MEDIA REACTION -FTAA

UNCLAS SANTIAGO 002395

SIPDIS

STATE FOR R/MR, I/PP, WHA/BSC, WHA/PDA, WHA/EPSC
STATE FOR INR/IAA, PM, INL

E.O. 12958: N/A
TAGS: KMDR KPAO OPRC CI TRADE
SUBJECT: MEDIA REACTION -FTAA



1. On November 23, business and financial daily "Diario
Financiero" (circ. 20,000) ran an editorial entitled,
"Differences over Free Trade." Quote:

"Monday's meeting between Presidents Chavez and
Kirchner...strengthened the strategic alliance between
the countries in the eyes of the world, but especially
the United States, from which Venezuela has gradually
distanced itself after the White House objected to the
sale of light nuclear reactors to the Chavez government.
The Chavez-Kirchner meeting also confirmed the positions
we saw at the Summit of the Americas in Mar del Plata.
There are clearly two political blocs, one in favor of
free trade and another against it, with Mexico on one end
and Argentina and Venezuela on the other. The question
is then how two such political blocs could affect Chile?
During the Lagos administration Chile has displayed a
special bond with the Fox administration. The bilateral
relationship with Argentina has also shown major
improvement. This is not an easy situation. It will
demand Chile's best diplomatic abilities."


2. On November 22, conservative, afternoon "La Segunda"
(circ. 31,834) carried an editorial entitled, "The Chavez-
Kirchner Axis." Quote:

"As expected, Nestor Kirchner's visit to Venezuela
concluded with a prodigious loan package from the
Venezuelan government.... What does Chavez get in
exchange? A promise that Venezuela will become a full
Mercosur member--a questionable promise given economic
problems in Argentina and the bloc.... The Caracas-
Buenos Aires axis also wants to build a Latin American
Financial Fund, although Kirchner explained that the fund
would not substitute for the international loan entities
created in Breton Woods.... This alliance undoubtedly
complicates Argentina's ties with the United States and
the G-7... However, it is worthwhile to note Chavez'
psychological approach: `We will guarantee energy for
all Latin America for the next 200 years. That is the
main cause of the conflict with the United States. It is
not ideological, it is very concrete: U.S. imperialism
wants that oil.'"

KELLY