VZCZCXYZ0021
OO RUEHWEB

DE RUEHBU #1087/01 1321935
ZNR UUUUU ZZH
O 121935Z MAY 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4513
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 001087 
 
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 EU-LATIN AMERICAN SUMMIT 
BOLIVIAN PRESIDENT EVO MORALES USG ALLEGED 
EAVESDROPPING ON PHONE CALLS NOMINEE FOR US AMBASSADOR 
TO ARGENTINA WAYNE TRI-BORDER 05/12/06;BUENOS AIRES 
 
 
¶1. SUMMARY STATEMENT 
 
Today's most important international stories include 
Bolivian President Morales ruling out compensation for 
nationalizing foreign oil and gas subsidiaries; the 
EU's belief Venezuelan President Chavez is a hurdle in 
reaching a deal between the EU and Mercosur; and 
statements from nominee for US Ambassador to 
Argentina, Earl Anthony Wayne; USG President George W. 
Bush denying the USG was eavesdropping on domestic 
phone calls without court approval. 
 
¶2. OPINION PIECES AND KEY STORIES 
 
- "Europe believes Chavez is an obstacle to a deal 
with the region" 
 
Horacio Riggi, columnist of business-financial, center- 
right "InfoBae," writes (05/12) "The EU believes 
Venezuela's entry into Mercosur will hinder even 
further the possibilities of reaching an FTA with 
Mercosur. 
 
"... According to a high-ranking EU source, 'There 
have been problems up to now, but we know which ones 
they are. With President Hugo Chavez, one never 
knows.' 
 
"... The deal between the EU and Mercosur has been 
deadlocked for one year because neither side yields to 
the demands of the other one. 
 
"Mercosur wants Europe to eliminate or substantially 
lower its farm subsidies... In exchange, the EU wants 
Mercosur to allow for a greater entry of (European) 
manufactured products, and also to let European 
companies participate in governmental purchases, as 
well as compete on equal terms with local companies in 
public bids." 
 
- "Morales slashed out at oil companies and ruled out 
compensations" 
 
Juan Carlos Algaaraz, on special assignment in Vienna 
for leading "Clarin," writes (05/12) "On what has 
become the focus of the EU-Latin American summit, 
Bolivian President Evo Morales announced yesterday 
that there will be no compensation for oil companies 
affected by nationalization of hydrocarbons, one of 
which is Petrobras. 
 
"Morales clarified that companies are entitled to 
recover investment and have profit. 'We should not be 
talking about compensation because it is not a 
confiscation of their assets or technology but a 
renegotiation of agreements.' 
 
"Brazil's reaction did not take long. Helio Costa, 
Brazilian Minister of Communications, said that 
Bolivia 'has surpassed all limits,' and he termed the 
Bolivian decision as 'an insult.'" 
 
- "Millions of US phone calls are eavesdropped without 
any court order" 
 
Ana Baron, Washington-based correspondent for leading 
"Clarin," comments (05/12) "The creation of a center 
of information at the National Security Agency with 
the registration of phone calls of millions of US 
citizens has sparked virulent reaction in the US 
Congress and harsh criticism on how the Bush 
administration is violating the people's right to 
privacy. 
 
"... While the rage was growing yesterday morning in 
the US Congress, George W. Bush said that his 
government has acted lawfully and that it 'ferociously 
protects the privacy' of US citizens while it does 
everything necessary to prevent a new terrorist 
attack." 
 
- "Washington asks for cooperation in the Tri-Border 
area" 
 
Conservative "La Prensa" reports (05/12) "According to 
 
 
 
a US State Department official, Argentina, Brazil and 
Paraguay are providing 'uneven' cooperation in the 
implementation of deals to share intelligence as part 
of the campaign against terrorism in the Tri-Border 
area. 
 
"During a hearing at the US Lower House International 
Relations Committee, Henry A. Crumpton, coordinator of 
affairs against terrorism, said 'I would say there is 
slow progress.' 'We need to do more and help them 
more.' 
 
"According to a US State Department report on the 
global war on terrorism, Islamic terrorist groups, 
such as Hezbollah and Hamas, 'are using this territory 
because it lacks firm regulations and because of its 
closeness to Muslim communities.'" 
 
- "Wayne will arrive in the country with an agenda 
focused on business" 
 
Hugo Alconada Mon, Washington-based correspondent for 
daily-of-record "La Nacion," writes (05/12) "According 
to the US Department of State, Earl Anthony Wayne will 
take over as the new US Ambassador to Argentina in 
late August or early September. His agenda will be 
focused on business, his field of expertise, and will 
have one main political topic of concern - the 
Argentine government's relationship with Venezuelan 
President Hugo Chavez. 
 
"During a hearing at the US Senate, Wayne said 'It is 
important for Argentina to continue creating a 
positive investment climate.' 'In this way, the 
country will be able to 'consolidate the benefits of 
economic growth and deal with the real problem posed 
by poverty.' 
 
"In a precise way, Wayne made clear his view - he 
praised the reforms promoted by the Menem 
administration, termed the current view of the IMF and 
the US as a 'distortion', and he promised he will make 
a contribution for the (Argentine) government to 
promote a 'sustainable growth.'" 
 
¶3. EDITORIALS 
 
- "An incentive to investment" 
 
An editorial in conservative "La Prensa" reads (05/12) 
"During a hearing at the US Senate, the nominee for US 
Ambassador to Argentina, Earl Anthony Wayne, expressed 
his concern because Argentina does not have a 
favorable climate for foreign investment. Perhaps too 
many foreign investment initiatives are aimed at 
purchasing already existing plants and there is not 
enough investment for the creation of new factories 
and jobs. 
 
"... In most countries, a nine-percent growth rate is 
enough for boosting adequate investment. However, for 
some reason (whether it is hostility toward companies, 
high taxes, despise toward judicial security or the 
mere fact that Argentines do not set the example in 
investing in their own country), this does not happen 
in Argentina, and the quality of investment here is 
low." 
 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
GUTIERREZ