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Viewing cable 06BUENOSAIRES689, MEDIA REACTION US-IRAN IRAQ US-SOUTH AMERICAN

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Reference ID Created Released Classification Origin
06BUENOSAIRES689 2006-03-23 17:18 2011-08-25 00:00 UNCLASSIFIED Embassy Buenos Aires
VZCZCXYZ0007
OO RUEHWEB

DE RUEHBU #0689/01 0821718
ZNR UUUUU ZZH
O 231718Z MAR 06 ZDK
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3929
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT
UNCLAS BUENOS AIRES 000689 
 
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 US-IRAN IRAQ US-SOUTH AMERICAN 
TIES ARGENTINE GOVERNMENT'S DECISION TO RESCIND AGUAS 
ARGENTINAS CONTRACT US SENATOR GRASSLEY'S STATEMENTS 
ON US FARM SUBSIDIES 03/22/06 
 
 
1. SUMMARY STATEMENT 
 
Today's major international stories include Chilean 
President Michelle Bachelet's meeting with President 
Nestor Kirchner in Buenos Aires during the first state 
visit of her presidency; the US State Department 
charging Iran with having ties with Al Qaeda; US 
President Bush's alleged statement that US troops will 
stay in Iraq "at least until 2009;" the Argentine 
Government's decision to rescind the 30-year contract 
of Aguas Argentinas and its impact on the US; and US 
Senator Grassley's statements on US farm subsidies. 
Leading "Clarin" carries an op-ed that is critical of 
current US-South American ties. 
 
2. OPINION PIECES AND KEY STORIES 
 
- "Iran is being linked to Al-Qaeda" 
 
Hugo Alconada Mon, Washington-based correspondent of 
daily-of-record "La Nacion," comments (03/22) "In an 
increasing escalation against Iran, the US accused 
yesterday the Tehran regime of protecting and 
facilitating the activities of Al Qaeda terrorists in 
its territory, who will then attack US troops in Iraq. 
 
"... US charges against Tehran's fundamentalist regime 
are somewhat similar to the diplomatic and media 
escalation that preceded the military offensive 
against Iraq. 
 
"In this regard, US President George W. Bush said 
yesterday that his troops will remain in Iraq until 
the end of his administration in spite of requests in 
the US for a partial troop withdrawal. 
 
"... US intelligence agencies suspect that Iran is 
developing a program to build nuclear bombs and that 
it harbors Al Qaeda leaders, including Abu Musab al- 
Zarqawi, the alleged Iraqi insurgent leader." 
 
- "US troops will stay in Iraq at least until 2009" 
 
Business-financial "Ambito Financiero" (03/22) reports 
"US President George W. Bush suggested yesterday that 
his country will not withdraw all its troops in Iraq 
while he is in power, and he denied that there is 
civil war in Iraq... 
 
"Bush reiterated his message that there is progress in 
Iraq when US citizens increasingly doubt it, which 
brought his popularity ratings below 40%... In order 
to convince a skeptical audience, the US president 
embarked himself on a campaign of speeches in 
different parts of the country including yesterday's 
press conference at the White House." 
 
- "South America and the US are going through a stormy 
weather" 
 
Leading "Clarin" carries an op-ed piece by Fabian 
Calle, political analyst and professor of 
international relationships at Universidad Catolica 
and Universidad Di Tella, who writes (03/22) "A review 
of statements made by key US personalities could 
reveal that, as of 2003/4, something has really 
changed regarding (US) perception of threats in Latin 
America and, particularly, South America. 
 
"Who embodies this threat? It is 'radical populism,' 
whose main representative is Hugo Chavez, and, to a 
lesser degree, Evo Morales and Ollanta Humala. 
 
"This assessment is accompanied by statements that do 
not seem to demonstrate a unified stance: 1) At the US 
State Department, Thomas Shannon said that there is a 
tendency to exaggerate Chavez' influence in Latin 
America and that the focus of attention should be the 
fight on poverty, inequality and lack of strong 
institutions; 2) US Defense Secretary Rumsfeld made a 
parallel between Hitler's taking power in 1933 and 
Chavism's election and political phenomenon since 
1998; 3) from a military point of view, General B. 
Craddock underscored that the main threat to 
hemispheric security and stability is poverty, 
 
 
 
inequality and inefficient institutions that do not 
provide for the people's basic needs. 
 
"Shannon and Craddock's statements seem to honor the 
premise of former president Theodore Roosevelt about 
how the US should act in the international scenario - 
'talk softly and carry a big stick.' 
 
"... (Academic) Niall Ferguson remarks that one of the 
questions that Washington will start asking in the 
short or medium-term is 'Who lost Latin America?' 
 
"He adds that in recent years the US passed from the 
Monroe Doctrine (which has sought the US prevalence 
all over the world since the 19th century) to the 
doctrine of 'Oh, no!..., another radical populist 
government has taken power.' 
 
"All this seems to indicate that the Bush 
administration is seeking to coordinate a consistent 
strategy combining, on the one hand, tough political 
and diplomatic handling of Venezuela, and, on the 
other hand, assistance to the region to target 
structural problems such as marginalism, poverty and 
institutional weakness. 
 
"Those who are most distrustful seem to believe that 
there will be more of the first thing than of the 
second one. If this is so, we will probably have 
instability, conflict and radicalization for a long 
time." 
 
- "Surprise and malaise in Washington" 
 
Hugo Alconada Mon, Washington-based correspondent for 
daily-of-record "La Nacion," comments (03/22) 
"Yesterday, the International Financial Corporation 
(IFC) kept silent regarding the (Argentine) 
Government's decision to rescind the concession 
contract of Aguas Argentinas for failing to make 
required improvements in the water system. 
 
"An IFC spokesperson said 'No comment. It is too 
premature,' although it transcended that the Argentine 
Government's decision unleashed surprise and true 
malaise at the Corporation. According to tens of 
documents and studies drafted by IFC analysts, Aguas 
Argentinas was considered a 'successful project' and a 
model for the privatization of water services in 
developing countries. 
 
"... The Republican administration did not make any 
comment either about the Argentine Government's latest 
decisions, although, according to three government 
officials, it let be known its 'malaise' regarding the 
Argentine conflict with Uruguay over the pulp mills, 
the official strategy to tame inflation, and, 
particularly, its suspension of meat exports." 
 
- "Doesn't hold water" 
 
Michael Soltys, executive editor of liberal, English- 
language "Buenos Aires Herald," writes (03/22) "... 
there will not be any elections this year, thankfully, 
but projections of government spending took a jolt 
upwards with yesterday's re-nationalization of Aguas 
Argentinas waterworks... 
 
"If re-nationalization proliferates into a plethora of 
publicly owned loss-makers and state subsidies, 
serious disarray could set in but the fiscal surplus 
looks solid enough on the basis of last month's 
Treasury figures. 
 
"... Yesterday's re-nationalization of Aguas 
Argentinas was a rash move whose full implications 
still remain to be seen but the government's bill for 
superpowers to raise utility rates for power and gas 
in the name of infrastructure and investment show a 
new realism." 
 
- "Bush will not lower farm subsidies" 
 
Conservative "La Prensa" (03/22) reports "After having 
met with Brazilian Foreign Minister Celso Amorin, US 
 
 
 
Republican Senator Chuck Grassley said that the US 
will not change its farm policy, which grants millions 
of dollars per year in subsidies, until it has full 
access to markets. 
 
"... US Senator Grassley said 'There is a big problem 
with Europe.' 'I believe that unblocking agricultural 
negotiations is in the hands of Europe, which should 
cut its subsidies on exports, and both the US and 
Europe should reduce their subsidies on exports.'" 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
The Media Reaction Report reflects articles and 
opinions by the cited news media and do not 
necessarily reflect U.S. Embassy policy or views.  The 
Public Affairs Section does not independently verify 
information. The report is intended for internal U.S. 
Government use only. 
 
LLORENS