MEDIA REACTION; THE US PENTAGON'S VIEW OF IRAN AND CHAVEZ;

UNCLAS BUENOS AIRES 002056 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; THE US PENTAGON'S VIEW OF IRAN AND CHAVEZ; ARGENTINE PRO-WEST FOREIGN POLICY; ARGENTINE PARIS CLUB DEBT; 10/17/07 ¶1. SUMMARY STATEMENT Today's key international stories include the US Pentagon's view of Iran and Chvez as threats to the region; Argentina's alleged 'pro-West' foreign policy; and Argentine Paris Club debt negotiations. ¶2. OPINION PIECES AND EDITORIALS - "According to the US Pentagon, Iran and Chvez pose threats to the region" Ana Barsn, leading "Clarn's" Washington-based correspondent, writes (10/17) "During a first encounter with Washington media, Stephen Johnson, Latin American policy analyst at the US Pentagon, showed concern over Venezuela's arms purchases, which, in his view, could set off an arms race among its neighbors, and also about Iranian President Mahmoud Ahmadinejad's trips to the region. "Johnson aligned himself with the US Department of State when he said that the US should not have a confrontational policy but that it should reinforce ties to the other countries of the region. However, his rhetoric was stronger than the one generally used by his counterpart in US diplomacy, Tom Shannon. "In response to a question from 'Clarn,' Johnson termed the Iranian president's recent trip to Venezuela and Bolivia as 'an attempt to establish alliances that could well change the balance of influences' in the region. This is something we should take seriously.' 'We cannot say that we will use (military) force to fight this, unless we are first open to taking steps to improving our cooperation with our neighbors, and this is the approach we are using right now.' "... During a press conference at the Inter-American Dialogue..., Johnson said: 'If Mr. (Hugo) Chvez is able to ensure the release (of hostages) by resorting to the FARC's good will..., this would be very positive.' "Nonetheless, Johnson criticized the way the Venezuelan president is purchasing weapons. He acknowledged that every country has the right to its own defense, but, in his view, Venezuela has surpassed all limits in this regard." - "Discreetly 'pro-West'" Daily-of-record "La Nacisn" carries an op-ed piece by historian Carlos Escud, head of the Center of International Studies at CEMA University and CONICET main researcher, who opines (10/17) "... There have been deep discrepancies between Kirchner's strategy and that of Chvez and Evo Morales... In November 2006, after Federal Judge Rodolfo Canicoba Corral issued a warrant for the capture of eight former Iranian government officials, picketer D'Ela ... said that the Argentine judicial ruling was part of a Zionist-US conspiracy against the Islamic Republic. "After that, the picketer was out of the government. There was no doubt about Kirchner's real orientation. "... Kirchner also prevented D'Ela from becoming an opponent, and lowered the prevailing malaise among the Government's militant sectors, which envisioned that the Argentine Government was getting closer to the US and distancing itself from Venezuela. "And this was precisely what was happening. Caracas' rapprochement to Tehran and evidence that the Persian regime was involved in the attack against AMIA led Kirchner to draw a line. He maintained his financial and dynamic alliance with Chvez, although he distanced himself from (Chvez's) adventures in the Middle East. Additionally, this limit was in line with that of the White House in its own ties to Caracas. Finally, Kirchner's address to the UN in September 2007, in which he criticized Iran regarding the AMIA case probe, confirmed that his foreign policy is discreetly pro-West." - "Crucial negotiation" Conservative "La Prensa" editorializes (10/17) "Negotiations to cancel Argentina's debt to the Paris Club will put an end to the stagnation of recent months and create a promising horizon, although it would be too risky to anticipate outcomes before reaching a definitive deal. The Paris Club debt is pending from the time the country defaulted on its public debt... "The Argentine Government has enough financial resources to honor this commitment, although until now, it has rejected the possibility because, according to the Paris Club by-laws, any payment would call for a deal with the IMF, which could include macroeconomic conditionalities. In order to overcome obstacles, the Government offered to selectively pay some countries without an IMF deal, but creditors rejected the many options the Argentine Government offered. "These conditions have changed following the appointment of the new IMF director, Dominique Strauss-Kahn, who is promoting a more flexible stance, whereby the payment could be made with some form of Argentine commitment and without a formal IMF deal. This option would favor every side, particularly our country, because it would be a milestone towards putting our financial situation on a sound track and could also try to attract investment from corporations based in industrialized countries, which currently cannot obtain guarantees from their governments to invest in the country... "However, international financial players still hesitate because of the absence of structural reform and the lack of control over inflation... "A firm political decision would be indispensable in Paris Club debt negotiations in order to obtain a more flexible position from creditors, which would improve Argentina's position in the international financial market while attracting investment." To see more Buenos Aires reporting, visit our classified website at: http://www.state.sqov.gov/p/wha/buenosaires WAYNE