MEDIA REACTION US SENATE VOTING A FENCE ON

UNCLAS BUENOS AIRES 001144

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 US SENATE VOTING A FENCE ON
THE US-MEXICAN BORDER; CHAVEZ AND MORALES CREATING BI-
NATIONAL MINING CORPORATION; BOLIVIAN NATIONALIZATION
OF HYDROCARBONS; US-ECUADORIAN TIES; THE NEW EUROPEAN
LEFT WING; POPULIST GOVERNMENTS; ARGENTINE GOVERNMENT

OFFICIAL STATEMENTS ON US AND MULTILATERAL TRADE
05/18/06;BUENOS AIRES


1. SUMMARY STATEMENT

Local papers lead with the US Senate voting to
construct a fence on the US-Mexican border and
supporting citizenship of undocumented US immigrants;
Venezuelan President Chavez and Bolivian President
Morales creating a bi-national mining corporation; the
legality of Bolivia's nationalization of hydrocarbons;
Ecuador charging the US with 'blackmail' for having
cancelled an FTA in retaliation for the country's
putting of a deal with a US oil corporation; a new
left wing making progress in the EU; and Argentine
Secretary of International Trade Alfredo Chiaradia's

SIPDIS
statements about the US and multilateral trade.


2. OPINION PIECES AND KEY STORIES

- "The US Senate OKs a 600-km wall on the US-Mexican
border"

Ana Baron, Washington-based correspondent for leading
"Clarin," writes (05/18) "Yesterday, following up on
last Monday's address by US President George W. Bush,
the US Senate voted to build a fence of almost 600 km
on the US-Mexican border, while rejecting an amendment
that would have removed the articles allowing illegal
immigrants with more than two years' residence in the
country to obtain a work permit and eventually (US)
citizenship.

"... Both decisions signify a triumph for Bush, who
has proposed an overall approach to the problem of
immigration including, on the one hand, reinforced
security on the border, and, on the other hand, the
legalization of illegal immigrants.

"The problem will be now to reconcile this overall
approach adopted by the US Senate with the much more
radical and extremist stances prevailing in the Lower
House."

- "Evo and Chavez will create a bi-national mining
corporation"

Business-financial "El Cronista" reports (05/18)
"According to Bolivian Minister for Sustainable
Development, Carlos Villegas, Bolivian President Evo
Morales and Venezuelan President Hugo Chavez will sign
a deal next week to create a bi-national mining
corporation called Minersur.

"... The Bolivian government official dismissed
criticism from opposed political sectors, which
pointed out that the government removed Brazilian
company EBX with the purpose of transferring
exploitation of the rich Mutun iron field to a
Venezuelan company."

- "No reproach for Bolivia's gas nationalization"

Leading "Clarin" carries an op-ed piece by former
Argentine Minister for Public Works and Services
Roberto Dromi, who opines (05/18) "The Bolivian
nationalization of hydrocarbons, surprising as it may
be for the way it was performed, although predictable,
will compel the Bolivian government to renegotiate its
agreements with corporations and it will speed up the
renegotiation of agreements among countries, this is
to say, the bilateral deals regulating oil supply for
neighboring countries...

"... The nationalization of hydrocarbons means an act
of sovereign governance that is intended to lead a
process of transformation...

"Therefore, the nationalization (of hydrocarbons) is
the judicial consequence of an act of political
opportunity that could be negatively perceived by some
political and market sectors, but no judicial actions
can be taken over it."

- "Ecuador charges the US with 'blackmail'"







Leading "Clarin" reports (05/18) "Ecuador charged the
US with 'blackmail' given that Washington canceled the
signature of an FTA after Quito put off an agreement
with a US oil company.

"Last Tuesday, Washington canceled FTA negotiations...
in retaliation for Quito's decision to cancel an
agreement with Occidental, a US company.

"... When Quito canceled the agreement, the USTR's
spokesperson, Neena Moorjani, termed Ecuador's actions
as 'expropriation.' However, Ecuadorian Minister of
Government Felipe Vega rejected her statements and
asserted it is an 'administrative procedure' complying
with Ecuadorian legislation."

- "The new European left wing makes progress"

Luisa Corradini, on special assignment in Paris for
daily-of-record "La Nacion," comments (05/18) "Giorgio
Napolitano's election as president of Italy has marked
for the first time the arrival of a former communist
to the highest-ranking position in a Western European
country. But, at the same time, it has confirmed the
'socialist temptation' that is seducing EU voters.

"This trend is a political phenomenon that goes beyond
circumstantial election results. Europe, a continent
of polarities, is seemingly searching blindly for the
best way to protect itself from the excesses of
globalization. While the most fragile sectors let
themselves be tempted by the extreme right wing,
moderate sectors look with interest at the alternative
represented by new socialism."

- "Controversy over populism"

Daily-of-record "La Nacion" carries an op-ed piece by
contributor Natalio R. Botana, who opines (05/18)
"During the EU-Latin American Summit,... Jose Manuel
Durao Barroso, head of the EU Executive Committee,
said that 'populism is a threat to our values'...

"... Not every nationalism is populism, neither are
policies inspired on equality...

"... There is a risk of overestimating populism. If we
judge from facts, populism today is a minority
phenomenon in Latin America. It is important due to
the resources it controls... but our countries are
determined to incorporate the value of responsibility
to the public service. From Brazil to Chile and
Uruguay, and from Colombia to Peru, our policies seek
to follow the guidelines of democratic reformism
rather than populism...

"... If populism is a threat, the very serious
challenges in our megalopolis are not less
disconcerting since they are being punished harshly by
inequality and organized crime. In light of what is
happening these days in Sao Pablo, this overwhelming
scenario presents a serious warning since we should
not forget that populist illusions are also a
byproduct of the reformist inability of democracies."

- "According to Argentine Secretary of International
Commerce, Alfredo Chiaradia, 'The US weakens
multilateral trade'"

Business-financial, center-right "InfoBae" publishes
an interview with Argentine Secretary of Commerce,
Alfredo Chiaradia "While the Argentine Government has
begun to consider an EU-Mecosur deal as a remote
possibility, it has accused the US of weakening
multilateralism by promoting bilateral deals.
Argentine Secretary of International Trade, Alfredo
Chiaradia said 'The US has reached bilateral deals
with eight countries during recent years. But the
trade of all those countries together only accounts
for 4% of US trade,' referring to a political rather
than an economic purpose in the US policy.







"... According to Chiaradia, 'what the US does is
weakening multilateralism.'

"In any case, he clarified that the bilateral deals
the US has reached with countries of the region 'have
not damaged Mercosur, because only the US-Chilean deal
is in force given that Central American countries used
to have a preferential trade exchange with the US in
the past."

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

GUTIERREZ