MEDIA REACTION; ARGENTINE-IRANIAN TIES; ASSISTANT SECRETARY

UNCLAS BUENOS AIRES 001898 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; ARGENTINE-IRANIAN TIES; ASSISTANT SECRETARY SHANNON COMMENTS ON CRISTINA KIRCHNER; THE KIRCHNERS TO THE US; 09/21/07 ¶1. SUMMARY STATEMENT Major international stories today include implications of Argentine President Nstor Kirchner's decision to include the AMIA issue in his address to the UN General Assembly; Assistant Secretary Thomas Shannon's statements about Argentine presidential candidate Cristina Kirchner; and expectations about Cristina Kirchner's upcoming trip to the US. ¶2. OPINION PIECES AND EDITORIALS - "Iran warns Kirchner over his address in the US" Walter Curia, political columnist of leading "Clarn," writes (09/21) "The (Argentine) Government's decision to take the AMIA issue to the UN has placed Argentina on the verge of diplomatic escalation with Iran. Mohsen Baharvand, Iranian DCM to Buenos Aires and the highest-rankingrepresentative of the regime in Argentina, warned that in the event President Nstor Kirchner denounced Iran at the UN, many countries could interpret that Argentina is favors war.' "... Kirchner will travel to New York this weekend in order to deliver his last address as chair to the 62nd UN General Assembly. His message will convey a commitment he assumed with the Argentina's main Jewish organizations last July on the 13th anniversary of the attack against the AMIA - questioning Iran for lack of cooperation in the attack probe. "... The UN Assembly will take place while there is the specter of another war in the Persian Gulf in the form of a US massive attack against the Iranian military complex. "Argentina and Kirchner himself appear unexpectedly involved in this sensitive scenario. "... While Baharvand denied his country is refusing to cooperate in the investigation of the attack..., the Argentine Judiciary believes Iran has not been cooperative... "Baharvand also accused the Argentina's main Jewish organizations (DAIA and AMIA) of 'blackmailing' the (Argentine) Government and establishing unofficial diplomacy' that has damaged the (Argentine-Iranian) bilateral relationship." - "A narrow corridor" Fernando Gonzlez, political columnist of leading "Clarn," highlights (09/21) "Many unexpected things have happened to the (Argentine) Government during the current presidential campaign. However, none of them has had the impact that could be set off by a complaint at the UN from (President) Nstor Kirchner on Iran regarding AMIA . The President will have to walk a too narrow and complicated political corridor in order to fulfill his promises to relatives of the victims of the attack while avoiding retaliation from Iran, a country which is currently the 'hottest site' in terms of global tensions." - "US praise before the summit" Leandro Ura, on special assignment in Miami for daily-of-record "La Nacisn," comments (09/21) "US Assistant Secretary for Western Hemisphere Affairs Tom Shannon said yesterday that he considers Senator Cristina Kirchner a highly capable political leader' and that the US is willing to work with 'any candidate that gets elected by the Argentine people in the upcoming October presidential elections.' "After having lectured as a keynote speaker at the 11th Annual Conference for the Americas..., Shannon told 'La Nacisn': 'Our ties to Argentina are friendly and important for the US. We fully respect the will of the Argentine people and are willing to work along with the leaders elected by them.' "It is a real signal before the Kirchners' trip to the US in order to attend the UN Annual General Assembly... "Shannon defined the current US-Argentine relationship as 'good, very fruitful and productive.' "On the other hand, Cristina Kirchner met with US Ambassador Earl Anthony Wayne in Buenos Aires and they discussed, among other issues, foreign investment and her schedule of activities while in New York next week." - "Cristina will play a leading role in the US" Leading "Clarn" carries an op-ed piece by Marcelo Bonelli, economic columnist, who comments (09/21) "During the next two weeks, Cristina Kirchner, the official (presidential) candidate, will convey even stronger signals to the business world. "She will not only lecture at the Council of the Americas, but she will also hold private meetings with US economic authorities and she could also hold an informal meeting with IMF and WB representatives. "Next week, she will hold a private meeting with legendary banker William Rhodes, VP, Citicorp..., who will convey to the senator the international bankers' concerns - whether the Government will make the necessary adjustments to fight the energy crisis and tame inflation, and he will also talk about Paris Club debt and (Argentina's) pending debt to holdouts. "However, Cristina Kirchner's most important meeting will be next Friday with the head of the powerful New York Federal Reserve, Timothy Geithner... President Nstor Kirchner will not attend the meeting. In other words, the President will cede the economic leading role to Senator Cristina Kirchner... "That meeting will be held based on some premises - US bankers and businessmen take for granted Cristina Kirchner's triumph in upcoming presidential elections...; they believe this victory could guarantee stable governance in Argentina, even when they have many doubts about the Government's future orientation... "Nevertheless, businessmen will pose their multiple questions about Cristina's future management of the economy. Influenced by IMF and Wall Street banks' confidential reports, US businessmen insist that Argentina's macroeconomic policy is inconsistent and that this is reflected in increasing inflation. "In other words, they want to know how Argentina will really fight incipient price increases and whether fiscal adjustment will be made to consolidate the currently small surplus. "Additionally, they want to know whether a future government of the senator would take measures aimed at putting markets on a sound track, such as gradually unfreezing public utility rates." To see more Buenos Aires reporting, visit our classified website at: http://www.state.sqov.gov/p/wha/buenosaires WAYNE