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Viewing cable 07BUENOSAIRES1676, MEDIA REACTION; CRISTINA KIRCHNER'S UPCOMING TRIP TO THE

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Reference ID Created Released Classification Origin
07BUENOSAIRES1676 2007-08-24 19:35 2011-08-25 00:00 UNCLASSIFIED Embassy Buenos Aires
VZCZCXYZ0001
OO RUEHWEB

DE RUEHBU #1676/01 2361935
ZNR UUUUU ZZH
O 241935Z AUG 07
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9025
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT
UNCLAS BUENOS AIRES 001676 
 
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; CRISTINA KIRCHNER'S UPCOMING TRIP TO THE 
US; WORLD FINANCIAL CRISIS AND ARGENTINE ECONOMY; DOHA ROUND AND 
INTERNATIONAL TRADE; 08/24/07 
 
 
1. SUMMARY STATEMENT 
 
Local papers carry opinion pieces on Argentine First Lady and 
presidential candidate Cristina Kirchner's upcoming trip to the US; 
the impact of the world financial crisis on Argentina's economy; and 
the alleged failure of the Doha Round as well as current conditions 
in the international trade system. 
 
2. OPINION PIECES AND EDITORIALS 
 
- "Cristina tests herself in New York in the 'hottest' segment of 
(Argentina's) election campaign" 
 
Ana Baron, Washington-based correspondent for leading "Clarn," 
writes (08/24) "The Kirchners' upcoming trip to New York in 
September will be Cristina's first litmus test in the US since she 
was appointed presidential candidate, and it will be a good 
opportunity for Kirchner to start practicing his next role of 
'prince consort.' 
 
"The two of them will attend the UN General Assembly, in which 
Kirchner will give an address on September 24, although all interest 
is focused on Cristina's agenda and whether it will include some 
contact with members of the US Department of State. In fact, 
Assistant Secretary for Latin American Affairs Tom Shannon always 
uses the UN Annual Assembly to meet with Latin American leaders. 
 
"'Clarn' was able to confirm that this year it will be Cristina and 
not Kirchner who will give an address during the lunch organized by 
the Americas Society, which is attended by US diplomats and 
investors. 
 
"... Will Shannon take this occasion to get closer to Cristina or 
the other way round? An Argentine diplomat told 'Clarn' that no one 
knows yet whether Cristina will do on this. 
 
"According to the ongoing speculation in the Argentine media, the US 
is expecting Cristina to make the first gesture of rapprochement, 
although this disregards that US diplomats' pragmatism could make 
for a surprise. They also disregard the fact that, if Cristina wins 
the elections, President Bush will have to call her to congratulate 
her, which could be a good opportunity to start improving 
conditions. 
 
"The prevailing climate in New York regarding Argentina is not as 
favorable as last year. The INDEC scandal, the mysterious 
cash-filled suitcase, the money found in former Minister Felisa 
Miceli's bathroom, and conflicts in Santa Cruz have damaged 
confidence in the country. Shannon could choose to distance himself 
(from Cristina) to avoid giving the impression that he is supporting 
her bid for presidency." 
 
- "(Argentine) businessmen promote changes in the country's 
economy" 
 
Marcelo Bonelli, economic columnist of leading "Clarn," writes 
(08/24) "According to Argentine businessmen, Argentina will have to 
make economic adjustments in order to maintain its current growth 
rate... 
 
"... Those adjustments include a price and salary accord, the return 
to a real fiscal surplus, an anti-inflation plan based on cost 
containment and fiscal discipline, a selective public rates 
adjustment policy, recognition of the energy crisis, an increase in 
productive investment, rebuilding credibility through an overall 
reform of the National Statistics Institute (INDEC), reaching a debt 
deal with the Paris Club, putting the country's ties to the G7 on a 
safe track, and putting an end to the pending dispute with 
holdouts. 
 
"... Regarding the global financial crisis, President Nstor 
Kirchner has a clear forecast - financial instability will continue 
until the end of his term in office. He came to this conclusion 
after having read a confidential report that was drafted with 
information from the US Federal Reserve and the Central Bank of 
Europe. According to the report, the US Federal Reserve mishandled 
the financial crisis and now liquidity problems have become 
'solvency' problems for many banks, which previews instability. 
 
"The Argentine Government is concerned about some information 
included in the report that one of the main European banks has 
serious problems of insolvency, which, if not tamed, could spark 
another international financial chaos." 
 
- "Doha Round - toward a 'new' international trade system" 
 
 
Business-financial "BAE" front-pages an opinion piece by Mario 
Rapoport, prestigious professor of Economic History at National 
University of Buenos Aires, who opines (08/24) "Six years have 
already passed since the Doha Development Program was launched. 
Since then, many difficulties and failures have occurred - the 
collapse of the 2003 Cancun Ministerial Conference, the 2004 Geneva 
amendment of the general framework, the desperate moves to revive 
the Doha agenda at the 2004 Hong Kong Ministerial Conference (which 
led to the suspension of WTO negotiations in 2006), and the recent 
rupture of G-7 conversations in Postdam (Germany)... 
 
"The Doha Round should have been the round of 'development.' 
Nevertheless, the world has been far from reaching a set of 
multilateral trade deals aimed at strengthening the developing 
countries' ability to create working positions, fight poverty and 
build sustainable economies. 
 
"The Doha Program basically served the interests of Northern 
industrialized powers, which attempt to broaden the access of their 
multinational corporations to Southern markets... 
 
"... The Doha model and agenda failed in their attempt to increase 
WTO credibility and the crisis appears as a window of opportunity to 
reverse the current scheme of international trade negotiations, 
although the lack of clear rules could pave the way for bilateral 
and multilateral deals that could further jeopardize conditions for 
the Southern countries." 
 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
WAYNE