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Viewing cable 07BUENOSAIRES1847, MEDIA REACTION; IRAQ; THE ARGENTINE PRESIDENTIAL COUPLE;

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Reference ID Created Released Classification Origin
07BUENOSAIRES1847 2007-09-14 17:04 2011-08-25 00:00 UNCLASSIFIED Embassy Buenos Aires
VZCZCXYZ0007
OO RUEHWEB

DE RUEHBU #1847/01 2571704
ZNR UUUUU ZZH
O 141704Z SEP 07
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9252
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT
UNCLAS BUENOS AIRES 001847 
 
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; IRAQ; THE ARGENTINE PRESIDENTIAL COUPLE; 
ARGENTINE DEBT TO THE PARIS CLUB; 09/14/07 
 
 
1. SUMMARY STATEMENT 
 
Today's major international opinion pieces cover US President Bush's 
announcement of "gradual troop cuts" in Iraq; Argentine First 
Lady/Senator Cristina Kirchner's trips abroad; and the impact of the 
international financial crisis on Argentine banks as well as the 
country's ongoing negotiations on its debt to the Paris Club. 
 
2. OPINION PIECES AND EDITORIALS 
 
- "Bush starts gradual troop cuts from Iraq" 
 
Hugo Alconada Mon, Washington-based correspondent for 
daily-of-record "La Nacisn," comments (09/14) "Determined to 
capitalize on the first and still premature results of a military 
escalation in Iraq, US President George W. Bush made an announcement 
which at first glance seems contradictory - the withdrawal of the 
first 5,700 soldiers from Saddam Hussein's territory in order to be 
able to extend the presence of US troops in the country. 
 
"... Bush said his order was based on the very controversial 
'progress' obtained... by the deployment of an additional 35,000 
troops ordered by the president himself last January 10, at the 
suggestion of his new military commander in Iraq, General David 
Petraeus. 
 
"... In this way, Bush announced a withdrawal that will leave him 
with more troops than last January, while sending a signal to US 
public opinion, which is fed up with the conflict. 
 
"Only 30 percent of Americans currently approve of the Republican 
administration's war strategy compared to 56 percent who do not 
believe that the US will succeed in Iraq. However, those percentages 
actually reflect a slight increase in the support for the White 
House based on the lower violence rates in Baghdad and its 
surroundings. 
 
"... According to the US Pentagon's plans..., the idea is to 
continue withdrawing troops in early 2008, although some 132,000 
soldiers would be staying in Iraq as of July. While those troops 
could stay there until 2009 or 2010, Bush avoided making reference 
to those dates. Instead, he pointed out that he ordered Petraeus and 
his Ambassador to Iraq, Ryan Crocker, to submit a new report on 
Iraq's political and military situation by next March. 
 
"In order to move forward, the White House also needs Iraqi leaders 
to reach agreement instead of inciting sectarian killings. 
 
"... The White House's most important challenge is the Democratic 
opposition, which considers his announcement is another lie." 
 
- "Both sides now" 
 
An editorial in liberal, English-language "Buenos Aires Herald" 
reads (09/14) "Which is better - is it more important to be 
recognized in a wider world or does political power, like charity 
begin at home? The presidential couple has experienced both ends of 
this question with First Lady Senator Cristina Fernndez de Kirchner 
obtaining the extraordinary recognition of being officially received 
by the government chiefs of Germany and Austria when merely a 
presidential candidate whereas President Nstor Kirchner's faltering 
grip on his native province of Santa Cruz was underlined on 
Wednesday by the way violent clashes in the perennial trouble-spot 
of Caleta Olivia overshadowed his campaigning in Ro Gallegos. 
 
"... Over and above the thorny question of whether or not the German 
and Austrian leaders were doing the right thing in thus favoring a 
candidate..., did Mrs. Kirchner's Germanic trip do anything to 
clarify any pending international issues? To settle the Paris Club 
debt while maintaining the Kirchners' insistence on shutting out the 
IMF or to unblock the Doha Round which is being obstructed by 
Argentina's increasingly protectionist attitude towards its industry 
just as much as by any farm subsidies on the part of the developed 
world?... Senator Kirchner's appeals to invest in growing Argentina 
remain virtually a dead letter while the Paris Club debt remains 
unresolved because no investor from the creditor countries can count 
on any state guarantees or credits while this default persists. As 
for her husband, Wednesday's clashes show him to be vulnerable to 
aggressive protests with no guarantee against their repetition... 
 
"Two sides of the coin, then, for the presidential couple but does 
either side have any true bearing on the nation's real problems?" 
 
- "The (Argentine) Government is concerned about increasing interest 
rates" 
 
Leading "Clarn" carries an op-ed by economist Marcelo Bonelli, who 
 
writes (09/14) "An internal paper circulating in the (Argentine) 
Government clearly warns that private banks decided to take measures 
to protect themselves from the international (financial) crisis, and 
set off an unexpectedly large increase in Argentina's lending 
costs. 
 
"... Local bankers from ADEBA (Asociacisn de Bancos Argentinos) 
(Argentine Banking Association) confirmed another decision - they 
decided to cut loans to strengthen their position - they want to 
have abundant liquidity that will help them face any unexpected 
crisis. The Argentine Government considers this 'ultraconservative' 
attitude unjustified for several reasons - the Government has 
confidential information that the US Federal Reserve will lower 
 
SIPDIS 
interest rates at next Wednesday's meeting, which will alleviate 
international tension; and local banks have higher reserves than the 
amount required by the Central Bank... In this way, exchange rates 
will have to depreciate towards the end of September, and they would 
only remain high until after presidential elections due to 
uncertainty. 
 
"The Argentine Government will assess the situation in detail during 
its trip to the US. Manhattan will be another important stop in 
Cristina Fernndez de Kirchner's election campaign. 
 
"The fact that many G7 leaders helped to make the presidential 
candidate look good did not pass unnoticed by the business world... 
The support for Cristina Kirchner has not dispelled concerns 
regarding how she will manage or complaints from multinational 
corporations about the Kirchners' alleged anti-business posture. 
 
"However, G7 support would be strong and based on their belief that 
the senator could guarantee governance in Argentina, something that 
the opposition does not guarantee. 
 
"The delegation to be sent in October to the IMF could be used to 
hold talks with G7 ministers, including US Treasury Secretary Henry 
Paulson in search for a solution. 
 
"The renegotiation of the country's debt to the Paris Club has 
strategic importance. It could be the first successful opening to 
the world of an eventual government of Senator Kirchner, but it 
could also have a strong economic impact - at a moment when 
obtaining funds is increasingly difficult, it could pave the way for 
institutional funding from powerful nations for investment in 
Argentina." 
 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
KELLY