MEDIA REACTION; US-ARGENTINE BILATERAL TIES; US PRESIDENT

UNCLAS BUENOS AIRES 000525

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; US-ARGENTINE BILATERAL TIES; US PRESIDENT
BUSH LATAM TOUR; ARGENTINE NEGOTIATIONS WITH THE PARIS CLUB;
03/19/07; BUENOS AIRES


1. SUMMARY STATEMENT

Weekend international stories include Argentina's cooperation with
the US on matters related to the fight against international
terrorism and its impact on the bilateral relationship; the
aftermath of US President George W. Bush's trip to Latin America;
and the US influence on Argentina's negotiations with the Paris
Club.


2. OPINION PIECES

- "There is still more smoke than fire"

Eduardo van der Kooy, political columnist of leading "Clarin,"
writes (03/18) "... President Kirchner again lashed out against
George W. Bush although the US president has already left the
region. Kirchner is convinced that Bush's lack of popularity will
help him in his election campaign. Instead, Kirchner praised Hugo
Chavez although there is no evidence that the -'caudillo' is very
popular here. Kirchner values (Chavez') financial cooperation and
some good business he thinks he has started with Venezuela.

"Also, not everything is exactly the way it appears to be.
Kirchner's anti-Bush and anti-Washington speech is limited to
economic and financial issues. There is increasing agreement here on
policies related to the fight against international terrorism. It
happened with the decision related to the AMIA case and the judicial
request for an international warrant against eight former members of
the Iranian government, which Interpol has just endorsed.

"The Supreme Court also decided that the Israeli Embassy case will
not face a statute of limitations. This was a joint wish of
Washington, Israel and the Jewish community...

"... The Tehran regime is the main concern of both Washington and
Tel Aviv. The Argentine Government's relationship with Iran is
low-key, although no one thinks that there could be a rupture.
Argentina expects the discord among the 'biggies' to be solved in
diplomatic circles."

- "Just for a moment"

Jorge Elias, international columnist of daily-of-record "La Nacion,"
penned (03/18) "... In appearance, Bush is in one extreme and Chavez
is in the opposite. However, Venezuela is one of the closest
countries to the US, not only due to oil supply. Venezuelans
identify more with the US lifestyle than with that of Latin America.
The fact that Chavez is Bush's adversary does not mean that
Venezuela is an enemy of the US.

"In contrast to 2005, when Bush traveled to Argentina, Brazil and
Panama, this time Bush did not highlight the FTAA in order to not
underline Chavez' Bolivarian alternative for the Americas. Bush just
emphasized plain free trade, which must be hard to understand by
those who live on less than two dollars a day...

"If Bush embodies the Davos Economic Forum, Chavez represents
Seattle anti-globalization demonstrations. For a while, the region
was caught in the false choice between one or the other. By the end
of the day, nothing changed. The problem is neither Chavez nor
Bush..., but the deficit of democracy, which was noticed by Clinton
and has not been solved since."

- "The Paris Club is crucial for the US"

Ana Baron, Washington-based correspondent for leading "Clarin,"
comments (03/17) "If Economy Minister Felisa Miceli thinks that the
US could help her unblock the negotiations to restructure the
country's debt to the Paris Club without a previous deal with the
IMF, everything indicates that she will be disappointed.

"US Treasury Deputy Assistant Secretary for International Affairs
Clay Lowery yesterday told 'Clarin' that the meeting Miceli asked to
hold with Treasury Secretary Henry Paulson in Guatemala (where the
IDB Assembly meeting will take place) has not even been scheduled.

"Miceli has recently received a letter from Xavier Musca, head of
the Paris Club, saying that Argentina would have to pay (its debt)
cash in the event it does not want to reach a deal with the IMF...
However, Argentina does not want to use its reserves to pay its debt
or to reach a deal with the IMF... During an interview with
'Clarin,' Lowery did not want to reveal what the US position would
be in this negotiation, although he suggested that the Paris Club
(in which Italy and Japan hold the toughest positions) will have the
final decision...


"... At the US Treasury Department, everyone is expecting Timothy
Ryan's nomination as the new Assistant Secretary for International
Affairs. Ryan is a former VP at J.P. Morgan who will take over this
case, as John Taylor was in charge of Argentina's debt swap.
However, times have changed. Argentina is no longer a US priority.
There are very orthodox officials at the US Treasury Department now
who do not approve of Argentina's heterodoxy. Their claims remain
the same - finding a solution for holdout bondholders, judicial
security, and concern over inflation and price controls.

"Moreover, if the meeting between Paulson and Miceli did take place,
Miceli would be the first Argentine Government official to hold a
meeting with a high-ranking USG official following the irritation
caused in the White House by Chavez's anti-Bush rally in
Argentina."
To see more Buenos Aires reporting, visit our
classified website at: http://www.state.sqov.gov/p/wha/buenosaires
WAYNE