CHILE MEDIA REPORT -- MAY 22

UNCLAS SANTIAGO 000491

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 22

Leading Stories
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1. All dailies highlighted the annual May 21 Presidential address to
the nation, which Bachelet gave at the Congress in Vina del Mar.
Dailies also noted health authorities confirmed 29 AH1N1 cases in
Chile, the most in South America.

U.S.-Related News
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2. Captioned photograph of President Obama and Chilean Ambassador
Jose Goni in the Oval Office, as the latter presents his letters of
credentials. "How is your wonderful President," asked Obama. The
U.S. President underscored the shared values and the need to work as
partners (El Mercurio, conservative, influential
newspaper-of-record, circ. 129,000, 5/22).


3. On Friday, July 3, the region's finance ministers will attend a
meeting in Vina del Mar. U.S. Secretary of the Treasury Tim
Geithner is among the expected guests (El Mercurio, 5/21).


4. Carlos Furche, head of Chile's Foreign Affairs International
Economic Relations Bureau, DIRECON, played down the USTR's Priority
Watch List, saying it "reflects the view of a U.S. industrial sector
and is not part of the mechanisms or institutions in the bilateral
Chile-U.S. FTA." (El Mercurio, 5/22).


5. President Bachelet will travel next week to Holland and France.
Her trip ends in El Salvador, where she could come across U.S.
Secretary of State Hillary Clinton (El Mercurio, 5/21).


6. Article on the wine-tasting event hosted by Ambassador Simons to
promote California Zinfandel wines in Chile. "The tasting event
showed the friendliest and the more festive characteristics of the
Zinfandel variety" (Capital monthly magazine, 5/20).


7. Ambassador Paul Simons addressed an audience of 150 government
officials, members of the armed forces, professors, students, and
public in general on the "The First One-Hundred Days of the Obama
Administration" at University of Magallanes, in southern Chile
(Regional daily El Pinguino de Magallanes, 5/20).


8. National Customs figures show that China was the main recipient
of Chilean exports in April 2009. Asia as a bloc received 43.5% of
total Chilean exports, the highest percentage. The United States
remains Chile's largest bilateral trading partner (El Mercurio,
5/21).

Bachelet's May 21 Address
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9. Headline: "Bachelet emphasizes achievements of her
administration and avoids farewell tone." In her address, the
President highlighted her administration's social initiatives and
sound fiscal policy. Bachelet also said she would "work unit the
very last day" in office, and proposed three main lines of action to
face the economic crisis. Unlike previous years, she did not
criticize candidate Sebastian Pinera or express support for
"Concertacion" candidate Eduardo Frei. The opposition criticized the
absence of self-criticism and mention of Chile's growing crime rate
(El Mercurio, 5/22).


10. Headline: "Bachelet announces bonuses and subsidies of US$330
million during her last year in office" (El Mercurio, 5/22).


11. Headline: "Bachelet announces social benefits in an address
marked by a strong defense of her administration"
The President chose to expand subsidies and highlight that the seal
of her administration is social protection. The President did not
endorse in any way Eduardo Frei's presidential candidacy (La
Tercera, conservative, independent, circ. 101,000, 5/22).


12. In her last May 21 address, Bachelet announced that two percent
of the annual budget will be used to create "quality cultural
centers" in every community with over 250,000 inhabitants (La
Nacion, government-owned, editorially independent, circ. 4,200,
5/22).


13. Dailies concurred on the most significant announcements: The
US$72 monthly bonus to help families with winter expenses, totaling
4 million people; the pension reform to benefit the poorest sector
of the population; a bill that sets a ceiling on the fuel tax; new
housing subsidies; a bill establishing penal responsibility for
businesses and individuals involved in price collusion; a bill to
prevent the use of privileged information in the stock market;
delivery of 60,000 computers to low-income public school 7th graders
with the highest GPA; 2,000 additional scholarships to study English
and another 3,500 for graduate studies; mortgage insurance for those
who have lost their jobs; construction of 12 new hospitals and the
expansion of the list of diseases that are fully covered by the
public health system. On foreign policy, Bachelet specifically
regretted Peru's decision to file a claim with the international
court in The Hague over maritime borders.

ICC
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14. The Chamber of Deputies passed the constitutional reform that
would allow Chile to ratify the Rome Statute to adhere to the
International Criminal Court (All dailies, 5/22).

Digital Television
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15. A source familiar with the negotiations in Congress to approve
the digital TV law and allow stations to broadcast in high
definition noted the Executive Office is pressuring Congress to pass
the law before the 2010 World Soccer Cup. Reportedly, the
television industry is making a strong lobby, because the World Cup
generates a peak in demand for new television sets (La Segunda,
conservative, afternoon, circ. 33,000, 5/20).
SIMONS