VZCZCXYZ0019
OO RUEHWEB

DE RUEHBU #2754/01 3490949
ZNR UUUUU ZZH
O 150949Z DEC 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6759
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 002754 
 
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: IRAQ-IRAN-SYRIA; TRI-BORDER AREA; GSP; ARGENTINE-VENEZUELAN 
TIES; AMBASSADOR WAYNE'S MEETING WITH ARGENTINE BUSINESSMEN; 
12/11/06; BUENOS AIRES 
 
 
¶1. SUMMARY STATEMENT 
 
Weekend stories focus on the USG's reaction to the report from the 
Iraq Study Group; the follow up on the US Treasury Department's 
designation of individuals and entities supporting Hezbollah in the 
Tri-Border area; the status of Argentine-Venezuelan ties; and US 
Ambassador Wayne's meeting with Argentine businessmen. 
 
¶2. OPINION PIECES 
 
- "Bush rejects a dialogue with Iran and Syria" 
 
Daily-of-record "La Nacion's" Washington-based correspondent Hugo 
Alconada Mon writes (12/08) "Bothered by the pressure emerging as a 
result of the release of a critical report from the Iraq Study 
Group, President George W. Bush acknowledged yesterday that the 
situation there is bad, although he took distance from the two main 
points of the document -eventual US troop withdrawal and opening 
dialogue with Iran and Syria. 
 
"During a press conference, Bush downplayed the influence of a 
report from the bipartisan committee, although he acknowledged that 
the coalition needs 'a new approach' to the occupation of Iraq. 
 
"The US president made it clear that he would 'seriously analyze' 
the report, but that he would not adopt the 79 recommendations that 
were unanimously approved by the group... 
 
"... Bush pointed out that he should be 'flexible and realistic' 
when ordering US troop movements. He also set tough conditions on 
establishing dialogue with Iran and Syria. He said that both 
countries should first stop funding Hezbollah and Hamas and, in the 
case of Tehran, it should relinquish its controversial nuclear 
program." 
 
- "The US - the old guard is called to 'put things in order'" 
 
Oscar Raul Cardoso, international analyst of leading "Clarin," 
writes (12/09) "...  George W. Bush has called the most moderate and 
experienced conservative Republicans to get out of the chaotic 
situation in Iraq... 
 
"The Iraq Study Group report recommended putting aside the current 
confrontation with Iran and Syria and arriving at some kind of 
negotiation with them, and also renewing the peace process between 
Israelis and Palestinians... Therefore, it raised mistrust in both 
the Bush administration and the influential Israeli lobby... The 
feeling is growing that the US is paying too high a price in the 
world for its growing confrontation with the Islamic world. 
 
"... Anyway, Washington will not abandon Israel to its fate in the 
near future. However, a debate on the change of emphasis in the US 
approach to the Middle East conflict is a possibility that should 
not be fully dismissed." 
 
- "AMIA - the (Argentine Government) is investigating a US 
designated terrorist" 
 
Daniel Santoro, political columnist of leading "Clarin," writes 
(12/09) "In spite of the Argentine Government's rejection of a US 
report (designating nine individuals and organizations as financial 
supporters of Hezbollah), Lebanese Assad Barakat is being 
investigated by SIDE (Argentine central intelligence unit) for his 
alleged financial support for the attack against the AMIA 
headquarters. 
 
"Barakat was designated by a US Treasury Department report as the 
leader of a network of financial and logistical support for 
Hezbollah... 
 
"The report was rejected by the Foreign Ministries of Argentina, 
Brazil and Paraguay in a joint communiqu. Defense Minister Nilda 
Garre said that 'intelligence services of our three countries do not 
have any information or assessment of terrorist activities related 
to Hezbollah in the region." 
 
- "The US charges the Tri-Border with some 'help'" 
 
Hugo Alconada Mon, Washington-based correspondent for 
daily-of-record "La Nacion," writes (12/10) "According to two USG 
sources, the Governments of Argentina, Brazil and Paraguay were 
notified by the US that a network related to Hezbollah is reported 
to be acting on the Tri-Border area one week before the US Treasury 
Department made it public. 
 
"Washington has its own 'methods' to gather intelligence information 
 
 
related to the area, but it also received the cooperation of the 
intelligence services of the three countries to designate nine 
individuals and two institutions as part of the network... 
 
"According to one of the sources consulted by 'La Nacion' in this 
city, 'Argentine intelligence services are very professional and we 
received a good deal of information from part of them.'" 
 
- "Garre criticizes the report on the Triple Border" 
 
Leading "Clarin" (12/08) reports "The (Argentine) Government again 
rejected the US Treasury Department's designation of individuals and 
organizations supporting Hezbollah terrorists in the Tri-border 
Area. 
 
"This time, it was Argentine Defense Minister Nilda Garre who 
rejected the report... She said that 'the existence of direct 
supporters for Hezbollah 'is unknown.'" 
 
- "Brazil joins Argentina against US report on triple border 
'terrorism'" 
 
Liberal, English-language "Buenos Aires Herald" reports (12/09) 
"Echoing Argentina's rejection, Brazil has rejected US sanctions 
against alleged terrorist fundraisers in the triple-border area... 
 
"The Brazilian FM announcement late on Thursday indicated that the 
three South American governments are unwilling to place complete 
trust in US assertions about the war on terror. 
 
"Washington on Wednesday imposed sanctions on what it termed a major 
fundraising channel for Hezbollah in the tri-border area, focusing 
on nine people plus a shopping center in Paraguay and an electronics 
company located there... 
 
"... Brazil said that representatives of three countries met in 
Buenos Aires this week and decided there was not 'any new data or 
evidence that corroborates the accusation by the US.' It also said 
the US had failed to prove oft-repeated suggestions that the region 
itself is a hotbed of terrorist financing." 
 
- "The US will maintain GSP benefits for the country" 
 
Hugo Alconada Mon, Washington-based correspondent, writes (12/10) 
"Last but not least, and contradicting the alleged purpose of the US 
to impose sanctions on Argentina for having supported Venezuela's 
entry into the UN Security Council, the US Congress extended for two 
years the benefits allowing some Argentine products to enter the US 
markets without tariffs. 
 
"Legislators extended the GSP until the end of 2008, and imposed new 
requisites so that the program can benefit the poorest countries of 
the world, although this did not affect Argentine exports." 
 
- "In Olivos, Kirchner explained his relationship with the US to 
Chavez" 
 
Daily-of-record "La Nacion's" political columnist Mariano Obarrio 
writes (12/09) "President Nestor Kirchner told his Venezuelan 
counterpart, Hugo Chavez, that 'for some time' he will have to 
portray their bilateral ties 'as commercial rather than political,' 
because the Argentine Government needs rapprochement with the USG 
not to jeopardize its victory in 2007 (presidential elections). 
 
"Kirchner explained in detail the trip to be made in April by First 
Lady Cristina Kirchner, a potential presidential candidate, to 
Washington in order to got closer to the US Democratic Party. 
 
"Instead, Kirchner guaranteed Chavez that Alicia Castro, a devoted 
Chavist, will continue serving as Argentine Ambassador to Venezuela. 
There was talk about her 'instability.' A governmental source told 
'La Nacion' that 'it was a gesture; Castro is an ambassador 
requested by Chavez.' 
 
"Chavez is reported to have told Kirchner the name of the new 
Venezuelan ambassador, Roy Chaderton, a moderate who could replace 
Roger Capella, who was recalled to Venezuela after a bilateral 
crisis that caused Luis D'Elia's resignation to his governmental 
position. 
 
"... Venezuelan governmental sources have confirmed that 
'(Argentine-Venezuelan commercial ties are OK, although the 
political and diplomatic ones are not that well.' 
 
"... Chavez is surprised by the US Ambassador, Earl Anthony Wayne, 
active schedule, which included visits to almost all ministers of 
 
 
Kirchner. 
 
"Argentine Government's sources confirmed to 'La Nation' that 'ties 
with Venezuela have been put in order,' which were altered since 
(Ambassador) Wayne's arrival." 
 
- "The end of the strongest strike opened up a confrontation within 
the (Argentine) Government" 
 
Marcelo Bonelli, economic columnist of leading "Clarin," comments 
(12/08) "... The need for structural reforms was the focus of a 
private meeting between businessmen, economists and US Ambassador 
Earl Wayne. Last week, Wayne called Antonio Estany Gendre, Alberto 
Grimoldi, Carlos Helbling, Miguel Kiguel, Mario Vicens and Julio 
Piekartz, to analyze the economic situation. 
 
"They said that the Argentine Government is not implementing 
profound reforms. Economists insisted that growth is being hampered 
by the energy situation and the price control strategy. They were so 
critical that US Ambassador Wayne had to tone things down and give a 
more optimistic view. Before finishing, Wayne looked at them and 
said 'I am equally surprised. Previously, I did not expect 
Argentina's recovery to be sustainable." 
 
¶3. EDITORIALS 
 
- "Tri-Border is an issue of concern" 
 
Conservative "La Prensa" (12/09) editorializes "The so-called 
Tri-Border area... is again an issue of concern for the Argentine 
Government, which rejected a US Treasury Department designation 
because it contradicted a joint statement that agreed to at the 
beginning of the week by the members of the Three plus One Group... 
 
 
"... The US Treasury Department report is specific about designating 
those who financially support terrorist organizations and everything 
indicates that the path of the money was followed in an objective 
way before issuing a statement... Perhaps, the Argentine Central 
Bank authorities and those of the involved neighboring countries 
should start analyzing new strategies to verify the legality of 
several commercial transactions in the area, as well as intensify 
checks on the traffic of merchandise and persons and establish a 
permanent state of alert by the security forces located in the 
area." 
 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
WAYNE