MEDIA REACTION OUTCOME OF PERUVIAN ELECTIONS

UNCLAS BUENOS AIRES 001273

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 OUTCOME OF PERUVIAN ELECTIONS
US-URUGUAYAN AND US-PARAGUAYAN FTAS 2006 TRAFFICKING
IN PERSONS REPORT VENEZUELA'S ENTRY INTO MERCOSUR
06/06/06


1. SUMMARY STATEMENT

Today's most important international stories include
the implications of the Peruvian elections; the
possibility of US-Uruguayan and US-Paraguayan FTAs;
the US 2006 trafficking in Persons Report; and
Venezuela's alleged entry into Mercosur.


2. OPINION PIECES AND KEY STORIES

- "The US is relieved by Chavez's 'defeat'"

Hugo Alconada Mon, Washington-based correspondent for
daily-of-record "La Nacion," comments (06/06) "The US
sighed in relief with and was sort of amazed at the
victory of Alan Garcia, who defeated Ollanta Humala in
Peruvian elections. Humala was the candidate that most
concerned the Bush administration and the one who was
closest to Hugo Chavez.

"According to US Deputy Secretary of State Robert
Zoellick, Garcia 'is the best response' of the
Peruvian people to Chavez's interference...

"However, Garcia is far from being the favorite
candidate for the USG. Lourdes Flores was the best
option based on her capitalistic and business-like
profile, but she was unable to reach the second
round."

- "The lesser of two evils"

James Scout, contributor to liberal, English-language
"Buenos Aires Herald," writes (06/06) "... For all his
past flaws..., Garcia is at least predictable when
compared to his wildcard rival Humala, a populist who
made campaign threats of increasing state control over
the mining and gas industries and abandoning free-
market policies.

"But the race has implications beyond the rugged
borders of Peru. To investors and the international
community, this election was widely viewed as a litmus
test as to whether Venezuelan President's populist and
anti-US policies would gain another foothold in the
continent.

"'It shows the limits of Chavez's influence,' Vinay
Jawahar, with the Inter-American Dialogue, told the
'Herald.' 'A lot of people had to hold their noses,
swallow hard and vote.'

"... Experts point out that while Chavez is playing
off many Latin American nations' frustration with
historical US dominance in the region, he is only
offering Venezuelan dominance and bullying in return.

"The Peruvian elections, experts say, is an example of
how strong-minded countries, like Peru, won't be
swayed by the promise of cheap oil and a bourgeois
neighbor who likes to flaunt his wealth."

- "The limits of a policy"

Oscar Raul Cardoso, international analyst of leading
"Clarin," writes (06/06) "Exporting a view is not easy
in Latin America, much less a determined historic
direction... This is something not even Fidel Castro
managed to do in his best days when he won his
revolution in Cuba more than half a century ago.

"Just a few tried, like him, to turn a national
project into a hemispheric trend..., although he did
not manage to do it...

"... Now it is Venezuelan Hugo Chavez who has just
received the same lesson of humility about the limits
of potential regional leadership through the defeat of
presidential candidate Humala in the runoff of
Peruvian presidential elections.

"... Chavez will have to review his hostility toward
Garcia and acknowledge that 'Latin American unity' is
rhetoric rather than real, regardless of how much one
wants it, and that any project can only be as big as



its own limits."

- "The (Argentine) Government dismisses FTAs reached
between the US and Uruguay and Paraguay"

Alejandro Bercovich, columnist of business-financial
"El Cronista," writes (06/06) "According to Eduardo
Sigal, Argentine Under Secretary for Integration at
the Foreign Ministry, Uruguay and Paraguay will not
break off from Mercosur to sign FTAs with the US
because the US will never lower its farm subsidies...

"According to Sigal, Mercosur is not in jeopardy from
the threats that have recently been launched by 'minor
partners,' which come from opposition sectors that
have no ties with foreign policy authorities.

"... Sigal also downplayed the recent Uruguayan
flirtation with the White House... 'I am under the
impression that the Uruguayan government has not made
any progress on an FTA (with the US) because it knows
that (US) farm subsidies on meat and dairy products
will not be removed. If this could be done, we would
also sign such a deal, because we do not have an anti-
US problem.'"

- "The US places Argentina on a watch list on
trafficking in persons"

Ana Baron, Washington-based correspondent for leading
"Clarin," comments (06/06) "The US believes that
Argentina does not fully comply with the minimum
standards for the elimination of trafficking and that
it has not made enough progress in this area in the
previous year. This is why, the country has been
placed on a watch list.

"In this report, the Bush administration advised the
Kirchner administration that it should work with
Congress to achieve passage of anti-trafficking
legislation, increase efforts to prosecute
traffickers, expand training for court and law
enforcement officials, and work with NGOs to heighten
public awareness of the problem.

"According to the US Department of State's latest
report on the subject, which was made public
yesterday, Argentina is primarily a destination
country for women and children trafficked for the
purposes of sexual and labor exploitation. 'Most
victims are trafficked from rural to urban areas.'

"As per the report, Argentine women and girls are
trafficked to neighboring countries for sexual
exploitation. Foreign women and children are also
trafficked for commercial sexual exploitation,
primarily from Paraguay, Bolivia, Brazil, Dominican
Republic, Colombia and Chile...

"While the US Department of State asserts that
Argentina does not comply with the minimum standards
for the elimination of trafficking in persons, it
acknowledges that, at least, it is making significant
efforts. In any event, US experts decided to place
Argentina on a watch list for its failure to show
evidence of increasing efforts to combat trafficking
over the previous year, particularly in the key area
of prosecutions.

"Even though the reports points out that 'The
(Argentine) government's efforts to improve
interagency anti-trafficking coordination did not
achieve significant progress in moving cases against
traffickers through the judicial system,' it
acknowledges that there was progress in other areas,
by submitting anti-trafficking legislation to Congress
in August 2005, it heightened the awareness of
provincial and local authorities.

"... In parallel, the US believes that the Argentine
government made modest efforts to assist victims
during the reporting period. While authorities offered
a variety of services including medical and
psychological treatment, legal counseling and even
repatriation, the Government did not operate victim's



shelters.

"According to the US, the area in which the Government
has made most progress is prevention. What Washington
praises most is that the government submitted anti-
trafficking legislation to Congress, which defines
trafficking of persons according to international
standards, or to prevent, suppress, condemn, and
punish trafficking persons, especially women and
children."

- "Venezuela will officially enter Mercosur in
Cordoba"

Gabriel Buttazzoni, columnist of business-financial,
center-right "InfoBae," writes (06/06) "Venezuela will
officially enter Mercosur during the Mercosur
presidential encounter to be held in Cordoba on July
20...

"... Formally speaking, Venezuela will act as a full
member when the Congresses of Mercosur's five country
members approve it, which is expected to be a complex
procedure.

"In this regard, Sigal focused his concern on the
speed with which legislators from Mercosur's minor
partners, Uruguay and Paraguay, will approve
Venezuela's entry into Mercosur."

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

GUTIERREZ