MEDIA REACTION; US CZAR TO OVERSEE WARS IN IRAQ AND

UNCLAS BUENOS AIRES 000707 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 CZAR TO OVERSEE WARS IN IRAQ AND AFGHANISTAN; IMF/WB SPRING MEETINGS; BIO-FUELS; BANCO DEL SUR; 04/12/07; BUENOS AIRES ¶1. SUMMARY STATEMENT Today's most important international stories are related to the White House's alleged attempt to appoint a "czar" to manage the wars in Iraq and Afghanistan; the IMF-WB Spring Meetings' conclusions about Argentina's economic performance; IMF Research Department Director Charles Collyns' statement that the development of bio-fuels could lead to a rise in food prices; and Argentina's decision to side with Hugo Chavez in the creation of "Banco del Sur," a new step toward the country's international isolation. ¶2. OPINION PIECES AND EDITORIALS - "Bush seeks 'czar' to oversee wars... but no one wants to take the position" Hugo Alconada Mon, Washington-based correspondent for daily-of-record "La Nacion," writes (04/12) "For more than four years, the White House has ignored a very specific claim from the military, former government officials and academics. They wanted him to appoint a coordinator of military and civil operations in Iraq and Afghanistan. President George W. Bush ignored them, although in recent weeks he made a change of command and his staff started assessing candidates. Now, at least three of them turned down the offer because in their opinion it is too late or too soon. "... According to 'The Washington Post' (which was later confirmed by the White House),the presidential team's purpose is appointing an overseer of both wars - a 'czar', whose position surpasses all other areas of government (including the US Department of State and the US Pentagon),who will make decisions and only report to Bush. "... However, with a divided political panorama on Iraq and most of the US public opinion against the war, the thee four-star generals rejected the offer, for which the (US) military capability is well far from what it used to be in 2001." - "According to the IMF, Argentina's growth is high but also is inflation rate" Ana Baron, Washington-based correspondent for leading "Clarin," penned (04/12) "The IMF believes Economy Minister Felisa Miceli will not obtain a one-digit inflation rate, such as the 7 per cent promised in the budget. According to the World Economic Prospects report, inflation in Argentina will be 10.3% in 2007 and 12.7% in ¶20008. It is one of the highest inflation rates and is only surpassed by the 21% of Venezuela. "The IMF has insisted that the price controls implemented by the Government will not be sufficient to put a brake on inflation increase... "... Yesterday, in the first day of activities of the IMF/WB Spring Meetings, analysts pointed out that the IMF wants to convey the message that interest rates should be increased to lower private consumption and public expenditure. "... While Argentina has the highest growth rate in Latin America..., the IMF believes that the international economic situation will not be so favorable for economies like that of Argentina in the next years, at least not as it has been so far. It predicts that the cooling down of the US economy will hit the region. "The IMF also warns about populist policies, which could undermine the investors' confidence. It insists on economic reforms and an efficient distribution of the benefits reaped by the country's growth." - "In line with Chavez" Ana Baron, Washington-based correspondent for leading "Clarin," writes (04/12) The IMF warned that bio-fuels production will increase the price of food. In its World Economic Prospects report, the IMF stated that bio-fuels could be a beneficial energy supplement on a small scale, but that its promotion on a big scale could be traumatic. "In line with Hugo Chavez and Fidel Castro, Charles Collyns, Deputy Director at the IMF Research Department, underscored that the use of crops for fuel will raise the price of food, and he predicted increases in soy, wheat and corn prices." - "The Southern Bank, a questionable project" Daily-of-record "La Nacion" editorializes (04/12) "The Argentine Government's support for Venezuelan President Hugo Chavez's project to create a Southern Bank is certainly questionable... "Every time the Venezuelan president has publicly put forward a project, he has done it to reach greater independence from the US clout... "... Clearly enough, Argentina should not support such an initiative, particularly if this means one more step towards international isolation. Proposals like this one are just attempts to substitute Inter-American institutions. "This trend to isolation would be complemented with a risky dependence on Venezuela, whose government has become the most accessible source of funding for the Kirchner administration... "International politics should not be based on circumstantial ideological affinity or on opportunistic gifts. The case of the Southern Bank is an opportunity to show a rectification and an expected resumption of a more cautious and advantageous international policy, like that of the governments of the region that do not support this proposal." 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