VZCZCXYZ0021
OO RUEHWEB

DE RUEHBU #0183/01 0242038
ZNR UUUUU ZZH
O 242038Z JAN 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3221
INFO RHMFIUU/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 000183 
 
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 EVO MORALES, US-ARGENTINE 
BILATERAL RELATIONSHIP WAYNE NOMINATION, AFTERMATH OF 
RIO SUMMIT 01/24/06 
 
¶1. SUMMARY STATEMENT 
 
Papers carry speculation about a second possible 
candidate for Ambassador to Buenos Aires; the 
aftermath and repercussions of Evo Morales' 
inauguration and the appointment of his new Cabinet, 
and the possible advantage of Brazil's 'war industry' 
as major supplier of weapons in the region, following 
the Rio Summit between Lula, Kirchner and Chavez. 
 
¶2. OPINION PIECES AND KEY STORIES 
 
- "U.S. Moves Forward in Appointing its New 
Ambassador" 
 
Hugo Alconada Mon, daily-of-record "La Nacion" 
Washington-based correspondent, writes (01/24) "The 
present U.S. CEO at the IDB, Hector Morales, is the 
second candidate being examined by the Bush 
administration to be ambassador in Argentina, 
according to Republican sources working within and 
outside the USG in Washington. 
 
"The nomination of the future Ambassador in Buenos 
Aires will be determined in the coming weeks, when 
Bush signs his papers and sends them to the Senate for 
a confirmation hearing. The goal is for Lino 
Gutierrez' replacement to take over the position by 
mid-2006. 
 
"The nomination of the present Under Secretary for 
Economic and Business Affairs of the State Department, 
Earl Anthony Wayne, obtained decisive support from 
Secretary Rice, who signed his nomination and sent it 
 
SIPDIS 
to the White House. 
 
"But yesterday, there were rumors saying that Morales 
is - or 'was', according to two sources that believe 
the odds in favor of Wayne are greater - the other 
potential candidate to take over the helm at the 
Embassy in Argentina. 
 
".... Defined by several of his colleagues as 
'pragmatic', Morales knows Buenos Aires and the 
interior of the country well... (because) between 1997 
and 2000 he worked as President and General Manager of 
Reliant Energy in Argentina, a subsidiary of an energy 
company based in Houston, Texas. 
 
".... Together with Wayne, Morales was the center of a 
battle between career diplomats at the State 
Department and political appointees of this 
administration regarding the definition of the future 
Ambassador in Argentina. 
 
"Following Rice's signature of Wayne's nomination, 
it's improbable, anyway, that the decision might be 
changed at the White House. 
 
".... According to a source with close ties with the 
Republican administration, 'Although Morales lived a 
long time in Buenos Aires and is of Mexican descent, 
Wayne is the one who will finally take over the 
Embassy. Hector doesn't have the (necessary) strength 
to achieve it.'..." 
 
- "(Cabinet)Formula" 
 
Alejandra Pataro, leading "Clarin" international 
columnist, opines (01/24) "Someone described his 
cabinet as 'sui generis, very much in the President's 
style.' Evo Morales called it 'cabinet of change.' 
Bolivia's new team of ministers is mostly indigenous. 
It includes women where there were none. It places a 
Quechua maid in a seat which, until yesterday, had 
been previously reserved for white men. He puts a 
miner at the helm of mining issues, and an Aymara to 
lead foreign relations. It's the formula he chose to 
remedy almost two decades of a direction which led to 
erroneous roads, and to put an end to the systematic 
exclusion of the Bolivian people from political and 
economic life." 
 
- "Kirchner, Worried About Morales' Cabinet" 
 
Business-financial "Ambito Financiero" says (01/24) 
 
 
".... Upon returning from La Paz, President Kirchner's 
uneasiness was political (not physical.) 
 
".... Morales appointed a cabinet mostly with 
indigenous people from social organizations. At the 
Energy Ministry he appointed a journalist, Soliz Rada. 
 
".... For Kirchner, this designation was almost an 
insult. Back in December 2004, Soliz Rada had said in 
a press interview that Kirchner 'ought to refrain from 
bring Repsol's spokesperson to suck Bolivia's gas in 
the worst imaginable conditions.'.. And Kirchner 
hates... this kind of approach, and doesn't share 
these views...." 
 
- "'Don't Tie Morales Down'" 
 
Michael Soltys, Liberal, English-language "Buenos 
Aires Herald" executive director, opines (01/24) ".... 
The MAS leader is showing a strong streak of realism, 
drawing some subtle distinctions within the radical 
slogans which swept him to victory last month. 
 
"Thus the nationalization of Bolivia's energy wealth 
comes without confiscation of the likes of Repsol and 
Petrobras and even including the defense of private 
property and respect for the right to a profit..., 
while freedom from confiscation does not save foreign 
companies from being dragooned into partnership with 
YPFB. 
 
".... Evo's first full day in office yesterday also 
included announcing his new 16-strong Cabinet (not 16- 
man because there are three women) and here again the 
signals are mixed between his realistic, populist and 
Marxist streaks. 
 
".... But by including all the loose cannons in his 
Cabinet..., by co-opting these dangerous radicals, 
Morales will buy time - as will the constituent 
assembly to draft a new and more pro-indigenous 
constitution, for which elections will be held in 
July. 
 
".... For now, Morales enjoys popularity at home... 
and acceptance in the region - eight of the other nine 
South American presidents were present at his 
inauguration. 
 
".... (But) No president north of Panama showed up - 
not even Castro and certainly not Mexico's Vicente 
Fox. But this was more than compensated by the U.S. 
department's new man for Latin America Tom Shannon, to 
whom Morales talked with goodwill to overcome 
differences. 
 
"Apart from his 'zero cocaine' slogan to appease 
Shannon, the coca-growers' leader also showed himself 
to be open-minded and pragmatic about free trade, 
including the FTAA... shrugging off the Mercosur-FTAA 
polarization which split last November's Summit of the 
Americas...." 
 
- "Lula, Clear Winner" 
 
Julio Ramos, publisher of business-financial "Ambito 
Financiero" opines (01/24) ".... (After the Lula- 
Kirchner-Chavez summit) Kirchner managed to stop 
Brazil's open criticism of Uruguay's intention to 
undermine Mercosur... but he had to join Lula in his 
support for 'war industries' aimed at supplying 
weapons in the region... We may easily infer, then, 
that this growth in 'war industries' - apparently to 
benefit all countries --, will end up benefiting 
mostly Brazil. 
 
".... Who are South American countries going to fight 
with if they arm themselves? Practically against 
nobody and everything seems to indicate that beefing 
up 'war industries' is another strategic move of 
Brazil, in view of Chavez' extravagant actions. 
Therefore, this Venezuelan is the major loser of the 
Rio Summit due to his self-idolatry and senselessness, 
only supported by the extremely high oil price...." 
 
¶3. EDITORIALS 
 
 
 
- "Morales Inauguration" 
 
An editorial in daily-of-record "La Nacion" reads 
(01/24) ".... The arrival in power of Morales... 
represents a drastic change in the political 
orientation of this neighboring country, which the new 
president promised to implement during his 
administration. 
 
"An immediate example of this was his confirmation 
during his inauguration speech in Congress of the need 
to nationalize natural resources as part of the 
process of 're-founding Bolivia' which he says he 
initiated. 
 
".... In saying this, Morales presented one of the 
main priorities of his administration, although he 
didn't give details on how he will implement the 
nationalization process of gas and oil. His campaign 
promises to confiscate foreign companies exploiting 
natural resources -- which had deeply worried 
investors -- gave way to a more moderate position, 
which still generates uncertainty. 
 
"....Today, the brand-new occupant of the Quemado 
Palace faces deep challenges in order not to 
disappoint his voters, but also, in order to rule for 
all the Bolivian people without a spirit of revenge. 
 
".... He also appealed to a conciliatory tone and 
rapprochement with the U.S. ... and said he's willing 
to fight drug-trafficking, but he won't set aside the 
promotion of the use of coca in medicines, infusions 
and (other products). 
 
"In the past, Bolivia resorted to extreme recipes that 
ended in failure, pushing, even further, thousands of 
inhabitants to poverty and marginality. Now, Morales 
must take advantage of this opportunity to lead his 
country to a serious path, without grudge or 
sectarianism, towards economic recovery and more 
social equity." 
 
¶4. To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
The Media Reaction Report reflects articles and 
opinions by the cited news media and do not 
necessarily reflect U.S. Embassy policy or views.  The 
Public Affairs Section does not independently verify 
information.  The report is intended for internal U.S. 
Government use only. 
 
GUTIERREZ