THE US AND IRAN; THE US VOTE ON AN IDB LOAN FOR ARGENTINA;

UNCLAS BUENOS AIRES 002033

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: THE US AND IRAN; THE US VOTE ON AN IDB LOAN FOR ARGENTINA;
2007 WORLD BANK DOING BUSINESS REPORT; MEXICAN PRESIDENT-ELECT
CALDERON; US DEMOCRATS AND CHAVEZ; ARGENTINE DRUG TRAFFICKING;
09/06/06; BUENOS AIRES



1. SUMMARY STATEMENT

Local international stories include US President Bush's statements
about Iran; the US allegedly opposing the approval of an IDB loan
for Argentina; the World Bank's 2007 Doing Business Report on
Argentina; Mexican President-elect Felipe Calderon; US Democrats'
statement that Venezuelan President Chavez does not pose a threat to
US national security; and Argentina's status in terms of drug
trafficking.


2. OPINION PIECES AND KEY STORIES

- "As an election weapon, Bush now targets Iran"

Hugo Alconada Mon, Washington-based correspondent for
daily-of-record "La Nacion," writes (09/06) "Only nine weeks away
from legislative elections, the White House started yesterday a new
media campaign aimed at sustaining that its 'global war on
terrorism' is successful, that Al Qaeda is now weakened and,
therefore, that Americans should vote for Republicans supporting the
Bush administration.

"Controversial as it sounds, the latest election strategy has
emerged from an updated version of the -'National Strategy to fight
Terrorism,' which was released yesterday by US President George W.
Bush's staff. It charges Iran with being a potential distributor of
WMD among terrorists.

"Bush said 'just like Al Qaeda and Sunni extremists, the Iranian
regime has clear purposes - it wants to remove the US from the
region, destroy Israel and prevail in the Middle East.'

"Iran and its controversial nuclear development plan seem now the
White House's top foreign policy priorities, well beyond the
situation in Iraq or Afghanistan, North Korean missile threats, or
the September 11 attacks."

- "According to Bush, the Iranian president is a 'tyrant'"

Leading "Clarin" reports (09/06) "US President George W. Bush said
his Iranian counterpart, Mahmoud Ahmadinejad, is a 'tyrant' and he
compared Tehran leaders with Al Qaeda terrorists, and that they
should be prevented from manufacturing nuclear weapons.

"US President Bush said 'the US will not subject itself to tyrants,'
and 'the free nations of the world will not let Iran develop nuclear
weapons.'

"Bush accused Iran of having funded Hezbollah's Shiite militia
during the war in Lebanon as well as other groups 'to indirectly
attack the US and Israel.'"

- "The US is again against the approval of an IDB loan for
Argentina"

Ana Baron, Washington-based correspondent for leading "Clarin,"
comments (09/06) "In spite of the efforts of Argentine Ambassador to
the US Jose Octavio Bordon at the US Treasury Department, the US
could again abstain from voting in favor of an IDB loan for
Argentina.

"It is a 100-million-dollar loan, which is aimed at financing the
manufacture of two satellites by Comision Nacional de Actividades
Espaciales (National Committee for Space Activities). The US
Treasury Department believes that the IDB should give priority to
Latin America's infrastructure projects over these types of
projects.

"Argentina believes the project called Pro-Sat is indispensable to
monitor water surface, the humidity of the ground, vegetables, and
the terrain movement in the country.

"If there is no last-minute change, this would be the second time in
a month that the US would vote against granting a credit to
Argentina.

"... According to all estimates, the credit would be approved
anyway. However, if the US abstains again, as the Argentine Economy
Minister fears, it will be a new signal.

"A US financial source told 'Clarin' that the current US Treasury
Department's attitude toward Argentina is not as positive as when
John Taylor was the US Treasury Assistant Secretary for
International Issues. Then, the US Treasury automatically supported
Argentina at multinational lending agencies...




"However, after meeting President Kirchner at the Summit of the
Americas, (US President) Bush said that, after its successful
economic recovery, the country no longer needed US support and that
the US believes that judicial security, transparency and the fight
against corruption are crucial issues for Argentina to consolidate
its economic recovery. What we are witnessing now is a consequence
of what Bush said at that time."

- "Argentina's business atmosphere is downgraded"

Leading "Clarin" reports (09/06) "The World Bank believes
Argentina's environment will not support the launching of new

businesses in 2007. This is the conclusion of the annual report of
the International Finance Corporation, the World Bank's private
sector, which placed Argentina at the 101st position based on the
conditions it grants to new commercial entrepreneurs...

"Simeon Djankov, one of the authors of the 2007 Doing Business
report, 'the Argentine problem is that it is not implementing enough
reforms as fast as other countries are doing so. And if the
country's pace does not change, it will continue losing ground."

- "A weak government looms without being legitimized by the
opposition"

Claudio Mario Aliscioni, columnist of leading "Clarin," writes
(09/06) "What should have been a celebration for the Mexican
democracy through a presidential change is instead a future loaded
with bad omens.

"These are the effects one should expect from a government like that
of President-elect Felipe Calderon, who has not been legitimized by
the opposition and is suspected to reach power through fraudulent
practices.

"... The new president's weakness will also impact on the conflict
inside his political party, Accion Nacional. Calderon, who does not
have control of all his party's structures, will have to deal with
the most reactionary sector. The agitation of the country will be
the best excuse for the enemies within his own political party to
condition his agenda."

- "US Democrats - Chavez does not pose a 'threat'"

Leading "Clarin" reports (09/06) "The US Democratic opposition
believes that Venezuela has adopted some problematic positions but
it does not pose a threat to the US security.

"According to Senator for Illinois Richard Durbin during a lecture
on Capitol Hill, 'Chavez does not pose a threat to US national
security.'

"Democrats have submitted a document criticizing the White House's
'shortfalls' and 'incompetence' in directing US national security.
The document, called 'Neoconservatives - Bush's Defense record in
figures,' which was drafted by the 'Third Way' center of studies,
criticizes the US Pentagon's military strategy in Iraq and sustains
that the US 'is now less able to fight and win the global war on
terrorism.'"


3. EDITORIALS

- "Serious increase in drug trafficking"

An editorial in leading "Clarin" reads (09/06) "In the '90s, the
international and US organizations dealing with international drug
trafficking started to point out that Argentina was no longer a
transit country for the drug coming from Northern countries but a
place of production and consumption.

"... The increase in drug trafficking poses a serious problem
because it is related to the deterioration in the addicts' living
conditions and the proliferation of crimes related to the drug
business. The drug issue is a double-sided problem that is related
to health and security."

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

MATERA