Cablegate: Media Reaction; Us Supreme Court of Justice Ruling About
DE RUEHBU #1962/01 2751323
ZNR UUUUU ZZH
O 021323Z OCT 07
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9398
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
UNCLAS BUENOS AIRES 001962
STATE FOR INR/R/MR, I/GWHA, WHA, WHA/PDA, WHA/BSC,
CDR USSOCOM FOR J-2 IAD/LAMA
E.O. 12958: N/A
TAGS: KPAO OPRC KMDR PREL
SUBJECT: MEDIA REACTION; US SUPREME COURT OF JUSTICE RULING ABOUT
ARGENTINE DEBT; ARGENTINE DEBT TO PARIS CLUB; SUMMIT BETWEEN THE TWO
1. SUMMARY STATEMENT
Today's key international stories include the US Supreme Court of
Justice's ruling against two vulture funds that had requested an
embargo of Argentine Central Bank reserves; IMF skepticism about
Argentina's chances of reaching a fast deal with the Paris Club; and
expectations about the Korean summit.
2. OPINION PIECES AND EDITORIALS
- "The US Supreme Court of Justice rejects a request for the embargo
of Argentine reserves"
Ana Barsn, leading "Clarn's" Washington-based correspondent,
comments (10/02) "The US Supreme Court of Justice provided good news
for Argentina's debt - it ruled against two vulture funds that had
requested the embargo of Argentine accounts to collect the bonds in
"The Supreme Court of Justice rejected the appeal from EM, a vulture
fond controlled by billionaire Kenneth Dart, and from NML Capital.
They wanted to collect a one-billion-dollar debt from Central Bank
reserves that are deposited in the New York Federal Reserve.
"This is the first time the US Supreme Court of Justice has issued a
ruling related to lawsuits filed by vulture funds against Argentina
with Judge Thomas Griesa in New York. According to experts, the
ruling sets a favorable precedent for the country.
"When the judges made the announcement, they made no comments as is
common in a controversial case. This is a signal that the decision
"... The US Supreme Court's ruling was expected. As a matter of
fact, the US Department of Justice has shown that it favors
Argentina's position from the beginning."
- "The IMF downplays expectations about a deal between Argentina and
the Paris Club"
Ana Barsn, leading "Clarn's" Washington-based correspondent, writes
(10/02) "Last weekend's prevailing optimism in Buenos Aires
regarding a fast deal between Argentina and the Paris Club is at
odds with IMF officers' skepticism and cautiousness.
"One of the IMF officers consulted by 'Clarn' said 'No negotiation
with the IMF is as simple as that and the country should always take
on commitments in order to reach some kind of agreement.'
"The source also downplayed the possibility of using the Reserve
Augmentation Line (RAL) as a tool: 'That is a credit line that does
not exist yet, a project that has not been approved yet.'
"Tom Shannon, the head of US diplomacy for the region, sparked much
optimism last Friday by saying that the White House will not ask
Argentina to reach a formal agreement with the IMF to support its
negotiations with the Paris Club. Shannon said: 'What we need is
some kind of political understanding.' Secretary Condoleezza Rice
also conveyed the same message during her meeting with Argentine FM
"Another IMF member said 'The signal is positive, but to assume that
Argentina has that arrangement in hand would be irresponsible.'"
- "Transcendental Korean summit"
Daily-of-record "La Nacisn" editorializes (10/02) "For the second
time in history, the presidents of the two Koreas will meet today
and the day after tomorrow in Pyongyang, the capital city of North
Korea, which is mired in a Communist regime that does not allow
citizens to look at the outside world...
"... North and South Korea did not sign a peace treaty but an
armistice - this means they are still at war. This situation
prevents the expansion of South Korea and the integration of North
Korea. Peace cannot be reached only between Kim and Roh. If they
decide to reach a peace agreement, they will need the endorsement of
the US and China, the two guarantors of the armistice.
"The summit is significant. North Korea, which George W. Bush
included in the 'axis of evil,' has been a potential danger for the
region until a short time ago...
"... The summit itself is a high-risk bet. It is not an easy event
because of Kim's enigmatic personality as well as interests at
stake. Both Koreas, the US, Japan, China and Russia will need to
participate only to deactivate the nuclear program. Bush recently
said at APEC that the peace accord will only be successful once the
North Korean government 'gets rid of its armament programs.'
"This will hardly be achieved in the second summit between the two
Koreas in over fifty years, but at least they will take one more
step toward reconciliation that is not only political but also
economic (due to the South's investments in the North) and
humanitarian (due to North Korea's unsatisfied needs).
"Under these circumstances, everything that contributes to
reunification will truly be a tribute to a peaceful world."
To see more Buenos Aires reporting, visit our
classified website at: