VZCZCXYZ0002
OO RUEHWEB

DE RUEHBU #1955/01 2741514
ZNR UUUUU ZZH
O 011514Z OCT 07
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9393
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 001955 
 
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 ARGENTINE DEBT TO PARIS CLUB; IRANIAN 
AHMADINEJAD VISIT TO LATIN AMERICA; RAFAEL CORREA; 10/01/07 
 
 
¶1. SUMMARY STATEMENT 
 
Weekend international stories include the USG asking Argentina to 
resume talks with the IMF in order to settle its Paris Club debt; 
implications of Iranian President Mahmoud Ahmadinejad's visit to 
Latin America; and the outcome of Ecuadorian elections. 
 
¶2. OPINION PIECES AND EDITORIALS 
 
- "The US asks Argentina to come to terms with the IMF again" 
 
Hugo Alconada Mon, Washington-based correspondent for 
daily-of-record "La Nacisn," writes (09/29) "The US will condition 
its support for an eventual deal between Argentina and the Paris 
Club on either party reaching an 'understanding' with the IMF, even 
when it may not be a formal agreement. 
 
"The US posture, which also includes resumption of talks about 
holdouts, was made public after the meeting between US Secretary of 
State Condoleezza Rice and Argentine FM Jorge Taiana at the UN..., 
following several months of tension. 
 
"The highest-ranking USG officer in charge of Latin American 
Affairs, Tom Shannon, told 'La Nacisn': 'The US understands the 
importance of this issue for Argentina and believes that a positive 
response from the Paris Club will depend on the ability of Argentina 
and the IMF to come to some kind of understanding.' 
 
"Shannon was extremely careful in his remarks. He talked about the 
need for an 'understanding,' not a 'formal agreement' between the 
(Argentine) Government and the IMF, as demanded by other powers from 
the (Paris) Club, such as Germany, Japan and Italy. Whoever takes 
power in December will need to resume talks with the IMF if he/she 
wishes to pay off the country's debt to the (Paris) Club. 
 
"According to a USG source, the Assistant Secretary of State sought 
to mark a difference. The source said that Washington does not 
consider it essential for Argentina to subject itself to formal 
conditionality, a stand-by agreement or a program with the IMF, and 
that just 'a political deal' would suffice, but (Argentina) will 
have to sign something. The source explained that only after that 
happens, will the US believe that Argentina could reach some kind of 
deal with the (Paris) Club.' 
 
"... Signals from Buenos Aires will be decisive for the US 
Department of Treasury, which is the toughest block in 
Washington... 
 
"Republicans and Democrats alike are mistrustful of the ties between 
the Argentine Government and Venezuelan President Hugo Chvez and 
reject Kirchner's claims. 
 
"A source said 'If I was Argentina and wanted US support at the 
Paris Club (for which I should reach a political, not formal, deal 
with the IMF) I would be extremely cautious when claiming that 
Washington did not help me. It would be easy for them to tell me to 
go to Chvez for help.'" 
 
- "A campaign that ignores conflicts" 
 
Joaqun Morales Sol, political columnist of daily-of-record "La 
Nacisn," comments (09/30) "... (Argentine President) Nstor Kirchner 
has just claimed that Bush did not help Argentina when it went 
through its crisis. Bush did not help Fernando de la Ra nor Eduardo 
Duhalde because they were victims to the first wave of economists of 
the Bush era. That was when Paul O'Neill and Anne Krueger used to 
say that bankrupt countries should simply run bankrupt. During the 
final months of the Duhalde government, Washington did help with a 
crucial deal with the IMF even when it had to break G7 usual 
consensus. Thanks to that truce, Kirchner was able to 'float' amid 
the 'tempest' of the crisis. Bush helped Kirchner. 
 
 
"Perhaps Kirchner lashed out at Bush because he considered that he 
had done enough for him by having accused Iran at the UNGA for its 
lack of cooperation in the AMIA probe, although this is not a 
problem for Washington but for Kirchner... Or weren't the 86 dead in 
the attack not Argentines? Kirchner is negotiating with Bush just 
like he does with Hugo Moyano - a pat is followed by indifference." 
 
- "Villains" 
 
Left-of-center "Pgina 12" carries an opinion piece by political 
columnist Santiago O'Donnell, who writes (09/30) "As time goes by, 
history repeats itself - the villain on duty makes his presentation 
at the UNGA to have a duel with the host president... The message is 
always the same - enemies of the US are enemies of the civilized 
 
world. It happened with the Soviets, it happened with Fidel, it now 
happens with Iranian President Mahmoud Ahmadinejad... 
 
"... The case is that the Iranian leader visited the region this 
week and he stopped in Caracas and La Paz. Washington's weakness and 
lack of interest in Latin America made possible a visit that was 
unthinkable some years ago. 
 
"Ahmadinejad's visit opens a question - is it advisable to establish 
alliances with extra-regional leaders in order to promote 
alternative development strategies? In principle, Argentina's 
alliance with Iran is forbidden. There are three different issues 
with many common points - the attacks against the AMIA and the 
Israeli Embassy, the confrontation in the Middle East and the global 
war on terrorism. 
 
"Regarding the first issue, we all know that the Argentine 
Government has accused Iranian government officials of masterminding 
the attack against the AMIA... Then there is the confrontation in 
the Middle East... The lesson left by the attacks against AMIA and 
the Embassy is that it does not seem opportune to get involved in 
such an explosive conflict. 
 
"The third issue is Bush's war on terrorism, in which Washington has 
assigned a passive role to Argentina, but a role anyway... What 
really matters to Bush is that the Kirchner administration has 
provided all necessary cooperation, as Deputy Assistant Secretary 
Thomas Shannon said during his last visit to the country... 
Washington has just declared the Iranian National Guard a terrorist 
organization... In this context, it is not easy to do business with 
Iranians. 
 
"... However, the Iranian leader's visit in Latin America is both an 
opportunity and a risk for all Latin American countries he visited 
or will visit and more so after his performance in New York. 
 
"This is why the Iranian president's tour to Latin America has 
diplomatic and commercial objectives that are constrained by the 
geo-political reality, but in any case is loaded with symbolism, 
which is hard to ignore. His visit will open a road which the 
countries of the region can use to deepen their exchange with less 
problematic trade blocs such as the Chinese or the Europeans... 
after the failure of the US-led FTAA project. Or, it could serve to 
demand more attention and a change of attitude from the US, just as 
the Argentine president did last week." 
 
- "Facing a dangerous concentration of power" 
 
Dolores Tereso, international columnist of daily-of-record "La 
Nacisn, comments (10/01) "Ecuadorians' blunt support for President 
Rafael Correa will guarantee an impressive amount of power for the 
leader..., which can only be compared with the power of his allied 
in the region, Venezuelan Hugo Chvez. 
 
"With this new victory, Correa obtained the support required to 
draft a Socialist Constitution according to his style, and to rule 
and pass legislation without resorting to Congress, which he 
confirmed he will dissolve. 
 
"This is the beginning of a road that, according to his critics, 
will lead to the same authoritarian model established by his 
Venezuelan counterpart. In fact, with yesterday's elections, Ecuador 
joined the movement led by Chvez in the region. 
 
"... Ecuadorians confirmed their support for the change Correa 
represents and the definite rupture with a political system that, 
for the last decade, turned Ecuador in the most unstable country in 
the region. 
 
"... Yesterday's elections will guarantee Correa some amount of 
power than can only be matched with that of Chvez... 
 
"... What lies ahead is a period of uncertainty in view of Correa's 
possible authoritarian turn and his plan to dissolve Congress. The 
latter is a measure of dubious legality that could jeopardize the 
fragile stability of the country. Uncertainty also prevails about 
the final direction of Ecuador's dollarized economy and the extent 
of Correa's socialist revolution... Correa even showed he could 
promote the presidential re-election, an ambitious objective in a 
country in which no president managed to finish his term in office 
for the last ten years." 
 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
WAYNE