MEDIA REACTION; ARGENTINE ECONOMIC GROWTH; ARGENTINE

UNCLAS BUENOS AIRES 000815 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; ARGENTINE ECONOMIC GROWTH; ARGENTINE HOLDOUT CREDITORS; 04/25/07; BUENOS AIRES ¶1. SUMMARY STATEMENT Today's leading international stories include prospects of Argentina's stunning recovery from its 2001-02 economic meltdown; and American Task Force Argentina asking the G8 about Argentina's debt to holdout creditors. ¶2. OPINION PIECES AND EDITORIALS - "Perplexity and opportunities" Ricardo Kirschbaum, editor-in-chief of leading "Clarin," writes (04/25) "Argentina remains a subject of study abroad. It is one of the major academic riddles, just like Peronism was, and still is, for foreigners. Now, the issue is the country's economic growth and stunning economic recovery, which is not in accordance with traditional standards. "During a Harvard University 'John F. Kennedy School of Government' colloquium on Argentina held in Boston, two central issues were tackled - sustainable growth and an updated version of Latin American populism... "According to the most extreme view, Argentina has not grown since 2001, but has only had a recovery of dubious sustainability and it remains at the mercy of a foreign crisis... "In the same way, 'populism' was compared to the Chilean model..., although no mention was made, for example, of the fact that the abandonment of Pinochet's military dictatorship occurred under military tutelage, something which did not happen here. "Finally, it was agreed that Argentina's historic opportunity cannot be wasted and that there should be a debate on how to pave the way for sustainable growth. However, this debate seems to be missing from the country's agenda." - "Holdout creditors ask about (Argentine) defaulting bonds to the G8" Hugo Alconada Mon, Washington-based correspondent for leading "Clarin," penned (04/25) "Argentina's international creditors are quite active. In a letter addressed to German FM Angela Merkel, they have now asked the G8 to add the country's still defaulting debt to the agenda of the meeting the G8 will be hosting June 3-6. "According to the American Task Force Argentina (ATFA),'The G8 can protect the integrity of the global loan system for creditors and debtors alike.' In order to capture the G8's attention, ATFA tied the holdouts' claims to the Paris Club and Ecuador is flirting with the default on its own debt. "ATFA leaders, Robert Shapiro and Nancy Soderberg, two former high-ranking officials of the Clinton administration, warned Merkel that the Argentine Government 'is defying international financing norms and standards.' "They exemplify this through the country's nil relationship with the IMF - it refuses to let the IMF play its valued and established business counseling role.' "Nevertheless, according to consultant Federico Thomsen, JP Morgan Chase VP Vladimir Werning, and Miguel Braun, Director of the Center for Public Policies Implementation, Equity and Growth, the (Argentine) Government is unlikely to open any negotiation with holdout creditors before October presidential elections." To see more Buenos Aires reporting, visit our classified website at: http://www.state.sqov.gov/p/wha/buenosaires WAYNE