CHILE MEDIA REPORT - JANUARY 6

UNCLAS SANTIAGO 000013

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 - JANUARY 6

Leading Stories
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1. Dailies highlighted the December inflation rate of minus 1.2%,
and the total 7.1% attained in Chile during 2008; the Paris-Dakar
automobile race that this year is taking place in Argentina and
Chile; and the Israeli military attacks in Gaza.

U.S.-Related News
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2. Wal-Mart's instructions to the Chilean D&S supermarket chain to
stop selling Cuban products have led its largest competitor - Jumbo
- to launch an aggressive publicity campaign. Jumbo pointedly noted
that they will carry "products from around the world without
restrictions" (El Mercurio, conservative, influential
newspaper-of-record, circ. 129,000, 1/7). The producers of Havana
Club rum - one of the products affected by the D&S ban - criticized
the restrictions imposed by the U.S. and announced plans to expand
in Chile. (Diario Financiero, business and financial, circ. 30,000,
1/7).

Local
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3. The inflation rate for December showed minus 1.2%, bringing the
yearly total rate for 2008 to 7.1%. (All dailies, 1/7)


4. CEP (Center for Public Studies) released its latest opinion poll,
which revealed that President Michelle Bachelet increased her
approval rate to 44%, equaling the figure attained in June 2006. She
also heads the list of political figures with the highest positive
ratings (55%),followed by opposition presidential candidate
Sebastian Piera (48%),government coalition presidential candidate
Eduardo Frei (45%),and OAS Secretary General Jose Miguel Insulza
(44%) (All dailies, 1/7)


5. Adimark GfK polling company found that President Bachelet has a
51.1% approval rating, her highest in two years. CERC data showed
that presidential candidate Eduardo Frei experienced a hike among
"politicians with the greatest future." Frei jumped from a 12%
approval rating in September to 27% in December 2008. Sebastian
Piera continues to lead the rankings with a 52% approval rating.
(La Segunda, conservative, afternoon daily, circ. 33,000, 1/6).


6. The Senate approved introducing a constitutional reform to the
Chilean electoral system that would allow all qualified citizens to
register automatically and then vote voluntarily. As of now, all
citizens who turn age 18 have a choice whether to register. However,
once registered, all voters are mandated by law to cast their votes,
and face being fined if they do otherwise on Election Day. The text
will be submitted to the Lower Chamber this month. The initiative
requires approval by the end of April 2009 in order to allow the
Electoral Service to complete the necessary provisions for the
upcoming presidential and parliamentary elections in December. By
introducing this reform, an estimated 3,800,000 people could
participate in the next electoral process (La Tercera 1/7).

Chile and Other Countries
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7. Juan Carlos Latorre, president of the Christian Democratic Party
(DC),clarified that members of his party would participate in the
official delegation that is to accompany President Bachelet to Cuba
only if they are authorized to meet with the dissidents. The DC is
still hopeful that the Government of Chile will make the necessary
arrangements to comply with this request. Nevertheless, Foreign
Minister Alejandro Foxley has answered that this not possible. The
opposition stated that if they receive an invitation to join the
delegation, they will decline. (El Mercurio, 1/7). The DC launched
an offensive against President Bachelet's trip to Cuba, which is
complicating the position of Foreign Minister Foxley - himself a
Christian Democrat. Yesterday, DC Deputy Renan Fuentealba presented
Congress with a proposal for an agreement to criticize human rights
violations in Cuba. A vote on the text will be held today. (La
Tercera, 1/7).

SIMONS