VZCZCXYZ0010
OO RUEHWEB

DE RUEHBU #1681/01 2091820
ZNR UUUUU ZZH
O 281820Z JUL 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5383
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 001681 
 
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: SECRETARY RICE'S VISIT TO THE MIDDLE EAST;    TRI-BORDER; 
RUSSIAN-VENEZUELAN TIES; ARGENTINE LEGISLATION ON TERRORIST 
FINANCING; PANAMAX ANTITERRORIST MILITARY EXERCISES; ARGENTINA AND 
BRAZIL'S OFFENSIVE AGAINST THE IMF; CUBA; 07/26/06 
 
 
¶1. SUMMARY STATEMENT 
 
Local papers lead with US Secretary of State Condoleezza Rice's trip 
to the Middle East; the US proposal to deepen its monitoring of the 
Tri-Border; the US urging Russia not to sell military equipment to 
Venezuela; the need for an update in Argentine legislation on 
terrorist financing; the Panamax antiterrorist military exercises; 
Argentina and Brazil's offensive against the IMF; and Argentine 
President Kirchner's dealings in favor of Cuban dissident Hilda 
Molina. 
 
¶2. OPINION PIECES AND KEY STORIES 
 
- "The US proposes an ambitious pacification plan" 
 
Daily-of-record "La Nacion" reports (07/26) "US Secretary of State 
Condoleezza Rice proposed an ambitious plan that could help the 
Lebanese government stabilize the situation in South Lebanon, where 
Hezbollah has its bastion. 
 
"The new plan was received with skepticism by the Lebanese 
government because, among other reasons, it does not imply a review 
of US policy, which is against an immediate cease fire in the Middle 
East... 
 
"On the contrary, it implies support for Israel's goal of entering 
Lebanon in order to put an end to the threat posed by Hezbollah's 
missiles... This could take weeks and could be, according to 
Washington, a previous step for a ceasefire statement." 
 
- "Israel will not stop its offensive and prepares a 'security 
strip'" 
 
Marcelo Cantelmi, international editor of leading "Clarin," writes 
(07/26) "US Secretary of State Condoleezza Rice's short visit to the 
region added some uncertainty now that clashes continue on the 
border and bombings continue in Lebanon. 
 
"While Israel was toughening its discourse in order to convey that 
it will not stop its offensive, the USG official avoided talking 
about deadlines for a cease fire while she was in Jerusalem. 
 
"... In a deliberately ambiguous message, Rice said that 'a 
ceasefire is badly needed but it cannot be achieved at any price.'" 
 
- "Rice asks for a new Middle East" 
 
Conservative "La Prensa" reports (07/26) "After having held separate 
meetings with Israeli PM Ehud Olmert and Palestinian President 
Mahmoud Abas, US Secretary of State Condoleezza Rice asserted that 
the time has come for a 'new Middle East without violence,' which 
leaves Hezbollah and Hamas aside... 
 
"In the framework of a trip aimed at putting an end to the war 
escalation in the region, the US Secretary of State pointed out 'It 
is time to tell those who do not want a different Middle East, that 
we will prevail, not them.' 
 
"In her meeting with the PM, Secretary Rice reiterated that her 
country is against an immediate cease fire and promotes, instead, a 
'broader and lasting' peace accord." 
 
- "Complaints over a US plan to deepen its monitoring of the 
Tri-Border" 
 
Hugo Alconada Mon, Washington-based correspondent for 
daily-of-record "La Nacion," writes (07/26) "The US Senate is 
analyzing a draft resolution that is aimed at promoting an 
antiterrorist 'task force' at the OAS, which could be deployed in 
the entire hemisphere but particularly focused on the Tri-Border... 
 
"The draft resolution has been passed by the US Lower House, and 
senators could now review its sections, which have formally been 
objected to by the Brazilian Foreign Ministry and by Argentine 
diplomats during confidential meetings. 
 
"However, the initiative has already made a first move. The head of 
the decisive Senate Foreign Relations Committee, Richard Lugar, 
received the draft resolution, and notified Brazilian Ambassador 
Roberto Abdenur that he understood his objections... but that 
(Abdenur) also had to understand the US position in the aftermath of 
the September 11 attacks. 
 
"... The US Senate has not set a date yet to deal with the draft 
resolution and two sources told 'La Nacion' that it could well be 
 
 
 
filed in the Senate's offices because a seemingly dominant sector 
believes it is redundant based on the existence of the OAS' Inter 
American Committee against Terrorism." 
 
- "The US urges Russia not to sell weapons to Venezuela" 
 
Daily-of-record "La Nacion" reports (07/26) "The USG urged the 
Russian government to refrain from selling military airplanes and 
helicopters to Venezuela and it submitted a formal protest against 
Russia for its military cooperation with Caracas. The USG believes 
this could affect the balance of power in Latin America. 
 
"However, Venezuelan President Hugo Chavez expects to come to terms 
on the sale during his three-day visit to Russia. He plans to sign a 
series of agreements for the purchase of weapons, including one for 
one billion dollars for the purchase of fighting airplanes and 30 
helicopters." 
 
- "An update in (Argentine) legislation against terrorist 
financing" 
 
Business-financial "El Cronista" carries an opinion piece by Deputy 
Jorge Arguello, who writes (07/26) "The IMF believes that the yield 
of money laundering accounts for 3-5% of the GDP (600 billion 
dollars) and that it provides enough energy to allow transnational 
criminal companies to perform and expand their operations in 
detriment to world security. 
 
"... In this way, terrorism, organized crime and illegal finances 
are the new forms of a security problem that should be combated. 
Assets legitimization is crucial for funding terrorist 
organizations. 
 
"... We hope to have the necessary consensus to pass a more 
ambitious future law on the issue that implies the commitment of all 
political sectors in the fight against this scourge, which makes our 
economy vulnerable and undermines our institutions and values." 
 
- "Decree hinders anti-terrorism exercises" 
 
Edgardo Aguilera, columnist of business-financial "Ambito 
Financiero," writes (07/26) "The implementation of the Defense Act 
that Nestor Kirchner resonantly announced... could well put an end 
to some pending multilateral military exercises. Those are the Navy 
exercises called Panamax, which were approved by the Argentine 
Congress in September 2005. According to the new defense policy, 
those exercises are not part of the Army's duties. 
 
"Panamax 2006 multinational exercises, to be carried out August 
21-September 5 in the Pacific and the Caribbean and the Panama 
Canal, are carried out to prevent eventual terrorist attacks and 
multiple threats that are posed to the inter-ocean way and its 
resources. They are intended to ensure freedom of navigation and 
preserve the maritime via of communication." 
 
¶3. EDITORIALS 
 
- "Offensive against the IMF" 
 
Conservative "La Prensa" editorializes (07/26) The bilateral 
agreement reached in the recent (Mercosur) summit, which was held in 
Cordoba, has started to become action. Argentina and Brazil began 
work on a new commercial system in local currencies to replace the 
dollar in exchange plans. Basically, they are trying to trigger a 
change in the regime that has been used up to now... 
 
"... Argentina and Brazil are determined to reach one common 
position in order to confront IMF policies... They want to put an 
end to the pressure that the IMF has wielded during the last five 
years. Today, after having paid off their debts, they seek 
independence... 
 
"Both Brazil and Argentina are promoting contingent loans not 
calling for monitoring or for a letter of intention... Obviously 
enough, this firm political change will raise concern about the 
IMF's traditional programs, which unleashed financial havoc in the 
two countries." 
 
- "Request for a Cuban dissident" 
 
An editorial in leading "Clarin" reads (07/26) "In a praise-worth 
decision, the Argentine Government took the Latin American summit, 
which was held last week in Cordoba, to send a letter to Cuban 
President Fidel Castro asking him to allow the visit of dissident 
physician Hilda Molina to the country to visit her Argentine 
 
 
 
relatives. 
 
"... Cuba has sought and obtained a particular relationship with 
Mercosur from which it expects to obtain some economic and strategic 
benefits. One of the basic clauses of the bloc is that only 
democracies can belong to it. While Cuba is not expected to enter 
Mercosur, we hope that its member countries will wield influence to 
improve the situation of opponents in Cuba and promote respect for 
political rights." 
 
To see more Buenos Aires reporting, visit our classified website 
at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
MATERA