FIFTH ANNIVERSARY OF 9/11; ARGENTINE PUBLIC SERVICE RATES;

UNCLAS BUENOS AIRES 002060

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: FIFTH ANNIVERSARY OF 9/11; ARGENTINE PUBLIC SERVICE RATES;
US-ARGENTINA; GSP REVIEW; US-URUGUAYAN FTA; VENEZUELA'S UNSC
CANDIDACY; BOLIVIA; 09/08/06; BUENOS AIRES



1. SUMMARY STATEMENT

Today's leading international stories include the fifth anniversary
of the September 11 attacks and their connection to the invasion of
Iraq and the current situation in Iran; the disapproval of European
leaders vis-`-vis US President Bush's acknowledgement of CIA secret
prisons; the US objecting to loans requested by the Argentine
Government; Argentina and Brazil plans to submit a joint document to
address possible removal from the GSP; Mercosur's vote in favor of
Venezuela's UNSC candidacy; and the Bolivian administration's
authoritative style.


2. OPINION PIECES AND KEY STORIES

- "We and the September 11 attacks"

Daily-of-record "La Nacion" carries an op-ed piece by Javier Marias,
Spanish writer, who opines (09/08) "... No one is safe from the
criminal attacks just like those in Bali, Beirut, Madrid, London,
Bombay or some other innumerable places.

"Fanatic Muslims kill themselves with the purpose of killing you and
thousands more like you, who have done nothing to them or even known
about their lives... For them, there is no individual life...

"Here, in Madrid, more than two years after the train attacks, we do
not feel as though we were at war because terrorism is intermittent
and war has never been so and it has no breaks."

- "Europe is disgusted with CIA secret prisons"

Leading "Clarin" reports (09/08) "European criticism poured over the
US after US President George W. Bush acknowledged that the CIA kept
prisoners in secret prisons abroad after the September 11 attacks.

"Disgusted European leaders and legislators condemned the 'dirty war
on terrorism' and asked for more information from Washington."

- "A happy world"

Marcelo Cantelmi, international editor of leading "Clarin," writes
(09/08) "Believe it or not, five years after the September 11
attacks, 85% of Americans swear that Bush invaded Iraq in
retaliation for those attacks. 77% do not doubt that the US
overthrew Saddam Hussein to prevent him from harboring Bin Laden...

"Iraq has never had ties with the September 11 attacks, and Osama's
only interest in Saddam may have been the intention of killing him.

"Bush's current rage with Iran is also being twisted so that Tehran
appears involved in the September 11 attacks, regardless of the fact
that Iranian Shiites consider Osama and his followers satanic and an
insult to the Islam."

- "New US pressure over Argentine public service rates"

Hugo Alconada Mon, Washington-based correspondent for
daily-of-record "La Nacion," writes (09/08) "The US Department of
Treasury has pleaded for an adjustment in public service rates. For
the first time, it has put in writing an objection to a loan that
had been requested by the Argentine Government to improve energy
efficiency...

"During recent weeks, the US Treasury Department has become the
Argentine Government's main hurdle in obtaining funds from
multilateral lending agencies, including the IDB and the World
Bank...

"... The US Treasury Department's objection is another sign of the
prevailing mood at the US Treasury Department about the Argentine
Government. The US Treasury Department abstained from voting or
voted against granting the last IDB loans and is hindering, along
with other G7 members, the World Bank loans."

- "A decision that reveals US disapproval"

Leading "Clarin" carries an op-ed piece by Marcelo Bonelli, economic
columnist, who writes (09/08) "The decision was a political sign
from Washington - the US voted against Argentina at the IDB in order
to underscore the Bush administration's prevailing irritation over
its disagreement with Buenos Aires.

"Therefore, the decision has crucial political importance. 'Clarin'
has confirmed that the unusual position engaged top-ranking members
of the White House staff. First it had the blessing of Tim Adams,
the US Treasury Assistant Secretary, and also the approval of US


Assistant Secretary for Hemispheric Issues Tom Shannon.

"... According to bankers, it is an action that reflects that the US
and the other G7 countries have abandoned the 'aloofness' of the
last two years towards Argentina. They did not agree with the
economic line, but they let leaders do what they wanted simply
because they were not compelled to contribute fresh funds. Three
months ago, they expressed their disapproval of what they consider
an incorrect economic policy and a negative business climate."

- "The (GSP review and) removal of preferential rates could have a
low impact on Argentina"

Alejandro Vicchi, contributor to business-financial, center-right
"InfoBae," writes (09/08) "During recent days, USTR has said that
the USG could possibly limit the benefits for Argentine products
that are included in the GSP.

"... Argentina has had a constant trade surplus with the US since
the devaluation of its currency mainly because (current) US imports
fell to less than half of the level of 2002 US imports.

"Argentine exports to the US also increased. In conclusion, the gap
has been bridged as the recovery of the Argentine economy increased
its purchasing power and local farmers started to capitalize on the
advantage of the current exchange rate and increased their
intervention in foreign markets.

"The main point from the businessman's point of view is that the US
is the largest economy in the world, and that the purchasing power
of its inhabitants presents several still unexplored opportunities
for Argentine exporters."

- "Argentina-Brazil vs. the US"

Business-financial "Ambito Financiero" reports (09/08) "Argentina
and Brazil will submit a common position vis-`-vis the US regarding
the Bush administration's decision to include them in the list of
countries that will be removed from the GSP.

"The Argentine-Brazilian submission will be made tomorrow when G20
FM ministers meet tomorrow in Rio de Janeiro...

"Beyond Argentina's joint protest with Brazil, the strategy to be
implemented by the Argentine Foreign Ministry will be to attempt to
open other alternative markets for these products, such as Europe,
India, Latin America and North Africa, and to continue condemning
farm subsidies granted by developed countries, particularly by the
US."

- "Vazquez arrives in Brazil with his eyes placed on the US and
China"

Business-financial, center-right "InfoBae" reports (09/08) "Tabare
Vazquez will meet with Lula, Mercosur pro-tempore president, to
discuss the possibility of reaching FTAs outside of Mercosur.

"According to Uruguayan governmental sources, Vazquez will tell Lula
about the inconsistency of 'being flexible with everything but being
orthodox in the foreign relationships of minor partners, which have
been the most affected in Mercosur's consolidation process.'

"Vazquez will use the encounter to explain to Lula why he considers
it essential for Uruguay to be able to negotiate individual FTAs
with third countries like the US, India or China while within
Mercosur."

- "(Mercosur's) Pro-Chavez vote at the UN confirmed"

Carlos Burgueo, columnist of business-financial "Ambito
Financiero," writes (09/08) "Delegates from Mercosur countries
confirmed yesterday that the bloc will vote in favor of Venezuela's
aspirations to become a member of the UN Security Council, in spite
of the opposition of the US, which promotes Guatemala's candidacy...
This will be one of the issues on which Argentina, Brazil, Uruguay,
Paraguay and Venezuela will work jointly at multilateral
institutions such as the WTO, the IMF, the World Bank, and the UN
General Assembly.

"... According to Argentine FM sources, Argentina has never doubted
that it would vote in favor of Venezuela. The alliance between the
two countries goes beyond the good relationship between Chavez and
Nestor Kirchner - reportedly Venezuela is, along with Peru, one of
the two countries that have always voted in favor of Argentina at
international institutions, including the war in Malvinas.


"Chavez is also the main international investor with respect to the
purchase of local bonds, and he has become a full Mercosur member.
On the other hand, FM sources believe Guatemala cannot be considered
eligible in place of any South American country applying for the
seat."


3. EDITORIALS

- "Bolivia's authoritative government"

An editorial in daily-of-record "La Nacion" reads (09/08) "... The
Bolivian Constituent Assembly is divided and confronted...

"Authoritarianism and violence have replaced dialogue and debate...
In this framework, charges of corruption pour on Morales'
entourage...

"Meanwhile, the nationalization of hydrocarbons is also merged in
chaos and is stagnated due to the lack of funds for implementation
and has been questioned by recent judicial rulings...

"There is speculation about a 'self-coup' of Evo Morales. For the
time being, there is a dangerous totalitarian trend and an
increasing authoritarianism, along with certain despise for law, a
climate of insecurity and revenge, and lack of respect not only for
minorities but for everyone who disagrees with the MAS or the
president.

"Bolivia is again on the edge of the abyss. However, Evo Morales
rejected the mediation of the defender of the People, the Catholic
Church or the OAS. Seemingly, he believes the best way to walk along
the road ahead will be through threats or the use of force, which
implies his despise for democratic dialogue and consensus."

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

MATERA