A/S THOMAS SHANNON STATEMENTS ON LATIN AMERICAN DEMOCRATIC

UNCLAS BUENOS AIRES 002248 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: A/S THOMAS SHANNON STATEMENTS ON LATIN AMERICAN DEMOCRATIC AND AUTHORITARIAN REGIMES; BRAZILIAN ELECTIONS; US-URUGUAYAN TALKS; PARAGUAY AND US TROOPS IMMUNITY; 10/03/06;BUENOS AIRES ¶1. SUMMARY STATEMENT Today's key international stories include A/S Thomas Shannon's statements on Latin American "democratic" and "authoritarian" leaders; the outcome of Brazilian elections; commercial talks between the US and Uruguay; and Paraguay removing immunity from US troops and contractors. ¶2. OPINION PIECES - "Shannon criticizes Latin American 'authoritarian leaders'" Daily-of-record "La Nacion" reports (10/03) "In spite of his attempts to minimize tension in the US ties with Argentina, Tom Shannon, George W. Bush's man for Latin America, hinted yesterday that the Kirchner administration is not included among the US's favorite governments in the region. "Aware of it or not, he did so when he overlooked the Argentine president in a long list of leaders having a 'democratic view,' who compete with other 'authoritarian leaders' in the hemisphere. "(US) Assistant Secretary Thomas Shannon gave a speech at the 62nd Inter American Press Association General Assembly in the city of Mexico. "During a conference called 'New challenges for the Americas,' the head of the Western Hemisphere Division of the US Department of State said that there is a step backward in countries whose governments bet on confrontation rather than on seeking consensus. Shannon added that a 'very dangerous' political polarization is created in this way. "Shannon said that latest elections in the region have demonstrated that voters prefer moderate positions, a little bit more to the left or to the right... "He listed those leaders, and he overlooked Kirchner in his listing. 'Michele Bachelet in Chile, Oscar Arias in Costa Rica, Alvaro Uribe in Colombia, Alan Garcia in Peru, Stephen Harper in Canada, and Felipe Calderon here in Mexico. All these leaders are committed to integration and successful relationships with their neighbors; they are committed to trade as an engine for development.' "Instead, he pointed out that there is a 'competing view' in other nations, which he did not mention, in which an authoritarian leadership prevails and the government is used as a controlling instrument in the economic field.'" - "Run-off-the mill" Michael Soltys, executive editor of liberal, English-language "Buenos Aires Herald," writes (10/03) "Sunday's elections in Brazil were billed as a total contrast to Mexico's three months ago - rampant re-election for the center-left candidate instead of a razor-thin win for the center-right - but the final result was rather too close for comfort with President Lula falling short of first-round victory. "... Nevertheless, Brazil is a continent-sized country which prefers to explain events in its own terms without reference to the region... "... Lula should still win the runoff on October 29 - he is only a couple of million votes short of victory among an electorate of 126 million and of the 9.8 per cent who voted for eliminated candidates, over nine percent voted for two firmly leftist candidates and are hardly likely to opt for Alckmin now. "One of the few people in the world who is equally comfortable with US President George W. Bush and Venezuela's Hugo Chavez, Lula appealed to all classes in Brazil with economic policies favoring the rich... while no less than 44 million impoverish Brazilians have entered the government's social program network. "Yet the election reveals a country divided along regional as much as class lines... "The polarized presidential race was not reflected in either congressional or gubernatorial voting. The PSDB fared better than the PT in state voting with Serra and Neves holding the promise of strong presidential candidacies in 2010 but the centrist PMDB did better than either party, running ahead in a third of the states. "Elections in the region's biggest country obviously crowds out all other news. Worthy of mention is Uruguay launching negotiations for a preferential trade agreement with the US, abandoning the more ambitious Peruvian model - although whether this is because there is not enough US 'fast track' time for a fuller agreement or whether Uruguay's real aim is to force a better deal out of Mercosur remains hard to say." - "The right wing is strengthened" Left-of-center "Pagina 12" carries an opinion piece by Atilio Boron, political analyst, who opines (10/03) "The outcome of Brazilian elections has been disappointing for the Lula administration... The fact that a right-wing candidate like Alckmin has made an excellent election is worrisome. This achievement can be explained by the deficit in Lula's policies rather than by the right wing's own merit. I do not believe Lula represents a left-wing candidate. Obviously enough, Lula is not the US's favorite candidate because some in Washington think that, during his second term in office, Lula could be interested in promoting the PT's left-wing policies. "... During the latest election campaign, the right wing has been strengthened in a significant way while the leftist coalition supporting the PT is weakened... "During a second term in office, with a stronger right wing, the PT government will languish and end up in big disappointment. Even though, Lula is preferable to Alckmin, who is a mere performer of the neo-liberal policies of the '90s. Lula will soften the US pressure. "Latin America is witnessing the election of a conservative government like that of Calderon in Mexico, a possible victory of a right-wing government led by Alckmin and a PT government that did not honor its promises. This is bad news for the region." - "The regional leadership is at stake" Business-financial "El Cronista" carries an opinion piece by Felix Pea, head of the Institute of International Trade, Fundacion BankBoston and a member of the paper's editorial council, who writes (10/03) "Who leads Latin America... South America is an increasingly differentiated sub-system... "In this framework, the South American agenda appears dominated by issues of governance and unsatisfied social expectations... "Leadership will mean a country's ability to contribute to the articulation of divergent national interests, which is aimed at putting potential focuses of trouble under control... "It seems to be a task to be carried out by several countries, not just one. Due to its relative size, Brazil has the greatest responsibility for it. But its president will finally have to come to terms upon initiatives with other relevant countries like Argentina and Chile and even with Venezuela (due to its vocation for a leading role)." - "Uruguay changes and now does not dismiss an FTA with Washington" Conservative "La Prensa" reports (10/03) "Uruguayan Economy Minister Danilo Astori insisted yesterday that an FTA with the US 'has not been dismissed,' although President Tabare Vazquez had announced on Thursday that he will sign a Trade Investment Framework Agreement (TIFA). "... Negotiations will end today with the signature of a joint communiqu in which the two countries will express their willingness to make progress on the expansion and diversification of bilateral trade... "The eventual signature of an FTA with the US has sparked harsh controversy within the government. Economy Minister Astori and his counterpart Industry Minister Jorge Lepra said they favor an FTA while FM Reinaldo Gargano opposed such a deal." - "Paraguay removes immunity from US troops and contractors" Hugo Olazar, on special assignment in Asuncion for leading "Clarin," writes (10/03) "The Paraguayan government officially notified the US that, starting in 2007, it will no longer offer diplomatic immunity for US troops performing military exercises in its territory. "... Paraguayan FM Ruben Ramirez announced the measure and he acknowledged that his predecessor, former FM Leila Rachid, reported the decision to A/S Thomas Shannon during her latest visit to Washington in August. "He also admitted that Shannon replied that, without immunity for the US troops, the US would find it impossible to continue providing Paraguay with military cooperation." To see more Buenos Aires reporting, visit our classified website at: http://www.state.sqov.gov/p/wha/buenosaires MATERA