VZCZCXYZ0014
OO RUEHWEB

DE RUEHBU #0019/01 0041759
ZNR UUUUU ZZH
O 041759Z JAN 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2981
INFO RHMFIUU/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 000019 
 
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 
RELATIONSHIP LATIN AMERICAN ANTI-US FEELING ARGENTINA 
REPAYING DEBT TO IMF ARGENTINE-BOLIVIAN TIES 01/04/05 
 
¶1. SUMMARY STATEMENT 
 
Today's key international stories focus on the Bush 
administration terming the US-Argentine bilateral 
relationship 'positive,' as opposed to 'excellent' 
only three months ago; the alleged anti-US feeling in 
Latin America; Argentina canceling its 9.5 billion- 
dollar debt to the IMF "cutting free from it after 
years of bitter clashes;" "The New York Times" front- 
page story on President Kirchner warning of a tilt to 
the left and further state control following his 
decision to cancel Argentina's debt with the IMF; and 
the Argentine Government's alleged irritation for the 
exclusion of Argentina on Bolivian President-elect 
Morales' trip abroad. 
 
¶2. OPINION PIECES AND KEY STORIES 
 
- "US-Argentine bilateral relationship, downgraded 
from 'excellent' to 'positive'" 
 
Daily-of-record "La Nacion's" diplomatic editor Jorge 
Elias writes in the paper's front-page (01/04) "In a 
discreet, almost unnoticeable way, the Bush 
administration termed the US-Argentine bilateral 
relationship 'positive,' as opposed to 'excellent' 
only three months ago. 
 
"There is a subtle difference (although with high 
political impact) between the US State Department's 
latest report on Argentina (issued last 
December) and the previous one (issued last 
September). 
 
"In-between both reports, which are regularly issued 
by the US State Department's Office of Hemispheric 
Affairs..., a decisive event occurred that affected 
the bilateral relationship and its hemispheric 
projection - the Fourth Summit of the Americas... 
 
"During the SOA, Bolivarian President Hugo Chavez led 
the III Summit of the Peoples..., which was supported 
by the presidents of the four full Mercosur members. 
 
"That included Kirchner, the host, who had been 
praised by Bush before landing in Mar del Plata. By 
then, regardless of the previous reference to 
'(Kirchner's) populist rhetoric,' the 'excellent 
political relationship' had been reflected in the 
Argentine government's gestures, such as 'facilitating 
cooperation in non traditional areas, like counter- 
terrorism and the struggle against drugs,' as well as 
the peaceful use of nuclear energy and environmental 
care, among other topics. 
 
"According to the office led by Tom Shannon, Roger 
Noriega's successor, Kirchner resorted to 'the 
populist rhetoric and sought to distance himself from 
the US when competing in 2003 elections,' but after 
that, he received Bush's support 'on key points' that 
helped him hold smooth negotiations with the IMF. 
 
"In response to this, according to the report, 
'Argentina has actively cooperated with the US in 
counter-terrorism operations in the Tri-Border.' 
 
"As a consequence of the meeting between (Presidents) 
Kirchner and Bush in Mar del Plata, the new report 
points out that 'The relationship between the US and 
Argentina remains positive in spite of the fact that 
President Kirchner sometimes uses a populist rhetoric 
and declares he is against the FTAA.'" 
 
- "Alarm bells in Washington" 
 
Ricardo Kirschbaum, general editor of leading 
"Clarin," writes (01/04) "According to prestigious 
magazine 'Foreign Affairs,' the US-Latin American 
relationship is at its lowest point since the end of 
the Cold War. The article was written by Peter Hakim, 
head of The Inter American Dialogue, which has ties 
with the US Department of State. According to the 
article, the region has developed a noteworthy anti-US 
feeling rather than a tilt to the left, and this adds 
to the low priority granted by (President) Bush to the 
region ever since the September 11 attacks... 
 
 
 
"As per the article, one of the dangers is that China 
could replace the US, which could represent a security 
risk for US interests in the hemisphere. 
 
"... Two influential US newspapers, The Washington 
Post and The New York Times, have commented on what is 
happening in the region... 
 
"The US is concerned over (Latin American) governments 
questioning failed past policies that were supported 
by Washington, but it should review  (its own) serious 
mistakes, which unleashed this adverse reaction in 
Latin America." 
 
- "Kirchner gets rid of IMF pressure, but he faces 
other political challenges" 
 
Eduardo van der Kooy, political editor of leading 
"Clarin," opines (01/04) "... The New York Times 
related Argentina's repaying its debt to the IMF to a 
turn to the left of the Kirchner administration... 
 
"Mistrust of the president is not related to his 
payment to the IMF, but rather to the framework of his 
recent election victory, his piling up power and some 
'style'-related issues, which lower the quality of 
democracy. The 'ghost' of Hugo Chavez hovers over 
Washington and some European capital cities... 
 
"The (Argentine) Government got rid of huge political 
pressure by canceling its debt to the IMF... 
 
"... Nonetheless, the Government needs to heal 
impaired ties with several countries in the world for 
two main reasons - first, because it wants continued 
investment that will help boost sustained economic 
growth... and because it needs to increase trade flow 
with the world. And this will be impossible without 
support from Washington and the G7." 
 
- "New dynamics in the international scenario" 
 
Leading "Clarin" carries an op-ed piece by Carlos 
Perez Llana, vice-head, International Relations, Siglo 
21 University, who comments (01/04) "... Regarding US 
foreign policy, the cycle that started with the 
September 11 attacks ended in 2005. While terrorism 
and security remain its main priorities, obstacles in 
Baghdad, the impossibility of expanding the crusade, 
and the costs of unilateralism made President Bush 
listen to moderates rather than neo-conservatives. 
 
"Condoleezza Rice's nomination and Paul Wolfowitz' 
resignation reflected this new reality. The failure of 
the postwar in Iraq was the main factor of change and 
the year ended with a question - when will the US 
leave Iraq? Recent parliamentary elections may speed 
up history by having included the Iraqi Sunni minority 
although Washington is not dreaming of total 
withdrawal. 
 
"... Finally, the Bolivian elections made patent the 
coexistence of two political models in South America. 
On the one hand, populist coalitions of different 
nature - nationalistic, indigenous and post-Soviet 
Marxist, of which President Chavez is the main 
example. On the other hand, we have the social- 
Democratic option, with the Chilean socialist 
President Lagos as the main example. 
 
"For Chavez, the anti-US feeling is the most important 
element. For Social Democrats, the main purpose is 
reducing poverty and broaden citizenry." 
 
- "The (Argentine) Government is bothered because Evo 
did not include Argentina on his agenda" 
 
Natasha Niebieskikwiat, columnist of leading "Clarin," 
writes (01/04) "According to high-level sources, the 
(Argentine) Government is bothered because Evo Morales 
did not include Argentina on his world tour... The 
Bolivian government is also bothered because they say 
that Morales received formal invitations from all 
presidents of the countries he will visit while in the 
case of Argentina he only received messages from third- 
 
 
line government officials. 
 
"... For their part, the two countries' foreign 
ministries asked not to reflect a 'non-existent' 
diplomatic spat." 
 
¶3. EDITORIALS 
 
- "Bye bye IMF, hello Chavez" 
 
Liberal, English-language "Buenos Aires Herald" 
editorializes (01/04) "And so it happened, Argentina 
sent a cheque to the IMF and settled a lingering 
political bill, more substantial than the figure of 
the debt itself. The government trusts that this will 
generate a sort of freedom that will liberate it from 
external pressures, but that is subject to controversy 
and to be proved. For Argentina, yesterday was 'Chau 
FMI' day... 
 
"Since the presidential announcement two weeks ago, 
Argentine politicians and economists have been steeped 
in controversy over the usefulness of the IMF debt 
settlement... The concern of critics of the payment to 
the IMF is that an external arbiter in international 
finance is removed from the scene. And the question 
centers on how this absence will be interpreted by 
potential investors. However, it must also be said 
that President Kirchner's deeply entrenched ambition 
was to be rid of the conditioning by the IMF... 
 
"Venezuela's President Hugo Chavez has become 
Argentina's main creditor, and lender now, and it is 
unclear if this is beneficial or not. He may be a 
demagogue, but by the speed with which he sold the 
Argentine bonds he purchased and the profit he gained, 
Chavez showed he was a well-advised authoritarian. And 
from that place it remains to be seen if his 
friendship will be free of conditions and pressure. 
This is the question that will probably be answered 
quite early in this new year." 
 
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