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Cablegate: Media Reaction; Iran; China; Argentine Paris Club Debt;

VZCZCXYZ0009
OO RUEHWEB

DE RUEHBU #2062/01 2911554
ZNR UUUUU ZZH
O 181554Z OCT 07 ZDK
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9509
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 002062

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; IRAN; CHINA; ARGENTINE PARIS CLUB DEBT;
10/18/07


1. SUMMARY STATEMENT

Today's leading international stories include President Bush's
warning that if Iran obtained nuclear weapons it could lead to
"World War III;" the outcome of the 17th Communist Party Congress;
and Argentina's ongoing negotiations to repay its Paris Club debt.

2. OPINION PIECES AND EDITORIALS

- "Threats"

Claudio Mario Aliscioni, international columnist of leading
"Clarn," opines (10/18) "On the eve of the invasion to Iraq, the
Saudi Ambassador to the UN gave an apocalyptic address that, in view
of what happened thereafter, sounds prophetic now - 'We are on the
verge of an overwhelming disaster. Whatever the reasons are for it,
I must say that the outcome will be catastrophic at all levels -
human, economic, political, legal, and ethical.' It is not difficult
to agree with that prediction now and also to relate it to current
threats to Iran.

"The entire Iraq campaign revealed itself as a business affair and
Washington's ambition to expand its power over a vital region in the
world.

"Bush's turn to Tehran can be explained by the failure of the
campaign in Iraq. The disturbing thing is that, due to the
president's weakness, no one can completely dismiss the fear of a
new blow that will plunge the world into another disaster."

- "China's new agenda"

An editorial in daily-of-record "La Nacisn" (10/18) reads "With the
promise of allowing bigger participation from citizens in the
political process to be developed until 2020 and quadrupling per
capita income vis-`-vis that of 2000, Chinese President Hu Jintao
laid the groundwork for what he called 'a moderately accommodated
society.'

"These were his main remarks at the Chinese Communist Party
Congress, which is held every five years to define expectations for
the next five-year period and to welcome a roster of younger
officials who could succeed the current leader when he finishes his
term in office in five years...

"... Hu also insisted on the need to promote domestic consumption as
a way of lowering the huge trade surplus that has accumulated,
thereby destabilizing other economic powers... This could help to
orderly and slowly appreciate the Yuan... and, in this way, Chinese
companies will not depend on bank funding as they do now.

"Without renouncing Communism, Chinese citizens, in Hu's view, will
gradually enjoy 'broader democratic rights.' It will not be a
conversion toward a Western-style democracy, which has always been
rejected by Communist leaders but a gradual opening under the
party's supervision. The proposal implies the organization of public
debates of draft bills...

"Another important decision unveiled by Hu is improving governmental
bureaucracy and monitoring the government officials' behavior due to
rampant corruption...

"The call to Taiwan to reach a negotiated peace accord aimed at
obtaining a peaceful and agreed upon reunification was
surprising...

"On military matters, Hu announced the continuity of the current
overhauling of Armed Forces... However, he did not announce an
increase in their number, which could have raised alarm bells in
other powers.

"It was also remarkable that Hu acknowledged the need for the
protection and preservation of natural resources given that China is
one of the most polluting countries... We welcome this remark as
well as the signs of openness and participation that will grant
greater freedoms to the citizens of the country having the largest
population in the world."

- "The US says that Argentina should reach a deal with the IMF"

Hugo Alconada Mon, Washington-based correspondent for
daily-of-record "La Nacisn," comments (10/18) "Still far from the US
Department of State's most conciliatory view, the US Treasury
Department said yesterday that Argentina will have to agree on an
IMF 'program' if it wants to restructure its pending debt to the
Paris Club.

"However, the Treasury Department also made a first wink to
Argentina by stressing that it wishes 'to facilitate' negotiations
so that the country can repay its debt 'as soon as possible,
according to a Treasury spokesperson.

"During the meeting between US Secretary of State Condoleezza Rice
and FM Taiana in late September, Secretary Rice lightened the
requirements for a deal although she pointed out that this will
depend on the 'understanding' Argentina can reach with the IMF.

"... The crucial point will be the kind of 'understanding' the
Argentine Government can reach with new IMF Managing Director
Dominique Strauss-Kahn, which could well take the form of an
'extended' report on Section IV rather than a 'formal program.' This
was the core of the message Rice conveyed to Taiana, which Shannon
reiterated in response to a question from 'La Nacisn' in September.
He said: 'A positive response from the Paris Club will depend on the
ability of Argentina and the IMF to reach some kind of
understanding.'"

To see more Buenos Aires reporting, visit our
classified website at:
http://www.state.sqov.gov/p/wha/buenosaires

WAYNE

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