VZCZCXYZ0000
OO RUEHWEB

DE RUEHBU #1144/01 1381940
ZNR UUUUU ZZH
O 181940Z MAY 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4599
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 001144 
 
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 SENATE VOTING A FENCE ON 
THE US-MEXICAN BORDER; CHAVEZ AND MORALES CREATING BI- 
NATIONAL MINING CORPORATION; BOLIVIAN NATIONALIZATION 
OF HYDROCARBONS; US-ECUADORIAN TIES; THE NEW EUROPEAN 
LEFT WING; POPULIST GOVERNMENTS; ARGENTINE GOVERNMENT 
 
OFFICIAL STATEMENTS ON US AND MULTILATERAL TRADE 
05/18/06;BUENOS AIRES 
 
¶1. SUMMARY STATEMENT 
 
Local papers lead with the US Senate voting to 
construct a fence on the US-Mexican border and 
supporting citizenship of undocumented US immigrants; 
Venezuelan President Chavez and Bolivian President 
Morales creating a bi-national mining corporation; the 
legality of Bolivia's nationalization of hydrocarbons; 
Ecuador charging the US with 'blackmail' for having 
cancelled an FTA in retaliation for the country's 
putting of a deal with a US oil corporation; a new 
left wing making progress in the EU; and Argentine 
Secretary of International Trade Alfredo Chiaradia's 
 
SIPDIS 
statements about the US and multilateral trade. 
 
¶2. OPINION PIECES AND KEY STORIES 
 
- "The US Senate OKs a 600-km wall on the US-Mexican 
border" 
 
Ana Baron, Washington-based correspondent for leading 
"Clarin," writes (05/18) "Yesterday, following up on 
last Monday's address by US President George W. Bush, 
the US Senate voted to build a fence of almost 600 km 
on the US-Mexican border, while rejecting an amendment 
that would have removed the articles allowing illegal 
immigrants with more than two years' residence in the 
country to obtain a work permit and eventually (US) 
citizenship. 
 
"... Both decisions signify a triumph for Bush, who 
has proposed an overall approach to the problem of 
immigration including, on the one hand, reinforced 
security on the border, and, on the other hand, the 
legalization of illegal immigrants. 
 
"The problem will be now to reconcile this overall 
approach adopted by the US Senate with the much more 
radical and extremist stances prevailing in the Lower 
House." 
 
- "Evo and Chavez will create a bi-national mining 
corporation" 
 
Business-financial "El Cronista" reports (05/18) 
"According to Bolivian Minister for Sustainable 
Development, Carlos Villegas, Bolivian President Evo 
Morales and Venezuelan President Hugo Chavez will sign 
a deal next week to create a bi-national mining 
corporation called Minersur. 
 
"... The Bolivian government official dismissed 
criticism from opposed political sectors, which 
pointed out that the government removed Brazilian 
company EBX with the purpose of transferring 
exploitation of the rich Mutun iron field to a 
Venezuelan company." 
 
- "No reproach for Bolivia's gas nationalization" 
 
Leading "Clarin" carries an op-ed piece by former 
Argentine Minister for Public Works and Services 
Roberto Dromi, who opines (05/18) "The Bolivian 
nationalization of hydrocarbons, surprising as it may 
be for the way it was performed, although predictable, 
will compel the Bolivian government to renegotiate its 
agreements with corporations and it will speed up the 
renegotiation of agreements among countries, this is 
to say, the bilateral deals regulating oil supply for 
neighboring countries... 
 
"... The nationalization of hydrocarbons means an act 
of sovereign governance that is intended to lead a 
process of transformation... 
 
"Therefore, the nationalization (of hydrocarbons) is 
the judicial consequence of an act of political 
opportunity that could be negatively perceived by some 
political and market sectors, but no judicial actions 
can be taken over it." 
 
- "Ecuador charges the US with 'blackmail'" 
 
 
 
 
 
 
 
Leading "Clarin" reports (05/18) "Ecuador charged the 
US with 'blackmail' given that Washington canceled the 
signature of an FTA after Quito put off an agreement 
with a US oil company. 
 
"Last Tuesday, Washington canceled FTA negotiations... 
in retaliation for Quito's decision to cancel an 
agreement with Occidental, a US company. 
 
"... When Quito canceled the agreement, the USTR's 
spokesperson, Neena Moorjani, termed Ecuador's actions 
as 'expropriation.' However, Ecuadorian Minister of 
Government Felipe Vega rejected her statements and 
asserted it is an 'administrative procedure' complying 
with Ecuadorian legislation." 
 
- "The new European left wing makes progress" 
 
Luisa Corradini, on special assignment in Paris for 
daily-of-record "La Nacion," comments (05/18) "Giorgio 
Napolitano's election as president of Italy has marked 
for the first time the arrival of a former communist 
to the highest-ranking position in a Western European 
country. But, at the same time, it has confirmed the 
'socialist temptation' that is seducing EU voters. 
 
"This trend is a political phenomenon that goes beyond 
circumstantial election results. Europe, a continent 
of polarities, is seemingly searching blindly for the 
best way to protect itself from the excesses of 
globalization. While the most fragile sectors let 
themselves be tempted by the extreme right wing, 
moderate sectors look with interest at the alternative 
represented by new socialism." 
 
- "Controversy over populism" 
 
Daily-of-record "La Nacion" carries an op-ed piece by 
contributor Natalio R. Botana, who opines (05/18) 
"During the EU-Latin American Summit,... Jose Manuel 
Durao Barroso, head of the EU Executive Committee, 
said that 'populism is a threat to our values'... 
 
"... Not every nationalism is populism, neither are 
policies inspired on equality... 
 
"... There is a risk of overestimating populism. If we 
judge from facts, populism today is a minority 
phenomenon in Latin America. It is important due to 
the resources it controls... but our countries are 
determined to incorporate the value of responsibility 
to the public service. From Brazil to Chile and 
Uruguay, and from Colombia to Peru, our policies seek 
to follow the guidelines of democratic reformism 
rather than populism... 
 
"... If populism is a threat, the very serious 
challenges in our megalopolis are not less 
disconcerting since they are being punished harshly by 
inequality and organized crime. In light of what is 
happening these days in Sao Pablo, this overwhelming 
scenario presents a serious warning since we should 
not forget that populist illusions are also a 
byproduct of the reformist inability of democracies." 
 
- "According to Argentine Secretary of International 
Commerce, Alfredo Chiaradia, 'The US weakens 
multilateral trade'" 
 
Business-financial, center-right "InfoBae" publishes 
an interview with Argentine Secretary of Commerce, 
Alfredo Chiaradia "While the Argentine Government has 
begun to consider an EU-Mecosur deal as a remote 
possibility, it has accused the US of weakening 
multilateralism by promoting bilateral deals. 
Argentine Secretary of International Trade, Alfredo 
Chiaradia said 'The US has reached bilateral deals 
with eight countries during recent years. But the 
trade of all those countries together only accounts 
for 4% of US trade,' referring to a political rather 
than an economic purpose in the US policy. 
 
 
 
 
 
 
 
"... According to Chiaradia, 'what the US does is 
weakening multilateralism.' 
 
"In any case, he clarified that the bilateral deals 
the US has reached with countries of the region 'have 
not damaged Mercosur, because only the US-Chilean deal 
is in force given that Central American countries used 
to have a preferential trade exchange with the US in 
the past." 
 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
GUTIERREZ