MEDIA REACTION; CRISTINA KIRCHNER'S UPCOMING TRIP TO THE

UNCLAS BUENOS AIRES 001676 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 SUBJECT: MEDIA REACTION; CRISTINA KIRCHNER'S UPCOMING TRIP TO THE US; WORLD FINANCIAL CRISIS AND ARGENTINE ECONOMY; DOHA ROUND AND INTERNATIONAL TRADE; 08/24/07 ¶1. SUMMARY STATEMENT Local papers carry opinion pieces on Argentine First Lady and presidential candidate Cristina Kirchner's upcoming trip to the US; the impact of the world financial crisis on Argentina's economy; and the alleged failure of the Doha Round as well as current conditions in the international trade system. ¶2. OPINION PIECES AND EDITORIALS - "Cristina tests herself in New York in the 'hottest' segment of (Argentina's) election campaign" Ana Baron, Washington-based correspondent for leading "Clarn," writes (08/24) "The Kirchners' upcoming trip to New York in September will be Cristina's first litmus test in the US since she was appointed presidential candidate, and it will be a good opportunity for Kirchner to start practicing his next role of 'prince consort.' "The two of them will attend the UN General Assembly, in which Kirchner will give an address on September 24, although all interest is focused on Cristina's agenda and whether it will include some contact with members of the US Department of State. In fact, Assistant Secretary for Latin American Affairs Tom Shannon always uses the UN Annual Assembly to meet with Latin American leaders. "'Clarn' was able to confirm that this year it will be Cristina and not Kirchner who will give an address during the lunch organized by the Americas Society, which is attended by US diplomats and investors. "... Will Shannon take this occasion to get closer to Cristina or the other way round? An Argentine diplomat told 'Clarn' that no one knows yet whether Cristina will do on this. "According to the ongoing speculation in the Argentine media, the US is expecting Cristina to make the first gesture of rapprochement, although this disregards that US diplomats' pragmatism could make for a surprise. They also disregard the fact that, if Cristina wins the elections, President Bush will have to call her to congratulate her, which could be a good opportunity to start improving conditions. "The prevailing climate in New York regarding Argentina is not as favorable as last year. The INDEC scandal, the mysterious cash-filled suitcase, the money found in former Minister Felisa Miceli's bathroom, and conflicts in Santa Cruz have damaged confidence in the country. Shannon could choose to distance himself (from Cristina) to avoid giving the impression that he is supporting her bid for presidency." - "(Argentine) businessmen promote changes in the country's economy" Marcelo Bonelli, economic columnist of leading "Clarn," writes (08/24) "According to Argentine businessmen, Argentina will have to make economic adjustments in order to maintain its current growth rate... "... Those adjustments include a price and salary accord, the return to a real fiscal surplus, an anti-inflation plan based on cost containment and fiscal discipline, a selective public rates adjustment policy, recognition of the energy crisis, an increase in productive investment, rebuilding credibility through an overall reform of the National Statistics Institute (INDEC),reaching a debt deal with the Paris Club, putting the country's ties to the G7 on a safe track, and putting an end to the pending dispute with holdouts. "... Regarding the global financial crisis, President Nstor Kirchner has a clear forecast - financial instability will continue until the end of his term in office. He came to this conclusion after having read a confidential report that was drafted with information from the US Federal Reserve and the Central Bank of Europe. According to the report, the US Federal Reserve mishandled the financial crisis and now liquidity problems have become 'solvency' problems for many banks, which previews instability. "The Argentine Government is concerned about some information included in the report that one of the main European banks has serious problems of insolvency, which, if not tamed, could spark another international financial chaos." - "Doha Round - toward a 'new' international trade system" Business-financial "BAE" front-pages an opinion piece by Mario Rapoport, prestigious professor of Economic History at National University of Buenos Aires, who opines (08/24) "Six years have already passed since the Doha Development Program was launched. Since then, many difficulties and failures have occurred - the collapse of the 2003 Cancun Ministerial Conference, the 2004 Geneva amendment of the general framework, the desperate moves to revive the Doha agenda at the 2004 Hong Kong Ministerial Conference (which led to the suspension of WTO negotiations in 2006),and the recent rupture of G-7 conversations in Postdam (Germany)... "The Doha Round should have been the round of 'development.' Nevertheless, the world has been far from reaching a set of multilateral trade deals aimed at strengthening the developing countries' ability to create working positions, fight poverty and build sustainable economies. "The Doha Program basically served the interests of Northern industrialized powers, which attempt to broaden the access of their multinational corporations to Southern markets... "... The Doha model and agenda failed in their attempt to increase WTO credibility and the crisis appears as a window of opportunity to reverse the current scheme of international trade negotiations, although the lack of clear rules could pave the way for bilateral and multilateral deals that could further jeopardize conditions for the Southern countries." To see more Buenos Aires reporting, visit our classified website at: http://www.state.sqov.gov/p/wha/buenosaires WAYNE