VZCZCXYZ0014
OO RUEHWEB

DE RUEHBU #0083/01 0181659
ZNR UUUUU ZZH
O 181659Z JAN 07
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6991
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 000083 
 
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: FARM SUBSIDIES; LATIN AMERICAN POLITICAL SCENARIO; CHAVEZ; 
MORALES; CORREA; 01/17/07 
 
 
¶1. SUMMARY STATEMENT 
 
Today's leading international opinion pieces include farm subsidies 
in wealthy countries; the political "patchwork" in Latin America; 
the economic and political implications of Venezuela's Hugo Chavez' 
announced changes; the reasons for clashes in Bolivia; and 
expectations over the administration of Rafael Correa. 
 
¶2. OPINION PIECES 
 
- "The unfair (farm) subsidies of wealthy countries" 
 
Daily-of-record "La Nacion" carries an op-ed story by Andres 
Fescina, national legislator from the Federal Political Party, who 
writes (01/17) "The US, the EU, Japan and other countries have been 
granting farm subsidies for decades. Currently, those farm subsidies 
amount to almost 400 billion dollars per year. 
 
"As is well-known, this protectionist trade policy results in unfair 
losses for our farmers and our country accounting for about seven to 
ten million dollars per year. 
 
"... The issue is not only economic but also an unjustifiable 
contradiction of protectionist countries, which constantly claim 
commercial freedom while such contradiction has been almost 
obediently accepted for decades. 
 
"... When 400 billion dollars are granted to sustain artificial 
production compared to those from other countries that are 
international competitors in terms of quality and cost, an economic 
system is created that unfairly impoverishes raw material-producing 
countries like ours..." 
 
- "Three trends in the region" 
 
Daily-of-record "La Nacion" carries an opinion piece by Rosendo 
Fraga, head of "Centro de Estudios Union para la Nueva Mayoria", who 
writes (01/17) "Ecuador's shift after Rafael Correa's assuming of 
office should be considered in the wider context of the twelve 
presidential elections carried out in Latin America between November 
2005 and December 2006. 85 percent of Latin American people elected 
their president, thereby defining the political profile of the 
region for the second half of the decade. 
 
"Three well-defined political trends have been established - the 
social-Democratic or moderate left wing: through the election of 
Bachelet in Chile and Lula's re-election in Brazil, plus Uruguay; 
the center-right wing: with the election of Calderon in Mexico, 
Uribe's re-election in Colombia and the victory of Alan Garcia in 
Peru and finally: the populist left wing, self-titled Bolivarian 
Alliance, which is made up of Cuba, Venezuela, and reinforced by the 
victories of Morales in Bolivia, Ortega in Nicaragua and Correa in 
Ecuador. 
 
"While the third trend has made some progress, we should also notice 
that none of the five largest constituencies of the region (Brazil, 
Mexico, Colombia, Argentina and Peru), which account for four-fifths 
of the (Latin American) people, is included. 
 
"Within this context, Correa has two clear points of agreement with 
Chavez - the anti-US feeling and the status of his country as an oil 
country. Based on anti-US feeling, he could end up closing 
Washington's military base in Manta... With respect to Ecuador's 
oil-producing status, Correa could join Venezuela's claim that OPEC 
reduce its production and, thereby, prevent ongoing slide in oil 
prices ... 
 
"... One should recall that Ecuador is the Latin American country 
which has found it most difficult to allow a president to finish his 
term of office over the last 20 years... 
 
"Populist-leftist candidates that have won last year's elections 
typically fulfill or try to fulfill their campaign promises, 
breaking the rule that goes: 'one wins elections as a leftist but 
rules as a rightist.' Correa is an example of a president that won 
elections with a rhetoric that he will try to honor." 
 
- "The two Bolivias" 
 
Daily-of-record "La Nacion" carries an op-ed story by writer Alicia 
Dujovne Ortiz, who writes (01/17) "... The Bolivian situation with 
regard to the threat of separation from the fortunate ones with gas, 
woods and fertile lands is terribly sad. Bolivia is a country made 
up of some of the most disadvantaged people in the world and the 
privileged, who want to get rid of the other group. Recent clashes 
in Cochabamba reveal the nature of the conflict - on the one hand, 
middle-class youth, whose white-skinned pride is hurt, support a 
 
rightist mayor..., and, on the other hand, dark-skinned coca farmers 
who protect their bread. 
 
"The Morales administration's drastic decisions differ from those 
made by Chavez due to their urgent nature. They are not gestures but 
need..." 
 
¶3. EDITORIALS 
 
- "Hugo Chavez's third term in office" 
 
Leading "Clarin" editorializes (01/17) "Venezuelan President Hugo 
Chavez has started his third term of office with bombastic 
announcements and a strong nationalistic tone. Chavez reiterated the 
idea of a re-foundation of Venezuela reinforcing some personal 
traits such as his purpose of including unlimited re-election. 
 
"... For his third term, Chavez announced he will strengthen the 
institutional changes he introduced during his first term in office, 
which he defined as the 'Socialism of the 21st century.' However, 
his definitions, aimed at polarizing positions in and outside 
Venezuela, should not shift the attention from the political and 
economic development of both Venezuela and the region. 
 
"The nationalization of utility and telecommunications corporations 
poses a management model that has given good results so far and that 
does not displace private investment but makes it partner with the 
State. Regarding his announced constitutional reform including 
unlimited re-election, it is clear that, while maintaining his 
presidency's initial democratic nature, (this reform) diverts from 
the modern democratic presidential system and add itself to the list 
of attacks on liberties and pluralism. This is not the road taken by 
the other Latin American countries and we hope this does not mean 
that Venezuela will distance itself from a regional direction of 
recovery, growth, democracy and development." 
 
- "Correa's shift" 
 
An editorial in liberal, English-language "Buenos Aires Herald" 
reads (01/17) "The political patchwork of Latin America is changing 
again with the installation of Rafael Correa, the economist who 
promises a 'radical revolution' in Ecuador. In one week, the 
historic figure of Daniel Ortega returned to government in Managua 
after 17 years, followed by Correa. Both have attached considerable 
importance to their anti-Washington discourse, although Ortega 
abandoned the harsher language after he had won the elections. This 
moderation, probably the product of the experience of the eighties, 
was rewarded by the State Department with a strong delegation to the 
inauguration in Nicaragua. Correa, on the other hand, has sustained 
his critical line towards George W. Bush, and also announced that he 
will stop the air force base facility used by the US against the 
drug traffic. Whatever Correa's presidential policies now, much will 
depend on how he manages his relationship with Congress, which he 
has chosen to reject... 
 
"Whatever Correa's luck he is pinning a considerable measure of his 
hopes on the call for regional integration, an anti-US line proposed 
and partly financed by Venezuela's Hugo Chavez and supported by 
Bolivia's Evo Morales. The integration they propose is, at present, 
more a political alliance than an economic development program. Much 
will depend on how the new Ecuadorian leader manages government 
during the early weeks of his mandate... 
 
"Whether or not Correa will be able to make his revolution, along 
the lines of Chavez's socialist ambitions, it will be interesting to 
watch as the hemisphere continues its shift away from the market 
economies that were fashionable in the nineties." 
 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
WAYNE