Santiago Nov. 19 Media Report

UNCLAS SANTIAGO 001116 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 Nov. 19 Media Report Lead Story ¶1. The Chamber of Deputies and the Senate expressed their support to President Bachelet in the impasse with Peru and expressed concern over Lima's "communications offensive to portray Chile as an aggressive and bellicose country" (Conservative, influential newspaper-of-record El Mercurio, 11/19). Chile-Peru ¶2. Peruvian Foreign Minister Garcia Belaunde warned: Peru will review its bilateral relation if Chile does not investigate the alleged espionage. Chilean Foreign Minister Mariano Fernandez said that the government would respond "adequately and in a timely manner" to any request from Peru. In a television interview last night, Fernandez noted that Chile is Peru's second largest investor and that in this context, "at least one sector of Peruvian society should call on the others to act reasonably" (El Mercurio, 11/19). ¶3. The GOC initially believed that President Garcia himself had leaked the allegations of espionage to support his accusations that Chile is militarily aggressive and could disavow The Hague's decision regarding Peru's maritime border claim, it if antagonizes its interests. But the GOC has received information from individuals in Peru who don't want the impasse to escalate any further, that the origin of the impasse is in nationalist sectors in Peru. The ultimate goal of the nationalists was to prevent Peruvian Mining Minister Mercedes Araoz from traveling to Santiago this week. Araoz was going to sign a protocol with Bachelet that would have consented to Chile's military acquisitions. Reports indicate that the leak occurred without President Garcia's knowledge. Chile's embassy in Lima received yesterday afternoon the dossier that Lima claims shows there was espionage (La Tercera, 11/19). ¶4. In a special session in Congress, Foreign Minister Fernandez said that Peru's internal political problems could explain President Garcia's attitude and remarks. The Chilean Executive was therefore not surprised when Garcia yesterday further escalated the rhetoric (La Tercera, 11/19). ¶5. "They spy on us because they envy us," said Garcia, and showing that relations with Chile impact Peru's domestic affairs, called on Peruvians to "remain united, because divided is how they conquered and invaded us" (Conservative, afternoon daily La Segunda, 11/18). ¶6. Under Secretary for Foreign Affairs Alberto Van Klaveren resigned yesterday to head the legal team that will address the suit filed by Peru with The Hague to change maritime borders with Chile. Foreign Ministry planning Director Angel Flisfisch is replacing Van Klaveren (El Mercurio, 11/19). Chile-U.S. ¶7. The willingness of the United States manifested at APEC to launch a Trans-Pacific Trade Agreement will most likely determine the future of Chile's international commercial agenda, said the head of the Foreign Ministry's International Economic Relations Bureau Carlos Furche (El Mercurio, 11/19). ¶8. In his visit to the Arica-Parinacota Region, U.S. Ambassador Paul Simons commented on the Regional Development Corporation project that provides solar heating systems for low-income homes. "This is a very important achievement," said the Ambassador. He said that the Embassy in Santiago is working on a series of pilot programs with the Renewable Energy Center, mentioning the possibility of contributing to solar initiatives in Arica (On-line daily arica.hoy.cl, 11/19). Poll ¶9. Further analysis of the data on the Centro de Estudios (CEP) poll released two weeks on the presidential election shows that of the 14 percent of undecided voters, 57 percent are women who are over 35 years old and live in urban centers (La Tercera, 11/19). SIMONS