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Cablegate: Us General Craddock's Statements at Tenth Conference of The

VZCZCXYZ6009
OO RUEHWEB

DE RUEHBU #2117/01 2611051
ZNR UUUUU ZZH
O 181051Z SEP 06
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5928
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 002117

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 MEDIA REACTION
SUBJECT: US GENERAL CRADDOCK'S STATEMENTS AT TENTH CONFERENCE OF THE
AMERICAS; FOREIGN TERRORISM SUSPECTS' RIGHTS; WALL ON THE US-MEXICAN
BORDER; PRESS ROUND WITH JANE SKANDERUP, CSIS; 09/15/06; BUENOS
AIRES


1. SUMMARY STATEMENT

Today's most important international stories include US General John
Craddock's statements at the Tenth Conference of the Americas; the
US Senate Armed Services Committee passing a bill aimed at
protecting the rights of foreign terrorism suspects; and the US
Lower House passing a bill to build a wall on the US-Mexican
border.

Leading "Clarin," daily-of-record "La Nacion," business-financials
"Ambito Financiero," "El Cronista," and "InfoBae" extensively report
on yesterday's press round with Jane Skanderup, Pacific Forum,
Center for Strategic and International Studies.

2. OPINION PIECES AND KEY STORIES

- "The US urges to fully honor the rule of law"

Conservative "La Prensa" reports (09/15) "The head of the US South
Command, John Craddock, said yesterday that regional prosperity will
only be obtained by honoring the 'rule of law' and that 'poverty,
corruption and inequality' are major challenges. During a forum on
competitiveness of the region in global economy, General Craddock
underscored that 'money only goes where safety prevails, rule of law
is honored, and institutions are transparent.'

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"During the Tenth Conference of the Americas, which was organized by
The Miami Herald newspaper, Craddock said that 'national and public
security is the cornerstone of economic security.'

"Craddock underscored that 'through the reinforcement of public and
national security, more efficient governments are created, which are
capable of encouraging investment and promoting economic
development.'"

- "(US) Senate defies Bush"

Liberal, English-language "Buenos Aires Herald" reports (09/15) "A
(US) Senate committee rebelled against President George W. Bush
yesterday, passing a bill it said would protect the rights of
foreign terrorism suspects and repair a US image damaged by harsh
treatment of detainees.

"Hours after Bush went to Capitol Hill to urge fellow Republicans to
back his proposals for putting terrorism suspects on trial, a
divided Senate Armed Services Committee approved its own bill which
it said would meet demands of the US Supreme Court that struck down
Bush's original plan.

"The committee also resisted Bush's bid to more narrowly define the
Geneva Conventions' standards for humane treatment of prisoners,
which Bush said was essential to enable the CIA to elicit valuable
information from detainees.

"... Some lawmakers say they fear the practices put US soldiers at
greater risk of harm or abuse if they are captured in conflicts
overseas."

-"US expert is concerned about increasing business with China"

Leading "Clarin" reports (09/15) "After a tour to several Latin
American countries, Jane Skanderup, a member of the Pacific Forum,
Center for Strategic and International Studies, verified increasing
trade ties between the region and China, and the important role
played by the Asian giant in the growth of Latin American economy.
Perhaps, this is why she said Washington is 'concerned' about the
situation...

"She advised to get ready for uncertain times, 'China will continue
its industrialization for 20 more years, but commodities' prices
will not remain high.'

"... Skanderup highlighted that 'Washington is concerned not only by
Venezuela's entry into Mercosur, which is politicizing the bloc.
China's decision to reach a trade deal with Mercosur could imply
Paraguay breaking its diplomatic ties with Taiwan.'

- "China and India's markets pose advantages as well as dangers"

Natalia Labruna, columnist of business-financial, center-right
"InfoBae," writes (09/15) "According to a report from CEPAL
(Comision Economica para America Latina y el Caribe) (Economic
Committee for Latin America and the Caribbean), which was entitled
'2005-06 Panorama of Latin America and the Caribbean's international
insertion,' trade between Latin America and China/India has

considerably increased during the last 15 years...

"Jane Skanderup, senior associate, Pacific Forum, Center for
Strategic and International Studies, lectured in Buenos Aires on the
Latin American policies towards China and their impact on US
interests.

"According to the expert, one of the central issues posed by this
problem is the way Washington assumes China's influence in the
region. Skanderup asserted that 'there is consensus in the US to
incorporate China because the US would certainly benefit from
China's success in the region.'

"... The US is concerned that Chinese investments come to Latin
America not only for commercial reasons but for political
motivations, and therefore, in this case, investment will not be
productive.

"... Skanderup pointed out that two of the regional issues that
raise Washington's concern are Venezuela's incorporation into
Mercosur (due to Chavez's political figure), and the effect it could
bring to democracy. 'Mercosur needs to keep up with globalization
and not get distracted with political goals.' She also said that the
US is interested in Latin America's stable development and it is
concerned that 'China's presence could be a negative influence in
the region given the fact that it is not a productive democracy."

- "The US is concerned about China's advance"

Martin Kanenguiser, economic columnist of daily-of-record "La
Nacion," writes (09/15) "According to Jane Skanderup, member of the
Pacific Forum, Center for Strategic and International Studies, the
USG is concerned about China's political influence, and it believes
that Argentina and Brazil granted the market economy status to it
without too many guarantees about receiving investment.

"During a press round, Skanderup underscored that the US fears that
ties between Latin America and China will turn against US
interests.

"... Asked whether the US concern is political rather than economic,
Skanderup answered 'it is clear that China has interest in the
region in the long term, but it is a false expectation to think that
the region will receive a lot of money in the short run and, in any
case, (our) concern is that investment is guided by politics.

"Asked whether the US perceives China as a threat, Skanderup
underscores 'We do not perceive it as a threat but it worries the US
because Latin America has weak democracies, traffic of people and
drug trafficking, which China could well use (for its own purposes).
In theory, Washington wants the region to have strong democracies,
although perhaps it does not always show it."

- "'Argentina and Brazil lost with China'"

Business-financial "Ambito Financiero" reports (09/15) "Jane
Skanderup, senior economist at the Center for Strategic and
International Studies, described a disappointing reality - 'In the
long term, China has a very strong interest in the region, but it is
a false expectation to think that billions of dollars will arrive
overnight. Argentina and Brazil obtained nothing but promises in
exchange for declaring China a free market economy, and I think they
did lose something...'

"... Washington's main concern is that investment is decided on the
basis of political rather than economic reasons. This is why the US
hindered the purchase of Chevron (Oil Company) by the Chinese state
oil company. This could be applied to other Chinese investment in
Latin America.

"'Weak democracies are new and weak, with recovering economies but
the long term is uncertain and there are problems such as traffic of
people, drug trafficking. The US is concerned about the fact that
China could have reasons to enter the region, and that it could
exploit those shortfalls for its own purposes.'

"... 'Washington is also concerned that China's political entry in
the economy of the region could be more important than the economic
entry, and that this could have a negative impact on the region. We
saw this when Argentina and Brazil accepted China as a free market
economy; in return, China only promised investment that it did not
make.'

"... 'Latin America should use part of the revenues from China's
high demand to invest in long-term, sustainable economic growth, and

there is being criticism that this is not happening.'"

- "The US is concerned over Beijing's influence in Latin America"

Sergio Serrichio, economic and political columnist of
business-financial "El Cronista," writes (09/15) "According to Jane
Skanderup, researcher at the Center for Strategic and International
Studies, an influential think tank in Washington, the US is
'concerned' about China's increasing influence on Latin America.

"According to Skanderup, the main concern in Washington is that the
trade and business China is establishing in the region are
influenced by political rather than economic motivations. She
pointed out that, to some degree, Chinese companies are owned by the
government or have a State majority capital, and, therefore, have a
logic that differs from that of a market economy.

"Skanderup said that Latin American countries should keep up with
globalization, and for this purpose they should not 'get distracted
by political issues.' As an example, she mentioned Venezuela's
incorporation into Mercosur, which will politicize the bloc. China's
dialogue with Mercosur is limited by Paraguay's acknowledgment of
Taiwan, and China offered a free trade to Mercosur in order to
change Paraguay's opinion. In return, it gives high priority to its
aspiration to become an IDB member, thereby obtaining a window of
regional influence and monitoring.

"... The expert pointed out that last April, the US Assistant
Secretary for Western Hemispheric Affairs, Thomas Shannon, who went

SIPDIS
to Beijing to participate in the fist dialogue between the US and
China on Latin America, said that it is not a 'zero sum game.'
However, he acknowledged that Beijing has increased its involvement
in Latin America lately and that Washington needs 'to be sure that
we agree' about the situation."

3. EDITORIALS

- "World security expenditures"

Leading "Clarin" editorializes (09/15) "The remarkable increase in
world security expenditures is another consequence of the September
11 attacks... However, this is not in line with perception of lack
of safety.

"... The increase in security expenditures in detriment to social
expenditures may well contribute to deepening malaise and
frustration, which is the root of many national and international
security problems.

"In sum, it is a typical situation of reactive response to the
symptom. This is at odds with an effective strategy that will offer
not only preventive measures or military (or police) responses but
will tackle the multiple reasons for international lack of safety."

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

MATERA

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