ON THE SAME PAGE: INFLUENTIAL CHILEANS SEEKING

C O N F I D E N T I A L SANTIAGO 000476

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/21/2017
TAGS: ETRD PGOV PREL PTER CI
SUBJECT: ON THE SAME PAGE: INFLUENTIAL CHILEANS SEEKING
ENHANCED COOPERATION WITH U.S.

Classified By: Ambassador Craig Kelly for reasons 1.5 (b and d).

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Summary
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1. (C) Foreign Minister Foxley told the Ambassador Chile
wants to increase cooperation with the USG on
counter-terrorism and will advocate for Peru and Colombia as
they negotiate FTA's with the U.S. A Foxley confidante
expanded on the theme, arguing that Chile, feeling itself
somewhat isolated in the region, should look to build even
closer ties with the U.S., whose economic and political
policies, in his view, are largely in keeping with Chile's.
The U.S. should reciprocate by "paying more attention to
Chile." End summary.

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Foxley in the Chicken Coop
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2. (C) The Ambassador and Mrs. Kelly, along with several
other couples, were invited to dinner March 15 at the home of
Foreign Minister Alejandro Foxley. The atmosphere was
relaxed and Foxley in a talkative mood; the Ambassador was
able to chat privately with him on several topics. Foxley
said that he'd received a "very positive" readout from Carlos
Portales (the MFA's number three official),who had led
Chile's delegation to the March 12-13 U.S.-Chile pol-mil
consulations in Washington. He wanted to build on the
momentum created by the consulatations - such as Chile's
announcement there to join the Proliferation Security
Initiative (PSI) - to seek new areas of cooperation. Foxley
suggested that Chile could involve itself in "three or four
initiatives on counter-terrorism" and asked for U.S.
suggestions on where Chile could be useful. (Note: Post has
prepared a menu of options, in consulation with Washington,
to provide Foxley. That list will also be faxed to WHA/BSC.)


3. (C) Foxley said that at his behest President Bachelet
would send letters to the U.S. Congress supporting
ratification of free trade agreements with Peru and Colombia.
Bachelet would note the benefits of the U.S - Chile FTA to
both countries and also argue that extending FTA's to other
countries in the region would send a strong signal of support
for free trade and democratic government. (Comment:
Foxley's pro-American sentiment was very much in evidence
throughout the dinner. In Bachelet's left-leaning
administration he can be a lonely - and ocassionally
criticized - voice for stronger ties with the U.S. It
appears to us that, of late, his positions on issues such as
strengthening ties with "like-minded countries," have been
gaining some traction with the President, even if she remains
reluctant to publicly embrace policies seen as pro-U.S. End
comment.)

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It Can Get Lonely Down Here
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4. (C) Foxley confidante Eduardo Boeninger, a former Minister
of the Secretariat General of the Presidency under former
President Aylwin, at his request met with Ambassador March

20. E/Pol Counselor also sat in. Boeninger noted that while
the recent visit of President Bush to the region was "late in
coming" it is important to follow-up with the initiative, in
order to blunt Chavez's populist message. Several countries
had adopted necessary economic and political reforms but only
half-heartedly. When they had failed - as in Argentina -
neoliberalism (and the U.S.) had taken the blame. It is
important for the U.S. to highlight those countries where
free market policies had been embraced and succeeded, such as
in Chile, Colombia, and Mexico.


5. (C) Free trade and globalization are here to stay. Chile
and "like-minded countries" such as Australia, New Zealand
and Singapore would be key that effort. The U.S. and Chile
should establish an ever closer relationship, based on trust.
The Iraq situation made closer ties difficult (with the

Bachelet government) but the effort had to be made. The U.S.
would have to pay more attention to Chile and U.S. leaders
not look at Chile with "indifference." Boeninger continued
that Chile needed the stronger ties as well. "Chile is at
the end of the continent, and is bordered by adversaries."
Argentina looks at Chile as a "nuisance," relations with Peru
are "good but fragile," and ties to Bolivia always
problematic. Chavez is noting that Chile is a "competitive
model" and Brazil's Lula, "using Chavez's money," wants to
set himself up as the region's dominant leader. In short,
"Chile needs a friend and the U.S. is its natural ally."


6. (C) The Ambassador replied that the U.S. was very
supportive of efforts to link the like-minded. The U.S.
understands the importance of Chile. The recent U.S.-Chile
pol-mil consultations in Washington and talks Chilean
delegation head Carlos Portales had with U/S Burns, U/S
Dobriansky and S/P Krasner underscored that feeling. The
Embassy is increasing already substantial public diplomacy
efforts to get out our message of support for the Chilean
model. The Mission will focus on enhancing English language
capabilities in Chile, for example, and hopes to use the
President's announced initiatve of USD 75 million for the
region to further that goal. He agreed with Boeninger that
Chile should better network with U.S. legislators, and
enhance ties to state-level organizations, particularly those
promoting trade. The Ambassador noted, too, that the Embassy
would be emphasizing the importance to Chile's future of
encouraging innovation.

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Comment
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7. (C) Boeninger (and Foxley) are preaching from Chile's
still small openly pro-U.S. choir. It will be important for
USG officials to stroke Foxley during his April 12-13 visit
to Washington and explore concrete areas for future
engagement. Boeninger's message, that the U.S. must take
care not to take Chile for granted, in a region where other
countries pose greater challenges to good relations, is one
we take to heart. Our engagement over the past few months,
here and in Washington, has been intense and we know, at
least as reflected in a recent poll, that a strong plurality
of Chileans see the U.S. as their best ally. End comment.
KELLY