CHILE MEDIA REPORT - APRIL 29

UNCLAS SANTIAGO 000410

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 29

Leading Stories
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1. Chile has no confirmed cases of swine flu. Dailies also report
that Chile's Air Force bought 18 F16s from Holland, making Chile's
fleet the largest in Latin America.

U.S.-Related News
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2. The President of industrial holding COPEC, Roberto Angelini,
commented on the subsidy U.S. cellulose producers receive: "They
use the same process that is used worldwide, with black liquor as a
fuel, but they call it is a biofuel. That has no basis of fact."
He also foresees better economic results for the forestry and
fishing sectors for this quarter compared to the same period in
2008, because of the lower fuel costs and the "relative improvement"
in the prices for products from those sectors (El Mercurio,
conservative, influential newspaper-of-record, circ. 129,000,
4/29).


3. Photograph of Chilean Ambassador Jose Goni with California
Governor Arnold Schwarzennger. Goni visited the Governor the week
he arrived to the United States (La Segunda, conservative,
afternoon, circ. 33,000, 4/28).


4. "Little by little, the U.S. President is showing that his logo
'Yes, we can,' can produce results and that bilateral relations can
be modified and eventually recomposed" (El Mercurio, 4/29).


5. Editorial on the U.S. and swine flu scare: "The way in which
U.S. authorities are keeping their population informed, a realistic
and not alarmist manner, is commendable" (El Mercurio, 4/29).

F16 Purchase Plans
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6. Defense Minister Francisco Vidal said the Chilean Air Force
bought from Holland 18 used F16s for US$270 million. This would
conclude the process to renew Chile's fighter fleet (El Mercurio,
4/29). (Note: an on-line service reported the Dutch indicated a
sales agreement had not yet been signed.)

Bank Secrecy Legislation
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7. The government submitted to the Chamber of Deputies the draft
bill to lift banking secrecy in the case of suspicious activity.
The bill states that in "a free market system" and globalization it
is not possible to justify this secrecy. The bill, among other
things, give customs and tax courts the same authority as ordinary
courts; authorizes Chile's IRS to request information from banks
regarding specific individuals, and sets strict regulations on the
confidentiality of the information (Diario Financiero, 4/29).

Swine Flu
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8. In Chile there are 24 suspected cases of swine flu under
examination. Four are foreign citizens but most are residents of
the Santiago metropolitan region. So far no one has tested positive
for the virus. Senator Guido Girardi said Chile should be prepared
for a pandemic by stocking up on anti viral medication. Health
authorities have 350,000 doses and they have already distributed
36,000 to medical facilities nationwide. President Bachelet held an
emergency meeting yesterday with her cabinet to assess the situation
and urged people to remain calm given the measures in place. Health
Minister Erazo said it is important is to ensure that the network of
health services continue to operate adequately (Diario Financiero,
business and financial, circ. 30,000; El Mercurio, 4/29).

Venezuela
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9. President Hugo Chavez will visit Chile May 17-18, for a
"working" session with Bachelet and an extended meeting of the
delegations. Chavez' visit is part of La Moneda's goal to eliminate
international tension amid its border controversy with Peru (La
Tercera, conservative, independent, circ. 101,000, 4/29).
URBAN