VZCZCXYZ0003
OO RUEHWEB

DE RUEHBU #1962/01 2751323
ZNR UUUUU ZZH
O 021323Z OCT 07
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9398
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 001962 
 
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; US SUPREME COURT OF JUSTICE RULING ABOUT 
ARGENTINE DEBT; ARGENTINE DEBT TO PARIS CLUB; SUMMIT BETWEEN THE TWO 
KOREAS; 10/02/07 
 
 
¶1. SUMMARY STATEMENT 
 
Today's key international stories include the US Supreme Court of 
Justice's ruling against two vulture funds that had requested an 
embargo of Argentine Central Bank reserves; IMF skepticism about 
Argentina's chances of reaching a fast deal with the Paris Club; and 
expectations about the Korean summit. 
 
¶2. OPINION PIECES AND EDITORIALS 
 
- "The US Supreme Court of Justice rejects a request for the embargo 
of Argentine reserves" 
 
Ana Barsn, leading "Clarn's" Washington-based correspondent, 
comments (10/02) "The US Supreme Court of Justice provided good news 
for Argentina's debt - it ruled against two vulture funds that had 
requested the embargo of Argentine accounts to collect the bonds in 
their portfolios. 
 
"The Supreme Court of Justice rejected the appeal from EM, a vulture 
fond controlled by billionaire Kenneth Dart, and from NML Capital. 
They wanted to collect a one-billion-dollar debt from Central Bank 
reserves that are deposited in the New York Federal Reserve. 
 
"This is the first time the US Supreme Court of Justice has issued a 
ruling related to lawsuits filed by vulture funds against Argentina 
with Judge Thomas Griesa in New York. According to experts, the 
ruling sets a favorable precedent for the country. 
 
"When the judges made the announcement, they made no comments as is 
common in a controversial case. This is a signal that the decision 
was unanimous. 
 
"... The US Supreme Court's ruling was expected. As a matter of 
fact, the US Department of Justice has shown that it favors 
Argentina's position from the beginning." 
 
- "The IMF downplays expectations about a deal between Argentina and 
the Paris Club" 
 
Ana Barsn, leading "Clarn's" Washington-based correspondent, writes 
(10/02) "Last weekend's prevailing optimism in Buenos Aires 
regarding a fast deal between Argentina and the Paris Club is at 
odds with IMF officers' skepticism and cautiousness. 
 
"One of the IMF officers consulted by 'Clarn' said 'No negotiation 
with the IMF is as simple as that and the country should always take 
on commitments in order to reach some kind of agreement.' 
 
"The source also downplayed the possibility of using the Reserve 
Augmentation Line (RAL) as a tool: 'That is a credit line that does 
not exist yet, a project that has not been approved yet.' 
 
"Tom Shannon, the head of US diplomacy for the region, sparked much 
optimism last Friday by saying that the White House will not ask 
Argentina to reach a formal agreement with the IMF to support its 
negotiations with the Paris Club. Shannon said: 'What we need is 
some kind of political understanding.' Secretary Condoleezza Rice 
also conveyed the same message during her meeting with Argentine FM 
Jorge Taiana. 
 
"Another IMF member said 'The signal is positive, but to assume that 
Argentina has that arrangement in hand would be irresponsible.'" 
 
- "Transcendental Korean summit" 
 
Daily-of-record "La Nacisn" editorializes (10/02) "For the second 
time in history, the presidents of the two Koreas will meet today 
and the day after tomorrow in Pyongyang, the capital city of North 
Korea, which is mired in a Communist regime that does not allow 
citizens to look at the outside world... 
 
"... North and South Korea did not sign a peace treaty but an 
armistice - this means they are still at war. This situation 
prevents the expansion of South Korea and the integration of North 
Korea. Peace cannot be reached only between Kim and Roh. If they 
decide to reach a peace agreement, they will need the endorsement of 
the US and China, the two guarantors of the armistice. 
 
"The summit is significant. North Korea, which George W. Bush 
included in the 'axis of evil,' has been a potential danger for the 
region until a short time ago... 
 
"... The summit itself is a high-risk bet. It is not an easy event 
because of Kim's enigmatic personality as well as interests at 
stake. Both Koreas, the US, Japan, China and Russia will need to 
 
 
participate only to deactivate the nuclear program. Bush recently 
said at APEC that the peace accord will only be successful once the 
North Korean government 'gets rid of its armament programs.' 
 
"This will hardly be achieved in the second summit between the two 
Koreas in over fifty years, but at least they will take one more 
step toward reconciliation that is not only political but also 
economic (due to the South's investments in the North) and 
humanitarian (due to North Korea's unsatisfied needs). 
 
"Under these circumstances, everything that contributes to 
reunification will truly be a tribute to a peaceful world." 
 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
WAYNE