MEDIA REACTION; NORTHERN ROCK CASE; STRUGGLE AGAINST DRUGS;

UNCLAS BUENOS AIRES 001868 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; NORTHERN ROCK CASE; STRUGGLE AGAINST DRUGS; CORRUPTION; 09/18/07 ¶1. SUMMARY STATEMENT Leading international stories today include the political and economic implications of the Northern Rock case; a USG report on drug trafficking; and the threat posed by corruption to democracy and capitalism. ¶2. OPINION PIECES AND EDITORIALS - "Signs of a gloomy future for world economics" Oscar Ral Cardoso, international analyst of leading "Clarn," comments (09/18) "... The Bank of England's rescue operation for Northern Rock, which was aimed at stemming the liquidity crisis, revealed a problem whose nexus was the US real estate loan market. Until the moment nervous holders of savings accounts started forming lines at Northern Rock branches in England, the belief had existed that the problem belonged to the US and not to Europe. This fiction of insularity is something globalization does not accept, as has been seen. "... Not even a powerful and hegemonic economy as that of the US can only be analyzed within its own borders. Other powerful forces in different parts of the world can affect it and if one does not take these into account, any analysis will prove wrong. "There are all kinds of signs. It is apparent that the 'bubble' game Americans have played during recent years with their real estate sector was possible because of the State's inability or unwillingness to regulate it, thereby allowing all kinds of alchemy with mortgage credits. This is another simple truth that many do not want to accept. "US Treasury Secretary Henry M. Paulson Jr., warned yesterday from Paris that new financial controls should not be fostered. He said: 'We should not overreact to current problems,' although he had to admit that those difficulties 'will be with us for a long time.' "Something that has changed is that now USG officials and economists do not insist that there is no financial crisis at all and that, at most, there could be a soft landing for the real estate sector. The naove speech has been left behind." - "US criticism of the anti-drug struggle" Hugo Alconada Mon, Washington-based correspondent for daily-of-record "La Nacisn," writes (09/18) "After a few weeks of relative calm, the US yesterday opened another potential front of public confrontation with Hugo Chvez by including Venezuela (for three years in a row) in the group of countries that has 'clearly failed' in the fighting drugs. "The list is part of the yearly report the Bush administration must send to Congress on challenges and accomplishments in the fight against drugs all over the world. Nevertheless, Venezuela was explicitly mentioned among the nations with the least progress along with other countries like Afghanistan and Burma. "... The Bush administration states that Caracas refused to sign a 'letter of understanding' to improve anti-drug cooperation, while Bolivia 'is on its way' to eradicating 5,600 hectares of coca this year, although it needs 'to improve' its achievements in the fight against drugs... "Christy McCampbell, Deputy Assistant Secretary for International Narcotics and Law Enforcement Affairs, said: 'The US strongly encourages Bolivia to prioritize the reduction or removal of excessive coca crops.' "The USG official also asked Bolivia... to reinforce its drug control strategy, pass 'modern' legislation against money laundering and terrorist financing, as well as improve its assets confiscation programs. "McCampbell termed the controversial Plan Colombia an 'absolute success,' with which 'the US cooperation has much to do...' "Ecuador was also criticized due to the 'drastic increase' in the amount of cocaine found on 'Ecuadoran ships' heading for the US, the principal world consumer of illegal drugs. In contrast, the report praises Mexico's anti-drug efforts, with which the US is negotiating a cooperation program." - "The more corruption, the more lack of security" Leading "Clarn" carries an op-ed piece by Juan Gabriel Tokatlian, professor of International Relations at Universidad San Andrs, who opines (09/18) "During the Cold War there was a tacit relationship between corruption and security... There was a usual assumption that corruption was functional because through it one could guarantee the power of some deeply anti-Communist actors... "The tolerance of the West in general and of the US in particular towards authoritarian regimes in 'peripheral' countries, as well as some development of multilateral commitments to fighting corruption proved how East-West logic influenced all social, economic, political and military issues of the time. If the US motto was then 'better dead than red', the global motto could be summarized as 'better some corruption than any change at all.' "The post-Cold War opened a window of opportunity for a substantial re-assessment of corruption... However, concrete progress in the North as well as in the South has been meager. "In this regard, it would be positive to reopen a debate on corruption by expressly linking it to the security issue, not traditional state security, the effects of which were so deplorable for ordinary people, but to human security. "This implies an approach to security focused on individuals, on the protection of their rights and liberties, and on a more dignified life for regular people, and on reducing the vulnerabilities of human groups... "... The time has come to seriously rethink the corruption issue in Argentina. For this purpose, it is important to deeply change... the approach to the issue, which could contribute to its politicization in the best sense... To see more Buenos Aires reporting, visit our classified website at: http://www.state.sqov.gov/p/wha/buenosaires KELLY