AUSTR EVERETT EISSENSTAT IN BUENOS AIRES; US/MEXICAN BORDER

UNCLAS BUENOS AIRES 002264 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: AUSTR EVERETT EISSENSTAT IN BUENOS AIRES; US/MEXICAN BORDER WALL; NORTH KOREA; 10/05/06;BUENOS AIRES ¶1. SUMMARY STATEMENT Today's key international stories include yesterday's press round table with AUSTR Everett Eissenstat in the US Embassy in Buenos Aires. Business-financial "El Cronista" front-pages "US message - 'Game rules should be honored to improve the business climate.'" Other international stories include the USG approval of the legislation to build a wall on the US-Mexican border; and the UN response to the threat posed by North Korea. ¶2. OPINION PIECES - "The UN is divided about the threat posed by North Korea" Daily-of-record "La Nacion" reports (10/05) "The UN Security Council attempted to solve its disagreement on how to respond to North Korea's announcement of a nuclear test, but while the US asked for a tough 'strategic response,' China asked for cautiousness. "US Ambassador to the UN John Bolton said that 'there is disagreement on this point,' after the private meeting in which Pyongyang's announcement was discussed. Bolton spoke shortly after his British counterpart, Emyr Jones Parry, said that all of the UN Security Council members had expressed concern over the North Korean threat and had decided to let experts draft a 'strategic response.'" - "Bush approved legislation to build a wall on the US-Mexican border" Leonardo Mindez, on special assignment in Washington for leading "Clarin," writes (10/05) "Ignoring the last-minute request from Mexican President Vicente Fox, George W. Bush signed yesterday the legislation to build a wall on the US-Mexican border and install infra-red radars, sensors and security cameras in an attempt to put a brake on the waves of immigrants to the US. "On the one hand, it represents the failure of his goal of implementing an 'overall immigration reform' for which he pressured the US Congress during the year, and which should include a program of temporary workers and some solution for the 12 million undocumented immigrants living in the US. "But, at the same time..., Bush was able to satisfy the most conservative sectors, which had claimed for some reinforcement on the border and tough treatment of illegal immigrants. And this is not unimportant, one month before elections." �0A;- The US seeks to reach a deal with Argentina along the lines of the US-Uruguayan deal" Silvia Naishtat, columnist of leading "Clarin," writes (10/05) "Everett Eissenstat, the head of the USTR for the Americas, said yesterday that 'there are 450 US corporations in Argentina that employ 155,000 Argentines.' 'You are the second destination of US investment after Brazil. You should not have doubts about this - it is an important relationship.' "In this way, the USG official attempted to downplay the possible removal of Argentina from the GSP... "... Eissenstat and his staff have arrived from Montevideo, where they are speeding up the process to sign an ambitious Trade and Investment Treaty in 30 days. Eissenstat pointed out to a group of journalists that the US would wish 'to sign a similar deal with Argentina.' "Asked whether this would be incompatible with Mercosur, Eissenstat said 'Mercosur partners should answer this question. It is a deal similar to the one Argentina has with the US on investment protection, although it is more advanced and it allows for strengthening trade and helping countries' growth." - "The US asks for clear rules in some sectors" Daily-of-record "La Nacion" reports (10/05) "AUSTR for Latin America Everett Eissenstat took his trip to Uruguay to launch negotiations for a Trade Investment Framework Agreement and visited Buenos Aires yesterday. "Here, he echoed the demand from US corporations and warned that 'if companies invest it is because they are satisfied with the rules of the game, and if they are not investing in the economy or some special sector, it means that they are not satisfied with them.' Last month, the US Department of Treasury warned about the Argentine energy situation. "Eissenstat met with members of the American Chamber in Argentina. 'There is a deep interest to obtain a strong economy in the long term, a sound investment climate and certainty in game rules. It is not our place to say that Argentine rules of the game are good or bad. The answer lies in how business is done.' "Eissenstat not only hinted implied criticism, but he also emphasized the dialogue he had with Argentine Secretary for International Economic Relations Alfredo Chiaradia on the GSP review... He admitted that US corporations could be impaired due to the measure, which is aimed at favoring the poorest countries. 'When tariffs on imports are raised, some companies' interests are affected because they have to pay higher prices for inputs.'" - "The US asks Argentina to abide by ICSID rulings" Sergio Serrichio, columnist of business-financial "El Cronista," writes (10/05) "The USG reiterated his message on the need for a good investment climate for US corporations in Argentina, and it warned it expects the country to abide by the rulings of the International Center for the Settlement of Disputes (ICSID),even if they do not please the Kirchner administration. "Everett Eissenstat, in charge of Latin America at the USTR, said that 'when there are pre-established rules and a particular result comes up, regardless of whether we like it or not, it makes sense to respect that result. Otherwise, rules do not have much meaning.' "Eissenstat said his meeting with Secretary for International Economic Negotiations at the Argentine Foreign Minister, Alfredo Chiaradia was 'very good,' in which they spoke about the GSP review... "... Eissenstat's visit to Uruguay was marked by the launching of the Trade Investment Framework Agreement and the ratification of a Bilateral Investment Treaty between the two countries. The USG official did not say whether an eventual TIFA with Uruguay is compatible with Mercosur. 'It is something Mercosur should respond to.'" To see more Buenos Aires reporting, visit our classified website at: http://www.state.sqov.gov/p/wha/buenosaires MATERA