Argentina joins Zimbabwe

Pablo Wende, a columnist of business-financial Ambito Financiero said Argentina was about a join a group of select countries which opposed any international Monetary Fund initiative without caring too much about the issue.

“The day before yesterday, the country took a new step in this direction by voting against a new IMF initiative aimed at managing its investments. 176 countries voted in favour of it. Only a ‘select’ group voted against it – Zimbabwe (harassed by hyperinflation and charges of all kinds against its old dictator Robert Mugabe), Laos, Turkmenistan, Angola and Argentina are the members of this group.

“At this point, one can already see a line of behaviour -just one week ago, the Argentine Government also voted against the change in the voting structure at the IMF.

“The Argentine position triggered irritation at the IMF, particularly in its head, Dominique Strauss-Kahn, who, in an unusual gesture, attended President Cristina Kirchner’s inauguration ceremony last December 10. Nevertheless, the IMF is unlikely to remain idle. For the time being, it has already made it known that the IMF will not make any effort to help Argentina in negotiating its Paris Club debt, as Strauss-Kahn had promised.

“What was most striking to Washington was Argentina’s changing position in a matter of days and, in some cases, in a matter of hours.”

Full cable:

Viewing cable 08BUENOSAIRES608, MEDIA REACTION; US ELECTION CAMPAIGN; ARGENTINA’S VOTE

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DE RUEHBU #0608/01 1282039

ZNR UUUUU ZZH

O 072039Z MAY 08

FM AMEMBASSY BUENOS AIRES

TO RUEHC/SECSTATE WASHDC IMMEDIATE 0983

INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//

RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 000608

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; US ELECTION CAMPAIGN; ARGENTINA’S VOTE

AGAINST THE IMF; LULA/CHAVEZ/BUSH; 05/07/08

¶1. SUMMARY STATEMENT

Today’s local international stories are focused on new developments

in the Democratic primaries; Argentina’s vote against IMF

initiatives; and Lula da Silva’s “meddling” in the confrontation

between Hugo Chavez and the US.

¶2. OPINION PIECES AND EDITORIALS

– Obama and Hillary cannot break their tie”

Hugo Alconada Mon, daily-of-record “La Nacion’s” Washington-based

correspondent, comments (05/07) “The last big night of the

Democratic primaries ended in the same way it began – with Barack

Obama and Hillary Rodham Clinton in confrontation and without having

inflicted a decisive blow to the other, which could lead them to the

nomination…

“… Now, the two will focus on West Virginia next Tuesday. Their

competition will continue through June 3, when primary elections

will end and a period will start during which some Democratic

leaders expect one of the two competitors to step down before the

August convention.

“… Last night’s results revealed that Obama could be some 100

delegates below the necessary number required, while the New York

senator could be 250 (delegates) away…

“… The local economic crisis turned out to be the most important

issue in both Indiana and North Carolina (66%), surpassing the issue

over the war in Iraq (20%9), delayed immigration reform, the

profound problems posed by the medical care or global warming…

“… In the case of Obama, the question is whether he would be able

to win in November, bearing in mind that during the last eight weeks

(and with so much in his favor) he was not able to get rid of

Hillary, he lost in Pennsylvania and has not been able to capture

the white and Hispanic vote. Meanwhile, in Hillary’s case, there are

new doubts given that her negative image was reinforced among a

large segment of the electorate and that she also has to overcome a

very steep slide.”

– “A new anti-IMF league – Argentina goes with Zimbabwe, Angola and

Laos”

Pablo Wende, columnist of business-financial “Ambito Financiero,”

writes (05/07) “Argentina is on its way to making up a new league of

countries, which is made up of those countries that oppose any IMF

initiative without caring too much about the issue. The day before

yesterday, the country took a new step in this direction by voting

against a new IMF initiative aimed at managing its investments. 176

countries voted in favor of it. Only a ‘select’ group voted against

it – Zimbabwe (harassed by hyperinflation and charges of all kinds

against its old dictator Robert Mugabe), Laos, Turkmenistan, Angola

and Argentina are the members of this group.

“At this point, one can already see a line of behavior – just one

week ago, the Argentine Government also voted against the change in

the voting structure at the IMF.

“… The Argentine position triggered irritation at the IMF,

particularly in its head, Dominique Strauss-Kahn, who, in an unusual

gesture, attended President Cristina Kirchner’s inauguration

ceremony last December 10. Nevertheless, the IMF is unlikely to

remain idle. For the time being, it has already made it known that

the IMF will not make any effort to help Argentina in negotiating

its Paris Club debt, as Strauss-Kahn had promised.

“What was most striking to Washington was Argentina’s changing

position in a matter of days and, in some cases, in a matter of

hours.”

– “Lula is revealed to have attempted to moderate the confrontation

between Chavez and Bush”

Eleonora Gosman, leading “Clarin’s” Sao Paulo-based correspondent,

writes (05/07) “It was common knowledge that the Brazilian right

wing did not want Lula da Silva to take power in October 2002, and

one could have imagined that it would have pressured even the

military to avoid that ‘danger.’ However, it is not unusual that

that same group asked the US to intervene in order to prevent the

trade unionist from taking power. This was exactly what happened,

according to what former Deputy Secretary of State for Latin America

Otto Reich told the Brazilian economic newspaper ‘Valor.’

“He received such a request dring a short trip to Brazil by

mid-2002… Reich added that ‘there were also Brazilians who told us

that Lula would be very dangerous.’ However, by then, the Bush

administration had some other urgent affairs to manage – the war in

Afghanistan and the imminent military intervention in Iraq. Reich

acknowledged that, due to these reasons, ‘we decided not to get

involved in Brazil; there was nothing to do.’

“… There is another aspect to the story presented by ‘Valor’

newspaper – based on about 200 US government documents…, that

demonstrate how Lula da Silva attempted to downplay an open

confrontation between Hugo Chavez and the US.”

To see more Buenos Aires reporting, visit our

classified website at:

http://www.state.sqov.gov/p/wha/buenosaires

WAYNE

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