imports to Argentina instead of producing locally. Speaking of his experience at the recent Geneva trade talks, Challu claims that during the round, "no US or European negotiator ever said 'approve patents because that will benefit Argentina.'" He says, "The US offered the third world textile concessions but demanded concessions ion the pharmaceutical issue in return."

  See American Embassy, Buenos Aires, "CILFA's Latest Against Patents," Cable 0388 to the US Secretary of State, Washington DC, January 1991.

February 1991

• US Secretary of State James Baker sends a cable to US Ambassador to Argentina Terence Todman regarding the anti-patent arguments of CILFA executive director Pablo Challu. Secretary Baker cautions that the Embassy "should be careful not to create or allow Challu to create the impression of a media debate between the USG and the Argentine pharmaceutical industry. Based on past experience, Washington agencies believe improved patent laws can only be accomplished through government to government negotiation." Secretary Baker comments at the end of the document: "Challu's arguments typify LDC pharmaceutical industry rhetoric against patent protection. Public rebuttal of these arguments risks emphasizing the domestic v. foreign conflict in public opinion and obscuring the need for improved IPR protection." If a public comment is necessary, Secretary Baker directs, Ambassador Todman should emphasize the role of non-governmental organizations (such as the PMA) in the patent issue.

  See US Secretary of State, "Responding to CILFA on Pharmaceutical Patents," Cable 40526 to the US Embassy in Buenos Aires, February 1991.

February 20th, 1991

• Ambassador Todman pays his first official visit to Argentine Foreign Minister Guido Di Tella, who is joined by Ministry of Foreign Affairs Chief of Cabinet Cisneiros and North America Affairs Director Gustavo Figueroa. Di Tella says he plans to meet with the Ministers of Economy and Health this week to discuss the formation of a team of MFA, Economic Ministry, and Health Ministry officials to draft legislation to be submitted to Congress in September. He asks Ambassador Todman for US assistance in obtaining political consensus for a patent law by granting GSP benefits to Argentine products.

Early March, 1991

• Representatives from the US Embassy in Buenos Aires meet with Jorge Di Igorio, the new Argentine Undersecretary of Health. When asked about pharmaceutical patents, Di Igorio confirmed that, as a physician, he was familiar with the quality-control problems posed by pirated drugs. Ambassador Todman comments in a March 1991 cable to the US Secretary of State that the new Undersecretary of Health's "concern for the quality of healthcare along with his understanding of the problems that pirated drugs present for doctors bodes well for his support on patents in the future."

  See American Embassy, Buenos Aires, "Further Contacts on Pharmaceuticals," Cable 01958 to the US Secretary of State, March 1991.

• CAEME lobbyist Rafael Alonso tells Embassy officials he fears that unless the administration introduces its pharmaceutical patents bill early on, it risks losing "any political momentum and special attention generated by the bill's introduction" as Congress prepares for the September 8th elections. Alonso claims that Congress "can be expected to work seriously on legislation only from early March to late June."

  See American Embassy, Buenos Aires, "Further Contacts on Pharmaceuticals," Cable 01958 to the US Secretary of State, March 1991.

March 4th, 1991

• Ambassador Todman and a US Embassy economic counselor visit Argentine Minister of Health and Social Action Porto. Ambassador Todman reports in a March 1999 cable to US Secretary of State James Baker that "Porto said that the question of patent protection for pharmaceutical products had once been a troublesome ideological issue. This was no longer the case -- the ideological battle for patents had been won. But powerful domestic economic interests would continue to resist pharmaceutical product patents and try to defend these interests by using ideological arguments." Todman comments, "Porto appears to want to take an activist approach to his new responsibilities. On the key issue of patent protection for pharmaceutical products he was well-briefed but seemed more of a political realist rather than an advocate for the US position."

  American Embassy, Buenos Aires, "Ambassador's Call on Health and Social Action Minister Porto," Cable 2113 to the US Secretary of State, March 1991.

Mid-March, 1991

• Immediately after his meeting with Argentine Minister of Economy Domingo Cavallo, new Argentine Ambassador Carlos Ortiz de Rozas is quoted in la Nacion, a widely-read Buenos Aires daily newspaper, as saying that the Argentine executive branch plans to send a draft bill to Congress before the end the Congressional ordinary session this year.

  See American Embassy, Buenos Aires, "Pharmaceutical Patents: Comments by the New GOA Ambassador to the US," Cable 02636 to the US Secretary of State, March 1991.

• As the office of US Trade Representative Carla Hills prepares for the Special 301 review, Ambassador Todman sends a cable to US Secretary of State James Baker emphasizing the importance of the pharmaceutical patent issue, which he describes as "clearly our number one bilateral trade priority." Although he cites the Argentine government's willingness to enact patent legislation, Ambassador Todman warns that a public campaign by domestic interest groups may diminish public support for the proposed law:

  Powerful domestic interests oppose GOA acceptance of this property right. While there is diminished ideological support for the pirates' position, the issue could be exploited in a demagogic anti-American manner. The downside for the US would be not only less than acceptable IPR protection but an important setback to the overall relationship.

  Although he recognizes Ambassador Hills has authority over the Special 301 list, Ambassador Todman asks that "the Embassy (and the Department) be notified, in advance, when possible by cable, of any high level approaches and be given an opportunity to provide our view on what tactics will work best."

  See American Embassy, Buenos Aires, "Pharmaceutical Patents in Argentina," Cable 02732 to the US Secretary of State, March 1991.

March 25th, 1991

• US Senator Bill Bradley and Congressman Jim Leach meet with Argentine Foreign Minister Guido Di Tella. Senator Bradley emphasizes the centrality of the pharmaceutical patent issue to the American Congress's concerns, calling it "a critical issue" that "tends to overshadow or detract from other elements of the 'big picture' in bilateral relations." Minister Di Tella affirmed his support for intellectual property protection, but repeated his earlier demand for trade benefits in exchange for the law's passage, asking for "a few million dollars" in GSP benefits.

  See US Embassy, Buenos Aires, "CODEL Bradley Meeting with Argentine Foreign Minister Di Tella," Cable 03077 to the US Secretary of State, April 1991.

March 26th, 1991

• US Senator Bill Bradley and Congressman Jim Leach meet with Argentine Senator Eduardo Menem, brother of Argentine President Carlos Menem, to discuss the prospects for a pharmaceutical patent law. Senator Menem predicts that the passage such a bill will be difficult because of local producers' media campaign. Another variable that may affect the bill's success is the possibility that the Peronists may lose seats in the September elections before the legislation is considered.

  Ambassador Todman reports in an April 1991 cable to US Secretary of State Jim Baker:

  In response to Senator Bradley's question on the possibilities of favorable legislative action to pass an intellectual property right bill, Menem stated this would not be easy. He described efforts by local pharmaceutical companies to finance a media campaign against patent protection for drugs. This campaign stresses the possibility of unemployment in the local laboratories and the high prices which will result from patent protection. _____ stated the executive branch will use all of its forces to get the law passed. He fully supports these efforts and expects no problem _____________. The Chamber of Deputies, however, is another problem. _____ said he and other GOA officials hope to complete action on this legislation before Congress changes in December, since the Peronists could lose seats in the Chamber of Deputies in the September elections.

  Senator Bradley then outlined the US Congress's concern that "research and development costs need to be recovered in order to promote new research."

  See US Embassy, Buenos Aires, "CODEL Bradley Meeting with Senator Eduardo Menem," Cable 03109 to the US Secretary of State, April 1991.

• An economic officer from the US Embassy in Buenos Aires meets with Agustina Fernandez, chief advisor to Undersecretary of Industry and Commerce Juan Schiaretti. Fernandez is uninformed about the issue and, according to Ambassador Todman's cable to US Secretary of State James Baker, "admitted to having done very little on this issue since taking up her position with the Cavallo economic team in February." The US Embassy officer "informed Fernandez that her minister had agreed with Hills to consultations in late May," "presented her with a Spanish translation of the USG's criteria for a sound patent law, and explained that this likely would be the criteria used by the US delegation as our basis for discussion when bilateral consultations on the Menem administration's draft bill take place."

  See American Embassy, Buenos Aires, "State of Play on Patents," Cable 02947 to the US Secretary of State, April 1991.

March 27th, 1991

• Ambassador Todman meets with Argentine Foreign Minister Guido Di Tella, who says that he has assured US Trade Representative Carla Hill of his commitment to obtaining the passage of a patent law, but that US willingness to extend GSP benefits to Argentine products would be necessary for the law to pass in the Chamber of Deputies.

  See American Embassy, Buenos Aires, "Foreign Minister Seeks Special GSP Treatment in Exchange for Patent Law," Cable 2920 to the US Secretary of State, March 1991.

• Ambassador Todman meets with CAEME members to discuss progress on pharmaceutical patents. CAEME is represented by Reinhold Buxhoeveden, president of CAEME and head of Bayer Argentina, Roberto Lavalle, president of Janssen, Alberto Irigoyen, director of CIBA-GEIGY, Cesar Siedlarek, general manager of Essez Argentina, and Rafael Alonso, CAEME coordinator for patents. The group plans to lobby the Argentine Congress and defend patents in the local media.

  In an April cable to US Secretary of State James Baker, Ambassador Todman reports:

  The group said they had prepared a lobbying plan, and were educating themselves on the issue to become more effective lobbyists. They are carrying out a public information campaign, and preparing additional material to counter a CILFA (patent pirate organization) media blitz, that they anticipate will take place once a bill is introduced in the Congress. The pro-patent think tank CEDIQUIFA is putting together a seminar on the issue for early June. The Ambassador encouraged them to push ahead with their publicity effort.

  See American Embassy, Buenos Aires, "State of Play on Patents," Cable 02947 to the US Secretary of State, April 1991.

April 1991

• In advance of the announcement of the results of the annual Special 301 review by United States Trade Representative Carla Hill, Acting Secretary of State Lawrence Eagleburger requests that Ambassador Todman inform Argentine government officials that Argentina will be listed on the priority watch list, continuing the status quo.

  See US Secretary of State, "Argentina: Special 301 Announcement," Cable to the US Embassy in Buenos Aires, April 1991.

May 3rd, 1991

• US Embassy officials meet with Dr. Marcelo Vernengo at the Argentine Ministry of Health. Dr. Vernengo is a former quality control expert for the Pan American Health Organization. He reports that the current Undersecretary for Health, Jorge Di Igorio, has "had a falling out with Minister Porto and would be replaced shortly by Dr. Elsa Moreno." US officials say that "Vernengo seems to be the most serious and best informed to move the issue forward."

  See American Embassy, Buenos Aires, "Update on Pharmaceuticals," Cable 04306 to the US Secretary of State, May 1991.

Mid-May, 1991

• Assistant Secretary of State for Inter-American Affairs Bernard Aronson sends Deputy US Secretary of State Lawrence Eagleburger a drafted briefing memorandum for an upcoming meeting with Argentine Foreign Minister Guido Di Tella. Among the listed "key points to make" is the following statement: "Intellectual property rights are a top priority for the US. We appreciate your efforts to protect pharmaceutical patents and look forward to passage of effective legislation as soon as possible." In a copy revised on May 23rd, the second sentence is crossed out, with a correction that reads: "We hope to consult on your patent laws in the very near future," implying continued US involvement.

  See Aronson, Bernard, "Meeting with Argentine Foreign Minister Guido Di Tella," Briefing Memorandum.

May 24th, 1991

• After a telephone conversation about the patent issue with Jon E. Hueneman at USTR, US Embassy economic counselor James M. Derham speaks with Sub secretary of the Economy Carlos Sanchez "to review GOA timetable for consulting with USG on GOA draft law on pharmaceutical patents." Sanchez says that during the week of May 27th, Minister Cavallo, Minister Di Tella, and Minister Porto will discuss the provisions of the draft law. The economic counselor requests a copy of the draft in advance of US consultations in Washington beginning June 10th.

June 1991

• Acting US Secretary of State Lawrence Eagleburger sends an action request to US Embassies in Europe and South America. Eagleburger asks that US Embassy officials solicit European officials to support the US in pressing for increased intellectual property protection in South American countries, including Argentina.

  See US Secretary of State, "Enlisting European Support for Improved IPR Protection in South America," Cable 197873 to the US Embassies in Bern, Bonn, London, Paris, Rome, and the Hague, June 1991.

July 1991

• The Argentine patent office, suffering from a severe crunch in funding, is unable to process patents and trademarks. Ambassador Todman comments in a cable to Secretary of State James Baker, "The demise of the patent office is a vivid reminder of the lack of importance the GOA bureaucracy actually gives to IPR issues. The patent office has been caught up in the general financial problems of the GOA and allowed to shrink along with other low priority functions." The Embassy fears that "merely obtaining a sound patent law is not likely to be sufficient to ensure the protection of patent rights. The effective execution of laws and regulations protecting intellectual property will require a much better understanding and higher priority for IPR within the GOA." Ambassador Todman recommends that "Washington agencies may want to seek opportunities with senior GOA interlocutors to show interest in the administration as they have in the legal foundation of IPR protection in Argentina."

  US Embassy, Buenos Aires, "Priority for IPR Administration," Cable 07046 to the US Secretary of State, July 1991.

August 6th, 1991

• US Secretary of Commerce Robert A. Mosbacher, Under Secretary of the International Trade Administration J. Michael Farren and US Ambassador to Argentine Terence Todman meet with Argentine Minister of Economy Domingo Cavallo and other cabinet officials. US officials press Cavallo to introduce patent legislation by September, but Cavallo says that the executive branch wants to wait until after the fall elections to take on such a controversial issue.

  American Embassy, Buenos Aires, Cable to the US Secretary of State, August 1991.

Late August 1991

• In the lead up to the introduction of patent legislation in the Argentine Congress, CILFA increases its media presence with ads threatening that patents will increase prices for medicines. The Embassy fears that CAEME's response to these attacks will be inadequate. Ambassador Todman writes in an August 1991 cable to US Secretary of State Lawrence Eagleburger:

  With the deadline for the GOA's introduction of a new patent law less than a month away, the local association of pharmaceutical patent pirates (CILFA) seems to have stepped up its campaign to ensure the new law will provide only minimal rights. Continuing to equate patents with monopoly rights in its newspaper and television advertisements, CILFA is hammering (sic) way with its claims that patents will greatly increase the price of pharmaceuticals to pensioners. The ads draw a picture of pensioners without vital medicine and a picture of the public health care system losing up to a USD billion a year. CILFA continues to preach that any new law must contain strong compulsory licensing provisions.

  The CILFA campaign has successfully generated some public political support as the September 8th elections near. The radical party recently issued a public statement against patents. In addition the Health Minister for Buenos Aires Province, Gonzalez Garcia, was reported to have told a pharmaceutical convention that Argentina "cannot recognize medical patents on the terms requested by the developed world" which would force its people to pay "outrageous" prices for medical products.

  The local PMA representatives (CAEME) have so far been working behind the scenes in trying to undo the CILFA successes. When CAEME's lobbyist on patents questioned the head of the radical block in the House about his party's public position, the Deputy claimed not to be aware of the reasons his party had taken such a stand. The lobbyist has taken this response to mean that the (sic) radically commitment could be reversed.

  Nevertheless, the local PMA representatives (CAEME) have been slow to organize against CILFA's stepped up public campaign. CAEME has promised ECONOFF that a newspaper and television counteroffensive is being prepared. CAEME hopes to have its rebuttal to the public by the first week of September. Meanwhile, the GOA's Minister of Health Porto told an August 26 conference on the economic plan that he would soon be sending a draft of a new bill to the President's office for approval, before forwarding it to the Congress.

  Comment: The Embassy is concerned that CAEME continues to be slow off the mark in confronting CILFA's anti-patent publicity campaign. In the past CAEME has been reluctant to publicly refute CILFA's claims on the price effects of patents, despite significant data that could be used in this regard. A concise treatment on prices and the willingness of the R and D based industry to sign licensing agreements after the Chilean and especially the Mexican laws were passed, would go a long way towards knocking the philosophical legs out form under the anti-patent campaign.

  See American Embassy, Buenos Aires, "Anti-Patent Campaign Heats Up," Cable 08429 to the US Secretary of State, August 1991.

August 28th, 1991

• The major Buenos Aires newspapers publish a statement by Argentine Foreign Minister Guido Di Tella at an August 27th conference of Argentine banks that the US is threatening economic sanctions against Argentina if patent law remains inadequate by US standards. The Ministry of Economy's Director of Economic Relations with North America and the Western hemisphere, Luis Maria Richerri, tells US Embassy officials that some of the minister's comments were taken out of context, and that his intention was to communicate that the Argentine government "has no choice but to go ahead with the law."

  American Embassy, Buenos Aires, "Patents: Foreign Minister Publicizes Potential 301 Retaliation," Cable 08523 to the US Secretary of State, August 1991.

September 10th, 1991

• Officials from USTR, US PTO, the State Department, and the American Embassy in Buenos Aires hold talks with the Argentine officials responsible for submitting a patent law to Congress. The US government representatives included Jon Huenemann and Carmen Suro-Bredie of USTR, Lee Skillington of the Patent and Trademark Office, Jon Farrar of the State Department, and John Riddle of the US Embassy in Buenos Aires. Argentine participants included under secretary of for industry Luis El Halli Obeid, under secretary for health Marcelo Vernengo, INPI director Norma Felix, and Director of Economic Relations with North America and the Western hemisphere Luis Maria Richerri. The US delegation and Ambassador Todman also met with Argentine Minister of Economy Domingo Cavallo. The Argentine government officials carry non-papers that reflect the objectives of access to medicine and technology transfer; however, Ambassador Todman reports in a September 1991 cable to US Secretary of State Lawrence Eagleburger that these non-papers "did not serve as the basis for the discussions."

  See American Embassy, Buenos Aires, "Patent Talks," Cable 09218 to the US Secretary of State, September 1991.

September 21st-26th, 1991

• CILFA attacks Ambassador Todman in the Argentine press in what the Ambassador calls a "last-ditch effort to halt expected patent legislation." Pagina 12, a daily Argentine newspaper, prints a comment from the president of CILFA that "the people" will be the "next victim" of America's involvement in Argentina. On September 25th, other Buenos Aires daily newspapers run full-page ads by CILFA that read "Asi no, Sr. Todman" (Not like this, Mr. Todman) and charge Ambassador Todman with attempting to "supplant our democratic institutions by your exclusive autocratic will" even though "such an attitude in your own country would be unacceptable."

  Presidential Chief of Staff Eduardo Bauza is quoted in Pagina 12 September 24th as saying that the Ambassador was entitled to his opinions, but did not have the right to interfere in Argentine domestic affairs.

  La Nacion political correspondent Angel Anaya accuses Ambassador Todman of overstepping his duties and earning the nickname "Braden II" given to him by Argentine government officials in an editorial published September 26th. The nickname refers to US Ambassador Spruille Braden, who was outspoken in his opposition to Argentina's Peronist government.

  See American Embassy, Buenos Aires, "CILFA Aims Low to Halt Patent Law," Cable to the US Secretary of State, October 1991. (Cable number is illegible.)

• The National Chamber of Deputies considers a resolution condemning Todman, but, due to Peronist leadership's rejection of the bill, it dies in committee. Todman writes:

  CILFA continued to keep the pressure on the Ambassador and the GOA by promoting ( according to the Buenos Aires daily "Clarin") a resolution in the National Chamber of Deputies urging the GOA to declare Ambassador Todman "persona non grata" for interference in Argentine domestic affairs. The Peronist house leadership managed late September 26th to remit the legislation to a death-in-committee, but not until 76 legislators had gone on record in favor of it.

  See American Embassy, Buenos Aires, "CILFA Aims Low to Halt Patent Law," Cable to the US Secretary of State, October 1991. (Cable number is illegible.)

September 27th, 1991

• President Menem, Minister Cavallo, and Minister Di Tella defend Ambassador Todman in the Argentine press.

  In a private meeting with Ambassador Todman, President Menem clarifies that he does not consider the Ambassador's efforts as an intrusion into domestic Argentine affairs.

  See American Embassy, Buenos Aires, "CILFA Aims Low to Halt Patent Law," Cable to the US Secretary of State, October 1991. (Cable number is illegible.)

October 2nd, 1991

• La Nacion, a Buenos Aires daily newspaper, reports that Minister Cavallo, Minister Porto, and Presidential Chief of Staff Eduardo Bauza have agreed on the text of a patent bill. Provisions of the agreement include the following:
  • The law is not to be retroactive.
  • The patent term will be 20 years.
  • Importation of patent products will be possible.
  • Compulsory licensing will be limited to national emergencies or monopolistic use.

  The article also reports that the Argentine government is considering a bill to require prescriptions to be written by the scientific name as opposed to the brand name in order to increase competition within the generic industry.

  See American Embassy, Buenos Aires, "Press Reports Ministerial Decision on Patent Bill," Cable 09808 to the US Secretary of State, Washington DC, October 1991.

October 4th, 1991

• Ambassador Todman meets with a Ministry of Foreign Affairs official who says that the politicians and journalists attacking the Ambassador are merely scapegoating him to promote a broader agenda of slowing reform in Argentina.

October 10th, 1991

• President Menem approves the draft patent law for submission to the Argentine Congress. The submission of the legislation had been delayed due to disagreement between Minister Cavallo and Minister Porto.

  Ambassador Todman comments in his October 1991 cable to the US Secretary of State:

  Embassy's preliminary, inexpert reading is that law as submitted is responsive to most US major concerns. This is only the first step and congressional approval will not be easy. Close associate of Minister Cavallo told DCM October 10th that Cavallo had said that the "guns of Navarone" will be needed to get the bill through Congress.

December 1991

• Norma Felix, the new director of the Argentine patent office, tells representatives from the US Embassy that the pharmaceutical patent bill will pass, but only with a sustained effort from the Ministry of Economy. Felix says that the patent office is still experiencing serious financial problems, but that she hopes WIPO funds will allow her to recruit more employees. She asks for US "technical assistance" in restoring her office.

  See US Embassy, Buenos Aires, "Congressional Debate on Patents and Patent Office Problems," Cable 12261 to the US Secretary of State, December 1991

• Pablo Challu publishes "The Consequences of Pharmaceutical Product Patenting," a 125-page booklet in which he argues that the level of research investment (and invention) in a country is not a function of its patent system, but of its level of economic development.

  Pablo Challu, "The Consequences of Pharmaceutical Product Patenting" Off-Prints of World Competition, December 1991.

December 10th, 1991

• The new Argentine Chamber of Deputies meets for the first time. The Peronists have 118 seats, a substantial portion of the 129 needed for a quorum.

December 27th, 1991

• The economic counselor at the US Embassy in Buenos Aires informs Argentine patent office director Norma Felix that the US Government is willing sponsor a program in Washington for Argentine officials on how to operate a patent office. Felix says she appreciates the offer and that a small group of officials would be interested in visiting Washington in February for such a program.

  American Embassy, Buenos Aires, "Technical Assistance for GOA Patent Office," Cable 12984 to the US Secretary of State, December 1991.

January, 1992

• Director of the Argentine National Institute for Industrial Property (INPI) Norma Felix meets with US Embassy officials Robert Asselin, John Riddle, and Julian Abella to give them a list of topics INPI officials wish to discuss during upcoming sessions in Washington in order to learn how to reinvent the Argentine patent office. Felix tells the Embassy officers that the old system of evaluating patents is not worth amending; Argentina needs a new, completely modern system. She also says that INPI will be responsible for writing the regulations of the new patent law for pharmaceuticals once it is passed by Congress.

  American Embassy, Buenos Aires, "GOA Request for Technical Assistance for New Patent Office," Cable 00838 to the US Secretary of State, January 1992.

January 23rd, 1992

• The Argentine executive branch issues Decree 150/92, which requires that prescriptions be written with the scientific name of the drug as opposed to the brand name. The order's objective is to give pharmacists and patients the freedom to choose among brands in order to encourage price competition and to demonstrate that pharmaceutical patents will not necessarily result in price increases. INPI tells an economic officer from the US Embassy that the decree is modeled after the generic prescription laws of some US states.

  Carlos Villagra, secretary general of a major pharmacy industry group, says that with such a decree on generics, his organization will support pharmaceutical patents.

  CILFA and CAEME both oppose the order: as Embassy officer James M. Derham notes in a February 1992 cable to the US Secretary of State, "the marketing investments of both groups have long been directed at convincing doctors to prescribe their products."

  See American Embassy, Buenos Aires, "GOA Decree on Generic Drug Prescriptions," Cable 01363 to the US Secretary of State, February 1992.

• Despite CAEME's overall objection to the decree, one provision of the order seems to speak to the concerns of foreign labs by allowing the automatic registration of products registered elsewhere. Chapter 11, Article 4 provides for the automatic registration of drugs already registered in any of 15 enumerated countries (including the US). CAEME complains that Israel and Spain, countries it considers to lack sufficient intellectual property protection, should not be included in this list.

  See American Embassy, Buenos Aires, "GOA Decree on Generic Drug Prescriptions," Cable 01363 to the US Secretary of State, February 1992.

February 6th, 1992

• Menem issues a Presidential decree to convene a special session of Congress to begin February 17. The administration and the radical party have agreed to a list of issues to address in the session; the list does not include pharmaceutical patents. However, Embassy officer James M. Derham notes optimistically in a February 1992 cable to Secretary of State Lawrence Eagleburger, "this and other legislation may come up later in the month or during the regular session of Congress which commences May 1."

  See American Embassy, Buenos Aires, "Congress Set for February 17 Special Session; Patents Law Expected to be Considered," Cable 01306 to the US Secretary of State, February 1992.

February 10th, 1992

• Argentine Minister of Economy Domingo Cavallo says on a radio program that the order requiring the use of a drug's scientific name for prescriptions is intended to promote consumer choice. In the face of Cavallo's defense of the decree, foreign pharmaceutical companies change their tack: instead of fighting for the reversal of the order, they plan to press the Argentine government to explicitly recognize in its regulations implementing the decree that prescriptions can include a trademark.

  American Embassy, Buenos Aires, "GOA Decree on Generic Drug Prescriptions," Cable 01363 to the US Secretary of State, February 1992.

Mid to Late February, 1992

• Foreign pharmaceutical manufacturers invite five members of the Argentine Chamber of Deputies to visit research labs in the US, Britain and Italy. Ambassador Todman notes "because of their potential leadership role in the passage of the draft law now before the Congress, these deputies would be well placed to use the information they learn during this trip in support of the administration's bill." Ambassador Todman requests US government assistance in planning the group's visit to Washington The Deputies include Carlos Romero, Vice President of the Peronist Bloc (the majority party), Alberto Juan Bautiste Iribarne, Chairman of the Industry Committee, Jorge Lopez, Chairman of the Commerce Committee, Miguel Camel Nacul, Chairman of the Science and Technology Committee, and Blasco Jose Manuel, Chairman of the Health Committee.

  American Embassy, Buenos Aires, "Request for Assistance in Arranging Argentine Deputies' IPR visit to Washington," Cable 01544 to the US Secretary of State, February 1992.

• CAEME subsequently reschedules the proposed visit to Washington of the Deputies in order to accommodate Luis Martinez, the First Vice President of the Argentine Chamber of Deputies.

  See American Embassy, Buenos Aires, "Expansion of GOA Deputies' IPR visit to Washington," Cable 01970 to the US Secretary of State, February 1992.

February 27th, 1992

• An article in the Cronista Comercial, an Argentine business newspaper, claims that the Ministry of Health and various associations of medical professionals have joined the pharmaceutical labs in opposition to Article 10 of the generics decree, which mandates the use of generic drugs in prescriptions and sales.

March 6th, 1992

• Ambassador Todman meets with President Menem to thank Menem for his support of the formulation of an "adequate patent bill." He is assured of the President's continued commitment to doing "everything necessary" toward the goal of its approval.

  See US Embassy, Buenos Aires, "Top GOA Administration Offices Commit to Push for Passage of Patent Bill," Cable 02583 to the US Secretary of State, Washington, March 1992.

March 9th, 1992

• Ambassador Todman meets with Argentine Minister of Economy Domingo Cavallo. He warns Cavallo that without an adequate patent law in place in Argentina, the US will be hesitant to enter into an agreement on broader and deeper cooperation in science and technology, an Argentine trade priority. Cavallo promises to speak with Presidential Chief of Staff Eduardo Bauza to ask that the bill be added to the agenda of the extraordinary session of Congress.

  See US Embassy, Buenos Aires, "Top GOA Administration Offices Commit to Push for Passage of Patent Bill," Cable 02583 to the US Secretary of State, Washington, March 1992.

Mid- March, 1992

• Officials from the economic section of the US Embassy in Buenos Aires meet with Jorge Lopez, Alberto Iribane, Miguel Camel Nacul, and Dr. Jose M. Corchuelo Blasco, four of the Deputies scheduled to visit Washington later in the month. Their visit to Washington has been rescheduled again due to a request from President Menem. The group is interested in US assistance of small American firms and the US electoral process.

  Alejandro Zaia, a lobbyist for CAEME, will join the delegation to DC.

  See American Embassy, Buenos Aires, "Additional Interests of GOA Deputies," Cable 02584 to the US Secretary of State, March 1992.

March 16th, 1992

• Ambassador Todman meets with Argentine Foreign Minister Guido Di Tella. Embassy officer James Walsh reports to Secretary of State James Baker in a May 1992 cable that Ambassador Todman "emphasized that GOA passage of adequate patent protection has important implications not only to Section 301 sanctions but also to scientific and technological cooperation between the US and Argentina." The Ambassador said that the absence of intellectual property protection in Argentina would limit "the scope of the S and T agreement."

  American Embassy, Buenos Aires, "Patent Legislation and S and T Cooperation," Cable 02945 to the US Secretary of State, March 1992.

April 9th, 1992

• Argentine Minister of Economy Domingo Cavallo calls Ambassador Todman to thank him for US government assistance in the Brady negotiations. Cavallo vows to work on the patent issue and says he has insisted to Jorge Matzkin, leader of the Peronist Deputies, that the passage of the patent law is a prerequisite for foreign investment. Ambassador Todman again reminds Minister Cavallo that the law's passage will influence the bilateral US-Argentine science and technology agreement.

  American Embassy, Buenos Aires, "Cavallo Comments on Patent Law," Cable 03665 to the US Secretary of State, April 1992.

April 15th, 1992

• Officials from the economic section of the US Embassy in Buenos Aires meet with lobbyists for the local branches of the foreign pharmaceutical industry Rafael Alonzo, Alejandro Zaia, Feliz Rozanski and Jesus Ramirez. The lobbyists emphasize the role of the Industry Committee, chaired by Deputy Alberto Iribarne, in drafting the text of the bill that will reach the floor. They anticipate that the Chamber of Deputies may spend two or three months on the bill, with another two months in the Senate to follow. Amendments by the pro-patent Pharmaceutical Manufacturers of America (PMA) to the bill have been sent to the House by the Ministry of Economy. Local anti-patent pharmaceutical industry group CILFA is also suggesting amendments to the bill. Although CILFA has attained influence in Congress through payoffs to Congressmen and their staffs in exchange for information on pro-patent amendment proposals, the lobbyists opine that recent public concern about corruption may undermine CILFA's influence. Ambassador Todman comments on the meeting in an April cable to Secretary of State Jim Baker, "We will look for opportunities to discreetly contact key group leaders who still need some massaging." He asks that USTR contact Jose Octavio Bordon, a Peronist living in Washington DC, to pursue his assistance in lobbying the Argentine government.

  American Embassy, Buenos Aires, "Legislative Strategy for Patent Bill Passage" Cable 03924 to the US Secretary of State, April 1992.

April 20th, 1992

• The Argentine government issues joint resolutions 470/92 and 268/92 of Decree No. 150/92. Although both local and multinational labs had feared the implementation of the Generics Decree, the resolution actually benefits multinational labs by allowing for automatic registration of pharmaceutical products registered elsewhere and placing the responsibility for the quality of a generic drug recommendation on the pharmacist. The resolutions do not require doctors to write prescription by generic name.

  American Embassy, Buenos Aires, "Generic Drug Resolution" Cable 04506 to the US Secretary of State, May 1992.

May 12th, 1992

• Economic and science counselors at the US Embassy in Buenos Aires meet with Deputy Jorge Yoma and his lawyer, Jose Garcia, to discuss the patent bill and follow up on a Yoma's meeting with Ambassador Todman May 8th. Yoma says that CILFA has been lobbying members of the industry committee aggressively, and that he is hoping to find a compromise between the goals of the administration and the demands of the local labs. Ambassador Todman notes in a May 1992 cable to the US Secretary of State, "the problem is that Yoma (and probably other deputies as well) see the executive's draft as a starting point, not an irreducible minimum."

  American Embassy, Buenos Aires, "Patent Law - Discussion with Diputado Yoma" Cable 04938 to the US Secretary of State, May 1992.

May 27th, 1992

• Ambassador Todman and Myles Frechette, Assistant US Trade Representative for Latin America, meet with Argentine Economy Minister Domingo Cavallo. Also present are USTR Southern Cone Director Jon E. Huenemann and the Embassy's economic counselor as well as Julio Nogues, the Argentine Ministry of Economy's trade representative in Washington, and Luis Obeid, Undersecretary for Industry at the Ministry of Economy.

  Cavallo says the first draft of the industry committee's report on the bill is unsatisfactory, and that the passage of an acceptable bill will require lobbying from himself, other ministers, and the President. The President has the power to veto specific parts of a law, but this power is limited. Cavallo asks that the US emphasize in its discussions with other Argentine ministers that free trade agreements with the US would not be possible without intellectual property protection.

  American Embassy, Buenos Aires, "Minister Cavallo's Comments on US-Argentine Trade Issues" Cable 05518 to the US Secretary of State, May 1992.

June 19th, 1992

• President Menem hosts a small private dinner for Ambassador Todman and five Argentine cabinet officials. At the dinner President Menem voices his hope of continued development of scientific research in Argentina. The Ambassador responds that US scientific support would require intellectual property protection. Menem replies that he is frustrated with the slow pace of Congressional action and "might have to consider" using a Presidential decree to address the pharmaceutical patent issue.

  See American Embassy, Buenos Aires, "Menem Notes Need for Swift Implementation of Pending Patents Legislation" Cable 05400 to the US Secretary of State, May 1992.

Late June, 1992

• Ambassador Todman asks Minister of Health and Social Action Julio Cesar Araoz to "work actively for the early passage, without amendment, of the Menem administration's patent bill." Araoz, like the Embassy's contacts in Congress, says the bill has been stalled.

  American Embassy, Buenos Aires, "Minister of Health Pledges Support for Patent Bill" Cable 06047 to the US Secretary of State, May 1992.

• An unidentified Congressman who met this month with officials from the economic section of the US Embassy said that the executive branch had not emphasized the importance of the bill.

  American Embassy, Buenos Aires, "_________ Gives His Priorities, Patents Bill is Not One of Them" Cable 06737 to the US Secretary of State, May 1992.

August 1992

• Ambassador Todman meets with Argentine Ambassador to the United States Carlos Ortiz de Rozas and Ministry of Foreign Affairs officials to press for faster progress on pharmaceutical patents. He writes in an August 1992 cable to the US Secretary of State:

  As part of the Embassy's effort to maintain pressure on the GOA for passage of sound IPR legislation, the Ambassador raised the issue with Argentina's Ambassador to the United States, Carlos Ortiz the Rozas, and other senior foreign ministry officials including Secretary Petrella, Undersecretary Pfirter, Assistant Under Secretary for Mercosur Abra, and North American desk director Dalton during an August 10th meeting. In raising the question, the Ambassador noted that sound IPR protection was our number one economic issue with Argentina. He pointed out that he had discussed the topic personally with President Menem, Ministers Cavallo, Di Tella, Araoz, and Secretary General of the Presidency Bauza and others in the executive branch. However, he was abstaining form personally lobbying Congress, because of the sensitivities shown by that body. Beyond patents, he said, it was important to have a broad scope law protecting intellectual property, since this would have an effect on the level of our cooperation in science and technology as well as on the attitudes towards investing in Argentina. The Ambassador noted that if the patent portion of the issue were not resolved soon, pressure could easily develop for another 301 action, and asked what might be done.

  Ortiz de Rozas and Undersecretary of Foreign Relations, Rogelio Pfirter, commented that the issue could be resolved only through a lobbying effort by the pharmaceutical companies. Undersecretary for economic integration Jesus Sabra noted the concern of opponents of the law that the law could lead to an increase in pharmaceutical prices.

  Ambassador Ortiz de Rozas recommended that the US enlist foreign labs from other countries to lobby for patents and to incorporate non-pharmaceutical companies interested in the broader idea of intellectual property protection.

  American Embassy, Buenos Aires, "IPR / Patent Effort: Discussion with Ambassador Ortiz de Rozas" Cable 08408 to the US Secretary of State, May 1992.

Early September 1992

• The American Embassy in Buenos Aires sends an action request to the Secretary of State. The text of the document follows:

  1. Summary and Action Request

  After 11 months of drifting, indications are that the administration's patent bill may be gaining momentum in the Chamber of Deputies. The Ambassador has continued to receive commitments of support from top officials, while ecouns and econoff have met with several groups of Congressmen in recent weeks and pressed for their support of the bill. German labs have come up with USD 69 thousand for a renewed public relations campaign. Should this momentum begin to flag due to continuing strong opposition, we would like to be in a position to note at the highest levels of the Argentine executive branch that there is a growing concern in Washington about the delay.

  (THE ACTION REQUEST IS CENSORED.)

  Why the bill has drifted in the Congress

  2. Supporters of the Menem administration's bill have faced both procedural and political obstacles since the bill entered the Chamber of Deputies, October 10 1991. Upon arrival the bill was sent immediately to eight committees, a maneuver which senior Peronist deputies recognize was instigated by opponents to complicate the legislative process. The industry committee has the lead, with the committees for science and technology, health and commerce in a second tier of importance. While leaders in the key committees have plowed ahead, some have been influenced by the local labs' attempt to amend the bill.

  Industry Committees

  3. For example, the president of the industry committee Iribarne told econoff that he supports the administration's bill but is pushing for three changes, which are damaging. He wants to:

  • delete the article which allows importation to be considered sufficient as meeting a "working" requirement,
  • replace pipeline protection with a phase-in period, and
  • allow parallel importation of patented products.

  He claims to agree with a duration of 20 years, although his staffer argues for a limit of 15 years, along the lines of Chile.

  4. CAEME (local association of multinational pharmaceutical firms) lobbyists explained that the committee's work on the patent bill came to a halt after administration officials told Iribarne that his changes were completely unacceptable. Iribarne's committee turned its attention to a fishing bill that has also been a difficult issue for the government. He planned to finish that work before taking up patents again.

  Health Committee

  5. The head of the health committee Deputy Corchuelo Blasco claims to support the administration's bill, but believes CILFA's (anti-patent association of large local firms) data on prices. Like Iribarne, Corchuelo Blasco wants a phase-in period. He also calls for freer GOA discretion in granting compulsory licenses.

  Commerce Committee

  6. Deputy Lopez, the head of the commerce committee, remains an indifferent supporter of the bill.

  Science and Technology Committee

  7. The president of the S and T committee, Deputy Nacul, actively defends the administration's bill, and suggests that patent supporters need a more concrete presentation of the benefits that IPR protection can bring Argentina. He emphasizes that "price effect" is a key issue for deputies and recommends that the research industry attempt to further substantiate in "common sense" fashion the neutral price effects of patents. He also believes it would be helpful if the research industry could demonstrate some intent to invest, once the legal climate improves.

  Insufficient administration emphasis in the Congress

  8. All our interlocutors agreed that top Menem administration officials had not, until recently, (sic) push hard for the bill within the Congress, despite commitments from the President on down to work for passage. Typical was (sic) Iribarne understandings that improving IPR protection is one of the administration's concerns, but he claimed not to have received word from a top official that the time had come to move the legislation.

  9. The administration's new pointman on patents is undersecretary for industry Carlos Magarinos. He enjoys a direct line of communications with Cavallo on the issue that bypasses the undersecretary's more immediate superior, Secretary of Industry and Commerce Schiaretti. We have heard from both lobbyists and Deputies that Magarino's message to the Congress on behalf of Economy / Minister Cavallo is: "no amendments to the administration's bill."

  Other political distractions

  11. While the controversy over reforming the constitution is no longer the distraction it was for Deputies, other issues have arisen to divert their attention from work on the more arcane legislation of economic reform. The Peronist bloc leadership is under fire for its inability to deliver a united party for a vote on the Chilean border treaty. With recriminations flying, attentions turned to replacing the leadership of the bloc.

  12. Meanwhile, Iribarne has been pulled out of the Congress by his political mentor, Mayor Grosso of the Federal Capital. In accepting the top post in Grosso's council, Iribarne asked for three months leave from the Congress. It now seems likely that he will be forced to give up the chairmanship of the committee. CAEME lobbyists believe that Deputy (CENSORED)

  13. Finally, lethargy in the Congress is another problem for patents. Congress has lost the sense of urgency it felt in early 1991 when inflation forced a change in the economic team. After 18 months of stability, Iribarne said, his fellow deputies are no longer seized with the country's economic problems.

  Reason for hope

  14. Despite obstacles, there is good reason to believe success is still possible, if a renewed effort is made. From (sic) Iribarne perspective, President Menem still has a sufficient following in the Congress to get a patent bill approved. Iribarne recognized that the patent issue is not likely to produce the same emotional division among his colleagues as some of the other legislation under discussion.

  15. We continue to receive very positive responses in our contacts with senior administration officials. The Ambassador is seeking out new political channels for our message as well as renewing commitments from top officials. In a recent visit to President Menem's province of La Rioja, the Ambassador pressed the issue with Governor Arnuado. (CENSORED).

  16. CAEME lobbyists report that La Rioja Deputy Yoma, an in-law of Menem's and a member of the industry committee, has written a favorable report on the bill with the support of Undersecretary Magarinos. We understand that Yoma has gathered sufficient support in the committee to move his report to the floor. Yoma recently met with Menem on the issue and reportedly receive the President's support. After Yoma got bloc leader Matzkin to speak to Menem, the bloc leader reportedly told his Deputies that the party would back Yoma's report. Lobbyists believe the bloc leader is at the point of announcing that the patent bill is the next up for consideration in the Chamber.

  Some helpful signs from opposition party ranks

  17. Lobbyist Alonso reports that former Foreign Minister Dante Caputo favors a sound law, and haw perhaps 20 Deputies from his party willing to help form a quorum at the time of a floor vote.

  Time is right to push harder.

  18. With the current ordinary session nearing its end on September 30, Margarinos and local pro-patent lobbyists believe the time is right to push for passage of the bill in the Chamber of Deputies. They see support firming in the Congress with CILFA on the defensive. The association has changed its president at a time when a quality control scandal has rocked local industry.

  19. In contacting the Minister of Health again on patents the Ambassador was told that the inability of a local firm to control the quality of one of its elixirs (propolio), which caused the death of more than 20 persons (Buenos Aires 8791), has improved the political environment for patents. Although the firm was not a pharmaceutical lab, the press associated it with that industry and consumer vulnerability to current practices.

  20. Most of the multiple competing bills produced by CILFA supporters have attracted little support and can be brushed aside, according to lobbyists. Margarinos also thinks that the number of committees set to review can be reduced.

  IDB Conditionality

  21. We understand that IDB conditionality for the $350 million investment sector loan (ISL) includes requirements on intellectual property protection as part of the effort to enhance the investment environment. As funds from the ISL are to help with Brady Plan financing and much of the work of the ISL has been completed, the ISL conditionality, as it stands, includes actions which have been taken. For example, on intellectual property rights, it requires in the policy matrix that the GOA: "present to Congress patent legislation that protects pharmaceutical patents." The legislation has, of course, been presented. At an appropriate time, e.g. after the Brady Plan for Argentina is concluded, we may wish to work with the IDB to add pressure on the GOA to comply not only with the letter of the conditionality, but also with the spirit of it which is to establish adequate patent protection for pharmaceuticals so that R and D and other foreign and domestic investment in this field is not discouraged.

  American Embassy, Buenos Aires, "Ending Patent Legislation Drift," Cable 09529 to the US Secretary of State, September 1992.

• CIFLA and American University in Washington, DC plan to co-sponsor a conference in Washington during the week of October 4th-10th. The Embassy states that while the seminar is only scheduled for one day, the group will be hosted at the Ritz Carlton for an entire week. It estimates the cost of this trip to CILFA at $200,000. The seminar is to feature Eliot Milstein, Dean of the Washington School of Law and Nobel Laureate as well as Pablo Challu, executive director of CILFA, and a representative from the Canadian pharmaceutical industry. The Embassy suggests that US agencies or legislators invite those Argentine legislators they determine to "still have an open mind" to "a serious session with USG experts."

  American Embassy, Buenos Aires, "Pirates Sponsor Deputies' Visit to Washington," Cable 10252 to the US Secretary of State, May 1992.

• Deputy Andres Fescina, a member of the Chamber of Deputies industry committee who will attend the CILFA-sponsored conference, asks the US Embassy to arrange meetings for him with US Department of State officials to hear the US side of the patent issue.

  American Embassy, Buenos Aires, "Argentine Patent Law: Visit of Deputy Fescina to Washington" Cable 10002 to the US Secretary of State, May 1992.

September 17th, 1992

• Ambassador Todman speaks with Deputy Jorge Yoma, who tells the Ambassador that because the ordinary session of Congress will soon close, the next step is to push for its inclusion in the upcoming extraordinary session. The delay in Congress is partially due to the absence of Alberto Iribarne, president of the industry committee. Iribarne's absence has left the bill "frozen in committee" with Deputy Moreau, who opposes the bill, in charge. After the meeting, Ambassador Todman contacts Minister Cavallo to discuss the inclusion of the bill in the extraordinary session.

  American Embassy, Buenos Aires, "Putting Patents on Agenda of the Extraordinary Session of Congress," Cable 10084 to the US Secretary of State, September 1992.

September 21st, 1992

• Acting US Secretary of State Lawrence Eagleburger meets with Argentine Foreign Minister Guido Di Tella. The talking points prepared for Eagleburger by the US Embassy in Buenos Aires include a stance that the proposed Argentine patent law is "the minimum to encourage investment and signal continued opening of the economy."

  American Embassy, Buenos Aires, "Talking Points for Eagleburger / Di Tella Meeting," Cable 09913 to the US Secretary of State, September 1992.

September 23rd, 1992

• The US Embassy hosts a meeting of economic counselors from the German, Swiss, British, French and Italian embassies. The European officials join the Americans in their support of the patent bill, but have not been as vocal in their advocacy. Ambassador Todman comments: "The patent issue is widely perceived in Argentina as a US bilateral issue. Giving patents more international cover will help make the issue more palatable to certain factions in the Congress. The European embassies have a significant role to play in this regard."

  American Embassy, Buenos Aires, "Coordination with European Embassies in Support of Patent Bill," Cable 10124 to the US Secretary of State, September 1992.

September 25th, 1992

• Economic section officials from the US Embassy speak with Argentine Deputy Carlos Ruckauf, president of the foreign relations committee of the Chamber of Deputies. Ruckauf explains that the stalling of the bill in the industry committee resulted from CILFA's lobbying efforts to hold the bill until a new president for the committee is elected by the Peronist bloc.

  American Embassy, Buenos Aires, "Head of Congressional Foreign Relations Committee Offers Assistance on Patents" Cable 10227 to the US Secretary of State, September 1992.

September 27th, 1992

• Ambassador Todman speaks with President Menem, asking him to pursue passage of the bill as soon as possible. Todman paraphrases Menem in a September 1992 cable to acting Secretary of State Lawrence Eagleburger and USTR Carla Hills as saying that he has made sure that the patent legislation is "one of a very few items on the agenda for an extraordinary session of the Congress" to ensure that "legislators will have to focus on it." The Argentine President also tells Todman that he has asked members of party to back the legislation; however, he voices uncertainty about the ultimate outcome of his efforts, given "the obstreperous way the Congress has been behaving recently on several matters of great importance to the country."

  In his comments in the September 1992 cable, Todman says, "I and Embassy officers continue to work quietly with other embassies, members of the government, and favorably inclined legislators to try to get this issue approved quickly."

  American Embassy, Buenos Aires, "Patent Legislation," Cable 10206 to the US Secretary of State, May 1992.

Early October, 1992

• American University in Washington DC holds a seminar to discuss the patent issue. Panelists include Pablo Challu of CILFA. Secretary Eagleburger subsequently informs Ambassador Todman in a cable that the conference "went pretty much as expected given its one-sided structure."

  US Secretary of State, Washington DC, "AU Pharmaceutical Patent Conference," Cable 344829 to the US Embassy in Buenos Aires, October 1992.

  An Argentine radio report Ambassador Todman describes as "typical of the way the press is playing the results of the conference" says, in Todman's words, that "the Deputies who had attended the conference left convinced that restricted royalties payment might be acceptable, but unrestricted patents would have an adverse social impact."

  American Embassy, Buenos Aires, "Request for Results of the AU Conference on Patents," Cable 10252 to the US Secretary of State, October 1992.

November 7th-8th, 1992

• Ambassador Todman discusses progress on the patent law with President Menem, Minister of Economy Domingo Cavallo and Presidential Chief of Staff Eduardo Bauza.

  President Menem expressed confidence in the ability of Congressmen Jorge Yoma to get the bill passed.

  Minister Cavallo said that he expected the bill to pass and warned that overzealous efforts on the part of the international community might backfire. He mentioned the policy conditionality of an Inter-American Development Bank Investment Sector Loan as an example of something that might provoke Congress to angrily and obstinately reject the patent legislation.

  Bauza was more skeptical about the bill's prospects, but ultimately promised to push hard for the bill.

  American Embassy, Buenos Aires, "Ambassador's Discussions with Menem, Cavallo and Bauza on the Patent Law," Cable 11945 to the US Secretary of State, November 1992.

Mid to Late November, 1992

• A cable from Ambassador Todman to acting US Secretary of State Lawrence Eagleburger summarizes Todman's success in finding "several more opportunities to press high-level administration officials for support for the patent bill."

  In response to concerns about Argentina's need to improve its research and development capabilities to keep up with current military technology raised by Minister of Defense Erman Gonzalez in a meeting with General Colin Powell, the Ambassador "emphasized the need for the Argentine Congress to pass the administration' patent bill as an important step toward solving this problem."

  The Ambassador also met with Minister of Health Julio Cesar Araoz to reinforce his insistence that the Ministry press for the bill's passage.

  Ambassador Todman comments in a cable acting US Secretary of State Lawrence Eagleburger: "We will continue to seek every opportunity to press the issue with Menem administration officials." However, he points out that "the PMA needs to make an additional, much more public effort."

  American Embassy, Buenos Aires, "Discussion with Cabinet Members on Patents," Cable 12323 to the US Secretary of State, November 1992.

December 1992

• US Secretary of State Lawrence Eagleburger sends a revision of the 1992 National Trade Estimate draft to the US Embassy in Buenos Aires. With regard to patents, the draft complains that "the Argentine patent law of 1864 does not provide adequate patent protection and specifically excludes pharmaceutical products from protection." The draft summarizes the bilateral dispute by noting:

  In response to a US pharmaceutical industry petition, the United States initiated a Section 301 investigation on patent protection on September 23rd, 1988. On September 23rd, 1989, the pharmaceutical industry withdrew its petition following progress on this issue. Subsequently, Argentina revised its drug registration procedures. In addition, the government of Argentina introduced a new patent law into its Congress on October 11th, 1991 to modernize its existing 1864 patent regime. The law remains in the Argentine legislature where it is under discussion in an extraordinary session. The United States continues to pursue improved intellectual property rights protection in Argentina. Argentina has been placed on the "watch list" under the "Special 301" provision of the 1988 trade act in May 1989 and remains on that list.

  US Secretary of State, Washington DC, "Revision of 1992 National Trade Estimate" Cable 402393 to the US Embassy in Buenos Aires, December 1992.

January, 1993

• Ambassador Todman meets with Alejandro Roemmers, a director of a leading Argentine lab. Ambassador Todman reports in a January 1993 cable to US Secretary of State Lawrence Eagleburger:

  Recently, Alejandro Roemmers, a director of his family's pharmaceutical laboratory, called on the Ambassador seeking support against the GOA's rules for generic drug prescriptions. The Ambassador took the opportunity to press the director on patents, refocusing the conversation on IPR. Roemmers Laboratories is the sales leader in the Argentine market as well as the leader of the domestic Argentine pharmaceutical association fighting improvements in patent protection.

  Roemmer's reducing desired changes to patent bill

  The Ambassador pointed out that sound IPR protection will be one of the top issues for the Clinton Administration. Acknowledging that improved patent protection was inevitable, the director argued for a ten year transition period in Argentina. He pointed out that such a period was currently part of the Dunkel text. At several points in the conversation, the director said that Argentine firms should have "some period" during which the GOA could grant compulsory licenses as part of the transition to a new regime. The director proposed that he and several other "flexible" members of CILFA talk directly with research labs to work out mutually acceptable terms for a law. (CILFA is a local laboratories' trade association.) The Ambassador emphasized the benefits of the Menem Administration's patent bill.

  Roemmers preparing for the inevitable.

  4. While Roemmers labs is fighting to weaken the Administration's bill, it is also preparing for passage of such a law. The director had just returned from the US, where he discussed possible joint research projects in Argentina with officials from Merck, Sharp, and Dohme as well as Glaxo. Roemmers had already arranged drug (sic) licences with Merck, Glaxo, and Bayer, and talks are underway with SmithKline Beecham. The director estimated that perhaps the top 15 of CILFA's 58 member labs were capable of attracting licensing agreements with foreign patent holders. Roemmers had also contracted Japanese labs. Roemmers had also contracted Japanese labs. However the Japanese were uninterested in licensing with an Argentine firm, preferring to give rights for the hemisphere to US labs.

  5. The director was pleased with the results of his talks in the US, but concerned about the short duration of the licensing agreements being discussed. The five year terms under discussion are too short, the director complained. If labs like Roemmers are going to relinquish their free access to front line technology, the director said, longer-term relationships with patent owners are needed. The director suggested that if such agreements were to cover 20 years, this would give his firm sufficient confidence to welcome a patent system. He would like such contracts to establish local labs as the long-term representatives of foreign labs, providing stable access to a stream of new products.

  Additional Twist to the Price Argument

  6. The director also told the Ambassador local labs would need more freedom of pricing in their contracts. The director complained that Glaxo had insisted Roemmers sell a product at four times its production costs. At such a price, he claimed, the drug would have little sales volume in Argentina. According to the director, Glaxo officials refused to allows the retail price to be more than 15 percent lower in Argentina, because they did not want to have to explain the difference to US consumers. From Glaxo's point of view, the director claimed, the Argentine market was simply too small to allow pricing issues here to endanger margins in major markets elsewhere.

  Need to restore a reputation for quality control.

  7. The director recognized a need to end at least some of the local industry's free wheeling style of operation. He lamented quality control scandals that rocked local pharmaceutical producers during 1992. Despite Roemmers Labs reputation for quality, it was being hurt by poor standards at other Argentine labs. In the absence of effective GOA regulation, fly-by-night labs have won some of Roemmers' traditional hospital contracts. He reiterated rumors that such labs have sold local hospitals serum which was actually water. These stories along with that of the 22 deaths caused by a tainted elixir had spread to neighboring countries, effecting Roemmers Labs' export sales.

  Comment

  8. As the leader of the antipatent lobbying effort under the CILFA umbrella, Roemmers is in a strong position to influence the political battle for patent protection in Argentina. Roemmers alone has been willing to spend hundreds of thousands of dollars for such projects as the American University seminar to cement Congressional opposition. While we remain confident our patent protection goal with eventually be obtained, the issues of timing and the actual level of protection that will be passed remain open questions.

  9. Turning leading labs like Roemmers around on the issue is a goal now obtainable. The director revealed the changes already underway in the thinking and operational planning at his firm. For instance, Roemmers labs appears to have reduced its demand for compulsory licensing, limiting it to a transition period. Clearly, it is up to PMA to decide whether to continue rejecting Roemmers' offer for direct talks on the contents of a law.

  10. Perhaps a more acceptable avenue of fruitful exchange is the request for deeper contractual relations with patent owners. Since the duration of such licensing and contractual relations is outside the scope of a patent law, an accommodation between private firms on this point would not weaken the integrity of the legislation. The impression that the director conveyed is that an amicable agreement on this point could lead to a change in attitude toward the bill and a reduction in the intensity of domestic firms' opposition. Eliminating opposition to the Menem Administration's bill should be an explicit requirement of any extended agreement. This goal can only be pursued by patent holders themselves.

  11. One problem is that Roemmers seems to be talking mostly with labs that already have their own reps in Argentina. Other PMA members need to be made aware of the opportunities that a new law will bring so they can consider working our representative arrangements now.

• In the same cable, Ambassador Todman states the importance of filling the position of assistant vice president for Latin America at the PMA as soon as possible, noting, "As the above case illustrates, there are some parts of the lobbying effort that only the PMA and its members can accomplish."

  See American Embassy, Buenos Aires, "Turning Lead Pirate Labs Around on Patents," Cable 0087 to the US Secretary of State, January 1993.

February 1993

• Ambassador Todman sends a cable to the US Secretary of State asking for clarification of US policy on public presentations and the assistance of the PMA in sending its experts to assist CAEME lobbyists. He states that the Argentine public is paying close attention to the debate underway in the US about the source of high prices for pharmaceuticals.

  See American Embassy, Buenos Aires, "Explaining USG Policy on IPR," Cable 1621 to the US Secretary of State, February 1993.

• An article on economic situations in South America sent by US Secretary of State Warren Christopher to the South American Embassies comments on the PMA's weak efforts to promote the pharmaceutical patent bill:

  Efforts by US pharmaceutical firms have been anemic, yet the pharmaceutical association, PMA, is threatening to recommend Argentina for a Special 301 case should the bill not pass.

  See US Secretary of State, Washington DC, "ARA Economic Highlights (January 26-31, 1993)," Cable 37742 to All American Republic Diplomatic Posts, February 1993.

March 3rd, 1993

• A conference on intellectual property rights is held in Buenos Aires. Panelists include Jose Eduardo Garcia, staff advisor to the Chamber of Deputies committee on science and technology and Daniel Hadad, a journalist. The conference is broadcast live on cable stations in Argentina. An Embassy officer reflects in a cable to US Secretary of State Warren Christopher, "This program came at a fortuitous time, as the Argentine Congress is poised to act on a pharmaceutical patent bill before the close of extraordinary sessions."

  See American Embassy, Buenos Aires, "Arnet, March 3, on Intellectual Property Rights," Cable 2020 to the US Secretary of State, March 1993.

March 10th, 1993

• Hector Lopez, a senior PMA official, and Hector Lopez, the new PMA assistant director for Latin America, meet with the Ambassador. They complain that CAEME has moved extremely slowly and inefficiently. Ambassador Todman reports in a March 1993 cable to the US Secretary of State: "when the two industry executives arrived at CAEME they found a lack of urgency about the issue among the staff and some member laboratories." Having finally obtained a commitment from member labs to support a campaign, the PMA delegates learned that Jose Fraccia, director of CAEME, had made a pact not to engage in a press campaign with CILFA's Pablo Challu; however, it appeared that only CAEME had respected the pact.

  See American Embassy, Buenos Aires, "Patching Together the Pro-Patent PR Campaign," Cable 2556 to the US Secretary of State, March 1993.

March 18th, 1993

• Deputy Carlos Ruckauf, president of the Chamber of Deputies foreign relations committee and chairman of Fundacion de los Cien, holds a conference entitled "The Patent Law: Yes or No?" with the assistance of the US Embassy.

  See American Embassy, Buenos Aires, "Patents Get Push From Deputy's Conference," Cable 2799 to the US Secretary of State, March 1993.

March 25th, 1993

• Pablo Challu, executive director of CILFA, tells a Buenos Aires radio program he is in Washington to speak with others who suppose patents.

  See American Embassy, Buenos Aires, "Patent Pirate Leader Visiting Washington," Cable 2851 to the US Secretary of State, March 1993.

April 1993

• Ambassador Todman complains in a cable to the US Secretary of State, "the difficulty of getting patent legislation passed is heightened by the opposition we sometimes receive from groups which are generally pro-market." He cites an article that appeared in the generally pro-market Buenos Aires newspaper "La Prensa" April 21, in which journalist Conrado Etchebarne Burllrich lists several reasons he does not agree with the argument that patents will increase investment in Argentine research:

  First, it must be made clear that we are neither constrained by any international obligation nor by any moral or philosophical principle either. In a strict sense a patent is against the natural laws of the market, since it establishes a twenty-year legal monopoly for the benefits of the inventor. The declared objective is to encourage research with the incentive that profits be produced during that period of legal monopoly based on the total exclusion of competition.

  Second, practically nothing is invented in Argentina. Less than 0.1% of the patents of the world originate in our country.

  Consequently, we do not see the benefits of modifying the current law -- in this aspect, the main argument in favor of the sanction is that the new legislation would encourage research in our country and consequently, technological development. Really, it is not like this because nothing prevents an Argentine inventor from patenting his discovery in developed countries. Besides, the Argentine market, objectively considered, is not big enough to justify the huge expenditure on research and development that any new technology requires.

  At the close of his article, Burllich states that invention is no longer as important a source of national wealth as it once was:

  In the past, the economic victors were those who invented new products. The British of the 19th century and the Americans of the 20th century got rich that way . . . so as to obtain monopolic yields in the technologies of the processes, it was necessary to expel the competitors . . . In the present world inventing a new product is worth very little if the inventor is not the least expensive producer of that product.

  See American Embassy, Buenos Aires, "Editorial against Patent Reform," Cable 3822 to the US Secretary of State, April 1993.

April 27th, 1993

• Ministry of Foreign Affairs Secretary of International Economic Relations Gambarotta tells Ambassador Todman that the executive branch is still committed to gaining the passage of its pharmaceutical patent law. He warns that changes to Argentina's Special 301 status could prompt a political backlash against the bill.

  See American Embassy, Buenos Aires, "GOA Promises New Effort to Secure Passage of Patent Law," Cable 4015 to the US Secretary of State, April 1993.

May 3rd, 1993

• The Business Day section of the New York Times carries an article by Nathanial C. Nash with the headline, "US Presses Argentina on Patents." The article raises the possibility that Argentina's failure to provide intellectual property protection could result in trade sanctions as the Clinton Administration considers making Argentina an example for other developing countries. Nash quotes a US Trade Representative official as saying that "United States firms are losing billions every year from a lack of patent protection and this Administration is intent on changing that. Moreover for countries like Argentina, strict patent laws that stop pirating should actually stimulate intervention and investment there, something those countries say they are interested in."

  See Nash, Nathaniel C., "US Presses Argentina on Patents," The New York Times, May 2nd, 1993.

June 6th, 1993

• Gary Marx writes in the Chicago Tribune that "Argentina's failure to pass a tough patent law will be high on the agenda when Menem makes an official visit to the White House June 29." Marx quotes Anibal Caprile, president of CIFLA, as saying that US threats of trade sanctions "are not positive" and that "the US shouldn't tell Argentina what kind of patent law it should pass."

  See Marx, Gary, "US Prods Argentina on Patents," The Chicago Tribune June 6th, 1993.

June 10th, 1993

• Public hearings on the patent bill before Argentine Senators representing the relevant committees begin. CILFA opens with a presentation Ambassador Todman describes in a June 1993 cable to the US Secretary of State as "well thought-out and effectively delivered." CILFA favors a 10 year transition period and broad provisions for compulsory licensing.

  See American Embassy, Buenos Aires, "Senate IPR Hearings: Local Labs Presentations," Cable 5748 to the US Secretary of State, June 1993.

June 11th, 1993

• The Embassy's concerns about CAEME's ability to counter CILFA's performance at yesterday's public hearings are soothed when Deputy Carlos Ruckauf tells an officer from the US Embassy that the committee hearings are not important: the Peronist bloc already has enough votes to pass the bill. However, both Deputy Ruckauf and Minister Cavallo criticized CAEME for its failure to counter CILFA in Congress and in the media.

  See American Embassy, Buenos Aires, "Senate IPR Hearings: Local Labs Presentations," Cable 5748 to the US Secretary of State, June 1993.

Mid-June, 1993

• Ambassador Todman writes to the US Secretary of State to inform him that the US Agency for International Development, USAID, is working on an aid project to be initiated once a patent law is passed. Ambassador Todman expresses his confidence that such a law will be passed, and asks that the US government prepare the aid project in advance so it can be implemented immediately after such a law is passed. The text of the Ambassador's June 1993 cable follows.

  As you know, concurrently with consideration of new patent legislation by the Argentine Congress, the A.I.D. representative's office here has been trying for several months to begin the process of designing a project which would start after, repeat after, the new law is passed. A.I.D, has funds available for this design effort, and I understand PTO has informally expressed its willingness to cooperate with Argentina, subject to USTR concurrence. I am told there has been a decision not to proceed with the design of a project because it was concluded that Argentina should not be quote rewarded with assistance unquote of this type until it had complied with its commitment to pass sound patents legislation, that includes protection for pharmaceutical products.

  I have no doubt that there will be a new Argentine patents law. It is not a question of whether there will be a better law, but when it will be passed. I believe passage in this year is likely. Obviously, the new law by itself will be of no use until it is implemented. The GOA industrial property office is not capable at this time of implementing even the existing antiquated patent legislation and will certainly be unable to cope with the complexities of a new patent law. The GOA knows this and is anxious to cooperate with PTO. It is in our interest to see that this cooperation begins as soon as possible after new legislation is passed, but this will not happen unless project planning is done now. In addition, the initiation of planning now will signal Argentina that the prospects for collaboration with PTO are indeed real (after a new law is passed) and this signal itself will have a positive impact on deliberations regarding the new law.

  Seeing that the GOA passes and implements new patents legislation has long been a top priority to which the USG has devoted great resources and effort. We should do everything possible now to ensure that the potential benefit from a new law will be realized soon after it is passed. I request that steps be taken to have this project approved urgently.

  See American Embassy, Buenos Aires, "Design of Project for Cooperation Between USDOC Patents and Trademark Office (PTO) and Argentine Industrial Property Office," Cable 5960 to the US Secretary of State, June 1993.

June 17th, 1993

• Foreign manufacturers speak at an Argentine Senate hearing. Ambassador Todman writes in a cable to the US Secretary of State that CAEME's rebuttal of CILFA's arguments against patents was "surprisingly strong." In the cable, Ambassador Todman recounts the points presented by CAEME, which include the potential benefits of patents in terms of job creation and quality control and a refutation of CILFA's arguments. However, despite his overall satisfaction with CAEME's performance, which he calls "better than we expected, given their present disorganization" Ambassador Todman is dismayed that CAEME received little coverage in the next day's press. He writes, "Clearly, CAEME has a long way to go before it equals CILFA's professional, comprehensive approach to getting its story out through the press, but it has begun to move in the right general direction."

  See American Embassy, Buenos Aires, "Patent Hearings - CAEME Gives Best Shot," Cable 6042 to the US Secretary of State, June 1993.

June 28th, 1993

• Argentine President Carlos Menem meets with USTR Mickey Kantor at the Blair House in Washington in advance of a June 29th meeting with President Bill Clinton. According to a June 29th article in the Buenos Aires Herald, "The interview was considered to be a precursor to today's meeting with Clinton in which the US President is expected to come down hard on the issue of patents."

  See "Kantor Presses Argentina for a Medical Patents Law," Buenos Aires Herald, June 29th, 1993.

Late June, 1993

• US Ambassador to Argentina Terence Todman leaves his post. He is replaced by Ambassador James Cheek.

July 1st, 1993

• COOPERLA, an association of smaller Argentine firms, and a group of wholesale distributors of pharmaceuticals, present arguments against the draft patent law in Senate hearings. COOPERLA argues that, contrary to CAEME's claims, the quality of Argentine pharmaceuticals is equal to that of foreign pharmaceuticals. It also claims that patents will bring a significant price increase and the loss of high-paid technical jobs. The wholesale distributors state that the bill will lead to job loss in the smaller firms.

  See American Embassy, Buenos Aires, "Patent Hearings Continue, with No Clear End in Sight," Cable 6600 to the US Secretary of State, July 1993.

July 29th, 1993

• Senate hearings on the draft patent law from biotechnology industry leaders include:
  • a refusal by the Comision de Biotecnologia Agropecuaria (CBA), an organization of government agencies, to take a side on the patent issue.
  • arguments by independent biotechnology researcher Dr. Alberto Elias that Argentina should defend its own jobs before enforcing the economic rights of foreign firms and that the bill should limit the possibilities for patenting natural phenomena.
  • a testimony by Foro de Biotecnologia that the economic cost of patents will be significant without broad provisions for compulsory licensing similar to those provided in a recent Brazilian Senate bill.
  • a statement by Marta Gutierrez of the Instituto Nacional de Tecnologia Agricola (INTA), a government-funded agricultural research institute, that the patent bill should be modified to allow more compulsory licensing, as Foro de Biotecnologia had argued.

  See American Embassy, Buenos Aires, "Patents Hearings Continue, with Weight of Argument Going Against Modern Protection," Cable 7907 to the US Secretary of State, Washington, August 1993.

August 5th, 1993

• CEDIQUIFA testifies in Senate hearings on the patent bill. Its speakers include:
  • Arnaldo Musich, former Argentine Ambassador to the United States and current director of an Argentine holding company and honorary chairman of Fiel, a think tank, who claims that patent protection has facilitated development in many countries.
  • Two speakers who discuss the potential for Argentine research and development and international legal issues.
  • Felix Rozanski, executive director of CEDIQUIFA, who presents detailed arguments against compulsory licensing and parallel importation.
• Asociacion de Desarrollo Tecnologico, a technical group, also testifies. Ambassador Cheek describes their testimony in his August 1993 cable to the US Secretary of State as "a polemical statement damning the supposed spread of protectionism in the last two years through Japan, Europe and the United States" which "degenerated into a 'us vs. them' 'North/South' confrontation reminiscent of the UNCTAD of old."

  See American Embassy, Buenos Aires, "Patents Hearings Continue, with Weight of Argument Going Against Modern Protection," Cable 7907 to the US Secretary of State, Washington, August 1993.

August 6th, 1993

• The Argentine press publishes a statement by CILFA calling Ambassador Cheek to declare publicly that he will accept any patent law passed by the Argentine legislature.

  See American Embassy, Buenos Aires, "Patents Hearings Continue, with Weight of Argument Going Against Modern Protection," Cable 7907 to the US Secretary of State, Washington, August 1993.

August 9th, 1993

• Somos, a popular Argentine news magazine, publishes an article on the patent debate. The article includes a chart displaying significant price differentials for drugs in the US and in Argentina. In response, Ambassador Cheek sends a cable to the US Secretary of State requesting that PMA provide documented US prices of the drugs for comparison of CAEME data on prices for the drugs in Argentina in order to refute the chart. In response, PMA sends the Embassy a 64-page study on the problems of price comparison. A frustrated Ambassador Cheek sends another cable to the US Secretary of State in which he writes:

  Cannot PMA do better? Are the prices in the chart accurate? If they are, the differences amounting to hundreds and thousands of percent are strong -- and locally very persuasive -- ammunition for those fighting against passage of the patent bill.

  See American Embassy, Buenos Aires, "Request for Information to Rebut Arguments of Opponents of Patent Law," Cable 7608 to the US Secretary of State, August 1993.

  See American Embassy, Buenos Aires, "Somos Article on Patents," Cable 7648 to the US Secretary of State, August 1993.

August 11th, 1993

• Ambassador Cheek meets with Minister Cavallo to discuss parallel importation under the patent law. Minister Cavallo clarifies that the law intends to limit parallel importation; however, over the objections of Ambassador Cheek, Cavallo argues that parallel importation should be allowed in cases in which prices for a given product are far lower in another country with similar patent protection laws.

  See American Embassy, Buenos Aires, "Patent Law: Ambassador Discusses with Min Econ Cavallo," Cable 7759 to the US Secretary of State, August 1993.

August 12th, 1993

• Several important associations of doctors fail to attend Senate hearings at which they are scheduled to testify. The sole witness called during the brief hearing, a doctor representing the Confederacion Medica de la Republica de Argentina, states that patent protection will increase prices, and that compulsory licensing is the absolute minimum protection necessary. He also argues that pharmaceutical patents violate Article 17 of the Argentine constitution, which mirrors Article 8 of the US Constitution.

  See American Embassy, Buenos Aires, "Patents Hearings Continue, with Weight of Argument Going Against Modern Protection," Cable 7907 to the US Secretary of State, Washington, August 1993.

October 1993

• Ambassador Cheek sends a cable to the US Secretary of State stating that "the outlook for quick passage of the patents bill remains cloudy" as the Senate remains preoccupied with constitutional reform. Recognizing this, Ambassador Cheek says, pharmaceutical companies have drafted several alternative strategies to obtain patent protection in the short run while striving for the eventual passage of a patent law. A memorandum on these strategies given to the US Embassy by Ernest Egli, president of the Argentine affiliate of Roche, lists these alternatives as follows:

  • Alternative I - Regulatory Decree enforcing recently ratified treaties and reinterpreting the old law.
  • Alternative II - Exceptional Urgency Decree with force of law
  • Alternative III - Amendments of Board of Health regulations

  See American Embassy, Buenos Aires, "Patents Outlook Still Uncertain," Cable 10053 to the US Secretary of State, October 1993. <