MEDIA REACTION EU-LATIN AMERICAN SUMMIT

UNCLAS BUENOS AIRES 001087

SIPDIS

STATE FOR INR/R/MR, I/GWHA, WHA, WHA/PDA, WHA/BSC,
WHA/EPSC
CDR USSOCOM FOR J-2 IAD/LAMA

SIPDIS

E.O. 12958: N/A
TAGS: KPAO OPRC KMDR PREL MEDIA REACTION
SUBJECT: MEDIA REACTION EU-LATIN AMERICAN SUMMIT
BOLIVIAN PRESIDENT EVO MORALES USG ALLEGED
EAVESDROPPING ON PHONE CALLS NOMINEE FOR US AMBASSADOR
TO ARGENTINA WAYNE TRI-BORDER 05/12/06;BUENOS AIRES



1. SUMMARY STATEMENT

Today's most important international stories include
Bolivian President Morales ruling out compensation for
nationalizing foreign oil and gas subsidiaries; the
EU's belief Venezuelan President Chavez is a hurdle in
reaching a deal between the EU and Mercosur; and
statements from nominee for US Ambassador to
Argentina, Earl Anthony Wayne; USG President George W.
Bush denying the USG was eavesdropping on domestic
phone calls without court approval.


2. OPINION PIECES AND KEY STORIES

- "Europe believes Chavez is an obstacle to a deal
with the region"

Horacio Riggi, columnist of business-financial, center-
right "InfoBae," writes (05/12) "The EU believes
Venezuela's entry into Mercosur will hinder even
further the possibilities of reaching an FTA with
Mercosur.

"... According to a high-ranking EU source, 'There
have been problems up to now, but we know which ones
they are. With President Hugo Chavez, one never
knows.'

"... The deal between the EU and Mercosur has been
deadlocked for one year because neither side yields to
the demands of the other one.

"Mercosur wants Europe to eliminate or substantially
lower its farm subsidies... In exchange, the EU wants
Mercosur to allow for a greater entry of (European)
manufactured products, and also to let European
companies participate in governmental purchases, as
well as compete on equal terms with local companies in
public bids."

- "Morales slashed out at oil companies and ruled out
compensations"

Juan Carlos Algaaraz, on special assignment in Vienna
for leading "Clarin," writes (05/12) "On what has
become the focus of the EU-Latin American summit,
Bolivian President Evo Morales announced yesterday
that there will be no compensation for oil companies
affected by nationalization of hydrocarbons, one of
which is Petrobras.

"Morales clarified that companies are entitled to
recover investment and have profit. 'We should not be
talking about compensation because it is not a
confiscation of their assets or technology but a
renegotiation of agreements.'

"Brazil's reaction did not take long. Helio Costa,
Brazilian Minister of Communications, said that
Bolivia 'has surpassed all limits,' and he termed the
Bolivian decision as 'an insult.'"

- "Millions of US phone calls are eavesdropped without
any court order"

Ana Baron, Washington-based correspondent for leading
"Clarin," comments (05/12) "The creation of a center
of information at the National Security Agency with
the registration of phone calls of millions of US
citizens has sparked virulent reaction in the US
Congress and harsh criticism on how the Bush
administration is violating the people's right to
privacy.

"... While the rage was growing yesterday morning in
the US Congress, George W. Bush said that his
government has acted lawfully and that it 'ferociously
protects the privacy' of US citizens while it does
everything necessary to prevent a new terrorist
attack."

- "Washington asks for cooperation in the Tri-Border
area"

Conservative "La Prensa" reports (05/12) "According to



a US State Department official, Argentina, Brazil and
Paraguay are providing 'uneven' cooperation in the
implementation of deals to share intelligence as part
of the campaign against terrorism in the Tri-Border
area.

"During a hearing at the US Lower House International
Relations Committee, Henry A. Crumpton, coordinator of
affairs against terrorism, said 'I would say there is
slow progress.' 'We need to do more and help them
more.'

"According to a US State Department report on the
global war on terrorism, Islamic terrorist groups,
such as Hezbollah and Hamas, 'are using this territory
because it lacks firm regulations and because of its
closeness to Muslim communities.'"

- "Wayne will arrive in the country with an agenda
focused on business"

Hugo Alconada Mon, Washington-based correspondent for
daily-of-record "La Nacion," writes (05/12) "According
to the US Department of State, Earl Anthony Wayne will
take over as the new US Ambassador to Argentina in
late August or early September. His agenda will be
focused on business, his field of expertise, and will
have one main political topic of concern - the
Argentine government's relationship with Venezuelan
President Hugo Chavez.

"During a hearing at the US Senate, Wayne said 'It is
important for Argentina to continue creating a
positive investment climate.' 'In this way, the
country will be able to 'consolidate the benefits of
economic growth and deal with the real problem posed
by poverty.'

"In a precise way, Wayne made clear his view - he
praised the reforms promoted by the Menem
administration, termed the current view of the IMF and
the US as a 'distortion', and he promised he will make
a contribution for the (Argentine) government to
promote a 'sustainable growth.'"


3. EDITORIALS

- "An incentive to investment"

An editorial in conservative "La Prensa" reads (05/12)
"During a hearing at the US Senate, the nominee for US
Ambassador to Argentina, Earl Anthony Wayne, expressed
his concern because Argentina does not have a
favorable climate for foreign investment. Perhaps too
many foreign investment initiatives are aimed at
purchasing already existing plants and there is not
enough investment for the creation of new factories
and jobs.

"... In most countries, a nine-percent growth rate is
enough for boosting adequate investment. However, for
some reason (whether it is hostility toward companies,
high taxes, despise toward judicial security or the
mere fact that Argentines do not set the example in
investing in their own country),this does not happen
in Argentina, and the quality of investment here is
low."

To see more Buenos Aires reporting, visit our
classified website at:
http://www.state.sqov.gov/p/wha/buenosaires

GUTIERREZ