CHILE MEDIA REPORT - MARCH 9

UNCLAS SANTIAGO 000220 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 - MARCH 9 Leading Stories -------------- ¶1. One major Santiago daily reported that the Vice President Biden plans to attend the Progressive Leaders' summit in Chile, March 27-28. Consumer habits in Chile have changed drastically in view of the economic crisis. Lowering the consumer tax (IVA) is among the proposals in the government's second financial crisis recovery plan. Vice President Joe Biden -------------- ¶2. "Vice President Joe Biden Prepares Trip to Chile for Summit in Vina del Mar)" Vice President Jose Biden will attend the Summit of Progressive Leaders in Vina del Mar on March 27 and 28.... La Moneda sees Biden's trip as a strong political signal on the part of the United States.... Biden's participation will also mark the return of the White House to this summit, which the Bush administration did not attend. The GOC's also believes that the visit of the second man in the White House will enhance the Progressive Summit, which takes place in Latin America for the first time.... The Executive Office had kept Biden's trip in strict reservation (La Tercera, conservative, independent, circ. 101,000, 3/7). ¶3. Vice President Biden will be among the participants at the progressive leaders' summit in Vina del Mar.... As Chairman of the Senate Foreign Relations Committee in 2008, Biden said the United States "should prepare for the transition in Cuba," but was in favor of lifting the embargo immediately. He believes both countries should establish a regular postal exchange service and that the U.S. should renew trips to the island (La Tercera, 3/8) ¶4. La Moneda is planning to apply tight security measures for the Progressive Leaders' Summit in Vina del Mar.... Biden's attendance, however, will not vary these plans, said senior Carabineros police and Executive Office officials.... "The security is the maximum that can be established," said the Governor of Valparaiso Ricardo Bravo... who added that a (Carabinero) officer will be assigned to each delegation to coordinate deployments and security.... There will also be coordination with foreign police entities, such as the FBI, to monitor any terrorist activities (La Tercera, 3/8). ¶5. The Obama administration will announce the visit of Vice President Biden next week.... Yesterday in La Moneda no one commented on Biden's agenda. In any case, government sources assume that there will be a bilateral with President Bachelet. "His (Biden's) visit is highly significant, especially because this is the first time this group (Progressive Leaders) meets in Latin America," said Minister Secretary to the Presidency Jose Antonio Viera-Gallo (La Tercera, 3/8). Summit of the Americas -------------- ¶6. The Presidents of Chile and the United States will meet bilaterally for the first time in Port of Spain.... Both Presidents have spoken on the phone twice and the U.S. President has expressed his willingness to work together in hemispheric forums on issues related to Latin America. Diplomatic sources say Obama has been clear on pointing to the presidents of Brazil, Mexico, and Chile in developing his policy toward the region (El Mercurio, 3/9). Other U.S.-Related News -------------- ¶7. PAS placement of op-ed by Secretary of State Hillary Clinton, "International Women's Day," (El Mercurio, 3/8) ¶8. Interview with Robert George of the President's Council on Bioethics, who is in Chile invited by the Institute for Studies on Society. Among the greatest ethical challenges ahead, said George, are human cloning, genetic manipulation to improve health, strength, or beauty (El Mercurio, 3/8). ¶9. The bodies of the two Chileans murdered in Pensacola on February 26 arrived to Chile on Saturday. About 2,000 people attended the funeral that was held in Valparaiso on Sunday (All dailies, 3/8 -3/9). ¶10. Former U.S. Senator Charles Clary III opened an account with the Beach Community Bank to help pay for the medical expenses and therapy of the three Chilean students injured by Danny Baker in Pensacola (Las Ultimas Noticias, leading-circulation, popular, circ. 140,000, 3/9) ¶11. On March 12, 1989, the U.S. market closed its door to Chilean fruit after the Food and Drug Administration (FDA) declared that the fruit was contaminated with cyanide. Over 12,000 boxes of fruit were inspected; two grapes were found allegedly with cyanide. The incident resulted in US$900 million in losses for Chilean exporters and affected 200,000 workers. Twenty years later, the owner of the packing presumably responsible of the contamination, the foreign minister of the time, and other entrepreneurs recall the incident, underscoring that the so-called "poisoned grapes case" concluded with evidence that the grapes had not been contaminated in Chile. In addition to no U.S. apologies, they underscored that no indemnification was paid to any of the affected exporters, and there were no charges brought against anyone (El Mercurio, 3/8). UNASUR -------------- ¶12. Defense Minister Jose Goni inaugurated the UNASUR Defense Council in Santiago. He said the goal is to create an alliance that strengthens mutual trust through integration, dialogue, and cooperation (Government-owned, editorially independent La Nacion, 3/9). Cuba and the OAS -------------- ¶13. OAS Secretary General Jose Miguel Insulza is in Santiago promoting the elimination of the clause that excludes Cuba from his organization. "I believe that overall there is a certain willingness... to change things regarding Cuba," said Insulza, adding that this is something in which "the United States has a lot to say." Sources close to Insulza said that the Obama administration's willingness to lift the commercial embargo and begin a dialogue with Havana were elements that encouraged Insulza to reopen the debate on this topic. One source said that Washington in January persuaded Insulza to stay in the OAS, stating that he could become a bridge to facilitate dialogue between the White House and the Castro regime (La Tercera, 3/7). Poll: Chileans Support Economic Model -------------- ¶14. A survey shows that in spite of the economic crisis, there is growing support among Chilean for the free trade, open market economic model. Asked if they agree or disagree with the existing model based on freedom of prices, an open economy to the world, and more private than state-owned companies, 63% said they agree. This is eight points higher than in 2007 (La Tercera survey, 3/8). SIMONS