CHILE MEDIA REPORT - APRIL 24

UNCLAS SANTIAGO 000393 SIPDIS STATE FOR R/MR, I/PP, WHA/BSC, WHA/PDA, INR/IAA E.O. 12958: N/A TAGS: KMDR KPAO PGOV PTER ECON PREL SNAR EFIN CI SUBJECT: CHILE MEDIA REPORT - APRIL 24 Leading Story -------------- ¶1. Unemployment figures in the Metropolitan Region reached a record high of 12.8% in March. Peak unemployment is expected between June and August during Chile's winter months. U.S.-Related News -------------- ¶2. Chile's Wood Corporation (CORMA),which encompasses about 200 private forestry companies, complained to the Foreign Ministry over what it considers is unfair competition on the part of U.S. cellulose producers. The issue at stake is the subsidy that U.S. producers receive for using an "alternative fuel," which in practice is the traditionally used pulp waste -- black liquor -- mixed with diesel. CORMA explained that black liquor has always been used in the pulp process and that, therefore, the addition of diesel -- a fossil fuel -- is just a measure to qualify for the subsidy. CORMA says this "violates the spirit of the (U.S.) law," which is intended to promote the use of clean fuels. The Foreign Ministry's International Economic Affairs Bureau, DIRECON, suggested CORMA either go to the WTO or resort to a commission under the FTA framework to resolve the controversy. CORMA agreed to pursue the latter (El Mercurio, conservative, influential newspaper-of-record, circ. 129,000, 4/24). FARC Training of Mapuche Rebel -------------- ¶3. Police during a search found a diary kept by Mauricio Huaiquilao (32) of the Mapuche organization "Coordinadora Arauco-Malleco" (CAM) that established beyond any doubt that Huaiquilao received FARC paramilitary training. The journal details his stay in a FARC camp located near the border of Colombia and Ecuador, the same area where FARC leader Raul Reyes was killed in March 2008. This is the first time that it is possible to confirm such a tie. Huaiquilao (32) faces charges for arson and acts of terrorism (El Mercurio, 4/24). Narcotics -------------- ¶4. The government has banned the import, distribution, and sale of a blend of herbs sold as "Spice," which in practice is synthetic cannabis. The product was sold in different stores in Santiago. The Public Health Institute (ISP) conducted tests that show the product is highly addictive, toxic, and much stronger than marijuana (El Mercurio, 4/24). URBAN