CHILE MEDIA REPORT - MARCH 12

UNCLAS SANTIAGO 000241

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 12

Leading Stories
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1. All dailies reported on UDI Senator Jovino Novoa's election as
Senate President. Dailies also report that the government's
announcement to hand out 15,000 computers to municipal schools
triggered accusation of "electoral intervention" by the opposition
alliance.

U.S.-Related News
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2. A U.S. Federal Reserve System delegation is meeting with
officials of local banks with branch offices in the United States.
In its meetings, the delegation has inquired about banking
regulations, preventive measures to confront the financial crisis,
the standing of the local financial system, and measures to detect
money laundering. BancoEstado representative Jose Luis Mardones
said the delegation had specifically asked about the bank's
relationship with the government, which in this case owns the
financial institution (La Segunda, conservative, afternoon, circ.
33,000, 3/11).


3. In a meeting with XII Region officials, Douglas Tompkins offered
to donate his estate on Isla Riesco to the GOC. Tompkins' idea is
to add this land to the Alacalufe Reserve (La Tercera, conservative,
independent, circ. 101,000, 3/12).


4. In an interview, national Customs Director Sergio Mujica, who is
running for the office of Deputy General Secretary of the World
Customs Organization, was asked about his view on U.S. trade
regulations to confront terrorism. Mujica said that security
concerns should not becomes obstacles to international trade flow,
adding that regulations should not be implemented if there are no
measures applied to facilitate trade. Asked specifically about the
100% scanning law, whereby all containers entering the United States
must have been scanned in their country of origin, Mujica said that
there is worldwide consensus that "it's not a good idea because it
takes us back twenty years" (El Mercurio, conservative, influential
newspaper-of-record, circ. 129,000, 3/12).


5. Wal-Mart will apply an aggressive strategy to its
recently-acquired Lider supermarket chain, which will include
lowering non-food products by 10%, introducing new clothing brands,
and expanding in the area of home improvement (Diario Financiero,
business and financial, circ. 30,000, 3/12).

Narcotics
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6. A report issued by the International Narcotics Control Board
(INCB),which monitors the implementation of United Nations
narcotics programs, states 60% of the cocaine that reaches North
America and Europe is smuggled from Peru through Chile (La Segunda,
conservative, afternoon, circ. 33,000, 3/11).


7. Three Mexican citizens were arrested after trying to smuggle
ephedrine in plastic jugs at the Santiago international airport.
This chemical is used to manufacture methamphetamines, which has a
high price in the U.S. market. The prosecutor's office is
investigation possible ties with the powerful Mexican Sinaloa cartel
(All dailies, 3/12).

Terrorism
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8. An explosive device detonated on a railroad used to transport
garbage to the city's main fill in Quilicura. This is the second
bombing this week in connection to "The Day of the Young Combatant"
on March 29, when two young brothers were killed in 1985 in clashes
with the police. In addition, the Municipality of Pudahuel received
a bomb threat just two hours before a government ceremony was to
commemorate Bachelet's third year in office. A second bomb threat
occurred in Copiapo in northern Chile, at a location preparing to
celebrate the government's anniversary (El Mercurio, 3/12; La
Segunda, 3/11).

SIMONS