CHILE MEDIA REPORT - MAY 4

UNCLAS SANTIAGO 000422

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 - MAY 4

Leading Stories
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1. Colombia has confirmed a case of AH1N1 influenza, the first in
South America. Chile has no cases of the disease and high risk
groups have been vaccinated for seasonal influenza.

U.S.-Related News
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2. The USTR placed Chile on its Priority Watch List for lack of IPR
protection, stating it is not complying with FTA provisions and
"performing below the standard of a U.S. commercial partner."
National Intellectual Property Institute (Inapi) Director Cristobal
Acevedo noted USTR's "inconsistency," because it also praised the
creation of the Inapi and of a special brigade to persecute IPR
crimes. The USTR report states Chile has yet to resolve piracy,
provide adequate copyright and patent protection, specifically for
pharmaceutical products, and it urged Chile to strengthen its laws.
The Foreign Ministry's International Economic Relations Bureau
(DIRECON) noted the USTR report is "unilateral" because it reflects
the "expectations of U.S companies with regard to other countries."
DIRECON stated the USTR report "is not a mechanism" included in the
administration of the FTA signed by both countries" (El Mercurio,
conservative, influential newspaper-of-record, circ. 129,000, 5/2).


3. The Senate will start discussing today copyright protection in
the IPR Law. Artists are demanding better regulations regarding the
use of music by the private sector (La Tercera, conservative,
independent, circ. 101,000, 5/4).


4. Jose Rafael Campino, President of Chile's National Wood
Corporation (Corma),said the subsidy that U.S. cellulose producers
receive for using an alleged biofuel will severely hurt Chile's
forestry sector, since cellulose sales accounts for 50% of total
wood products. Campino said CORMA will probably resort to the
creation of commission within the FTA to resolve the conflict. He
said that Canada and Brazil have already filed complaints regarding
the subsidy (El Mercurio, 5/4).


5. USAF Lieutenant General Norman Seip was awarded a medal in Chile
in recognition of his efforts "to strengthen ties of friendship and
professional cooperation between the Chilean AIR FORCE and the USAF"
(La Segunda, conservative, afternoon, circ. 33,000, 4/30).

AH1N1 Influenza
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6. Health Minister Alvaro Erazo underscored that Chile is following
WHO criteria for the AH1N1 influenza and is not, therefore,
considering closing its borders. Chile has no confirmed cases of
the influenza and only two people are under examination today (El
Mercurio, 5/4; La Tercera, 5/4).

Purchase of F16s
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7. Peruvian President Alan Garcia made a veiled criticism of
Chile's negotiation to buy F16s from Holland: "It's important to
reflect and ensure that there is a balance and focus on
strengthening our economies.... It's a matter of priorities" (El
Mercurio, 5/2).


8. Peruvian Foreign Minister Jose Antonio Garcia-Belaunde comments
on Chile's decision to buy F16s from Holland: "No country is happy
when its neighbor buys weapons and a fleet of F16s is something
important... Evidently it creates an imbalance... and an arms race.
This does not suit our needs" (El Mercurio, 5/3).


9. Chilean Defense Minister Francisco Vidal called his Peruvian
counterpart Antero Flores-Araoz to inform him of the ongoing
negotiation with Holland. "As Peru is just trying to increase the
capabilities of what it already has, Chile's continues to buy
weapons which create an asymmetry that is increasingly larger," said
Flores-Araoz (El Mercurio, 5/2).


10. Chile-Peru relations have become strained after Lima filed a
maritime claim with The Hague. Yesterday President Alan Garcia was
ironic with regard to the purchase of F16s. "I would say that it's
good business.... We would have to see what state they are in and
how much it would cost to refurnish them," said Garcia (La Tercera
5/2).


11. Peruvian Congressman Juvenal Ordonez said Chile's acquisition
of F16s is a "veiled threat in an eventual ruling by The Hague
favorable to Peru's maritime border claim." Ordonez wants his
government to request President Obama to ban the acquisition (La
Segunda, conservative, afternoon, circ. 33,000, 4/30).


12. In a letter to the editor, defense expert Daniel Prieto noted
that the deal between Chile and Holland had been reported in
specialized international publications before and that three
pre-agreements have been signed regarding logistics and prices (El
Mercurio, 5/3).


13. From Bolivia, former U.S. President Jimmy Carter urged Chile,
Peru and Bolivia to find a way to give La Paz "direct access to the
sea" (El Mercurio 5/2; La Tercera, 5/2).

Poll on Presidential Candidates
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14. A Mercurio-Opina survey shows that one third of voters are still
undecided about who to vote for in the December presidential
election. In a runoff election, Sebastian Pinera would get 40.8%
and Eduardo Frei 32.6%; 51.9% agreed with Pinera's decision to
transfer his assets to a blind trust; PS congressman Marco
Enriquez-Ominami obtained an unexpected third place in the voting
preference with 8.7% (El Mercurio, 5/2).
SIMONS