FORMER DEFENSE MINISTER: PROUD OF REFORMS,

C O N F I D E N T I A L SANTIAGO 000287

SIPDIS

E.O. 12958: DECL: 03/25/2019
TAGS: PREL MARR MASS CI BL PE
SUBJECT: FORMER DEFENSE MINISTER: PROUD OF REFORMS,
HIGHLIGHTS STRONG CHILE-BOLIVIA RELATIONS

REF: A. SANTIAGO 124

B. SANTIAGO 264

Classified By: Ambassador Paul Simons for reason 1.4 (B).


1. (C) Summary: Former Defense Minister Goni was pleasantly
surprised by his assignment as the Chilean Ambassador to
Washington, and plans to continue to play an active role in
U.S.-Chilean defense relations. He is proud of the defense
reforms passed under his watch, and hopeful that another key
piece--the reorganization of the Ministry of Defense--will
pass this year. Goni predicted that the Chilean-Peruvian
maritime border dispute will linger for years. Chile's
relationship with Bolivia is at its strongest point ever,
with Ministers of Defense attending each other's national day
celebrations and the possible sale of Chilean aircraft to
Bolivia. End Summary.

Goni: Defense Reform My Biggest Achievement
--------------


2. (C) Former Defense Minister Jose Goni told the Ambassador
March 23 that he was "pleasantly surprised" by the news of
his assignment to Washington as ambassador. Goni said that
defense reforms--both those still pending and ones passed
last year--were the major accomplishment of his tenure as
Defense Minister, calling them "the most important defense
reforms ever" in Chile (Ref A). He noted that he had worked
very hard on the proposed reorganization of the Ministry of
Defense for the past two years, which features strengthening
civilian professionals in the Ministry, expanded authority
for the Chairman of the Joint Chiefs, and rationalization of
the Undersecretaries and their responsibilities (Ref B).
Goni told the Ambassador he believed that he had secured
agreement from Chile's two political coalitions that the law
encompassing these reforms would be passed this year with
sufficient time to implement it under the current
administration. This would allow the new service chiefs--who
are due to turn over in 2009 and 2010--to assume their duties
under the new structure.


3. (C) Goni added that if he were staying on as the
Minister, he would also present legislation changing the
Copper Law. (Note: The secretive Copper Law directs that
10% of revenues from Chile's state-owned copper company be
designated for military equipment. End Note.) However,
Treasury has raised objections to the proposed reform,
objecting to the multi-year budgets that the proposed new
military procurement funding system would introduce. Goni
suggested it would be delayed into the new administration.


4. (C) Goni wishes new Defense Minister Francisco Vidal
well, he said, highlighting Vidal's enthusiasm for the
position. However, he noted that Vidal would be less active
on the international stage--particularly in dealing with
South American neighbors and the U.S. Nonetheless, Goni
described Vidal as "very capable" of getting the Ministry of
Defense reorganization bill through Congress based on the
foundation that Goni had laid. Goni added that he remains
keenly interested in defense issues and expects to continue
strengthening the U.S.-Chilean defense relationship from
Washington.

Domestic Politics Fueling Peru's Border Dispute
-------------- --


5. (C) Turning to Peru's recent presentation of its border
claim before the Hague, Goni predicted that the border
dispute will remain a major issue for the Chilean press and
public opinion largely due to its prominence as a domestic
political issue in Peru. The political opposition in Peru is
grandstanding, Goni suggested, forcing President Garcia and
his administration to pay attention to the issue.. It will
take several years to definitively resolve the dispute, Goni
stated.


6. (C) Peru's border claim will complicate relations with
Bolivia, Goni asserted, explaining that a Peru win would
preclude the most logical proposal to grant Bolivia a
sovereign corridor to the sea. Perhaps the ability to
frustrate Bolivia's maritime aspirations played a role in
Peru's decision to take the case to court, the Former Defense
Minister suggested.


Military Leads the Way in Chilean-Bolivian Relations
-------------- --------------


7. (C) On the whole, Chilean-Bolivian relations are at their
strongest point ever, particularly on military issues, Goni
observed. Chile invited the Bolivian Minister of Defense to
attend their national day (September 18) military parade for
the first time ever last year. Bolivia plans to reciprocate
this year with an invitation to new Defense Minister
Francisco Vidal to attend their national day military events.


8. (C) Goni also highlighted that talks about the potential
for Chile to sell training aircraft to Bolivia are at an
advanced level, including the involvement of Bolivian
President Morales. If approved, this first ever military
equipment sale between the two countries would be a strong
signal of reconciliation.

Comment
--------------


9. (C) The on-going effort to reform Chile's defense
system--which predates Goni but was certainly a focus of his
leadership--has been an important and overdue step in
completing Chile's transition from military dictatorship to
civilian rule and modernizing the armed forces. Goni's
optimism for getting the Defense Ministry reorganization bill
passed is at odds with the more cautious and slow-moving
predictions we have heard from Congress (Ref B). Attendance
at each other's national days and the possible sale of
aircraft are the latest examples of the improved relationship
between the Chilean and Bolivian militaries, one component of
a broader Chile/Bolivia reconciliation that is underway. End
Comment.
SIMONS