VZCZCXYZ0013
OO RUEHWEB

DE RUEHBU #2248/01 2771331
ZNR UUUUU ZZH
O 041331Z OCT 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6116
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 002248 
 
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: A/S THOMAS SHANNON STATEMENTS ON LATIN AMERICAN DEMOCRATIC 
AND AUTHORITARIAN REGIMES; BRAZILIAN ELECTIONS; US-URUGUAYAN TALKS; 
PARAGUAY AND US TROOPS IMMUNITY; 10/03/06;BUENOS AIRES 
 
 
¶1. SUMMARY STATEMENT 
 
Today's key international stories include A/S Thomas Shannon's 
statements on Latin American "democratic" and "authoritarian" 
leaders; the outcome of Brazilian elections; commercial talks 
between the US and Uruguay; and Paraguay removing immunity from US 
troops and contractors. 
 
¶2. OPINION PIECES 
 
- "Shannon criticizes Latin American 'authoritarian leaders'" 
 
Daily-of-record "La Nacion" reports (10/03) "In spite of his 
attempts to minimize tension in the US ties with Argentina, Tom 
Shannon, George W. Bush's man for Latin America, hinted yesterday 
that the Kirchner administration is not included among the US's 
favorite governments in the region. 
 
"Aware of it or not, he did so when he overlooked the Argentine 
president in a long list of leaders having a 'democratic view,' who 
compete with other 'authoritarian leaders' in the hemisphere. 
 
"(US) Assistant Secretary Thomas Shannon gave a speech at the 62nd 
Inter American Press Association General Assembly in the city of 
Mexico. 
 
"During a conference called 'New challenges for the Americas,' the 
head of the Western Hemisphere Division of the US Department of 
State said that there is a step backward in countries whose 
governments bet on confrontation rather than on seeking consensus. 
Shannon added that a 'very dangerous' political polarization is 
created in this way. 
 
"Shannon said that latest elections in the region have demonstrated 
that voters prefer moderate positions, a little bit more to the left 
or to the right... 
 
"He listed those leaders, and he overlooked Kirchner in his listing. 
'Michele Bachelet in Chile, Oscar Arias in Costa Rica, Alvaro Uribe 
in Colombia, Alan Garcia in Peru, Stephen Harper in Canada, and 
Felipe Calderon here in Mexico. All these leaders are committed to 
integration and successful relationships with their neighbors; they 
are committed to trade as an engine for development.' 
 
"Instead, he pointed out that there is a 'competing view' in other 
nations, which he did not mention, in which an authoritarian 
leadership prevails and the government is used as a controlling 
instrument in the economic field.'" 
 
- "Run-off-the mill" 
 
Michael Soltys, executive editor of liberal, English-language 
"Buenos Aires Herald," writes (10/03) "Sunday's elections in Brazil 
were billed as a total contrast to Mexico's three months ago - 
rampant re-election for the center-left candidate instead of a 
razor-thin win for the center-right - but the final result was 
rather too close for comfort with President Lula falling short of 
first-round victory. 
 
"... Nevertheless, Brazil is a continent-sized country which prefers 
to explain events in its own terms without reference to the 
region... 
 
"... Lula should still win the runoff on October 29 - he is only a 
couple of million votes short of victory among an electorate of 126 
million and of the 9.8 per cent who voted for eliminated candidates, 
over nine percent voted for two firmly leftist candidates and are 
hardly likely to opt for Alckmin now. 
 
"One of the few people in the world who is equally comfortable with 
US President George W. Bush and Venezuela's Hugo Chavez, Lula 
appealed to all classes in Brazil with economic policies favoring 
the rich... while no less than 44 million impoverish Brazilians have 
entered the government's social program network. 
 
"Yet the election reveals a country divided along regional as much 
as class lines... 
 
"The polarized presidential race was not reflected in either 
congressional or gubernatorial voting. The PSDB fared better than 
the PT in state voting with Serra and Neves holding the promise of 
strong presidential candidacies in 2010 but the centrist PMDB did 
better than either party, running ahead in a third of the states. 
 
"Elections in the region's biggest country obviously crowds out all 
other news. Worthy of mention is Uruguay launching negotiations for 
 
 
a preferential trade agreement with the US, abandoning the more 
ambitious Peruvian model - although whether this is because there is 
not enough US 'fast track' time for a fuller agreement or whether 
Uruguay's real aim is to force a better deal out of Mercosur remains 
hard to say." 
 
- "The right wing is strengthened" 
 
Left-of-center "Pagina 12" carries an opinion piece by Atilio Boron, 
political analyst, who opines (10/03) "The outcome of Brazilian 
elections has been disappointing for the Lula administration... The 
fact that a right-wing candidate like Alckmin has made an excellent 
election is worrisome. This achievement can be explained by the 
deficit in Lula's policies rather than by the right wing's own 
merit. I do not believe Lula represents a left-wing candidate. 
Obviously enough, Lula is not the US's favorite candidate because 
some in Washington think that, during his second term in office, 
Lula could be interested in promoting the PT's left-wing policies. 
 
"... During the latest election campaign, the right wing has been 
strengthened in a significant way while the leftist coalition 
supporting the PT is weakened... 
 
"During a second term in office, with a stronger right wing, the PT 
government will languish and end up in big disappointment. Even 
though, Lula is preferable to Alckmin, who is a mere performer of 
the neo-liberal policies of the '90s. Lula will soften the US 
pressure. 
 
"Latin America is witnessing the election of a conservative 
government like that of Calderon in Mexico, a possible victory of a 
right-wing government led by Alckmin and a PT government that did 
not honor its promises. This is bad news for the region." 
 
- "The regional leadership is at stake" 
 
Business-financial "El Cronista" carries an opinion piece by Felix 
Pea, head of the Institute of International Trade, Fundacion 
BankBoston and a member of the paper's editorial council, who writes 
(10/03) "Who leads Latin America... South America is an increasingly 
differentiated sub-system... 
 
"In this framework, the South American agenda appears dominated by 
issues of governance and unsatisfied social expectations... 
 
"Leadership will mean a country's ability to contribute to the 
articulation of divergent national interests, which is aimed at 
putting potential focuses of trouble under control... 
 
"It seems to be a task to be carried out by several countries, not 
just one. Due to its relative size, Brazil has the greatest 
responsibility for it. But its president will finally have to come 
to terms upon initiatives with other relevant countries like 
Argentina and Chile and even with Venezuela (due to its vocation for 
a leading role)." 
 
- "Uruguay changes and now does not dismiss an FTA with Washington" 
 
Conservative "La Prensa" reports (10/03) "Uruguayan Economy Minister 
Danilo Astori insisted yesterday that an FTA with the US 'has not 
been dismissed,' although President Tabare Vazquez had announced on 
Thursday that he will sign a Trade Investment Framework Agreement 
(TIFA). 
 
"... Negotiations will end today with the signature of a joint 
communiqu in which the two countries will express their willingness 
to make progress on the expansion and diversification of bilateral 
trade... 
 
"The eventual signature of an FTA with the US has sparked harsh 
controversy within the government. Economy Minister Astori and his 
counterpart Industry Minister Jorge Lepra said they favor an FTA 
while FM Reinaldo Gargano opposed such a deal." 
 
- "Paraguay removes immunity from US troops and contractors" 
 
Hugo Olazar, on special assignment in Asuncion for leading "Clarin," 
writes (10/03) "The Paraguayan government officially notified the US 
that, starting in 2007, it will no longer offer diplomatic immunity 
for US troops performing military exercises in its territory. 
 
"... Paraguayan FM Ruben Ramirez announced the measure and he 
acknowledged that his predecessor, former FM Leila Rachid, reported 
the decision to A/S Thomas Shannon during her latest visit to 
Washington in August. 
 
 
"He also admitted that Shannon replied that, without immunity for 
the US troops, the US would find it impossible to continue providing 
Paraguay with military cooperation." 
 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
MATERA