INSIDE SCOOP ON REGIONAL POLITICS AND UNASUR

C O N F I D E N T I A L ASUNCION 000665 SIPDIS WHA/FO CMCMULLEN, WHA/BSC MDRUCKER, BFRIEDMAN, MDASCHBACH E.O. 12958: DECL: 09/24/2028 TAGS: PREL PA SUBJECT: INSIDE SCOOP ON REGIONAL POLITICS AND UNASUR Classified By: DCM Michael J. Fitzpatrick; reasons 1.4 (b) and (d). ¶1. (C) Chilean Ambassador Fabio Vio Ugarte told Ambassador September 17 that he met privately with Chilean President Bachelet when he returned to Santiago for a COM meeting to prepare for the UNASUR Summit. To his surprise, she firmly stated her dislike for Venezuelan President Hugo Chavez. However, he said, Bachelet is under great internal pressure from pro-Chavez members of her administration who want her to publicly support Chavez. She is also being criticized domestically for not doing enough for Chile's neighbors and focusing too much on commercial allies in Asia, the United States, and Europe. Bachelet saw the UNASUR meeting for the Bolivia conflict as Chile's chance to get involved in a constructive way in the region. (NOTE: Vio was Ambassador to Venezuela during the Lagos administration but was recalled for consultations for three months as a result of tense relations between Venezuela and Chile. He is strongly anti-Chavez and considers himself close to Lagos and Frey but does not know Bachelet; Vio was concerned about where Bachelet could take Chile's relationship with Chavez given her leftist origins. END NOTE). ¶2. (C) Vio told the Ambassador that he spoke with President Lugo's Chief of Staff, Miguel Angel Lopez Perito, and Progressive Democratic Party (PDP) Senator Alberto Grillon (chair of the Paraguayan Senate Foreign Affairs Committee) the day before they traveled with Lugo to Chile. Vio stressed the need to keep the United States out of the UNASUR declaration; all agreed that the UNASUR declaration should not be anti-U.S. Vio said Lugo held that line during the UNASUR meeting, and that Chilean MFA staff were relieved that UNASUR agreed on a declaration given the high risk associated with the meeting. ¶3. (C) Ambassador met separately with Senator Grillon September 18 upon his return from Chile. Grillon said Colombian President Uribe played a key role in moderating UNASUR discussions about Bolivia, and that Argentine President Kirchner and Brazilian President Lula (who does not want the Venezuela/Bolivia issue to spill over into Brazil) were also ""helpful."" Grillon said Chavez gave a long-winded speech attacking the United States -- to the annoyance of most of the other heads of state -- and that only Bolivian President Morales echoed his rhetoric. Grillon said Morales spoke disparagingly about Ambassador Goldberg, alleging that he contributed to the crisis because of his meetings with the opposition and ""interference."" Lugo's participation was limited, but his interventions moderate, according to Grillon. Sen. Grillon overhead one of Chavez' advisors press Lopez Perito not to accept President Bush's invitation for a White House meeting with Lugo. The Venezuelan advisor aggressively tried to convince Lopez Perito that the Bush/Lugo visit should not take place. Lopez Perito disagreed. ¶4. (C) President Lugo told the Ambassador September 19 that he wants to talk to all sides in the Bolivian conflict, and that he has reached out to the political opposition in Bolivia directly. He confided in the Ambassador, saying that he believes Morales ""has a complex"" about race and dismissing Chavez' recent rhetoric. COMMENT: Lugo continues to walk a fine, pragmatic line on regional politics. In the press, he has been very balanced on the Bolivia crisis, supporting Morales as Bolivia's democratically elected president but avoiding any mention of the United States. On September 24, Lugo publicly stated that he will not expel any ambassadors from Paraguay, including the current U.S. Ambassador. Simultaneously he stated that ""Lugo is not Hugo Chavez and Hugo Chavez is not Lugo, thank God."" END COMMENT. Please visit us at http://www.state.sgov.gov/p/wha/asuncion AYALDE