VZCZCXYZ0002
OO RUEHWEB

DE RUEHBU #2149/01 2631828
ZNR UUUUU ZZH
O 201828Z SEP 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5970
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 002149 
 
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; IMF ANNUAL MEETING; US-BOLIVIAN TIES; 
BOLIVIAN-VENEZUELAN ALLIANCE; ARGENTINE-VENEZUELAN TIES; ARGENTINE 
PRESIDENT KIRCHNER AND FIRST LADY IN NEW YORK; 09/20/06 
 
 
¶1. SUMMARY STATEMENT 
 
Today's leading international stories include the exchange of 
accusations between the US and Iran at the UN General Assembly; the 
IMF Annual Meeting; Bolivian President Evo Morales rejecting a US 
report on the outcome of the struggle against drug trafficking; 
Morales' acknowledgement that Venezuela will build two military 
bases in Bolivia; Argentina's ties with Venezuela; Argentine 
President Kirchner and his wife's visit to New York; and Thailand's 
military coup d'etat against PM Shinawatra. 
 
¶2. OPINION PIECES 
 
- "Exchange of Accusations between Iran and the US at the UN" 
 
Leonardo Mindez, on special assignment in Washington for leading 
"Clarin," writes (09/19) "The two of them were in the same building 
but they avoided meeting face to face. Even so, US President George 
¶W. Bush and Iranian President Mahmoud Ahmadinejad conveyed clear 
public messages to continue feeding the mounting tension between 
their two administrations. The US President reiterated at the UN 
General Assembly that 'Iran should relinquish its nuclear 
ambitions.' The Iranian president responded 'all our nuclear 
activity is transparent and peaceful.' 
 
"During his 21-minute morning speech, Bush made it clear that he has 
no doubts that Iran wants to develop nuclear weapons, he insisted on 
a diplomatic suspension of Iran's (nuclear) program, and asserted 
that he 'does not have any objection to Iran pursuing a real nuclear 
program with peaceful purposes.' Although 20 days have passed since 
the UN deadline for the ultimatum imposed on Iran to stop its 
nuclear program, the truth is that the US has not obtained (and it 
is not likely to obtain soon) the support of the other permanent 
members of the UN Security Council to impose sanctions on the Tehran 
government." 
 
- "Rhetoric" 
 
Marcelo Cantelmi, international editor of leading "Clarin," opines 
(09/20) "Ever since the US launched its antiterrorist war, the 
scenario has not revealed expected medals of victory. 
 
"The US won in Afghanistan through its initial assault, but it lost 
ground as time went by. It easily triumphed in Iraq, although its 
troops are now 'splashing in a swamp' only waiting for the moment to 
leave. Among other serious regional shortfalls, the diplomacy that 
accompanied said venture did not build the necessary bridges (like 
the dialogue with Syria) and paved the way for an expansion to Iran. 
 
 
"Tehran's fundamentalist government has taken advantage of all this 
background. Confronting the US has facilitated things for Iran, 
which seems immune to the war rhetoric that  it faces." 
 
- "Evo rejects US 'interference' on drugs" 
 
Business-financial "El Cronista" reports (09/20) "Bolivian President 
Evo Morales harshly rejected yesterday the US report on the outcome 
of the struggle against drug trafficking and he expressed his 
'concern' about Washington's 'interference' in the Andean country. 
 
"... The Bolivian president defended the policy of gradual reduction 
(not eradication, as wanted by Washington) of 
coca crops, and he said the Bush administration should acknowledge 
this effort. 
 
"The new clash happened now that the Commander of the US Southern 
Army, General Ken Keen, is in Bolivia." 
 
- "Regional concern over Evo-Chavez alliance" 
 
Business-financial, center-right "InfoBae" reports (09/20) "Bolivian 
President Evo Morales acknowledged yesterday in the US that 
Venezuela will build two military bases in his country. The decision 
has engendered surprise and concern in the rest of the hemisphere. 
 
"... The decision has unleashed concern all over the hemisphere due 
to fears of an arms race in the region..., particularly bearing in 
mind the permanent threat posed by the Triple Border... 
 
"While the US closely watches this area, Evo Morales is attempting 
to challenge the military balance in the hemisphere." 
 
- "Chavez concerns the Jewish community more than anti-Semitic 
episodes" 
 
 
Eduardo van der Kooy, political columnist of leading "Clarin," 
comments (09/20) "... The Jewish community's concern about 
anti-Semitic episodes is true, but its main concern is Kirchner's 
relationship with Hugo Chavez and Chavez' close ties with the Tehran 
government... 
 
"... The international Jewish community is concerned about one of 
the vital aspects of Kirchner's foreign policy - his ties with 
Caracas... Kirchner's ties with Chavez have been fruitful for the 
President in terms of financing and they helped alleviate the energy 
crisis. However, it has some costs now." 
 
- "Energy - US corporations call for clearer rules for investment" 
 
Business-financial "El Cronista" front-pages (09/20) "In New York, 
Argentine Minister Julio De Vido made a new effort to demonstrate in 
front of an audience of investors (particularly from the energy 
sector) that Argentina is a country offering attractive conditions 
to those who dare invest in a sector with an increasing demand and 
serious supply problems. 
 
"While he asserted that the new initiatives will be profitable in 
the medium term, businessmen told him that a framework of clearer 
rules regarding public service rates is badly needed. 
 
"Local businessmen in Buenos Aires fear that the frozen public 
service rates could spark a new convertibility system, from which 
the Government will not be able to get away." 
 
- "Kirchner did not want to attend Bush's reception" 
 
Martin Rodriguez Yebra, on special assignment in New York for 
daily-of-record "La Nacion," comments (09/20) "For the first time in 
four years, Argentine President Nestor Kirchner decided to miss the 
reception offered by President George W. Bush to the heads of State 
attending the UN General Assembly ceremony. 
 
"Both presidents have not held talks ever since the Mar del Plata 
Summit of the Americas. 
 
"Since then, the US-Argentine bilateral relationship has been 
frozen, according to Kirchner - who is particularly encouraged to 
say this based on his disagreement about hemispheric trade 
integration. 
 
"Kirchner did listen to Bush's speech to the UN General Assembly 
plenary, in which he only spoke about terrorism and made warnings to 
the countries of the Middle East that are being hostile to the US. 
 
"On the contrary, according to a source in the Argentine delegation, 
the Argentine President will plead in his speech today for 
multilateralism in counterbalance to hegemonic and unilateral 
initiatives." 
 
- "'Argentina made progress because it did not adopt a neo-liberal 
model'" 
 
Conservative "La Prensa" reports (09/20) "Senator Cristina Fernandez 
stated that Argentina was able to make progress because it chose a 
growth model that differed from the neo-liberal model, and it is 
even opposed to the neo-liberal prescriptions that led us to 
chaos.' 
 
"The legislator participated in a panel on Expectations about Latin 
America at the New School University of New York. Cristina Fernandez 
pointed out that the Argentina of 2003 'has little to do with 
today's Argentina' and she said that 'while it may not be a 
paradise, figures indicate that we are on a good track.' 
 
"In this regard, she said that, according to the National Institute 
for Statistics, poverty has gone down 30%. She pointed out that the 
country 'has reasonable autonomy in making decisions after having 
paid off its IMF debt, as did Brazil.'" 
 
¶3. EDITORIALS 
 
- "IMF critical reforms" 
 
Conservative "La Prensa" editorializes (09/19) "The IMF announced 
reforms had raised expectations in emerging countries with regards 
to a better distribution of duties within the institution, therefore 
allowing for the participation of growing economies like 
Argentina's. 
 
"Nonetheless, the announcements mde in the Singapore meeting 
revealed that there is a strong tendency to concentrating 
 
 
decision-making power on the most powerful countries, which could 
increase the likelihood of discrimination in granting international 
loans. 
 
"... If efforts are not made to take into account the interests of 
the most vulnerable sectors of the new international financial 
system, they will remain the most harmed sectors as a result of the 
policies implemented by multinational lending agencies in handling 
global crises. 
 
"Implementing more equitable development processes for Latin 
American countries is a challenge calling for adequate public 
policies based on information that makes patent social and regional 
inequality." 
 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires MATERA