VZCZCXYZ0039
OO RUEHWEB

DE RUEHBU #1727/01 2421823
ZNR UUUUU ZZH
O 301823Z AUG 07
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9098
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 001727 
 
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
SUBJECT: MEDIA REACTION; CHILEAN PRESIDENT MICHELLE BACHELET; US 
SECRETARY OF AGRICULTURE'S COMMENTS ON ARGENTINA AND BRAZIL; 
 
 
SIPDIS 
08/30/07 
 
¶1. SUMMARY STATEMENT 
 
Leading international stories today include the implications of the 
protests staged over the Chilean Government's economic and social 
policies; and comments from US Secretary of Agriculture Mike Johanns 
on Argentina and Brazil. 
 
¶2. OPINION PIECES AND EDITORIALS 
 
- "Figures" 
 
Marcelo Cantelmi, international editor of leading "Clarn," writes 
(08/30) "If you take Chile and divide it into five sections and then 
take into account the total population of the country, you will see 
that one entire section belongs to three percent of the wealthiest 
sector. 
 
"... If you take the total income, you will see that more than half, 
61 percent of the total, is being distributed among 20 percent of 
the wealthiest sector, and 20 percent of the other extreme, the 
poor, only receives 3.3 percent. It has been common knowledge since 
the times of Bismarck and his welfare state that if the market is 
not balanced by the government's intervention, the whole structure 
first trembles and then explodes. Chile is only one example." 
 
- "Facing the most painful claim" 
 
Federico Quilodrn, daily-of-record "La Nacisn's" Santiago de 
Chile-based correspondent, comments (08/30) "Yesterday's 
demonstration against the Chilean government's economic policy is 
the greatest challenge and the most painful blow to Socialist 
President Michelle Bachelet since she took office. Lastly, it is a 
claim from her own allies for more equitable income distribution, 
one of Bachelet's most important 'mottos'... 
 
"The complaint about the model, which is considered 'neo-liberal' 
and is opposed by the Central Unitaria de Trabajadores (CUT) trade 
union, was also supported by three out of the four political parties 
making up the government coalition and included the mobilization of 
official legislators. The left wing of the alliance supported the 
discontent over the system, and only centrist Democracia Cristiana 
distanced itself from the protest demonstration. 
 
"The president seemed not to be affected by the blow and only 
reiterated her willingness to hold negotiations... 
 
"Bachelet is convinced that her dedication to social justice is 
unquestionable. 
 
"Her Economy Minister, Andrs Velasco, an economist with a US 
degree, is the one who implemented Chilean economic policies, and 
trade unions and political leaders are opposed to him. 
 
"Bachelet again supported him in spite of the fact that, in his 
efforts to manage public finances, Velasco was one of those who was 
determined to implement the controversial Transantiago 
transportation plan, with all its shortfalls and the damage it 
inflicted on the president's popularity. 
 
"... One indicator of the prevailing inequality in the country, in 
spite of the economic bonanza, has been the Catholic Church's 
criticism." 
 
- "The US advises Argentina to further open its economy to the 
world" 
 
Alejandro Bianchi, columnist of business-financial "El Cronista" on 
special assignment in Decatur, Illinois, writes (08/30) "The USG 
again made clear that on trade issues Brazil continues leading 
Argentina. During a press round table held yesterday, Mike Johanns, 
US secretary of Agriculture, said that Argentina and Brazil 'should 
admit that opening their markets will be positive for their 
economies' and that those opposing free trade deals 'are taking the 
wrong direction.' 
 
"Johanns made these statements in the framework of the Farm Progress 
Show... 
 
"When 'El Cronista' asked him what will happen to those countries 
refusing to sign a free trade deal with the US, Johanns identified 
who is the most important partner for the US. 
 
"The USG official said 'Brazil is a world competitor, it carried out 
negotiations with us at the WTO and is close to us in many of our 
local issues; it needs the international market for its agricultural 
market.' 'Argentina and Brazil should work to access the world 
 
 
market and also admit that opening their markets will be positive 
for their economies.' 
 
"... So far, Argentina has always taken refuge in Mercosur. While 
Brazil agrees on this point with Argentina and is also aware of its 
world potential, it has flirted lately with reaching an FTA with the 
US, as Uruguay did. During US President George Bush's last visit to 
Brazil, their joint statement to promote the world development of 
bio-fuels was an example. 
 
"... We should also recall that Chile is the only country in the 
Southern Cone that has reached a free trade deal with the US, which 
is in force." 
 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
WAYNE