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Viewing cable 09BUENOSAIRES1111, MEDIA REACTION: IMF-ARGENTINA; THE US IN AFGHANISTAN;

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Reference ID Created Released Classification Origin
09BUENOSAIRES1111 2009-10-07 15:08 2011-08-25 00:00 UNCLASSIFIED Embassy Buenos Aires
VZCZCXYZ0020
OO RUEHWEB

DE RUEHBU #1111/01 2801508
ZNR UUUUU ZZH
O 071508Z OCT 09
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4449
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT
UNCLAS BUENOS AIRES 001111 
 
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: IMF-ARGENTINA; THE US IN AFGHANISTAN; 
10/07/09; BUENOS AIRES 
 
1. SUMMARY STATEMENT 
 
Leading international stories today are focused on Argentina 
returning to the IMF fold after its alleged "emancipation" of 2006; 
and the war in Afghanistan. 
 
2. OPINION PIECES AND EDITORIALS 
 
- "More make up" 
 
Leading "Clarin's" political columnist Jorge Luis Velazquez writes 
(10/07), "The (Argentine) Government did not meet its maximal goal - 
getting IMF support without any kind of monitoring, a sort of blank 
check for what it interprets as a sound financial, tax and foreign 
exchange situation. 
 
"Just like any other member of the 'club', it had to accept the 
visit to the country of an IMF delegation to perform an annual 
review of the country's economy. This is why the negotiation will be 
limited to some sort of 'make up' - that the final statement does 
not include any objection to the economic scenario, which the 
official discourse considers 'revealed truth.'" 
 
- "Convincing Kirchner rather than the IMF" 
 
Daily-of-record "La Nacion's" political columnist Carlos Pagni 
opines (10/07), "Nestor Kirchner is (Economy Minister Amado) 
Boudou's obstacle in his rapprochement with financial markets. The 
minister had thought the IMF meeting in Istanbul could be the 
scenario to announce the default bonds swap. However, Kirchner made 
him postpone the announcement. The President's husband does not want 
to take the step without having agreed with the IMF on the terms of 
its Article IV review of the national economy. 
 
"... Kirchner is not the only obstacle in Boudou's road. It will 
also be necessary to persuade the opposition in the Argentine 
Congress that they are not infringing on the 2005 Bolted-shut 
legislation, which prohibits any possibility of negotiating the debt 
to holdout bondholders... 
 
"... Kirchner does not want the IMF review to include 
recommendations on the country's inflation rate or the INDEC 
national statistics agency... He fears that the picture of 
Washington officers arriving in Ezeiza could be seen as a sign that 
he has surrendered to the enemy... 
 
"... Argentina's financial suffocation has sparked increasing 
political tensions. Unable to resort to markets, governors seek the 
Argentine Government's cooperation or they raise taxes amid the 
recession, just like Daniel Scioli has done. The choice would be 
issuing quasi-currencies... Resources are barely enough to mitigate 
the most urgent social demands, while protest demonstrations 
multiply outside the palace." 
 
- "Imminent Mass Financing" 
 
Liberal, English-language "Buenos Aires Herald" editorializes 
(10/07), "Soft-soaping the contradiction of returning to the IMF 
fold after the 'emancipation' of 2006 will be difficult but by no 
means impossible. A G20 economy returning to international capital 
markets opens up the vista of so many billion dollars that creditor 
goodwill should abound... 
 
"Quite apart from the political camouflage, the IMF admittedly has 
less reason to be especially demanding with Argentina because no new 
loans are being requested for now - foreign currency reserves almost 
50% higher than 45 months ago plus a hefty trade surplus and the 
lowest country risk since mid-2008 mean that Argentina is nowhere 
near default. 
 
"Yet aside from even the most solvent economies not being exempt 
from Article IV stipulating IMF monitoring, there would be valid 
questions for an IMF mission within its task of investigating the 
Argentine economy's fiscal, monetary, debt, inflation and banking 
scenarios - for example, the capital flight of the last 30 months or 
INDEC statistics bureau's methods for calculating inflation. The aim 
of the mission is to be low-profile but if that profile were low to 
the degree of being invisible, much of the point of returning to the 
IMF fold would be lost - like Caesar's wife, it is almost more 
important than Argentina be seen to be correct." 
 
- "The US admits its retreat in Afghanistan" 
 
Daily-of-record "La Nacion's" Washington-based correspondent Silvia 
Pisani writes (10/07), "Eight years after the US invasion of 
Afghanistan, the Barack Obama administration has it clear that 
withdrawal 'is not a choice,' according to Defense Secretary Robert 
 
Gates, who even admitted yesterday that the Taliban are winning the 
battle. 
 
"During a CNN interview, Gates pointed out that the Taliban are 
winning the battle in Afghanistan because Washington and its allies 
were unable 'to send enough troops' to ensure the victory. 'However, 
we will not leave Afghanistan. The debate is on the next steps to be 
taken. 
 
"... The Democratic administration has to decide how to respond to 
General Stanley McChrystal's request for 40,000 additional troops 
for Afghanistan. The Obama administration has not made a decision 
yet now that the US presence in Afghanistan is one of the most 
unpopular causes in the US according to several opinion surveys. 
 
"... The war in Afghanistan is already eight years long. During the 
last months, many US soldiers have died in the confrontation. In 
recent hours, Obama met with Congressional leaders and their 
military advisors in order to decide how to tackle the impaired 
safety in the region, as a previous step to deciding whether 
additional troops should be sent to the Asian country." 
 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
MARTINEZ