MEDIA REACTION MOUSSAOUI STATEMENTS ISRAELI

UNCLAS BUENOS AIRES 000738

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 MOUSSAOUI STATEMENTS ISRAELI
ELECTIONS FATF DELEGATION VISIT TO ARGENTINA US
INVESTMENT IN ARGENTINA FTAA AND MERCOSUR PERUVIAN
ELECTION FARM SUBSIDIES 03/28/06



1. SUMMARY STATEMENT

Today's major international stories include Al Qaeda
conspirator Zacarias Moussaoui testifying that he and
would-be 'shoebomber' Richard Reid were supposed to
hijack a fifth airplane on September 11, 2001 and fly
into the White House; Brazilian Finance Minister
Antonio Palocci's resignation after becoming caught up
in a political scandal; the implications of today's
Israeli elections; the visit of a Financial Action
Task Force delegation to Argentina; a lunch hosted by
Argentine VP Daniel Scioli, attended by US Ambassador
Lino Gutierrez and DCM Hugo Llorens, in which AmCham
businessmen confirmed the "commitment of US
corporations located in our country to continued
investment in Argentina;" Brazilian political expert
and historian Luiz Alberto Moniz Bandeira's statements
that the US wants an FTA, which is "a form of
subordinated integration of South American countries
to its own economy;" Peru's political crossroads; and
Argentina's concern over the prevalence of farm
subsidies.


2. OPINION PIECES AND KEY STORIES

- "'I had to fly into the White House'"

Daily-of-record "La Nacion" reports (03/28) "French-
Moroccan Zacarias Moussaoui, the only indicted in the
US due to the September 11 attacks, said yesterday
that Osama bin Laden, head of Al Qaeda, had ordered
him to fly into the White House on that date, in which
other two airplanes hit the WTC, a third one hit the
US Pentagon, and a fourth one fell in Pennsylvania.

"Moussaoui also said during a hearing... that after
being arrested in August, one month before the
September 11 attacks, he lied to FBI agents in order
to let the attacks happen."

- "The Middle East political and geographic map is at
stake"

Elisabetta Pique, on special assignment in Jerusalem
for daily-of-record "La Nacion," writes (03/28)
"Beyond the skepticism of most of the people living in
this land..., much is at stake in these elections.

"These elections will determine the future political
and geographic map of Israel, its neighboring
Palestinian territories, and the entire region, which
is overwhelmed by a long-term conflict in the Middle
East.

"While just a few believe this, the possibility has
not been dismissed that elections may result in a
point of departure to re-launch the dead-locked Middle
East peace process.

"Ehud Olmert, who according to all opinion surveys
will be the new Israeli PM, will have to face several
challenges.

"First and foremost, he will have to guarantee Israeli
security, which is not only threatened by eventual
Palestinian terrorist attacks but also by the so-
called 'axis of the evil' (Libya-Syria and Hezbollah,
and the Iranian nuclear threat).

"The only major topic in the current elections was the
debate on how to obtain security and a definitive
separation from the Palestinians, but not peace,
something which for many Israelis has turned into a
real phantom."

- "An international delegation will ask for more
controls in the struggle against money laundering"

Laura Serra, political columnist of daily-of-record
"La Nacion," comments (03/28) "... The day after
tomorrow, a high-level Financial Action Task Force
(FATF) will arrive in the country and will express its
concern over the 'lack of progress on the
recommendations made to Argentina' regarding
legislation to fight money laundering and terrorist



financing.

"... For Argentina, it is most important to continue
being a FATF full member because it implies that it is
not a 'risk country,' and, therefore, it is able to
perform international financial transactions and
receive World Bank and IDB loans.

"... Argentine legislative sources are confident that
no sanctions will be imposed on our country because
during the last couple of years certain FATF
requirements were met. As a matter of fact, this week,
the House of Representatives will reportedly speed up
one of the recommended laws - a draft bill that will
eliminate options for acquittal, as well as secrecy of
banking and stock exchange transactions."

- "Labor rulings, a US concern"

Sergio Dattilo, columnist of business-financial
"Ambito Financiero," writes (03/28) "An invitee to the
lunch hosted by VP Daniel Scioli and attended by some
businessmen who are members of the AmCham board said
'The main topic of the lunch was how to boost US
investment in Argentina.'

"... As in any other business meeting with members of
the Government, they mentioned the issue of labor
agitation - some of the guests did not hide their
concern over some recent judicial rulings in this
field and some draft bills that are in the works."

- "'Europe will never remove farm subsidies'"

Alejandro Bercovich, columnist of business-financial
"El Cronista," interviewed Brazilian political expert
and historian Luiz Alberto Moniz Bandeira, who said
(03/28) "... 'The US wants an FTA, which is a form of
subordinated integration of our countries to its
economy. If Argentina cannot compete with the
Brazilian industries in some articles, how will it
ever be able to compete with that of the US? The US is
interested in governmental purchases, IPR and
investment guarantees. They talk about mutual
treaties, but Brazil has quite a few investment
initiatives in the US and Argentina has none. The
agreements the US proposes imply ceding sovereignty.

"Asked if the motivation is only economic, Moniz
Bandeira said 'No, they are also trying to dismantle
an emerging pole of political power in South America.
Brazil's GDP is higher than Italy's. Argentina and
Brazil together make up a 220-million-people market.
Together, they are an economic and political power.
What Washington is seeking is to counteract the
increasing South American rejection of US
interventions.

"Regarding minor Mercosur partners, which are the ones
that are most inclined to reach a deal with the US,
Moniz Bandeira replied 'It is blackmail. The US does
not need Uruguayan meat or rice, but they ask for
advantages from larger partners because they know that
they can obtain them. The FTAA collapsed, but the US
is attempting to revive it, and those partners are
useful for this purpose.'"

- "Peru's political crossroads"

James Scott, columnist of liberal, English-language
"Buenos Aires Herald," writes (03/28) "When
nationalist presidential candidate Ollanta Humala
passed conservative frontrunner Lourdes Flores in the
polls last week in the race to lead Peru, financial
markets trembled. The Peruvian stock market dropped
four percent. The currency weakened against the
dollar. Then Merril Lynch & Co., the world's largest
securities firm, warned investors to stop buying debt
in Peru and invest instead in Colombia...

"Experts say that the underlying economic frustration
felt by many in this country where one out of two
people live off about two dollars a day, has emerged
as the engine driving voters. Fuelling the tension is
years of political corruption and scandal - including



the ouster of former president Alberto Fujimori.

"Fritz Du Bois of the Peruvian Economic Institute in
Lima said that Peru is at a political and economic
crossroads. The Peruvian election comes at a time when
free-market policies advocated by Washington are
coming under fire by those who wish to close the doors
and increase state control in business.

"'This election is basically between going the Chilean
way or the Bolivian way,' Du Bois told the Herald. 'We
are right in between.'"


3. EDITORIALS

- "Prevalence of farm subsidies"

An editorial in leading "Clarin" reads (03/28) "The
visit of Peter Mandelson, EU Trade Commissioner, has
revived the discussion on the status of Argentina's
trade negotiations with industrialized countries,
which is marked by disagreement over the agricultural
issue.

"... In the framework of last December's Hong Kong
conference, the removal of subsidies on exports by
2013 was agreed upon, as well as a reduction of farm
subsidies... It was decided that representatives of
country-members should reach an agreement for the
trade of agricultural and industrial goods by the end
of April, and another deal on services by May.

"The future of negotiations will depend largely on the
decision of industrialized countries to make progress
on the committed and dishonored agricultural
liberalization agenda rather than on Argentina's
willingness to negotiate as a member of Mercosur."

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.

GUTIERREZ