Santiago Oct. 30 Media Report

UNCLAS SANTIAGO 001028 SIPDIS STATE FOR R/MR, I/PP, WHA/BSC, WHA/PDA, INR/IAA E.O. 12958: N/A TAGS: ECON KMDR KPAO PGOV PREL SNAR EFIN CI SUBJECT: Santiago Oct. 30 Media Report Lead Story ¶1. The Ministry of Education warned public teachers who are on strike that it could be forced to extend classes until December 29 to complete the days required for any given academic year (Conservative, independent, La Tercera, 10/30). Chile-U.S. ¶2. President Obama invited Chile's next president to take part in a presidential summit on nuclear energy that will be held in Washington on April 12. The U.S. President invited 40 other countries, including G8 nations. Although the summit will focus on nuclear energy, with an emphasis on nuclear non proliferation, diplomatic circles (in Santiago) view the invitation as a signal for Chile. The analysis here is that the White House has a positive opinion of Chile's role as a moderate ally in the region compared to the axis formed by Venezuela, Ecuador, and Bolivia. Assistance for Chile to attain a diversified and more stable energy matrix is, therefore, important to strengthen its ties with the United States and its role in South America. Chile is the only Latin American country invited to the summit that does not have a nuclear plant. Diplomatic circles note that the invitation to the summit is unrelated to an eventual visit of the U.S. President to Brazil and Chile in the end of this year or the beginning of next (El Mercurio, 10/30). ¶3. The New York Times published an article praising President Bachelet as she prepares to end her term in office. The article highlights her handling of the economy during the global financial crisis, noting that she overcame gender barriers "in a deeply conservative country" that elected Bachelet on her own account and not as the wife of a popular president, as has been the case in other Latin American countries (La Nacion, La Segunda, El Mercurio, 10/30). ¶4. Chilean forestry companies complained to the Foreign Ministry their concern over new tax benefits that U.S. cellulose producers will receive in 2010. The Chilean companies said that the new tax exemptions constitute unfair competition, because in practice they will triple the amount of subsidy that the U.S. companies receive today from the government. The subject could come up for review with the Chile-U.S. Free Trade Agreement Administration Commission (El Mercurio, 10/30). Honduras ¶5. Deposed President Manuel Zelaya said he is a "moderate optimist" with regard to the agreement reached last night with de fact President Roberto Micheletti. "It is a first step toward by restitution," said Zelaya. El agreement foresees Zelaya's restitution pending approval from Congress and the Supreme Court. Zelaya said the discussion about deadlines would start tomorrow (El Mercurio on line, 10/30). ¶6. Roberto Micheletti and Manuel Zelaya reached an agreement pressed by the United States, which sent to Honduras a delegation headed by Assistant Secretary Thomas Shannon. The U.S. official had said prior to the agreement that "time was running out" and that "from the viewpoint of the United States and the international community" an agreement was needed as soon as possible. Twelve hours later, OAS political affairs secretary Victor Rico and Shannon announced the agreement to the press. Shannon immediately said the United States would support the November election. "This is a great moment for Honduras. The people of Honduras should be very proud of what they have achieved," said Shannon. "There is no other country in the Americas that has suffered this kind of democratic rupture and resolved it through negotiation and without impositions or violence," added Shannon (Independent on-line news agency El Mostrador, 10/20). ¶7. Deposed President Manuel Zelaya said the agreement reached with Micheletti is "a victory for Honduras' democracy." Zelaya also thanked Assistant Secretary Thomas Shannon and the OAS for assisting in bringing the political crisis in Honduras to an end. The U.S. delegation "played a fundamental and key role, as well as the OAS, the European Union, as all other countries in the Americas," said Zelaya (La Tercera on line, 10/30). ¶8. "I want to congratulate the people of Honduras, President Zelaya, and Mr. Micheletti for reaching this historic agreement" said Secretary of State Hillary Clinton (Government-owned, La Nacion, 10/30). ¶9. Tom Shannon twists Micheletti's arm: de facto president Roberto Micheletti accepts Congress to decide on Zelaya's reinstatement (La Nacion, 10/30). SIMONS