MEDIA REACTION AMBASSADOR LINO GUTIERREZ'S

UNCLAS BUENOS AIRES 000964

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 AMBASSADOR LINO GUTIERREZ'S
STATEMENTS AT A DIPLOMATIC AND BUSINESS LUNCH IRAN US
IMMIGRATION POLICY US-URUGUAYAN FTAA MEETING BETWEEN
IMF HEAD RODRIGO RATO AND ARGENTINE ECONOMIC MINISTER
MICELI 04/28/06


1. SUMMARY STATEMENT

All major local papers extensively report on
statements made by US Ambassador Lino Gutierrez as the
keynote speaker of a diplomatic and business lunch at
Club de la Union Nacional. Ambassador Gutierrez is
reported to have said that his country "never backed
the violation of human rights or condoned the torture
of innocent people during the 1976-83 military
dictatorship." Daily-of-record "La Nacion" headlines
"The US will not mediate in the pulp mill issue."
Business-financial newspapers highlight that
Ambassador Gutierrez underscored that "the US wants to
re-launch FTAA negotiations before the end of the
year."


2. HEADLINES ON US AMBASSADOR GUTIERREZ'S REMARKS

- Daily-of-record "La Nacion" (04/28) "The US will not
mediate."

- Liberal, English-language "Buenos Aires Herald"
(04/28) "US denies condoning 'torture of innocents.'"


3. INSIDE PAGE HEADLINES ON US AMBASSADOR GUTIERREZ'S
REMARKS

- Daily-of-record "La Nacion" (04/28) "The US will not
mediate in the pulp mills issue." "Ambassador
Gutierrez said 'We would like to see a solution of the
problem;' he denied an FTA is being discussed with
Montevideo."

- Liberal, English-language "Buenos Aires Herald"
(04/28) "US denies condoning 'torture of innocents'
during the dictatorship."

- Conservative "La Prensa" (04/28) "The US emphasized
its support (for Argentina)." "The US ambassador
highlighted 'Our corporations did not leave the
country when the crisis took place.'"

- Business-financial "El Cronista" (04/28) "The US
insists - it wants to re-launch FTAA negotiations
before the end of the year." 'Ambassador Gutierrez
said 'We have not lost hope.' They expect a wink from
Lula."

- Business-financial "Ambito Financiero" (04/28) "Lino
denies US military bases."


4. OPINION PIECES AND KEY STORIES

- "The US will not mediate on the pulp mills issue"

Oliver Galak, political columnist of daily-of-record
"La Nacion," writes (04/28) "The USG expressed it
would like the conflict between Argentina and Uruguay
over the Fray Bentos pulp mills to be solved, although
it made clear that it only learned about the issue
from the newspapers.

"During a lunch held at the Club de la Union Nacional,
Gutierrez confirmed that the US is encouraging the
signature of FTAs with every country in the region,
and he sustained that those deals are not against
Mercosur's continuity.

"Gutierrez said 'I do not see any contradiction
between a strong Mercosur and FTAs that could be
reached with the US.' While he emphatically denied
that Uruguay is negotiating or has asked to discuss a
deal of the sort with Washington, he clarified that no
negotiation has taken place 'yet.'

"... The US ambassador added 'The US never supported
human rights violations or the torture of innocent
people.'"

- "The US emphasizes its support for Argentina"

Conservative "La Prensa" reports (04/28) "Speaking to
an audience composed of businessmen, political leaders
and diplomats, US Ambassador to Argentina emphasized




'There are 540 US companies working in Argentina and
none of them left the country during the 2001 crisis.'
'All those companies continue investing in this
country and provide employment to 200,000 Argentines,
with good salaries and social benefits.'

"... With respect to FTAs signed between the US and
Latin America, the diplomat pointed out that 'sooner
or later' the countries of the region will join the
free trade system, which in his opinion 'is the best
of all.'

"... Gutierrez underscored that the Buenos Aires port
is the number one port in fulfilling US security
rules."

- "The US insists that it wants to re-launch FTAA
negotiations before the end of the year"

Jorge Sosa, columnist of business-financial "El
Cronista," writes (04/28) "... US Ambassador to
Argentina Lino Gutierrez said that the purpose of the
US is to re-launch hemispheric negotiations before the
end of the year without dismissing the possibility of
reaching an FTA with Uruguay or another country of
Mercosur.

"... During a lunch at Club de la Union Nacional,
Gutierrez said 'We have not lost hope on making
progress on the FTAA, and the idea is to re-launch
negotiations this year.'

"According to the US Ambassador's interpretation, the
recent Summit of the Americas was not a failure for
the US. He said 'There was support for the FTAA and
the discussion was crystallized, and this is good'...

"Even though Gutierrez did not mention it, according
to sources consulted in Washington, the Bush
administration is planning to come to terms with
Brazil on calling a hemispheric ministerial meeting
before the end of the year, which was proposed by the
head of the White House to Lula during their latest
meeting."

- "Lino denies military bases"

Business-financial "Ambito Financiero" reports (04/28)
"US Ambassador Lino Gutierrez denied yesterday ongoing
negotiations with Uruguay for the signature of an FTA,
and he also made clear that 'there is no interest in
establishing military bases in Paraguay or any other
part of South America.'

"'We have not lost hope that the FTAA can be signed.'

"... Gutierrez spoke about Venezuela and he expressed
his concern 'about the actions against the opposition'
in that country and about its ties with Iran, which is
violating international treaties in not stopping its
uranium enrichment program."

- "US denies condoning 'torture of innocents'"

Liberal, English-language "Buenos Aires Herald" front-
pages (04/28) "The US Ambassador in Argentina said
yesterday that his country never backed the violation
of human rights or condoned the torture of innocent
people during the 1976-83 military dictatorship that
according to President Nestor Kirchner assassinated or
made disappear 30,000 people.

"'The US never supported the violation of human rights
or that innocents be tortured,' said outgoing
Ambassador Lino Gutierrez at a diplomatic and business
lunch.

"He was asked by the 'Herald' to comment on documents
recently declassified in the US that said the then US
Secretary of State Henry Kissinger had sought

SIPDIS
immediate support for the Argentine dictators.

"Asked whether the US was planning to issue a mea
culpa, such as the Argentine military forces have made




for the dictatorship's aberrations, Cuban-born
Gutierrez said, 'I have no instructions about that.'

"... The ambassador denied reports that the US was
planning to install a military base in Paraguay, which
had caused concerns within Argentine government
official circles."

- "Iran disregards UN ultimatum and the crisis
worsens"

Daily-of-record "La Nacion" (04/28) reports "Today is
the deadline for the UN Security Council ultimatum for
Iran to suspend any uranium enrichment-related
activities, which has not raised concern in Iranian
authorities. Their decision to continue with their
nuclear plans remains firm.

"... US Secretary of State Condoleezza Rice said
yesterday 'The US believes that, in order to preserve
its credibility, the UN Security Council should act
now.' And, while she recalled that US President George

W. Bush has not dismissed a military attack against
Iran, the country is 'committed' to a diplomatic way
out of the crisis."

- "Absurdities"

Marcelo Cantelmi, international editor of leading
"Clarin," opines (04/28) "There is no room for doubt
on the harmful nature of anti-immigration policies,
which, with more xenophobia than economic reasons, is
being promoted by a broad sector of the ruling G.O.P.

"Based on that blindness they have established
another, even more absurd - the barbaric repression of
Hispanics, which is a shot in the foot of those
responsible for this direction. It was the missing
factor in uniting an immense US community of over 30
million inhabitants (one-third of whom are
undocumented)."

- "Mercosur - an attempt to prevent Uruguay from
leaving"

Business-financial "Ambito Financiero" reports (04/28)
"Argentine and Brazilian experts will finish drafting
an offer to be made to Uruguay to enable it to get
protection from the exports of both countries and, in
this way, prevent Uruguay from leaving Mercosur.

"If the Vazquez administration does not accept the
proposal and prefers to continue negotiating an FTA
with the US after his meeting with George W. Bush,
Argentina and Brazil will not make any further efforts
to maintain it in Mercosur.

"In return for this, Argentine and Brazilian
government officials will draft a strategy so that
Paraguay stays and that, eventually, the Duarte Frutos
administration can establish the US military base near
the Triple Border area in Ciudad del Este."

- "The (Argentine) mission to Washington had a bitter
taste"

Marcelo Bonelli, economic columnist of leading
"Clarin," writes (04/28) "Rodrigo Rato was, as
usually, direct and tough when he told Miceli
'Minister, Argentina has an inflationary problem, and,
in our opinion, you are not targeting it in the right
way.'

"... 'The price accord and control strategy you are
carrying out is not adequate and it will not solve the
problem of price increases.' 'In our opinion, you will
have a 13-per-cent rise in prices by the end of the
year, and next year you will have a 15% inflation,
even without increasing public rates.'

"While Minister Felisa Miceli defended the Argentine
Government's strategy to fight inflation),the IMF
head said 'You are wrong. In order to really stop
inflation you have to lower the exchange rate,




increase the interest rate, and reduce growing public
expenditures in order to cool down domestic demand."

To see more Buenos Aires reporting, visit our
classified website at:
http://www.state.sqov.gov/p/wha/buenosaires

GUTIERREZ