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."

- 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