CHILE MEDIA REPORT - FEBRUARY 10

UNCLAS SANTIAGO 000118 SIPDIS STATE FOR R/MR, I/PP, WHA/BSC, WHA/PDA, INR/IAA E.O. 12958: N/A TAGS: KMDR KPAO PGOV ECON PREL SNAR EFIN CI SUBJECT: CHILE MEDIA REPORT - FEBRUARY 10 Leading Stories -------------- ¶1. La Moneda spokesman Francisco Vidal criticized the banking sector for conducting massive layoffs and urged the private sector to do its share in helping lower the effects of the financial crisis. Vidal also urged the Central Bank to lower interest rates. Dailies continued to report on the demands of the former inhabitants of Chaiten for the government to invest in rebuilding the town buried by last year's volcanic eruption. Government spokesman Vidal said yesterday the government will only invest in their relocation. U.S.-Related News -------------- ¶2. Salmon of the Americas (SOTA),an organization that encompasses Chilean, U.S. and Canadian producers, rebutted last week's New York Times article on Chilean salmon. SOTA said the newspaper is misleading readers into believing that the industry is not abiding by FDA standards (El Mercurio, conservative, influential newspaper-of-record, circ. 129,000, 2/10). Bachelet Visit to Cuba -------------- ¶3. Asked whether President Bachelet would talk about human right and dissidents with Raul Castro in her trip to Cuba, Foreign Affairs Minister Alejandro Foxley said, "No issue is excluded" from the talks that will take place between both chiefs of state or between him and his Cuban counterpart (La Tercera, conservative,independent,circ. 101,000, 2/10). ¶4. In the context of Bachelet's trip to Cuba, Minister Foxley reiterated that Chile's foreign policy promotes integration on the basis of "diversity and respect for all nations" (La Nacion, government-owned, editorially independent, circ. 4, 200, 2/10). ¶5. Human Rights Watch Director Jose Miguel Vivanco said he is confident that in her meeting with Raul Castro, Bachelet will bring up the issue of human rights abuses," adding that a meeting with the dissidents" is not essential" (El Mercurio, 2/10). China -------------- ¶6. Gonzalo Duarte (DC) is among the congressmen who will travel with House Chairman Francisco Encina to China on an official visit starting February 18. The Socialist Party has criticized the Christian Democratic Party for questioning human rights in Cuba, but not in China. The delegation to China will focus on economic, cultural, and political issues (La Tercera, 2/10). Venezuela/Brazil -------------- ¶7. Presidential candidate Eduardo Frei (DC) said that "between an axis" led by Lula Da Silva and another by Chavez, "I would never stand on the side of populism and demagogy, which only leads to greater poverty, insecurity, and misery." Frei also said Brazil should have a more active role in the region as "an organizer" (La Nacion, 2/10). Trade Figures Decline -------------- ¶8. Central Bank figures show that Chile's exports dropped 41% in January of this year compared to the same period in 2008. Imports also decreased (25.5%),but less than the figure for exports (La Nacion, 2/10). SIMONS