Identifier
Created
Classification
Origin
06BUENOSAIRES1809
2006-08-11 19:53:00
UNCLASSIFIED
Embassy Buenos Aires
Cable title:  

MIDDLE EAST; US CHARGE MICHAEL MATERA'S STATEMENTS IN

Tags:  KPAO OPRC KMDR PREL MEDIA REACTION 
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VZCZCXYZ0000
OO RUEHWEB

DE RUEHBU #1809/01 2231953
ZNR UUUUU ZZH
O 111953Z AUG 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5532
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT
UNCLAS BUENOS AIRES 001809 

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: MIDDLE EAST; US CHARGE MICHAEL MATERA'S STATEMENTS IN
BUENOS AIRES ABOUT VENEZUELA AND ARGENTINA; US-ARGENTINE TIES; CUBA;
US-URUGUAYAN FTA; IMF-ARGENTINA; GSP REVIEW; BOLIVIA; 08/10/06


UNCLAS BUENOS AIRES 001809

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: MIDDLE EAST; US CHARGE MICHAEL MATERA'S STATEMENTS IN
BUENOS AIRES ABOUT VENEZUELA AND ARGENTINA; US-ARGENTINE TIES; CUBA;
US-URUGUAYAN FTA; IMF-ARGENTINA; GSP REVIEW; BOLIVIA; 08/10/06



1. SUMMARY STATEMENT

Today's most important international stories include the situation
in the Middle East and the status of the US-French draft resolution;
US Charge Matera's comments on Venezuela and Argentina during a
seminar on US history in Buenos Aires; the status of US-Argentine
ties; the Cuban political transition; the likelihood of an FTA
between the US and Uruguay; the IMF review of Argentina's economy;
the reaction of the US to President Kirchner's statements on GSP
review; and the promise of a national pact in Bolivia.


2. OPINION PIECES AND KEY STORIES

- "Failure of the 'New Middle East'"

Marcelo Cantelmi, international editor of leading "Clarin" on
special assignment in Jerusalem, writes (08/10) "Almost one month
after the war started, it is possible to predict that Condoleezza
Rice's announcement that everything is ready to build a 'New Middle
East' perhaps will be fulfilled but not exactly as she thinks.

"... The decision to raise the military stakes in Lebanon may bring
Israel to a dangerous situation, just like that in which the US
finds itself. The possibility of negotiations at the beginning of
the conflict was aborted by the White House, which expected a fast
Israeli victory...."

"The face of a 'New Middle East' may be appearing but what it
reveals, as pointed out by the prestigious magazine 'Atlantic
Monthly,' is the collapse of the war on terror along the lines of
the Bush administration's dogmatic-style war.

"The real bet to break up this jigsaw puzzle should be intense
diplomatic and humanitarian activity, and the definitive end of the
military occupation in Iraq, as well as in the territories - the
Golan Heights, in Syria, or Chebaa, in Lebanon. It may not be the
only possible fate for the region, but it may be the only one that
is feasible."

- - "According to the US, the idea that Venezuela could enter the UN
Security Council is 'imprudent and nonsensical'"

Natasha Niebieskikwiat, political columnist of leading "Clarin,"

comments (08/10) "The Charge at the US Embassy, Michael Matera,
pointed out that 'having Venezuela as a non-permanent member of the
UN Security Council is "imprudent and nonsensical." Matera will lead
the diplomatic mission until the new US Ambassador to Argentina,
Earl Anthony Wayne, arrives in Buenos Aires.

"According to Matera, the US has consulted on this issue with the
Argentine Government and 'governments around the world.' The US
diplomat gave a talk at a seminar on US history organized by the
Fulbright Commission and San Andres University. He also answered
questions from the journalists and professors attending the
seminar.

"Matera's statement acquires importance in the framework of
Mercosur's support for President Hugo Chavez's aspirations to become
a non-permanent member of the UN Security Council in 2007-08.

"Having press guidance on this week's news, the US diplomat also
termed as 'erroneous' the claim that the GSP review will imply
sanctions against Argentina and other countries for not coming to
terms with the US on trade issues.

"... Matera said that Argentina's economic recovery 'is very good
news for all' and that Washington supported the country in its debt
negotiations with the IMF.

"When Matera was asked to give his opinion on President Kirchner's
statements that the country no longer has 'carnal relations' with
the US, Matera said that the US respects Argentina 'as a sovereign
country.'"

- "The White House does not respond to Kirchner"

Hugo Alconada Mon, Washington-based correspondent for
daily-of-record "La Nacion," writes (08/10) "Merged in 'hot
situations' in the Middle East and Latin America, silence was the
only official response of the USG to President Kirchner's statements
about the possible reduction or loss of preferential tariff rates
for Argentine imports accessing US markets...."

"... The Bush administration is focused on the Venezuelan president,
particularly due to his attempt to enter the UN Security Council in
replacement of Argentina...



"... A spokesperson of the US Department of State told 'La Nacion'
that no authorized voice would respond to Kirchner's statements...

"Argentine Ambassador to the US, Jose Octavio Bordon, dismissed that
the announcement could be interpreted as a political 'sanction'
against Argentina. However, according to a Southern Cone diplomat,
'the tariff exemption is political and discretionary. It would not
surprise me if it is part of a broader tradeoffs game, for example
for the vote at the UN Security Council.'

"US Assistant Secretary for Latin America, Tom Shannon, has used
public silence as a strategy since he took over, in contrast to
Roger Noriega, his predecessor. According to a high-ranking USG
official, Argentina is 'an important challenge,' which fluctuates
between close countries (Chile, Brazil, Colombia, Mexico) and
opposed countries (Cuba, Venezuela, Bolivia),but, according to a
Democratic strategist for the region, it is no longer considered a
referring country."

- "A test for the Argentine government at the Council of the
Americas"

Mariano Obarrio, political columnist of daily-of-record "La Nacion,"
writes (08/10) "The Kirchner administration will have today a
crucial commitment to the US-Argentine bilateral relationship
because three of its main ministers will lecture at the Council of
the Americas business forum. All eyes will be placed on the tenor of
their speeches.

"...US-Argentine bilateral ties have cooled down following
Kirchner's harsh criticism of the USG and Kirchner's closeness to
the Venezuela of Hugo Chavez and the Bolivia of Evo Morales.

"Meanwhile, three weeks ago, US Assistant Secretary for Latin
America, Tom Shannon, suspended his trip to Argentina to participate
in this forum, and Kirchner refrained from attending the
presidential inaugurations in Peru and Colombia, two US allies.

"... The Council will not make political statements. It praised
Argentine economic growth, and political affairs will be turned over
to the future US Ambassador to Argentina, Earl Anthony Wayne, who
will take over in November.

"Regarding the GSP review, US businessmen believe 'it is not
retaliation against Argentina' but measures that are aimed at
privileging and granting larger preferential tariff rates to those
countries that supported WTO negotiations like Chile, Uruguay, Peru
and Colombia."

- "South America should help Cuba"

Leading "Clarin" carries an op-ed piece by Juan Gabriel Tokatlian,
professor of international relations at Universidad San Andres, who
opines (08/10) "Regardless of how Fidel Castro's situation turns
out..., it is obvious that Cuba's political transition has started.
This fact is inevitable even if the governmental system adopted is
the concentration of power in the hands of Raul Castro, a collective
scheme, or Fidel's return to the government.

"It is also obvious that transition will not necessarily have to be
turbulent...

"Today, Venezuela and its oil have become the equivalent of what
used to be the Soviet Union's decisive support during the Cold
War... The State of Florida has lost voice in US foreign policy on
Cuba, and Washington cannot afford another international fiasco such
as those in the Levante, the Persian Gulf and the Korean Peninsula.

"In brief, we are witnessing a potential transformation of the
regime rather than its inevitable abrupt end.

"It is not advisable that the Cuban issue is solved by the use of
force or through an aggressive US role, which could trigger chaos on
the island and unpredictable consequences for Latin America and the
US...

"In this framework, South America's role could be crucial and
positive. The future of Cuba is in the hands of Cubans and it may
have an important contribution from South America, particularly the
Southern Cone countries.

"An ABC (Argentina, Brazil and Chile) axis could be developed...
This is, three non-radical, self-proclaimed progressive governments
could start deploying a sober and discreet diplomacy aimed at
preventing the main leaders of this transition from adopting


extremist positions. This diplomacy could also serve to open
communication channels between the government and legitimate and
sensible opponents and to avoid a polarization that could be induced
from overseas."

- "Uruguay makes progress on an FTA with the US (and distances
itself from Mercosur"

Business-financial "Ambito Financiero" reports (08/10) "Uruguayan
President Tabare Vazquez pointed out that he is on the verge of
starting negotiations for an FTA with the US. But he made a comment
on it 'this does not necessary imply Uruguay's departure from
Mercosur.' In this regard, he called the two main partners of the
bloc to discuss an institutional way to make this possible.

"During a conference entitled 'Uruguay in the global economy,' which
was organized by the Americas Society and the Council of the
Americas, Vazquez said 'our country has a commitment and a mandate
to regional integration. However, Mercosur's status and outcome are
unsatisfactory and worrisome.'

"Vazquez said in front of DUSTR Everett Eissenstat 'that one who
believes that commercial relations have to do with ideology is
wrong.' Eissenstat remarked that 'ties between the US and Uruguay
could not be better than they currently are.'"

- "'Mercosur was not created to oppose the FTAA"

Business-financial "Ambito Financiero" reports (08/f10) "Former
Brazilian President Fernando Enrique Cardoso said that Mercosur 'has
become more political and less integrationist.' He also questioned
its anti-FTAA stance.

"'This was neither Mercosur's primary idea nor the opinion I have.
It was not conceived as an anti-FTAA institution but as a way of
organization to hold better negotiations with the US and Europe.' In
this way, the former president expressed his fear that the
over-politicization of the bloc could lessen its true essence."

- "IMF praises the Argentine recovery, but it criticizes the dollar
value and exchange rates"

Ana Baron, Washington-based correspondent for leading
"Clarin," comments (08/10) "Washington's praise for Argentina's
economic recovery is usually accompanied nowadays by criticism of
the Argentine Government's anti-inflation policy and warnings about
the need for lowering public expenditure, raising interest rates and
making the exchange rate more flexible. The IMF report reviewing the
Argentine situation has not been an exception to this rule.

"... While some IMF directors supported price control accords in the
short run, most of them said that they had to be dismantled as soon
as possible.


3. EDITORIALS

- "A foreign view"

Conservative "La Prensa" editorializes (08/10) "The Argentine
government bluntly rejected the possibility that the US will push
commercial sanctions for not coming to terms on the FTAA and WTO
negotiations.

"Vis-`-vis an eventual USG decision, the Argentine President bluntly
defended the position of the country on foreign trade and he
maintained that Argentina no longer has carnal relations with anyone
and will not subject its own policies to any foreign decision...

"It is not the first time the Argentine president clearly pointed
out what the country's position is vis-`-vis the decisions to be
made by powerful nations and multilateral lending agencies such as
the IMF. Frictions have occurred at different moments of Argentine
diplomatic relations with the Bush administration.

"... Shortly after the president's statements, the US Embassy
downplayed the tariff review by releasing a communiqu from USTR. It
made clear that the issue will be debated on Capitol Hill and that
GSP preferential tariff rates will likely be approved again, thereby
downplaying the issue."

- "Bolivia redefines its national pact"

Leading "Clarin" editorializes (08/10) "The Constituting Assembly
inaugurated in Bolivia is a historic milestone and a complex
challenge adding up old social claims, confronted regional
interests, conflicts with foreign investors and problems of


governance.

"Evo Morales took power by promising a new national pact based on
new social and political representation. In the past, Bolivia was
ruled by elites while its majority indigenous population was
excluded from filling the highest positions in government.

"... The arrival of indigenous and farm leaders to the government
has allowed it to have broader political representation, and,
therefore, larger legitimacy. The Constituting Assembly should now
complement this change with large consensus among the different
political sectors.

"... The Government and political forces should now also bear in
mind the important role played by Bolivian energy resources and
should find a way to make progress on harmonious regional
integration."

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

MATERA