MEDIA REACTION US-ARGENTINE BILATERAL

UNCLAS BUENOS AIRES 000019

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-ARGENTINE BILATERAL
RELATIONSHIP LATIN AMERICAN ANTI-US FEELING ARGENTINA
REPAYING DEBT TO IMF ARGENTINE-BOLIVIAN TIES 01/04/05


1. SUMMARY STATEMENT

Today's key international stories focus on the Bush
administration terming the US-Argentine bilateral
relationship 'positive,' as opposed to 'excellent'
only three months ago; the alleged anti-US feeling in
Latin America; Argentina canceling its 9.5 billion-
dollar debt to the IMF "cutting free from it after
years of bitter clashes;" "The New York Times" front-
page story on President Kirchner warning of a tilt to
the left and further state control following his
decision to cancel Argentina's debt with the IMF; and
the Argentine Government's alleged irritation for the
exclusion of Argentina on Bolivian President-elect
Morales' trip abroad.


2. OPINION PIECES AND KEY STORIES

- "US-Argentine bilateral relationship, downgraded
from 'excellent' to 'positive'"

Daily-of-record "La Nacion's" diplomatic editor Jorge
Elias writes in the paper's front-page (01/04) "In a
discreet, almost unnoticeable way, the Bush
administration termed the US-Argentine bilateral
relationship 'positive,' as opposed to 'excellent'
only three months ago.

"There is a subtle difference (although with high
political impact) between the US State Department's
latest report on Argentina (issued last
December) and the previous one (issued last
September).

"In-between both reports, which are regularly issued
by the US State Department's Office of Hemispheric
Affairs..., a decisive event occurred that affected
the bilateral relationship and its hemispheric
projection - the Fourth Summit of the Americas...

"During the SOA, Bolivarian President Hugo Chavez led
the III Summit of the Peoples..., which was supported
by the presidents of the four full Mercosur members.

"That included Kirchner, the host, who had been
praised by Bush before landing in Mar del Plata. By
then, regardless of the previous reference to
'(Kirchner's) populist rhetoric,' the 'excellent
political relationship' had been reflected in the
Argentine government's gestures, such as 'facilitating
cooperation in non traditional areas, like counter-
terrorism and the struggle against drugs,' as well as
the peaceful use of nuclear energy and environmental
care, among other topics.

"According to the office led by Tom Shannon, Roger
Noriega's successor, Kirchner resorted to 'the
populist rhetoric and sought to distance himself from
the US when competing in 2003 elections,' but after
that, he received Bush's support 'on key points' that
helped him hold smooth negotiations with the IMF.

"In response to this, according to the report,
'Argentina has actively cooperated with the US in
counter-terrorism operations in the Tri-Border.'

"As a consequence of the meeting between (Presidents)
Kirchner and Bush in Mar del Plata, the new report
points out that 'The relationship between the US and
Argentina remains positive in spite of the fact that
President Kirchner sometimes uses a populist rhetoric
and declares he is against the FTAA.'"

- "Alarm bells in Washington"

Ricardo Kirschbaum, general editor of leading
"Clarin," writes (01/04) "According to prestigious
magazine 'Foreign Affairs,' the US-Latin American
relationship is at its lowest point since the end of
the Cold War. The article was written by Peter Hakim,
head of The Inter American Dialogue, which has ties
with the US Department of State. According to the
article, the region has developed a noteworthy anti-US
feeling rather than a tilt to the left, and this adds
to the low priority granted by (President) Bush to the
region ever since the September 11 attacks...



"As per the article, one of the dangers is that China
could replace the US, which could represent a security
risk for US interests in the hemisphere.

"... Two influential US newspapers, The Washington
Post and The New York Times, have commented on what is
happening in the region...

"The US is concerned over (Latin American) governments
questioning failed past policies that were supported
by Washington, but it should review (its own) serious
mistakes, which unleashed this adverse reaction in
Latin America."

- "Kirchner gets rid of IMF pressure, but he faces
other political challenges"

Eduardo van der Kooy, political editor of leading
"Clarin," opines (01/04) "... The New York Times
related Argentina's repaying its debt to the IMF to a
turn to the left of the Kirchner administration...

"Mistrust of the president is not related to his
payment to the IMF, but rather to the framework of his
recent election victory, his piling up power and some
'style'-related issues, which lower the quality of
democracy. The 'ghost' of Hugo Chavez hovers over
Washington and some European capital cities...

"The (Argentine) Government got rid of huge political
pressure by canceling its debt to the IMF...

"... Nonetheless, the Government needs to heal
impaired ties with several countries in the world for
two main reasons - first, because it wants continued
investment that will help boost sustained economic
growth... and because it needs to increase trade flow
with the world. And this will be impossible without
support from Washington and the G7."

- "New dynamics in the international scenario"

Leading "Clarin" carries an op-ed piece by Carlos
Perez Llana, vice-head, International Relations, Siglo
21 University, who comments (01/04) "... Regarding US
foreign policy, the cycle that started with the
September 11 attacks ended in 2005. While terrorism
and security remain its main priorities, obstacles in
Baghdad, the impossibility of expanding the crusade,
and the costs of unilateralism made President Bush
listen to moderates rather than neo-conservatives.

"Condoleezza Rice's nomination and Paul Wolfowitz'
resignation reflected this new reality. The failure of
the postwar in Iraq was the main factor of change and
the year ended with a question - when will the US
leave Iraq? Recent parliamentary elections may speed
up history by having included the Iraqi Sunni minority
although Washington is not dreaming of total
withdrawal.

"... Finally, the Bolivian elections made patent the
coexistence of two political models in South America.
On the one hand, populist coalitions of different
nature - nationalistic, indigenous and post-Soviet
Marxist, of which President Chavez is the main
example. On the other hand, we have the social-
Democratic option, with the Chilean socialist
President Lagos as the main example.

"For Chavez, the anti-US feeling is the most important
element. For Social Democrats, the main purpose is
reducing poverty and broaden citizenry."

- "The (Argentine) Government is bothered because Evo
did not include Argentina on his agenda"

Natasha Niebieskikwiat, columnist of leading "Clarin,"
writes (01/04) "According to high-level sources, the
(Argentine) Government is bothered because Evo Morales
did not include Argentina on his world tour... The
Bolivian government is also bothered because they say
that Morales received formal invitations from all
presidents of the countries he will visit while in the
case of Argentina he only received messages from third-


line government officials.

"... For their part, the two countries' foreign
ministries asked not to reflect a 'non-existent'
diplomatic spat."


3. EDITORIALS

- "Bye bye IMF, hello Chavez"

Liberal, English-language "Buenos Aires Herald"
editorializes (01/04) "And so it happened, Argentina
sent a cheque to the IMF and settled a lingering
political bill, more substantial than the figure of
the debt itself. The government trusts that this will
generate a sort of freedom that will liberate it from
external pressures, but that is subject to controversy
and to be proved. For Argentina, yesterday was 'Chau
FMI' day...

"Since the presidential announcement two weeks ago,
Argentine politicians and economists have been steeped
in controversy over the usefulness of the IMF debt
settlement... The concern of critics of the payment to
the IMF is that an external arbiter in international
finance is removed from the scene. And the question
centers on how this absence will be interpreted by
potential investors. However, it must also be said
that President Kirchner's deeply entrenched ambition
was to be rid of the conditioning by the IMF...

"Venezuela's President Hugo Chavez has become
Argentina's main creditor, and lender now, and it is
unclear if this is beneficial or not. He may be a
demagogue, but by the speed with which he sold the
Argentine bonds he purchased and the profit he gained,
Chavez showed he was a well-advised authoritarian. And
from that place it remains to be seen if his
friendship will be free of conditions and pressure.
This is the question that will probably be answered
quite early in this new year."

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