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