CHILE MEDIA REPORT - APRIL 27

UNCLAS SANTIAGO 000398 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 - APRIL 27 Leading Stories -------------- ¶1. Presidential candidate Sebastian Pinera placed all his assets into a blind trust, with the exception of television station Chilevision. Pinera did, however, resign from the TV station's board of directors. U.S.-Related News -------------- ¶2. President Bachelet invited Governor Arnold Schwarzenegger to visit Chile for the Competitiveness Forum of the America, scheduled in September. Reportedly, Chilean Ambassador Jose Goni handed the governor the official invitation on Thursday (El Mercurio, conservative, influential newspaper-of-record (circ. 129,000, 4/25). ¶3. Foreign Ministry International Economic Affairs Bureau, DIRECON, attorneys are gathering information on the accusation filed by the Chile's Wood Corporation (CORMA) concerning unfair competition on the part of U.S. cellulose producers. The MFA will issue a report before May 15, to determine whether this controversy will be resolved through the bilateral FTA resolution mechanism (El Mercurio, 4/25). ¶4. Charles Kimber, Corporative Manager of Cellulosa Arauco and AMCHAM Director, said that the subsidy that U.S. cellulose producers are receiving -- up to 50% of the cost to produce one ton of product -- severely undermines free trade, because "no company can compete with that kind of subsidy." Kimber said that CORMA had been informed by other international cellulose producers of the problem (El Mercurio, 4,27; Diario Financiero, business and financial, circ. 30,000, 4/27). ¶5. Editorial: "Forestry Sector Subsidy" "The main threat of this subsidy is that it shows that a protectionist wave is extending worldwide, with the subsequent danger for global trade and Chile's exporting industry" (Diario Financiero, 4/27). ¶6. Editorial: "Protectionist Measures" "The United States is subsidizing its cellulose producers, which is affecting the ability of Chilean producers to compete in that country. The Foreign Ministry's Economic Bureau must strengthen the observation of these bad practices and ensure the protection of the rights we acquired when we signed the free trade agreement" (El Mercurio, 4/26). ¶7. Finance Minister Andres Velasco commented on his meetings with IMF and J.P. Morgan officials, the President of the U.S. Federal Reserve Ben Barnanke, and Treasury Secretary Tim Giethner. Velasco said that it became evident from the discussion that Latin America is the better positioned than other regions to withstand the global economic crisis, and that within the region, Chile has the most significant expected growth rate for the coming year (El Mercurio, 4/26). ¶8. In a local television interview, President Bachelet said she had been impressed with President Obama at the SOA in Trinidad and Tobago. "President Obama had a very positive impact (on me). He is a serious man, very knowledgeable... and politically very clear. He left an excellent impression and, on top of that, he has a sense of humor (La Tercera, conservative, independent, circ. 101,000, 4/26). New Chilean Ambassador to Ecuador -------------- ¶9. Juan Pablo Lira, the third highest-ranking official in the Foreign Affairs Ministry, was appointed Ambassador to Ecuador. This shows the importance that Chile assigns to its ties with Quito; Ecuador signed the 1952 y 1954 treaties that established Chile's maritime borders. Peru is contesting the maritime issue in The Hague (El Mercurio, 4/25). Venezuela -------------- ¶10. In a television program, President Hugo Chavez announced he would travel to Argentina next week and said that President Bachelet had phoned him on the April 25 inviting him to visit Chile (El Mercurio, 4/26). URBAN