MEDIA REACTION EVO MORALES, US-ARGENTINE

UNCLAS BUENOS AIRES 000183

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 EVO MORALES, US-ARGENTINE
BILATERAL RELATIONSHIP WAYNE NOMINATION, AFTERMATH OF
RIO SUMMIT 01/24/06


1. SUMMARY STATEMENT

Papers carry speculation about a second possible
candidate for Ambassador to Buenos Aires; the
aftermath and repercussions of Evo Morales'
inauguration and the appointment of his new Cabinet,
and the possible advantage of Brazil's 'war industry'
as major supplier of weapons in the region, following
the Rio Summit between Lula, Kirchner and Chavez.


2. OPINION PIECES AND KEY STORIES

- "U.S. Moves Forward in Appointing its New
Ambassador"

Hugo Alconada Mon, daily-of-record "La Nacion"
Washington-based correspondent, writes (01/24) "The
present U.S. CEO at the IDB, Hector Morales, is the
second candidate being examined by the Bush
administration to be ambassador in Argentina,
according to Republican sources working within and
outside the USG in Washington.

"The nomination of the future Ambassador in Buenos
Aires will be determined in the coming weeks, when
Bush signs his papers and sends them to the Senate for
a confirmation hearing. The goal is for Lino
Gutierrez' replacement to take over the position by
mid-2006.

"The nomination of the present Under Secretary for
Economic and Business Affairs of the State Department,
Earl Anthony Wayne, obtained decisive support from
Secretary Rice, who signed his nomination and sent it

SIPDIS
to the White House.

"But yesterday, there were rumors saying that Morales
is - or 'was', according to two sources that believe
the odds in favor of Wayne are greater - the other
potential candidate to take over the helm at the
Embassy in Argentina.

".... Defined by several of his colleagues as
'pragmatic', Morales knows Buenos Aires and the
interior of the country well... (because) between 1997
and 2000 he worked as President and General Manager of
Reliant Energy in Argentina, a subsidiary of an energy
company based in Houston, Texas.

".... Together with Wayne, Morales was the center of a
battle between career diplomats at the State
Department and political appointees of this
administration regarding the definition of the future
Ambassador in Argentina.

"Following Rice's signature of Wayne's nomination,
it's improbable, anyway, that the decision might be
changed at the White House.

".... According to a source with close ties with the
Republican administration, 'Although Morales lived a
long time in Buenos Aires and is of Mexican descent,
Wayne is the one who will finally take over the
Embassy. Hector doesn't have the (necessary) strength
to achieve it.'..."

- "(Cabinet)Formula"

Alejandra Pataro, leading "Clarin" international
columnist, opines (01/24) "Someone described his
cabinet as 'sui generis, very much in the President's
style.' Evo Morales called it 'cabinet of change.'
Bolivia's new team of ministers is mostly indigenous.
It includes women where there were none. It places a
Quechua maid in a seat which, until yesterday, had
been previously reserved for white men. He puts a
miner at the helm of mining issues, and an Aymara to
lead foreign relations. It's the formula he chose to
remedy almost two decades of a direction which led to
erroneous roads, and to put an end to the systematic
exclusion of the Bolivian people from political and
economic life."

- "Kirchner, Worried About Morales' Cabinet"

Business-financial "Ambito Financiero" says (01/24)


".... Upon returning from La Paz, President Kirchner's
uneasiness was political (not physical.)

".... Morales appointed a cabinet mostly with
indigenous people from social organizations. At the
Energy Ministry he appointed a journalist, Soliz Rada.

".... For Kirchner, this designation was almost an
insult. Back in December 2004, Soliz Rada had said in
a press interview that Kirchner 'ought to refrain from
bring Repsol's spokesperson to suck Bolivia's gas in
the worst imaginable conditions.'.. And Kirchner
hates... this kind of approach, and doesn't share
these views...."

- "'Don't Tie Morales Down'"

Michael Soltys, Liberal, English-language "Buenos
Aires Herald" executive director, opines (01/24) "....
The MAS leader is showing a strong streak of realism,
drawing some subtle distinctions within the radical
slogans which swept him to victory last month.

"Thus the nationalization of Bolivia's energy wealth
comes without confiscation of the likes of Repsol and
Petrobras and even including the defense of private
property and respect for the right to a profit...,
while freedom from confiscation does not save foreign
companies from being dragooned into partnership with
YPFB.

".... Evo's first full day in office yesterday also
included announcing his new 16-strong Cabinet (not 16-
man because there are three women) and here again the
signals are mixed between his realistic, populist and
Marxist streaks.

".... But by including all the loose cannons in his
Cabinet..., by co-opting these dangerous radicals,
Morales will buy time - as will the constituent
assembly to draft a new and more pro-indigenous
constitution, for which elections will be held in
July.

".... For now, Morales enjoys popularity at home...
and acceptance in the region - eight of the other nine
South American presidents were present at his
inauguration.

".... (But) No president north of Panama showed up -
not even Castro and certainly not Mexico's Vicente
Fox. But this was more than compensated by the U.S.
department's new man for Latin America Tom Shannon, to
whom Morales talked with goodwill to overcome
differences.

"Apart from his 'zero cocaine' slogan to appease
Shannon, the coca-growers' leader also showed himself
to be open-minded and pragmatic about free trade,
including the FTAA... shrugging off the Mercosur-FTAA
polarization which split last November's Summit of the
Americas...."

- "Lula, Clear Winner"

Julio Ramos, publisher of business-financial "Ambito
Financiero" opines (01/24) ".... (After the Lula-
Kirchner-Chavez summit) Kirchner managed to stop
Brazil's open criticism of Uruguay's intention to
undermine Mercosur... but he had to join Lula in his
support for 'war industries' aimed at supplying
weapons in the region... We may easily infer, then,
that this growth in 'war industries' - apparently to
benefit all countries --, will end up benefiting
mostly Brazil.

".... Who are South American countries going to fight
with if they arm themselves? Practically against
nobody and everything seems to indicate that beefing
up 'war industries' is another strategic move of
Brazil, in view of Chavez' extravagant actions.
Therefore, this Venezuelan is the major loser of the
Rio Summit due to his self-idolatry and senselessness,
only supported by the extremely high oil price...."


3. EDITORIALS



- "Morales Inauguration"

An editorial in daily-of-record "La Nacion" reads
(01/24) ".... The arrival in power of Morales...
represents a drastic change in the political
orientation of this neighboring country, which the new
president promised to implement during his
administration.

"An immediate example of this was his confirmation
during his inauguration speech in Congress of the need
to nationalize natural resources as part of the
process of 're-founding Bolivia' which he says he
initiated.

".... In saying this, Morales presented one of the
main priorities of his administration, although he
didn't give details on how he will implement the
nationalization process of gas and oil. His campaign
promises to confiscate foreign companies exploiting
natural resources -- which had deeply worried
investors -- gave way to a more moderate position,
which still generates uncertainty.

"....Today, the brand-new occupant of the Quemado
Palace faces deep challenges in order not to
disappoint his voters, but also, in order to rule for
all the Bolivian people without a spirit of revenge.

".... He also appealed to a conciliatory tone and
rapprochement with the U.S. ... and said he's willing
to fight drug-trafficking, but he won't set aside the
promotion of the use of coca in medicines, infusions
and (other products).

"In the past, Bolivia resorted to extreme recipes that
ended in failure, pushing, even further, thousands of
inhabitants to poverty and marginality. Now, Morales
must take advantage of this opportunity to lead his
country to a serious path, without grudge or
sectarianism, towards economic recovery and more
social equity."


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

The Media Reaction Report reflects articles and
opinions by the cited news media and do not
necessarily reflect U.S. Embassy policy or views. The
Public Affairs Section does not independently verify
information. The report is intended for internal U.S.
Government use only.

GUTIERREZ