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 �00A;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