VZCZCXYZ0000
OO RUEHWEB

DE RUEHBU #1929/01 2372019
ZNR UUUUU ZZH
O 252019Z AUG 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5698
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 001929 
 
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: WAR IN LEBANON; WAR ON TERRORISM; ARGENTINE NUCLEAR PLANS 
AND USG SUPPORT FOR THEM; USTR SCHWAB'S STATEMENTS ON GLOBAL TRADE; 
08/25/06 
 
 
¶1. SUMMARY STATEMENT 
 
Today's major international stories include the implications of the 
war in Lebanon; the ongoing war on terrorism; USG's support for 
Argentina's nuclear program; and USTR Susan Schwab's statement that 
the US does not believe it should revive global commercial talks 
through a unilateral proposal to open US markets. 
 
¶2. OPINION PIECES AND KEY STORIES 
 
- "Peace should be signed with the enemy" 
 
Left-of-center "Pagina 12" carries an opinion piece by political 
analyst Alejandro Horowicz, who writes (08/25) "... The conflict in 
the Middle East does not have a military solution. Exterminating the 
enemy is only possible when every falling combatant cannot be 
replaced. On the contrary, this policy not only does not exterminate 
him but recruits new militants that are increasingly convinced that 
the armed fight is the only choice available. 
 
"The Israeli government is implementing an inconsistent policy. By 
putting an end to the fight in Lebanon it implicitly admits that 
there is no military solution available, but at the same time it 
does not believe that there is a political solution. In this way, it 
rejects the possibility that peace can be attained. 
 
"Peace can only be attained by warring states... Peace should be 
signed with the enemy. Otherwise, war becomes genocide. 
 
"The greatest danger for the existence of the State of Israel is its 
current government." 
 
- "In defense of freedom" 
 
Daily-of-record "La Nacion" (08/25) carries an opinion piece by 
Marcelo Birmajer, writer, who writes (08/25) "... Terrorists know 
exactly what they are doing. If they do not manage to massacre the 
largest number of people, which is their main purpose, they are 
satisfied with having imposed on us their main political objective - 
the restriction of our public liberties. 
 
"Lastly, this is a confrontation between two systems - on one hand, 
the imperfect liberal democracies, with their freedom of 
international circulation, their liberties and public guarantees, 
which prevail in most Western Europe, most Eastern Europe, South 
America and North America. On the other hand, the perfect 
totalitarian regimes, just like the Iran of Khomeini and his 
successors, the ended Afghanistan of the Taliban, or the warring 
Syria of Assad. 
 
Unluckily, it is not perceived that most current intellectuals who 
today enjoy their public liberties in the jeopardized parts of the 
world where these liberties are still in force have joined a 
consistent clamor against this threat." 
 
- "The US supports the Argentine Government's nuclear program" 
 
Mariano Obarrio, political columnist of daily-of-record "La Nacion,"writes (08/25) "Yesterday, the US Embassy notified that the USG 
approves of and supports the nuclear program announced by the Nestor 
Kirchner administration because it complies with international 
treaties. Nonetheless, the USG expressed its wish that when 
'deepening its plan,' Argentina makes sure that its actions will be 
in alignment with non proliferation principles. 
 
"The nuclear energy program entails the completion of nuclear 
centrals aimed at increasing the supply of electric energy. 
 
"The US Embassy's spokesperson, Mara Tekach, asserted that 'the US 
strongly promotes the extensive use of clear, innocuous and safe 
nuclear energy.' And she added 'in this framework, we support 
Argentina's decision to make progress on its nuclear program.' 
 
"Nevertheless, the USG added 'we hope that in deepening its nuclear 
energy program, Argentina will make sure that its actions are in 
alignment with the sound non proliferation credentials it has 
exhibited so far.' 
 
"This last paragraph could well be interpreted as a warning from 
Washington on an issue that the White House considers a foreign 
policy strategic top priority. In any event, it will be a key 
element in the US-Argentine bilateral relationship. 
 
"In recent times, this relationship has been stalled, regardless of 
Kirchner's plans to visit the US by mid-September to attend the UN 
General Assembly. 
 
 
 
"The USG closely follows nuclear energy programs all over the world 
due to latent threat posed by some countries that could decide to 
manufacture the atomic bomb. It also closely follows the 
increasingly close ties between Argentina and Venezuelan President 
Hugo Chavez, an ally of Iran. Iran is precisely the country that has 
been most questioned by Washington due to its nuclear program. 
 
"The Government's plan to produce more nuclear energy only has one 
main reason - the completion of Atucha II by 2010 with a total 
investment of 1.8 billion dollars. 
 
"... Tekach said that Argentina 'is a strong international partner 
and ally' on non proliferation issues and the promotion of peaceful 
uses of nuclear energy. 
 
"She emphasized that Argentina ratified the Non Proliferation 
Treaty, is a member of the Group of Nuclear Suppliers and supported 
the Treaty of Tlatelolco. Tekach asserted that Argentina 'is one of 
the ten countries that have a working enriched uranium factory in 
the framework of the USG policy.'" 
 
- "The US asks for more guarantees in exporting nuclear technology" 
 
Daniel Santoro, political columnist of leading "Clarin," writes 
(08/25) "The US has asked the (Argentine) Government to 'make sure' 
that the decision it made to restart the production of enriched 
uranium... will not contribute to transferring this technology to 
third countries, in a veiled reference to Venezuela. 
 
"... In addition to completing Atucha II nuclear central, one of the 
points of the plan is reactivating the enriched uranium program. 
This is dual technology - it can be used to produce electric energy, 
as wanted by the Argentine Government, but it can also be used to 
manufacture an atomic bomb, as the US suspects Iran is doing. An 
Embassy source underscored that 'Argentina is not Iran.' 
 
"... The head of the Foreign Ministry Nuclear Issues Division, Elsa 
Kelly, said yesterday that 'the US may rest assured that Argentina's 
political vocation has always been to honor non proliferation 
principles.' 
 
"In contrast to the Menem administration, the current Argentine 
government is attempting to maintain Argentina within the select 
club of ten countries manufacturing enriched uranium. Perhaps, it 
did not take into account that the US closely follows every 
technological step that could lead to the manufacture of the bomb. 
The best response to this is Argentina's history as a transparent 
and pacifist country." 
 
- "Venezuela, a recurring concern for Washington" 
 
Walter Curia, columnist of leading "Clarin," writes (08/25) "... 
Argentina's announcement that it would re-launch its nuclear program 
coincided with the Bush administration's rejection of an offer from 
the Iranian government to negotiate the extent of its nuclear 
program. This was an unhappy coincidence. 
 
"The US Embassy spokesperson, Mara Tekach, advanced the content of a 
USG statement about a cautious request for guarantees on the final 
purpose of the civil program, and she dismissed 'frictions' about 
the issue. 
 
"The US Embassy's release clearly states that Washington 'supports' 
the Argentine decision to make progress on its nuclear development 
plan. With the same transparency, it assumes its 'opposition' to the 
'dissemination' of said technology. It did not need to mention 
Venezuela, which is currently an important commercial partner of 
Argentina." 
 
- "The US will not make a new proposal on (farm) subsidies" 
 
Business-financial "Ambito Financiero" reports (08/25) "According to 
USTR Susan Schwab, the US does not believe it should revive global 
commercial talks through a unilateral proposal to open US markets 
even further. 
 
"The USG official said that the US still expects to reach an 
agreement on a new world commercial pact before the White House's 
fast track authority expires in July 2007. 
 
"However, Schwab also made it clear that the US does not intend to 
revive stalled negotiations through a unilateral offer. Schwab said 
'it is quite clear that the US cannot and will not be able to revive 
(negotiations) on its own.' 
 
 
"The USG official said that, realistically speaking, a deal should 
have been reached last month in order to honor the July 2007 
deadline. 'We obviously did not manage to reach a deal, but we have 
not dismissed it.' 
 
"Schwab added that 'trying to revive the Doha Round is imperative' 
and explained that this is the key to alleviating poverty and 
increasing world economy growth." 
 
¶3. EDITORIALS 
 
- "The challenges posed by the energy crisis" 
 
An editorial in daily-of-record "La Nacion" reads (08/25) "The signs 
of the energy crisis started to become obvious last summer... In 
order to face this chronic problem, the Government has implemented a 
series of projects, one of which is that of completing Atucha II 
works. 
 
"... It is quite logical that Argentina deepens the development of 
its nuclear energy for electric generation. However, it is necessary 
to guarantee that it will be made with peaceful use and that every 
progress in this field will not jeopardize the environment. 
 
"... The completion of Atucha II was also announced at a cost of 1.8 
billion dollars. It is expected to be working by 2010... 
 
"The electric crisis makes it imperative to change the price policy 
and the regulations imposed on the sector. The consequences of the 
mistakes that have already been made seem inevitable. However, the 
longer the delay in implementing changes, the greater the costs and 
the more difficult the solution." 
 
- "The nucleus of the question" 
 
Liberal, English-language "Buenos Aires Herald" editorializes 
(08/25) "Perfect timing as always from the Nestor Kirchner 
administration - just when most of the world is alarmed by the 
nuclear antics of such rogue states as Iran and North Korea, this 
government goes ahead and announces a nuclear program with only an 
insistence on 'peaceful uses' to save it from charges of total 
autism. Brazil's problems in recent years with the International 
Atomic Energy Agency (IAEA) show that even a vast distance from the 
fault lines of global conflict is no guarantee against outside 
scrutiny. 
 
"Yet Kirchner's nuclear drive is largely fuelled by domestic needs, 
both genuine and political... There can be no doubt that the 
government is taking energy shortages seriously with this plan but 
it also needs to answer some questions if it wishes to banish any 
suspicions of a new slush fund in the making. We are given to 
understand that the plan entails the investment of 3.5 billion 
dollars over the next eight years in pursuit of five specific 
objectives - namely, lengthening the Embalse nuclear reactor's 
useful life by a further 25 years, expanding heavy water production 
at Arroyito, completing the construction of the Atucha II nuclear 
reactor by 2010, carrying out feasibility studies for a possible 4th 
reactor... and renewing the uranium enrichment program. The first 
two objectives are to cost 600 million dollars while a similar sum 
(1.8 billion pesos) was announced for the completion of Atucha II. 
This leaves a huge grey area of over two billion dollars for a 
possible 4th reactor and uranium enrichment - the former might well 
arouse suspicions of a new Yacyreta at home while the later could 
stir even worse anxieties abroad." 
 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
MATERA