VZCZCXYZ0000
OO RUEHWEB

DE RUEHBU #2136/01 2621807
ZNR UUUUU ZZH
O 191807Z SEP 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5952
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 002136 
 
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: IRAN; MICELI/PAULSON MEETING; REGIONAL FORUM ON 
INTERNATIONAL SECURITY AND ORGANIZED CRIME; VENEZUELA'S ENTRY INTO 
MERCOSUR 09/19/06; BUENOS AIRES 
 
 
¶1. SUMMARY STATEMENT 
 
Major local dailies cover extensively the Regional Forum on 
International Security and Organized Crime, held yesterday at the 
Buenos Aires Stock Exchange. They also report statements from Theo 
Van Lingen, Policy Advisor for the Western Hemisphere, US Treasury. 
Daily-of-record "La Nacion" carries an exclusive interview with Mr. 
Theo Van Lingen in its "Economy and Business" Supplement. 
 
Other international stories include French President Chirac's 
proposal that powerful countries should not resort to the UN 
Security Council to seek sanctions against Iran; the meeting between 
US Treasury Secretary Henry Paulson and Argentine Economy Minister 
Felisa Miceli; Argentine First Lady Cristina Kirchner's criticism of 
IMF policies; 
and the impact of Venezuela's entry into Mercosur. 
 
¶2. OPINION PIECES 
 
- "Chirac's turning point on Iran on the eve of the UN General 
Assembly" 
 
Daily-of-record "La Nacion" reports (09/19) "On the eve of the 61st 
UN General Assembly in New York, which will mainly deal with the 
crisis unleashed by the Iranian nuclear program, French President 
Jacques Chirac proposed yesterday that powerful nations should not 
resort to the UN Security Council to seek sanctions against Tehran 
but they should make progress on negotiations. 
 
"In this why, Chirac revealed a turning point on the sensitive 
Iranian nuclear program... With regards to Iran, the French 
president said that powerful countries in charge of the issue should 
not resort to said institution to impose sanctions on Iran. 
 
"At the same time, he suggested that, in exchange for this, Iran 
'should relinquish uranium enrichment activities' for the sake of 
negotiations. Chirac proposed the suspension take place 'during' and 
not 'before' negotiations. It is the first time a European leader 
clearly states that the suspension of Iran's uranium 
enrichment-related activities should not constitute a 'prior 
condition' for opening of negotiations on the sensitive Iranian 
nuclear issue. 
 
"This strategy goes against that promoted by the US, which will seek 
consensus during the UN General Assembly to impose sanctions on 
Iran. Washington is calling for a suspension of Iranian nuclear 
activities as a prior condition for negotiations." 
 
- "Argentina's conciliatory gestures with the US" 
 
Alejandro Rebossio, on special assignment in Singapore for 
daily-of-record "La Nacion's" "Economic & Business" supplement, 
writes (09/19) "Yesterday, Argentina complained to the US for its 
lack of support on loans to the country by some multilateral lending 
agencies, but the US downplayed the issue. 
 
"While President Nestor Kirchner is in New York to meet with US 
investors, Economy Minister Felisa Miceli met yesterday with US 
Treasury Secretary Henry Paulson in Singapore, and the two of them 
agreed to improve communication in order to avoid new conflicts. 
 
"Miceli asked Paulson why, during recent months, the US has approved 
some IDB loans while rejecting others - among them one satellite 
development project in cooperation with NASA. 
 
"Secretary Paulson, who usually goes straight to the point, said it 
was better to speak about the future and he downplayed the issue by 
pointing out that the loans had been approved by the IDB all the 
same. 
 
"Finally, Paulson and Miceli agreed that the next time a loan to 
Argentina is brought to the consideration of the board of 
multinational lending agencies, bilateral contacts will be 
strengthened so that projects are better explained. 
 
"Miceli expects that dialogue will be strengthened when the new US 
Ambassador Earl Wayne arrives in Buenos Aires. 
 
"Miceli emphasized the companies' investment plans including those 
of US corporations, in Argentina. According to a high-ranking 
Economy Ministry source, Paulson acknowledged the country's 'high 
growth rate.' 
 
"According to the same source, there was no criticism during the 
meeting of Argentina's economy, its energy supply system, its ties 
with Venezuela and Bolivia, or Argentina's vote against the IMF 
 
 
reform." 
 
- "The US asks the country for anti-terrorist financing 
legislation" 
 
Martin Kanenguiser, columnist of Daily-of-record "La Nacion's" 
"Economy and Business" supplement makes an interview with Theo Van 
Lingen, Advisor for the Western Hemisphere at the US Treasury 
Department, who said that Argentina should have legislation against 
terrorist financing in order to avoid measures that could isolate it 
from the international financial system. He also said that the 
Financial Information Unit should be independent from the political 
power in order to work properly. 
 
"... Asked about the fight on money laundering and terrorist 
financing in Argentina, Van Lingen said 'we understand that 
obstacles do appear; however, Argentina supported the Financial 
Action Task Force (FATF), which generates some pressure for 
legislation to be approved faster. The US finds it very important 
for the country to approve legislation against terrorist financing, 
and this is why we support Argentina in every possible way. The US 
is trying to prevent the use of the financial system to transfer 
money to terrorist groups all over the world.' 
 
"On the consequences of a FATF sanction on Argentina, Van Lingen 
said 'the effect of an international sanction could be financial 
isolation.'" 
 
- "The Argentine Government defines its anti-money laundering 
strategy" 
 
Natasha Niebieskikwiat, columnist of leading "Clarin," writes 
(09/19) "Argentine Justice Minister Alberto Iribarne asserted 
yesterday that within the next days, he will submit a national 
agenda against money laundering and terrorist financing to President 
Nestor Kirchner. According to the minister, they will seek a 
coordinated strategy for all governmental institutions involved in 
this issue. 
 
"Iribarne gave an address along with the US DCM Michael Matera at 
the opening ceremony of the Regional Forum on International Security 
and Organized Crime at the Buenos Aires Stock Exchange. The forum 
was coordinated by Argentine-American Dialogue, Fundar and the US 
Department of State. 
 
"The forum is another place where Washington stamps its message on 
issues that it believes are top priority issues, such as the global 
fight on terrorism and money laundering activities at the 
Tri-Border. 
 
"... Theo J. Van Lingen, Policy Advisor for the Western Hemisphere 
at the US Treasury Department, said that 'only through joint 
cooperation shall we become highly effective in the fight against 
money laundering and the accounting practices that serve terrorist 
financing.' The young but decisive Van Lingen was one of the invited 
panelists along with other government officials from Brazil, 
Paraguay and Argentina. 
 
"Van Lingen said yesterday that 'we are facing a new era in which 
finance ministries, regulators and institutions' should seek and 
detect risks in order 'to isolate threats.'" 
 
- "Money laundering and terrorism, the focus of a seminar on 
security" 
 
Natalia Labruna, international columnist of business-financial 
"InfoBae," comments (09/19) "In the framework of the Regional Forum 
on International Security and Organized Crime, which was held at the 
Buenos Aries Stock Exchange auditorium and was organized by the 
Public Affairs Section of the US Embassy, the US-Argentine Dialogue 
Foundation and Fundar-Justice and Security Foundation, several 
experts tackled diverse issues related to international security. 
 
"One of the main topics of the encounter was money laundering and 
its close ties to terrorist financing. 
 
"On this issue, Theo Van Lingen, advisor at the US Treasury 
Department, asserted that financial institutions should play a 
fundamental role in the fight against money laundering and terrorist 
financing... 
 
"According to Van Lingen, both credit cards and phone and banking 
transactions provide terrorists with opportunities to launder money 
from their crimes. However, he made clear that financial 
institutions can prevent these procedures, and he underscored the 
importance of involving the private sector in this fight." 
 
 
 
- "The US considers Argentine cooperation 'excellent'" 
 
Business-financial, center-right "InfoBae" reports (09/19) "The US 
Deputy Chief of Mission, Michael Matera characterized Argentine 
cooperation in the fight on the organized crime as 'excellent,' and 
he called to promote greater work on the border. 
 
"Matera recalled that the 'FBI is cooperating in a very productive 
way with law enforcement agencies' on 'issues related to criminal 
investigation and terrorism, information exchange and training 
initiatives.' 
 
"In the framework of the Regional Forum on International Security 
and Organized Crime, Matera highlighted that 'many of the problems 
we face today in the area of security and law enforcement... have 
two things in common - they are interrelated and have no borders.'" 
 
- "A new promise to fight money laundering" 
 
Business-financial "Ambito Financiero" reports (09/19) "Argentine 
Justice Minister Alberto Iribarne asserted yesterday that 'Argentina 
will have a strategy against money laundering and terrorist 
financing,' which will be coordinated among different governmental 
institutions. The relevant document will be finished in the next 
days and submitted to the President. 
 
"The minister made this announcement in the framework of the Forum 
on International Security and Organized Crime, which he opened along 
with the US Deputy Chief of Mission, Michael Matera, at the Buenos 
Aires Stock Exchange. 
 
"During the meeting, the US representative, who is in charge of the 
US Embassy until the arrival of Anthony Wayne, called cooperation in 
the fight on organized crime 'excellent.'" 
 
- "Cristina defends capitalism and questions the IMF role once 
again" 
 
Ana Baron, Washington-based correspondent for leading "Clarin," 
writes (09/19) "... 'I do not care if we are called 'populist.' 
After the class she gave to students from the University in Columbia 
in New York, she gave a long explanation on why populism is the 
other side of capitalism and how Kirchner and his administration 
favor capitalism. 
 
"'What is capitalism? One of the things that made the Berlin wall 
fall was not the US power but the fact that capitalism is a better 
idea than communism and what makes capitalism differ from other 
doctrines is consumption.' 
 
"However, the first thing the IMF advises, through its policies of 
adjustment, is constraining consumption, so?...' 
 
"... The First Lady also criticized privatized corporations because 
they ask for an increase in public service rates, something which, 
according to her, goes against consumption... 
 
"'Whenever a government defends its resources, its national decision 
system, whenever it wants to make autonomous decisions according to 
the citizens' interests, and to have its own integration project, 
and not be subordinated to the world, it is incorrectly called 
'populist.'" 
 
- "With Venezuela's entry into Mercosur, integration will be 
limited" 
 
Leading "Clarin" carries an op-ed story by Fabian Calle, professor 
of International Relations at Di Tella University and the Catholic 
University, who writes (09/19) "In the framework of Venezuela's 
entry into Mercosur as a full member, President Chavez emphasized 
the need for making progress not only on economic integration but 
also on the military one. 
 
"... Argentina and Brazil have showed their willingness to increase 
financial, trade and energy ties to Venezuela, but not security and 
defense relations, which are strongly confronted with those of the 
Western powers, particularly those of Washington and Israel. 
 
"... Mercosur has little to obtain from including military and 
security issues on its agenda of cooperation with the Chavez 
administration." 
 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
 
 
MATERA