VZCZCXYZ0005
OO RUEHWEB

DE RUEHBU #1414/01 1742044
ZNR UUUUU ZZH
O 232044Z JUN 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5012
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 001414 
 
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: NORTH KOREA; KIRCHNER IN SPAIN; 
US-VENEZUELA; US-BOLIVIA; IMF AND ARGENTINA 06/23/06; BUENOS AIRES 
 
¶1. SUMMARY STATEMENT 
 
Today's key international stories include North Korea warning 
Washington about a possible military confrontation between the two 
countries; the alleged US campaign to avoid Venezuela's entry into 
the UN Security Council; the US Senate Foreign Relations Committee's 
resumption of a debate about the hemisphere's 'energy security;' the 
US Embassy in La Paz rebuffing Morales' charges that US troops 
entered the country disguised as tourists and students; and former 
Argentine Economy Minister Domingo Cavallo charging the US and the 
IMF for the country's 2001 economic crisis. 
 
¶2. OPINION PIECES AND KEY STORIES 
 
- "Pyongyang warns Washington about a possible 'military 
confrontation'" 
 
Daily-of-record "La Nacion" (06/23) reports "North Korea said 
yesterday that chances for 'military clashes' with the US have 
increased as a consequence of the US spy flights over North Korea. 
Meanwhile, world tension increases over Pyongyang's alleged plan to 
test a long-range missile within reach of the US. 
 
"... For its part, the US warned North Korea that if it performs an 
inter-continental missile test, it will have to face the 
'consequences' of a US 'reaction.' The warning was launched by 
Assistant Defense Secretary Peter Rodman at the US Congress. Rodman, 
who is in charge of international security, did not go into details 
of the extent of the threat." 
 
- "US offensive against Venezuela" 
 
Daily-of-record "La Nacion" (06/23) reports "Latin America became 
the scenario of a ferocious and increasing US diplomatic campaign to 
avoid Venezuela's temporary entry into the UN Security Council. The 
White House fears President Hugo Chavez could use this chair to 
hinder US policies against Iran. 
 
"This new confrontation between Caracas and Washington reached a 
peak of tension yesterday after a US diplomatic note was made public 
according to which if Chavez obtains this non-permanent chair, he 
will turn the UN Security Council into his own 'ideological 
tribune.' 
 
"To avoid this, the White House launched an intense campaign to 
pressure the countries of the region to vote for Guatemala (a 
Washington ally), which also applied for the UN Security Council 
chair." 
 
- "The US discusses how to lessen Chavez's influence" 
 
Business-financial "El Cronista" reports (06/23) "Yesterday, the US 
Senate's Foreign Relations Committee resumed the debate about the 
hemisphere's 'energy security' in a hearing in which former 
Argentine Economy Minister Domingo Cavallo and former head of PdVSA 
Luis Giusti participated. 
 
"The head of the Committee, Republican Senator Richard Lugar, had 
ordered the GAO (Government Accountability Office) to analyze the 
impact of a cut in the Venezuelan oil supply... 
 
"Lugar recalled yesterday that, according to the GAO's preliminary 
report, a six-month interruption in the Venezuelan oil supply to the 
US could cost the US economy some 23 billion dollars in its GDP. 
This is why, Lugar and Senators Ken Salazar and Larry Craig... are 
promoting a project to redefine the US energy diplomacy in Latin 
America and counteract Chavez's increasing regional influence." 
 
- "The US rebuffs Evo and denies troop arrival" 
 
Business-financial "Ambito Financiero" reports (06/23) "The US 
Embassy in La Paz assured yesterday that (Bolivian President) Evo 
Morales' charges that US military had entered Bolivia disguised as 
tourists and students are false. 
 
"According to a spokesperson of the US Embassy in La Paz 'these are 
groundless charges.' The spokesperson pointed out that the embassy 
would not make any further comments on it." 
 
- "Kirchner criticizes the US and defends Chavez and Morales" 
 
On special assignment in Madrid for daily-of-record "La Nacion," 
writes (06/23) "With a quiet tone, President Nestor Kirchner marked 
a turning point in the country's strategy of integration into the 
world. Kirchner said that 'the US-Argentine bilateral relationship 
is cold,' charged Washington with not having granted enough support 
at the toughest moments of the Argentine crisis, and said he intends 
 
to look to Europe, with Spain as his point of entry. 
 
"He strongly defended the administrations of Evo Morales and Hugo 
Chavez. 
 
"And he added that the US wants to turn Chavez into a 'little 
monster' although Venezuela's imports from the US amount to 25 
billion dollars per year and Venezuela is the US' 'big oil 
supplier.'" 
 
- "Cavallo blames the US and the IMF for the 2001 crisis" 
 
Hugo Alconada Mon, Washington-based correspondent for 
daily-of-record "La Nacion," writes (06/23) "Four years and a half 
after his hurried departure from the Argentine Economy Ministry, 
Domingo Cavallo charged the IMF and the US for the Argentine crisis, 
said that the Argentine Government should allow the free flotation 
of the Argentine peso, and advised the elimination of price and 
public rates controls. 
 
"Cavallo was invited by Republican Senator Richard Lugar to the US 
Senate Foreign Relations Committee in order to lecture on the 
'judicial security in Latin America.' He added 'The US and the IMF 
could have helped, but they preferred to let Argentina go to hell.'" 
 
 
To see more Buenos Aires reporting, visit our classified website 
at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
GUTIERREZ