VZCZCXYZ0006
OO RUEHWEB

DE RUEHBU #0815 1160904
ZNR UUUUU ZZH
O 260904Z APR 07
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7967
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 000815 
 
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: MEDIA REACTION; ARGENTINE ECONOMIC GROWTH; ARGENTINE 
HOLDOUT CREDITORS; 04/25/07; BUENOS AIRES 
 
¶1. SUMMARY STATEMENT 
 
Today's leading international stories include prospects of 
Argentina's stunning recovery from its 2001-02 economic meltdown; 
and American Task Force Argentina asking the G8 about Argentina's 
debt to holdout creditors. 
 
¶2. OPINION PIECES AND EDITORIALS 
 
- "Perplexity and opportunities" 
 
Ricardo Kirschbaum, editor-in-chief of leading "Clarin," writes 
(04/25) "Argentina remains a subject of study abroad. It is one of 
the major academic riddles, just like Peronism was, and still is, 
for foreigners. Now, the issue is the country's economic growth and 
stunning economic recovery, which is not in accordance with 
traditional standards. 
 
"During a Harvard University 'John F. Kennedy School of Government' 
colloquium on Argentina held in Boston, two central issues were 
tackled - sustainable growth and an updated version of Latin 
American populism... 
 
"According to the most extreme view, Argentina has not grown since 
2001, but has only had a recovery of dubious sustainability and it 
remains at the mercy of a foreign crisis... 
 
"In the same way, 'populism' was compared to the Chilean model..., 
although no mention was made, for example, of the fact that the 
abandonment of Pinochet's military dictatorship occurred under 
military tutelage, something which did not happen here. 
 
"Finally, it was agreed that Argentina's historic opportunity cannot 
be wasted and that there should be a debate on how to pave the way 
for sustainable growth. However, this debate seems to be missing 
from the country's agenda." 
 
- "Holdout creditors ask about (Argentine) defaulting bonds to the 
G8" 
 
Hugo Alconada Mon, Washington-based correspondent for leading 
"Clarin," penned (04/25) "Argentina's international creditors are 
quite active. In a letter addressed to German FM Angela Merkel, they 
have now asked the G8 to add the country's still defaulting debt to 
the agenda of the meeting the G8 will be hosting June 3-6. 
 
"According to the American Task Force Argentina (ATFA), 'The G8 can 
protect the integrity of the global loan system for creditors and 
debtors alike.' In order to capture the G8's attention, ATFA tied 
the holdouts' claims to the Paris Club and Ecuador is flirting with 
the default on its own debt. 
 
"ATFA leaders, Robert Shapiro and Nancy Soderberg, two former 
high-ranking officials of the Clinton administration, warned Merkel 
that the Argentine Government 'is defying international financing 
norms and standards.' 
 
"They exemplify this through the country's nil relationship with the 
IMF - it refuses to let the IMF play its valued and established 
business counseling role.' 
 
"Nevertheless, according to consultant Federico Thomsen, JP Morgan 
Chase VP Vladimir Werning, and Miguel Braun, Director of the Center 
for Public Policies Implementation, Equity and Growth, the 
(Argentine) Government is unlikely to open any negotiation with 
holdout creditors before October presidential elections." 
 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
WAYNE