VZCZCXYZ6009
OO RUEHWEB

DE RUEHBU #2117/01 2611051
ZNR UUUUU ZZH
O 181051Z SEP 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5928
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 002117 
 
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: US GENERAL CRADDOCK'S STATEMENTS AT TENTH CONFERENCE OF THE 
AMERICAS; FOREIGN TERRORISM SUSPECTS' RIGHTS; WALL ON THE US-MEXICAN 
BORDER; PRESS ROUND WITH JANE SKANDERUP, CSIS; 09/15/06; BUENOS 
AIRES 
 
 
¶1. SUMMARY STATEMENT 
 
Today's most important international stories include US General John 
Craddock's statements at the Tenth Conference of the Americas; the 
US Senate Armed Services Committee passing a bill aimed at 
protecting the rights of foreign terrorism suspects; and the US 
Lower House passing a bill to build a wall on the US-Mexican 
border. 
 
Leading "Clarin," daily-of-record "La Nacion," business-financials 
"Ambito Financiero," "El Cronista," and "InfoBae" extensively report 
on yesterday's press round with Jane Skanderup, Pacific Forum, 
Center for Strategic and International Studies. 
 
¶2. OPINION PIECES AND KEY STORIES 
 
- "The US urges to fully honor the rule of law" 
 
Conservative "La Prensa" reports (09/15) "The head of the US South 
Command, John Craddock, said yesterday that regional prosperity will 
only be obtained by honoring the 'rule of law' and that 'poverty, 
corruption and inequality' are major challenges. During a forum on 
competitiveness of the region in global economy, General Craddock 
underscored that 'money only goes where safety prevails, rule of law 
is honored, and institutions are transparent.' 
 
"During the Tenth Conference of the Americas, which was organized by 
The Miami Herald newspaper, Craddock said that 'national and public 
security is the cornerstone of economic security.' 
 
"Craddock underscored that 'through the reinforcement of public and 
national security, more efficient governments are created, which are 
capable of encouraging investment and promoting economic 
development.'" 
 
- "(US) Senate defies Bush" 
 
Liberal, English-language "Buenos Aires Herald" reports (09/15) "A 
(US) Senate committee rebelled against President George W. Bush 
yesterday, passing a bill it said would protect the rights of 
foreign terrorism suspects and repair a US image damaged by harsh 
treatment of detainees. 
 
"Hours after Bush went to Capitol Hill to urge fellow Republicans to 
back his proposals for putting terrorism suspects on trial, a 
divided Senate Armed Services Committee approved its own bill which 
it said would meet demands of the US Supreme Court that struck down 
Bush's original plan. 
 
"The committee also resisted Bush's bid to more narrowly define the 
Geneva Conventions' standards for humane treatment of prisoners, 
which Bush said was essential to enable the CIA to elicit valuable 
information from detainees. 
 
"... Some lawmakers say they fear the practices put US soldiers at 
greater risk of harm or abuse if they are captured in conflicts 
overseas." 
 
-"US expert is concerned about increasing business with China" 
 
Leading "Clarin" reports (09/15) "After a tour to several Latin 
American countries, Jane Skanderup, a member of the Pacific Forum, 
Center for Strategic and International Studies, verified increasing 
trade ties between the region and China, and the important role 
played by the Asian giant in the growth of Latin American economy. 
Perhaps, this is why she said Washington is 'concerned' about the 
situation... 
 
"She advised to get ready for uncertain times, 'China will continue 
its industrialization for 20 more years, but commodities' prices 
will not remain high.' 
 
"... Skanderup highlighted that 'Washington is concerned not only by 
Venezuela's entry into Mercosur, which is politicizing the bloc. 
China's decision to reach a trade deal with Mercosur could imply 
Paraguay breaking its diplomatic ties with Taiwan.' 
 
- "China and India's markets pose advantages as well as dangers" 
 
Natalia Labruna, columnist of business-financial, center-right 
"InfoBae," writes (09/15) "According to a report from CEPAL 
(Comision Economica para America Latina y el Caribe) (Economic 
Committee for Latin America and the Caribbean), which was entitled 
'2005-06 Panorama of Latin America and the Caribbean's international 
insertion,' trade between Latin America and China/India has 
 
 
 
considerably increased during the last 15 years... 
 
"Jane Skanderup, senior associate, Pacific Forum, Center for 
Strategic and International Studies, lectured in Buenos Aires on the 
Latin American policies towards China and their impact on US 
interests. 
 
"According to the expert, one of the central issues posed by this 
problem is the way Washington assumes China's influence in the 
region. Skanderup asserted that 'there is consensus in the US to 
incorporate China because the US would certainly benefit from 
China's success in the region.' 
 
"... The US is concerned that Chinese investments come to Latin 
America not only for commercial reasons but for political 
motivations, and therefore, in this case, investment will not be 
productive. 
 
"... Skanderup pointed out that two of the regional issues that 
raise Washington's concern are Venezuela's incorporation into 
Mercosur (due to Chavez's political figure), and the effect it could 
bring to democracy. 'Mercosur needs to keep up with globalization 
and not get distracted with political goals.' She also said that the 
US is interested in Latin America's stable development and it is 
concerned that 'China's presence could be a negative influence in 
the region given the fact that it is not a productive democracy." 
 
- "The US is concerned about China's advance" 
 
Martin Kanenguiser, economic columnist of daily-of-record "La 
Nacion," writes (09/15) "According to Jane Skanderup, member of the 
Pacific Forum, Center for Strategic and International Studies, the 
USG is concerned about China's political influence, and it believes 
that Argentina and Brazil granted the market economy status to it 
without too many guarantees about receiving investment. 
 
"During a press round, Skanderup underscored that the US fears that 
ties between Latin America and China will turn against US 
interests. 
 
"... Asked whether the US concern is political rather than economic, 
Skanderup answered 'it is clear that China has interest in the 
region in the long term, but it is a false expectation to think that 
the region will receive a lot of money in the short run and, in any 
case, (our) concern is that investment is guided by politics. 
 
"Asked whether the US perceives China as a threat, Skanderup 
underscores 'We do not perceive it as a threat but it worries the US 
because Latin America has weak democracies, traffic of people and 
drug trafficking, which China could well use (for its own purposes). 
In theory, Washington wants the region to have strong democracies, 
although perhaps it does not always show it." 
 
- "'Argentina and Brazil lost with China'" 
 
Business-financial "Ambito Financiero" reports (09/15) "Jane 
Skanderup, senior economist at the Center for Strategic and 
International Studies, described a disappointing reality - 'In the 
long term, China has a very strong interest in the region, but it is 
a false expectation to think that billions of dollars will arrive 
overnight. Argentina and Brazil obtained nothing but promises in 
exchange for declaring China a free market economy, and I think they 
did lose something...' 
 
"... Washington's main concern is that investment is decided on the 
basis of political rather than economic reasons. This is why the US 
hindered the purchase of Chevron (Oil Company) by the Chinese state 
oil company. This could be applied to other Chinese investment in 
Latin America. 
 
"'Weak democracies are new and weak, with recovering economies but 
the long term is uncertain and there are problems such as traffic of 
people, drug trafficking. The US is concerned about the fact that 
China could have reasons to enter the region, and that it could 
exploit those shortfalls for its own purposes.' 
 
"... 'Washington is also concerned that China's political entry in 
the economy of the region could be more important than the economic 
entry, and that this could have a negative impact on the region. We 
saw this when Argentina and Brazil accepted China as a free market 
economy; in return, China only promised investment that it did not 
make.' 
 
"... 'Latin America should use part of the revenues from China's 
high demand to invest in long-term, sustainable economic growth, and 
 
 
 
there is being criticism that this is not happening.'" 
 
- "The US is concerned over Beijing's influence in Latin America" 
 
Sergio Serrichio, economic and political columnist of 
business-financial "El Cronista," writes (09/15) "According to Jane 
Skanderup, researcher at the Center for Strategic and International 
Studies, an influential think tank in Washington, the US is 
'concerned' about China's increasing influence on Latin America. 
 
"According to Skanderup, the main concern in Washington is that the 
trade and business China is establishing in the region are 
influenced by political rather than economic motivations. She 
pointed out that, to some degree, Chinese companies are owned by the 
government or have a State majority capital, and, therefore, have a 
logic that differs from that of a market economy. 
 
"Skanderup said that Latin American countries should keep up with 
globalization, and for this purpose they should not 'get distracted 
by political issues.' As an example, she mentioned Venezuela's 
incorporation into Mercosur, which will politicize the bloc. China's 
dialogue with Mercosur is limited by Paraguay's acknowledgment of 
Taiwan, and China offered a free trade to Mercosur in order to 
change Paraguay's opinion. In return, it gives high priority to its 
aspiration to become an IDB member, thereby obtaining a window of 
regional influence and monitoring. 
 
"... The expert pointed out that last April, the US Assistant 
Secretary for Western Hemispheric Affairs, Thomas Shannon, who went 
 
SIPDIS 
to Beijing to participate in the fist dialogue between the US and 
China on Latin America, said that it is not a 'zero sum game.' 
However, he acknowledged that Beijing has increased its involvement 
in Latin America lately and that Washington needs 'to be sure that 
we agree' about the situation." 
 
¶3. EDITORIALS 
 
- "World security expenditures" 
 
Leading "Clarin" editorializes (09/15) "The remarkable increase in 
world security expenditures is another consequence of the September 
11 attacks... However, this is not in line with perception of lack 
of safety. 
 
"... The increase in security expenditures in detriment to social 
expenditures may well contribute to deepening malaise and 
frustration, which is the root of many national and international 
security problems. 
 
"In sum, it is a typical situation of reactive response to the 
symptom. This is at odds with an effective strategy that will offer 
not only preventive measures or military (or police) responses but 
will tackle the multiple reasons for international lack of safety." 
 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
MATERA