MEDIA REACTION US-IRAN IRAQ US-SOUTH AMERICAN

UNCLAS BUENOS AIRES 000689

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: MEDIA REACTION US-IRAN IRAQ US-SOUTH AMERICAN
TIES ARGENTINE GOVERNMENT'S DECISION TO RESCIND AGUAS
ARGENTINAS CONTRACT US SENATOR GRASSLEY'S STATEMENTS
ON US FARM SUBSIDIES 03/22/06



1. SUMMARY STATEMENT

Today's major international stories include Chilean
President Michelle Bachelet's meeting with President
Nestor Kirchner in Buenos Aires during the first state
visit of her presidency; the US State Department
charging Iran with having ties with Al Qaeda; US
President Bush's alleged statement that US troops will
stay in Iraq "at least until 2009;" the Argentine
Government's decision to rescind the 30-year contract
of Aguas Argentinas and its impact on the US; and US
Senator Grassley's statements on US farm subsidies.
Leading "Clarin" carries an op-ed that is critical of
current US-South American ties.


2. OPINION PIECES AND KEY STORIES

- "Iran is being linked to Al-Qaeda"

Hugo Alconada Mon, Washington-based correspondent of
daily-of-record "La Nacion," comments (03/22) "In an
increasing escalation against Iran, the US accused
yesterday the Tehran regime of protecting and
facilitating the activities of Al Qaeda terrorists in
its territory, who will then attack US troops in Iraq.

"... US charges against Tehran's fundamentalist regime
are somewhat similar to the diplomatic and media
escalation that preceded the military offensive
against Iraq.

"In this regard, US President George W. Bush said
yesterday that his troops will remain in Iraq until
the end of his administration in spite of requests in
the US for a partial troop withdrawal.

"... US intelligence agencies suspect that Iran is
developing a program to build nuclear bombs and that
it harbors Al Qaeda leaders, including Abu Musab al-
Zarqawi, the alleged Iraqi insurgent leader."

- "US troops will stay in Iraq at least until 2009"

Business-financial "Ambito Financiero" (03/22) reports
"US President George W. Bush suggested yesterday that
his country will not withdraw all its troops in Iraq
while he is in power, and he denied that there is
civil war in Iraq...

"Bush reiterated his message that there is progress in
Iraq when US citizens increasingly doubt it, which
brought his popularity ratings below 40%... In order
to convince a skeptical audience, the US president
embarked himself on a campaign of speeches in
different parts of the country including yesterday's
press conference at the White House."

- "South America and the US are going through a stormy
weather"

Leading "Clarin" carries an op-ed piece by Fabian
Calle, political analyst and professor of
international relationships at Universidad Catolica
and Universidad Di Tella, who writes (03/22) "A review
of statements made by key US personalities could
reveal that, as of 2003/4, something has really
changed regarding (US) perception of threats in Latin
America and, particularly, South America.

"Who embodies this threat? It is 'radical populism,'
whose main representative is Hugo Chavez, and, to a
lesser degree, Evo Morales and Ollanta Humala.

"This assessment is accompanied by statements that do
not seem to demonstrate a unified stance: 1) At the US
State Department, Thomas Shannon said that there is a
tendency to exaggerate Chavez' influence in Latin
America and that the focus of attention should be the
fight on poverty, inequality and lack of strong
institutions; 2) US Defense Secretary Rumsfeld made a
parallel between Hitler's taking power in 1933 and
Chavism's election and political phenomenon since
1998; 3) from a military point of view, General B.
Craddock underscored that the main threat to
hemispheric security and stability is poverty,



inequality and inefficient institutions that do not
provide for the people's basic needs.

"Shannon and Craddock's statements seem to honor the
premise of former president Theodore Roosevelt about
how the US should act in the international scenario -
'talk softly and carry a big stick.'

"... (Academic) Niall Ferguson remarks that one of the
questions that Washington will start asking in the
short or medium-term is 'Who lost Latin America?'

"He adds that in recent years the US passed from the
Monroe Doctrine (which has sought the US prevalence
all over the world since the 19th century) to the
doctrine of 'Oh, no!..., another radical populist
government has taken power.'

"All this seems to indicate that the Bush
administration is seeking to coordinate a consistent
strategy combining, on the one hand, tough political
and diplomatic handling of Venezuela, and, on the
other hand, assistance to the region to target
structural problems such as marginalism, poverty and
institutional weakness.

"Those who are most distrustful seem to believe that
there will be more of the first thing than of the
second one. If this is so, we will probably have
instability, conflict and radicalization for a long
time."

- "Surprise and malaise in Washington"

Hugo Alconada Mon, Washington-based correspondent for
daily-of-record "La Nacion," comments (03/22)
"Yesterday, the International Financial Corporation
(IFC) kept silent regarding the (Argentine)
Government's decision to rescind the concession
contract of Aguas Argentinas for failing to make
required improvements in the water system.

"An IFC spokesperson said 'No comment. It is too
premature,' although it transcended that the Argentine
Government's decision unleashed surprise and true
malaise at the Corporation. According to tens of
documents and studies drafted by IFC analysts, Aguas
Argentinas was considered a 'successful project' and a
model for the privatization of water services in
developing countries.

"... The Republican administration did not make any
comment either about the Argentine Government's latest
decisions, although, according to three government
officials, it let be known its 'malaise' regarding the
Argentine conflict with Uruguay over the pulp mills,
the official strategy to tame inflation, and,
particularly, its suspension of meat exports."

- "Doesn't hold water"

Michael Soltys, executive editor of liberal, English-
language "Buenos Aires Herald," writes (03/22) "...
there will not be any elections this year, thankfully,
but projections of government spending took a jolt
upwards with yesterday's re-nationalization of Aguas
Argentinas waterworks...

"If re-nationalization proliferates into a plethora of
publicly owned loss-makers and state subsidies,
serious disarray could set in but the fiscal surplus
looks solid enough on the basis of last month's
Treasury figures.

"... Yesterday's re-nationalization of Aguas
Argentinas was a rash move whose full implications
still remain to be seen but the government's bill for
superpowers to raise utility rates for power and gas
in the name of infrastructure and investment show a
new realism."

- "Bush will not lower farm subsidies"

Conservative "La Prensa" (03/22) reports "After having
met with Brazilian Foreign Minister Celso Amorin, US



Republican Senator Chuck Grassley said that the US
will not change its farm policy, which grants millions
of dollars per year in subsidies, until it has full
access to markets.

"... US Senator Grassley said 'There is a big problem
with Europe.' 'I believe that unblocking agricultural
negotiations is in the hands of Europe, which should
cut its subsidies on exports, and both the US and
Europe should reduce their subsidies on exports.'"
To see more Buenos Aires reporting, visit our
classified website at:
http://www.state.sqov.gov/p/wha/buenosaires

The Media Reaction Report reflects articles and
opinions by the cited news media and do not
necessarily reflect U.S. Embassy policy or views. The
Public Affairs Section does not independently verify
information. The report is intended for internal U.S.
Government use only.

LLORENS