VZCZCXYZ0002
OO RUEHWEB

DE RUEHBU #2196/01 2691930
ZNR UUUUU ZZH
O 261930Z SEP 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6034
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 002196 
 
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: VENEZUELA'S UNSC CANDIDACY; ARGENTINE ANTI-TERRORIST 
FINANCING LEGISLATION; BRAZILIAN UPCOMING ELECTIONS; ARGENTINE 
MINISTER DE VIDO'S STATEMENTS ON PRESIDENT KIRCHNER'S TRIP TO THE 
US; MERCOSUR; 09/26/06; BUENOS AIRES 
 
 
¶1. SUMMARY STATEMENT 
 
Leading international stories today include US reproach Argentina 
for its support for Venezuela's candidacy for a seat at the UN 
Security Council; former Argentine Economy Minister Roberto Lavagna 
supporting Uruguay as a "natural candidate" to replace Argentina at 
the UN Security Council; the Argentine Government submitting a draft 
bill to fight terrorist financing; Brazil's upcoming elections; 
Argentine Minister De Vido's statements on President Kirchner's trip 
to the US; and Mercosur's need for reshuffling so that 
intra-industrial trade can develop in the region. 
 
¶2. OPINION PIECES 
 
- "The US scolds Argentina for its support for Venezuela's candidacy 
for a seat at the UN" 
 
Ana Baron, Washington-based correspondent for leading "Clarin," 
comments (09/26) "Following Chavez's speech at the UN in which he 
called Bush a 'devil,' the US has redoubled its offensive to prevent 
Venezuela from obtaining a seat at the UN Security Council. 
 
"During a meeting in the framework of the UN General Assembly in New 
York, US Secretary of State Condoleezza Rice asked Argentine FM 
Jorge Taiana 'How is it possible that Argentina will vote in favor 
of Venezuela?' According to a US source who asked not to be 
identified, Rice knows that Argentina has already coordinated its 
vote with the other Mercosur countries and that it will hardly 
change it. 
 
"Taiana also told Rice that Venezuela is a South American candidate 
and that Argentina does not want to isolate it. Rice replied 'Yes, 
but this is the (UN) Security Council.' She is obviously starting to 
pressure Argentina to support a third candidate in the event neither 
Venezuela nor Guatemala manages to gather the necessary votes to win 
the election, as many have predicted. According to the source, Mike 
Matera, DCM at the US Embassy in Buenos Aires, also received 
instructions to speak with the (Argentine) Foreign Ministry on the 
issue. 
 
"However, Javier Porta, spokesperson of the Foreign Ministry, denied 
that Rice spoke on the Venezuela issue with Taiana. 'Argentina is 
not analyzing a third candidate. Our vote will be for Venezuela.' 
 
"... Anyway, Latin American diplomats increasingly believe that 
Chavez will not manage to obtain the 128 votes that are required to 
win. It would not be the first time a country does not manage to 
gather the 128 votes required... Now, reportedly, the candidate 
supported by most voters could be Uruguay or Costa Rica. It is said 
at the UN that, through his speech, Chavez wanted to polarize the 
situation in such a way that if he lost the election it would well 
be argued that his defeat was due to the US lobby." 
 
- "Lavagna does not want Venezuela at the UN Security Council" 
 
Conservative "La Prensa" reports (09/26) "Yesterday, former Economy 
Minister Roberto Lavagna proposed Uruguay as a 'natural candidate' 
to replace Argentina as a non permanent member of the UN Security 
Council. 
 
"In this way, he distanced himself from the (Argentine) Government, 
which promotes the candidacy of Venezuela, while the US is 
supporting Guatemala for the October 16 election. 
 
"Lavagna said that 'Uruguay is a small but serious and responsible 
country.'" 
 
- "Argentina wants to punish terrorist financing" 
 
Martin Kanenguiser, economic columnist of daily-of-record "La 
Nacion," comments (09/26) "The (Argentine) Government will submit a 
draft bill to Congress before the end of the year to sanction 
terrorist financing in response to the strong international pressure 
for said legislation. However, it will avoid sanctioning social 
protest movements. 
 
"According to official sources, a committee of legislators and 
members of the Government is preparing a draft bill seeking to avoid 
sanctions from the Financial Action Task Force (FATF), which will 
evaluate in February whether Argentina has honored demands related 
to this controversial issue. 
 
"A US Treasury Department advisor, Theo van Lingen, warned last week 
that if the country does not have this legislation, it could suffer 
increasing international financial isolation. Sanctioning terrorist 
 
 
 
financing is a top priority on the Bush administration's agenda." 
 
- "Despair and the lessons of history" 
 
Oscar Raul Cardoso, international analyst of leading "Clarin," 
writes (09/26) "... We should see what is happening in Brazil right 
now from a broader point of view than only based on corruption 
charges. It is impossible to deny that behind this last scandal, 
there is the despair of some opposed sectors to prevent Lula from 
obtaining a sliding victory... 
 
"The truth is that for an influential sector of society, Lula's 
victory four years ago and his expected victory now are just 
obstacles. This aversion of the 'thinking' Brazilian sector, for 
which not even Lula's economic pragmatism makes him more acceptable, 
has elements of class discrimination and even racism. This is why 
even the old representatives of the latest military dictatorship 
have agitated the ghost of institutional rupture... 
 
"They will find it hard to meet their goal - for this purpose, Lula 
would have to lose about 8 per cent in vote intention and the 
remaining time for this purpose does not seem to be enough. 
Nonetheless, Lula should start thinking what everything will be like 
in the aftermath of his election victory - Richard Nixon obtained 
his second term in office by 60 per cent of votes, which was a 
sliding victory in spite of corruption charges against him; however, 
two years later, he had to leave the White House in disgrace due to 
the same scandals voters had not focused on previously." 
 
- "De Vido emphasizes Argentine mission to the US was 'a 
milestone'" 
 
Business-financial, center-right "InfoBae" reports (09/26) 
"Argentine Planning Minister Julio De Vido pointed out that during 
President Nestor Kirchner's recent visit to the US, there was 'great 
interest in Argentina' among international investors, which was 
demonstrated at the Council of the Americas. 
 
"The Argentine Government official, who termed the Argentine 
president's trip to the US 'a milestone,' defended the Argentine 
Government policy on public service rates... 
 
"... After a meeting with community leaders, De Vido added 
'Argentina did not to go the US to ask for loans, we do not want to 
get indebted. Instead, we want to attract investment.'" 
 
- "Reshuffling Mercosur" 
 
Leading "Clarin" carries an op-ed piece by Marta Bekerman, head of 
the Center of Economic Structure Studies, School of Economic 
Sciences, National University of Buenos Aires, who writes (09/26) 
"It cannot be denied that Mercosur elicits far less enthusiasm that 
at earlier times. This coincides with deep changes in our commercial 
ties with Brazil. 
 
"... Mercosur largely depends on its reshuffling so that an 
intra-industrial trade can be developed in the region. This means 
that the Mercosur countries can increasingly purchase and sell 
industrial products... 
 
"... Attempting it will be worth it. The increasing protectionism in 
the international scenario shows how important it is to strengthen 
the region and provide it with the ability to negotiate with third 
countries." 
 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
MATERA