US embassy cable - 05SANTIAGO2395

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MEDIA REACTION -FTAA

Identifier: 05SANTIAGO2395
Wikileaks: View 05SANTIAGO2395 at Wikileaks.org
Origin: Embassy Santiago
Created: 2005-11-23 18:31:00
Classification: UNCLASSIFIED
Tags: KMDR KPAO OPRC CI TRADE
Redacted: This cable was not redacted by Wikileaks.
This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SANTIAGO 002395 
 
SIPDIS 
 
STATE FOR R/MR, I/PP, WHA/BSC, WHA/PDA, WHA/EPSC 
STATE FOR INR/IAA, PM, INL 
 
E.O. 12958: N/A 
TAGS: KMDR, KPAO, OPRC, CI, TRADE 
SUBJECT: MEDIA REACTION -FTAA 
 
 
1.   On November 23, business and financial daily "Diario 
Financiero" (circ. 20,000) ran an editorial entitled, 
"Differences over Free Trade."  Quote: 
 
"Monday's meeting between Presidents Chavez and 
Kirchner...strengthened the strategic alliance between 
the countries in the eyes of the world, but especially 
the United States, from which Venezuela has gradually 
distanced itself after the White House objected to the 
sale of light nuclear reactors to the Chavez government. 
The Chavez-Kirchner meeting also confirmed the positions 
we saw at the Summit of the Americas in Mar del Plata. 
There are clearly two political blocs, one in favor of 
free trade and another against it, with Mexico on one end 
and Argentina and Venezuela on the other.  The question 
is then how two such political blocs could affect Chile? 
During the Lagos administration Chile has displayed a 
special bond with the Fox administration. The bilateral 
relationship with Argentina has also shown major 
improvement.  This is not an easy situation.  It will 
demand Chile's best diplomatic abilities." 
 
2.   On November 22, conservative, afternoon "La Segunda" 
(circ. 31,834) carried an editorial entitled, "The Chavez- 
Kirchner Axis."  Quote: 
 
"As expected, Nestor Kirchner's visit to Venezuela 
concluded with a prodigious loan package from the 
Venezuelan government.... What does Chavez get in 
exchange?  A promise that Venezuela will become a full 
Mercosur member--a questionable promise given economic 
problems in Argentina and the bloc....  The Caracas- 
Buenos Aires axis also wants to build a Latin American 
Financial Fund, although Kirchner explained that the fund 
would not substitute for the international loan entities 
created in Breton Woods....  This alliance undoubtedly 
complicates Argentina's ties with the United States and 
the G-7...  However, it is worthwhile to note Chavez' 
psychological approach:  `We will guarantee energy for 
all Latin America for the next 200 years.  That is the 
main cause of the conflict with the United States.  It is 
not ideological, it is very concrete: U.S. imperialism 
wants that oil.'" 
 
KELLY 

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