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Viewing cable 06BUENOSAIRES738, MEDIA REACTION MOUSSAOUI STATEMENTS ISRAELI

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Reference ID Created Released Classification Origin
06BUENOSAIRES738 2006-03-30 19:59 2011-08-25 00:00 UNCLASSIFIED Embassy Buenos Aires
VZCZCXYZ0017
OO RUEHWEB

DE RUEHBU #0738/01 0891959
ZNR UUUUU ZZH
O 301959Z MAR 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4002
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT
UNCLAS BUENOS AIRES 000738 
 
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 MOUSSAOUI STATEMENTS ISRAELI 
ELECTIONS FATF DELEGATION VISIT TO ARGENTINA US 
INVESTMENT IN ARGENTINA FTAA AND MERCOSUR PERUVIAN 
ELECTION FARM SUBSIDIES 03/28/06 
 
 
1. SUMMARY STATEMENT 
 
Today's major international stories include Al Qaeda 
conspirator Zacarias Moussaoui testifying that he and 
would-be 'shoebomber' Richard Reid were supposed to 
hijack a fifth airplane on September 11, 2001 and fly 
into the White House; Brazilian Finance Minister 
Antonio Palocci's resignation after becoming caught up 
in a political scandal; the implications of today's 
Israeli elections; the visit of a Financial Action 
Task Force delegation to Argentina; a lunch hosted by 
Argentine VP Daniel Scioli, attended by US Ambassador 
Lino Gutierrez and DCM Hugo Llorens, in which AmCham 
businessmen confirmed the "commitment of US 
corporations located in our country to continued 
investment in Argentina;" Brazilian political expert 
and historian Luiz Alberto Moniz Bandeira's statements 
that the US wants an FTA, which is "a form of 
subordinated integration of South American countries 
to its own economy;" Peru's political crossroads; and 
Argentina's concern over the prevalence of farm 
subsidies. 
 
2. OPINION PIECES AND KEY STORIES 
 
- "'I had to fly into the White House'" 
 
Daily-of-record "La Nacion" reports (03/28) "French- 
Moroccan Zacarias Moussaoui, the only indicted in the 
US due to the September 11 attacks, said yesterday 
that Osama bin Laden, head of Al Qaeda, had ordered 
him to fly into the White House on that date, in which 
other two airplanes hit the WTC, a third one hit the 
US Pentagon, and a fourth one fell in Pennsylvania. 
 
"Moussaoui also said during a hearing... that after 
being arrested in August, one month before the 
September 11 attacks, he lied to FBI agents in order 
to let the attacks happen." 
 
- "The Middle East political and geographic map is at 
stake" 
 
Elisabetta Pique, on special assignment in Jerusalem 
for daily-of-record "La Nacion," writes (03/28) 
"Beyond the skepticism of most of the people living in 
this land..., much is at stake in these elections. 
 
"These elections will determine the future political 
and geographic map of Israel, its neighboring 
Palestinian territories, and the entire region, which 
is overwhelmed by a long-term conflict in the Middle 
East. 
 
"While just a few believe this, the possibility has 
not been dismissed that elections may result in a 
point of departure to re-launch the dead-locked Middle 
East peace process. 
 
"Ehud Olmert, who according to all opinion surveys 
will be the new Israeli PM, will have to face several 
challenges. 
 
"First and foremost, he will have to guarantee Israeli 
security, which is not only threatened by eventual 
Palestinian terrorist attacks but also by the so- 
called 'axis of the evil' (Libya-Syria and Hezbollah, 
and the Iranian nuclear threat). 
 
"The only major topic in the current elections was the 
debate on how to obtain security and a definitive 
separation from the Palestinians, but not peace, 
something which for many Israelis has turned into a 
real phantom." 
 
- "An international delegation will ask for more 
controls in the struggle against money laundering" 
 
Laura Serra, political columnist of daily-of-record 
"La Nacion," comments (03/28) "... The day after 
tomorrow, a high-level Financial Action Task Force 
(FATF) will arrive in the country and will express its 
concern over the 'lack of progress on the 
recommendations made to Argentina' regarding 
legislation to fight money laundering and terrorist 
 
 
 
financing. 
 
"... For Argentina, it is most important to continue 
being a FATF full member because it implies that it is 
not a 'risk country,' and, therefore, it is able to 
perform international financial transactions and 
receive World Bank and IDB loans. 
 
"... Argentine legislative sources are confident that 
no sanctions will be imposed on our country because 
during the last couple of years certain FATF 
requirements were met. As a matter of fact, this week, 
the House of Representatives will reportedly speed up 
one of the recommended laws - a draft bill that will 
eliminate options for acquittal, as well as secrecy of 
banking and stock exchange transactions." 
 
- "Labor rulings, a US concern" 
 
Sergio Dattilo, columnist of business-financial 
"Ambito Financiero," writes (03/28) "An invitee to the 
lunch hosted by VP Daniel Scioli and attended by some 
businessmen who are members of the AmCham board said 
'The main topic of the lunch was how to boost US 
investment in Argentina.' 
 
"... As in any other business meeting with members of 
the Government, they mentioned the issue of labor 
agitation - some of the guests did not hide their 
concern over some recent judicial rulings in this 
field and some draft bills that are in the works." 
 
- "'Europe will never remove farm subsidies'" 
 
Alejandro Bercovich, columnist of business-financial 
"El Cronista," interviewed Brazilian political expert 
and historian Luiz Alberto Moniz Bandeira, who said 
(03/28) "... 'The US wants an FTA, which is a form of 
subordinated integration of our countries to its 
economy. If Argentina cannot compete with the 
Brazilian industries in some articles, how will it 
ever be able to compete with that of the US? The US is 
interested in governmental purchases, IPR and 
investment guarantees. They talk about mutual 
treaties, but Brazil has quite a few investment 
initiatives in the US and Argentina has none. The 
agreements the US proposes imply ceding sovereignty. 
 
"Asked if the motivation is only economic, Moniz 
Bandeira said 'No, they are also trying to dismantle 
an emerging pole of political power in South America. 
Brazil's GDP is higher than Italy's. Argentina and 
Brazil together make up a 220-million-people market. 
Together, they are an economic and political power. 
What Washington is seeking is to counteract the 
increasing South American rejection of US 
interventions. 
 
"Regarding minor Mercosur partners, which are the ones 
that are most inclined to reach a deal with the US, 
Moniz Bandeira replied 'It is blackmail. The US does 
not need Uruguayan meat or rice, but they ask for 
advantages from larger partners because they know that 
they can obtain them. The FTAA collapsed, but the US 
is attempting to revive it, and those partners are 
useful for this purpose.'" 
 
- "Peru's political crossroads" 
 
James Scott, columnist of liberal, English-language 
"Buenos Aires Herald," writes (03/28) "When 
nationalist presidential candidate Ollanta Humala 
passed conservative frontrunner Lourdes Flores in the 
polls last week in the race to lead Peru, financial 
markets trembled. The Peruvian stock market dropped 
four percent. The currency weakened against the 
dollar. Then Merril Lynch & Co., the world's largest 
securities firm, warned investors to stop buying debt 
in Peru and invest instead in Colombia... 
 
"Experts say that the underlying economic frustration 
felt by many in this country where one out of two 
people live off about two dollars a day, has emerged 
as the engine driving voters. Fuelling the tension is 
years of political corruption and scandal - including 
 
 
 
the ouster of former president Alberto Fujimori. 
 
"Fritz Du Bois of the Peruvian Economic Institute in 
Lima said that Peru is at a political and economic 
crossroads. The Peruvian election comes at a time when 
free-market policies advocated by Washington are 
coming under fire by those who wish to close the doors 
and increase state control in business. 
 
"'This election is basically between going the Chilean 
way or the Bolivian way,' Du Bois told the Herald. 'We 
are right in between.'" 
 
3. EDITORIALS 
 
- "Prevalence of farm subsidies" 
 
An editorial in leading "Clarin" reads (03/28) "The 
visit of Peter Mandelson, EU Trade Commissioner, has 
revived the discussion on the status of Argentina's 
trade negotiations with industrialized countries, 
which is marked by disagreement over the agricultural 
issue. 
 
"... In the framework of last December's Hong Kong 
conference, the removal of subsidies on exports by 
2013 was agreed upon, as well as a reduction of farm 
subsidies... It was decided that representatives of 
country-members should reach an agreement for the 
trade of agricultural and industrial goods by the end 
of April, and another deal on services by May. 
 
"The future of negotiations will depend largely on the 
decision of industrialized countries to make progress 
on the committed and dishonored agricultural 
liberalization agenda rather than on Argentina's 
willingness to negotiate as a member of Mercosur." 
 
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. 
 
GUTIERREZ