Santiago Dec. 17 Media Report

UNCLAS SANTIAGO 001226 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 Dec. 17 Media Report Lead Story ¶1. Paul Fontaine, chief economist of independent presidential candidate Marco Enriquez Ominami, joined Sebastian Pinera's campaign team. Cristian Larroulet, of Pinera's Economic Council, underscored similarities with Enriquez-Ominami's economic program, adding that some of those proposals could be included in Pinera's program. Paul Fontaine praised Pinera's team for being willing to include in their program "progressive and liberal" initiatives set forth by Enriquez-Ominami (Conservative, influential El Mercurio, 12/17). U.S.-Related News ¶2. Assistant Secretary of State Arturo Valenzuela's remarks in Argentina caused controversy. Valenzuela said that U.S. businesses were concerned over "judicial insecurity" in Argentina and that he had seen a significant "change" in U.S. companies, which in 1996 "were enthusiastic about investing" in Argentina. The Foreign Ministry in Buenos Aires released a statement saying that the government had not received any complaints from U.S. companies with investments in the country. Minister of Interior Florencio Randazzo also regretted that the "relapse" of U.S. officials, "when there are expectations with regard to a new stage in U.S. foreign policy" (El Mercurio, 12/17). ¶3. The OAS General Assembly has not yet set a date for the election of its next secretary general, where Jose Miguel Insulza will run for reelection. In U.S. Senate circles there is some concern that attempts to hold the election before February could be tied to Chile's election calendar. The same sources said that this concern was strengthened by images of Insulza next to presidential candidate Eduardo Frei during the recent presidential election. While countries such as Brazil and Argentina support Chile's request to move the date of the election, others such as the United States and Venezuela are inclined to discuss the matter calmly in January (El Mercurio, 12/17). Death of former President Frei ¶4. The defense attorney of physician Pedro Valdivia requested the recusal of Justice Alejandro Madrid in the Frei case on the grounds that the judge had expressed "empathy for the Frei family." The Santiago Appeals Court agreed to review the recusal and removed the judge from the case until it issues a resolution (Conservative, independent La Tercera). The process to review a recusal takes at least a month, which means that Justice Madrid could be out of the Frei case until after the runoff presidential election on January 17 (El Mercurio, 12/17). ¶5. Laura Borgel, one of the forensic experts who ran laboratory tests on former President Frei's remains, said that laboratories in the United States, Canada, and Sweden confirmed her results that show the presence of sulfonic salt in Frei's body. Borgel said that this element "damages cell growth, which is what killed Frei." Borgel said that in 2007 she received the results of tests conducted by the U.S. Army that concluded that "cell damage" in the remains, "could be attributed to mustard gas." She said that the FBI's lab tests did not find this element, "because they were looking for drug abuse, such as cocaine and not mustard gas" (La Tercera, 12/17). SIMONS