CHILE MEDIA REPORT - MARCH 16

UNCLAS SANTIAGO 000248

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 16

Leading Stories
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1. Dailies highlighted that Wall Street is beginning to show signs
of economic recovery. Dailies also reported on the plebiscite held
in the Municipality of Vitacura to vote on the community's urban
development projects. This is the first ever such plebiscite held
in Chile.

U.S.-Related News
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2. "There is no solid data in the ongoing investigation so as to
say that Mexican cartels are operating in Chile," said
Undersecretary of Interior Patricio Rosende, in answer to remarks
made by the head of the DEA in Chile, David Horan. The U.S.
official had said that the arrest of three Mexicans at Santiago's
airport as they tried to smuggle ephedrine to their home country was
a clear indication that Mexican drug cartels "are exploring new
routes." "Just because Mexicans are arrested in an operation does
not mean that Chile has turned into some sort of paradise for
narcotics traffickers," said Rosende. The Chilean official,
however, concurred with Horan that Mexican cartels are "looking for
markets worldwide, including South America." The chairman of the
House's Citizen Safety and Narcotics Committee, Cristian Monckeberg,
said the discovery of the ephedrine cargo was reason for
"considerable concern," and he added, "I imagine that the Chilean
police and government are taking this matter into their hands" (La
Tercera, conservative, independent, circ. 101,000, 3/14).


3. For the third time in a row, the powerful International
Intellectual Property Rights Alliance, IIPA, recommend the U.S.
Trade Representative to keep Chile on its Priority Watch List.
According to the IIPA, since 2007 when it was first placed on the
list, Chile's accomplishments in the fight against piracy have been
meager. Furthermore, IIPA says the use of Internet has facilitated
home piracy of audio, videos, and software, bringing losses for U.S.
companies last year to US$130 million. To date Chile has not
fulfilled the obligations set forth in the FTA signed with the
United States (La Tercera, 3/16).


4. The GOC hopes that with President Obama in office ties with the
United States will reach new levels. It is no secret that while
Bachelet admires President Obama, the U.S. president hopes to find
in Bachelet a key link in his rapprochement with the region. That
is why both governments are setting up a bilateral meeting at the
Summit of the Americas in Trinidad and Tobago (La Nacion,
government-owned, editorially independent, circ. 4,200, 3/16).


5. Former Central Bank President Vittorio Corbo said the Obama
administration has lacked the "political courage and power to
execute" the necessary solutions to bring stability to the U.S.
financial system. The administration, he said, has lacked the
ability to persuade actors that this is about saving the real
economy and not just Wall Street (La Tercera, 3/15).


6. Mention of the announced visit of a Texas commercial delegation
to Chile this week (La Tercera, 3/15); The Yale Whiffenpoofs, a
capella group, that will perform at the Chile-U.S. Binational Center
(El Mercurio, 3/15).


7. Column by Libardo Buitrago: "President Obama said that winning
the war (in Afghanistan) will require greater military and
diplomatic inter-ally coordination.... Another element that must be
factored in is the large opium traffic. In the eight years since
the ousting of the Taliban regime, Afghanistan went from a country
free of poppy production ... to becoming the supplier of 92% of the
world's poppy production.... Fighting insurgency and narcotics is a
lethal combination that will test Obama's determination and the
strength of his foreign policy (Diario Financiero, business and
financial, circ. 30,000, 3/16).

Progressive Governance Summit
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8. Vice President Joe Biden and UK Prime Minister Gordon Brown
confirmed their participation at the Progressive Leaders Summit,
March 27-28 in Vina del Mar; Presidents Obama and Bachelet will have
a bilateral meeting in the SOA in Trinidad and Tobago (El Mercurio,
3/14).

9. There is a special security protocol for high-ranking foreign
officials, such as Vice President Joseph Biden, which will be
applied during the summit in Vina del Mar, said Undersecretary of
Interior Patricio Rosende. The plan includes appointing a police
officer and a special escort to each delegation. The government has
also taken into consideration that the summit will coincide with the
anniversary of the Day of the Combatant. In previous years on March
29 the anniversary has ended with public disturbances and dozens of
people arrested (La Tercera, 3/14).

The U.S. and Latin America
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10. In his meeting with President Obama in Washington, Brazilian
President Lula da Silva told the U.S. President it was necessary for
Washington to get closer to Cuba, Venezuela, and Bolivia,
underscoring that the region "wants to build a new relationship with
the United States" (La Tercera, 3/15).


11. President Obama has begun his relations with Latin America by
meeting with Brazilian President Lula da Silva. The White House has
few interlocutors in Latin America, but the most outstanding is
Lula, who is the leader of not just an emerging economy, but also
one that is rich in oil and a pioneer in alternative energies, such
as ethanol (El Mercurio, 3/14).


12. President Hugo Chavez offered Russia the island of Orchila as a
temporary base for its bombers. The chief of Russian's Air Force
Anatoli Zhijarev said "the use of the island is possible if there is
a political decision." Russian analyst Alexander Golts said Russia
would not gain anything by such a decision. "Bombers don't need a
base. This is just a gesture of retaliation," assured Golts (El
Mercurio, 3/15). La Tercera mistakenly reports that the island is
on Cuban territory, but adds that such a move could lead to a new
impasse between Washington and Moscow.

SIMONS