CHILE MEDIA REPORT -- DECEMBER 3

UNCLAS SANTIAGO 001055 SIPDIS STATE FOR R/MR, I/PP, WHA/BSC, WHA/PDA, INR/IAA E.O. 12958: N/A TAGS: KMDR KPAO PGOV ECON PREL PGOV SNAR EFIN CI SUBJECT: CHILE MEDIA REPORT -- DECEMBER 3 Lead Stories -------------- ¶1. Chilean headlines noted that former FARC hostage Ingrid Betancourt will meet with President Bachelet today. Dailies also highlighted government coalition opposition Senators expressed their willingness to discuss the education law that will go to Congress today. U.S. - Related News -------------- ¶2. Headline: "Gary Roughead, USN Chief of Naval Operations: 'I am not concerned with the Joint Venezuela-Russia Exercises'" In just a few months, Latin America's seas became the center of attention of global powers. First, the U.S. Navy resuscitated the Fourth Fleet after 58 years of inactivity. The response came from Russia, with the arrival of a powerful fleet to Venezuela. Admiral Roughead, who is in Chile for the Exponaval fair, downplayed both events and press reports of an alleged "Russian threat" in the region. "As I see it, there is a positive motivation in the Russian and Venezuelan joint exercises. I have no concern about this (exercise)," he said. The Admiral also demystified the goals of the Fourth Fleet, which Venezuela, Cuba, and to a lesser degree Brazil, view as a U.S. attempt to maintain its control of the region. "The Fourth Fleet has no war vessels, no aircraft, and no submarines," emphasized Roughhead, who underscored the Navy's humanitarian activities in needy zones and cooperation with other navies, such as during the Panamax exercises. "The Fourth Fleet is the same organization we have in other parts of the world to conduct naval operations. When I became Chief of Naval Operations, I found it odd that we did not have an effective organization in our own hemisphere" (El Mercurio, conservative, influential newspaper-of-record, circ. 129,000, 12/3). ¶3. Headlines: "Admiral Gary Roughhead Impressed with the Chilean Navy": "No Concern with the Venezuelan-Russian Joint Exercises" Admiral Gary Roughead, Commander of the world's most powerful fleet, was impressed with Chile's Navy, particularly with the professionalism displayed, the technical capability developed by the local industry and the recently acquired frigates. "Chile has a very important role to play in securing maritime commercial routes in the western hemisphere," said Roughead, adding that the situation in the region is in general positive, but there is concern with narcotics trafficking. The Admiral said his visit to Exponaval is an opportunity to expand cooperation between the navies of both countries. As to the Venezuela-Russian naval exercises, viewed by local analysts as Moscow's incursion into an area traditionally under U.S. influence, Roughhead was emphatic in stating that this is not an issue of concern (Regional daily El Mercurio de Valparaiso, 12/3). ¶4. James Poterba, Chairman of the National Bureau for Economic Research, the man who decreed the beginning of the recession in the United States," said that in his view, "the series of negative blows will make this recession the worse since the war" (Diario Financiero, business and financial, circ. 30,000, 12/3). Venezuela -------------- ¶5. Venezuelan Ambassador Maria Lourdes Urbaneja arrived in Punta Arenas, southern Chile. She will make a donation to a public school, and meet with regional authorities, youth, social and political organizations, and with the Hugo Chavez support network: The Bolivarian Committee. Asked about what Venezuela expects from the Obama administration, Urbaneja said, "The greatest expectation is that with Obama there will be respect of Venezuela's internal (political) process and respect for the sovereignty of nations... and the promotion of dialogue among countries (La Prensa Austral regional daily). Chile-Peru -------------- ¶6. Foreign Minister Alejandro Foxley said yesterday the following about the Chile-Peru impasse over the inflammatory remarks made by Peruvian General Donayre: "We are not trying to escalate this, but we've been clear and are waiting for the issue to be resolved according to the stated terms we understood." The government believed the General would be removed immediately. Foxley forewarned that Chile could decide to recall its Ambassador in Lima if the General is not retired (La Nacion, government-owned, editorially independent, circ. 4,200, 12/3). Economy -------------- ¶7. ProChile, the government's network of commercial offices abroad, has put together a registry to show how the financial crisis is affecting Chile's exports in different parts of the world. The data shows that exports to the United States will be most affected because of the drop in demand for products tied to the construction sector. It also reflects a drop in the demand for logistics services, such as maritime, land and air freight; for financial services, and in tourism. However, the data also reveals that the dollar exchange rate has been profitable for Chilean exporters and that the crisis has opened new business opportunities, such as the export of frozen and canned food (El Mercurio, circ. 129,000), 12/3). ¶8. Column by Carlos Cantero, Chairman of the Senate's Transportation and Telecommunications Commission: "It's important for the government to make a decision in the short-term on the type of digital television standard that Chile will use.... I prefer the Japanese standard, because it seems to me that there is a strategic development in connection to this standard and that it is moving at a much faster pace than the others. What we don't want is for economic blocs or access to markets in the framework of free trade agreements to affect the decision. We've seen pressure along those lines. I hope the final decision is for the common good" (El Mercurio, 12/3). URBAN