CHILE MEDIA REPORT - JANUARY 16

UNCLAS SANTIAGO 000053 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 - JANUARY 16 Leading Stories -------------- ¶1. Chilean dailies highlighted the death of a Hamas leader in Gaza, and the emergency water-landing of a U.S. Airways aircraft in New York's Hudson River. U.S.-Related News -------------- ¶2. Article on Chilean Finance Minister Andres Velasco's advisors in the United States. Taking into account only the last quarter of 2008, Minister Velasco traveled to New York three times. Among his contacts feature Nouriel Roubini, Larry Summers, Jeffrey Sachs, Henry Paulson, and analysts from JP Morgan, Barclays, and Goldman Sachs (Que Pasa, conservative, influential weekly, 1/16). ¶3. Three outstanding Chileans in American academia comment on President Elect Barack Obama's arrival in the White House, the challenges he faces, and the changes that could be expected. UCLA professor Sebastian Edwards noted "the difference with Bush will be major.... The outgoing Administration has been a disaster.... For starters, Obama will be less ideological and more concerned about diplomacy and the rest of the world." MIT academic Arnoldo Hax commented, "The Bush Presidency was devastatingly inefficient, it caused a very sad image of the United States, which has brought a certain hope about Obama.... What has been done until know has been impeccable...." Claudio Grossman, Dean of the School of Law at American University said, "I believe that the steps that he has been taking are appropriate, even when he notes these are problems that will require time, attention, and sacrifice" (Diario Financiero, business and financial, circ. 30,000, 1/16). Chile-Other Countries -------------- ¶4. Foreign Minister Alejandro Foxley commented on the Israeli bombings of U.N. facilities in Gaza: "The situation in Gaza is unacceptable.... There must be a truce that provides room for rational talks over a substantial solution to the Palestinian problem and the integrity of the Israeli territory." Asked about Bolivia's suspension of diplomatic ties with Israel, Minister Foxley said, "this is a matter that we have not addressed" (La Segunda, conservative, afternoon daily, circ. 33,000, 1/15). ¶5. While legislators at the Chamber of Deputies' Foreign Relations Commission where calling for official signals to voice Chile's aggravation over the bombing of U.N. facilities in Gaza, Foreign Minister Foxley ordered Chile's Ambassador to Israel Irene Bronfman -- who is on leave in Santiago -- to remain in the country and postpone her return to her Post. Foxley's decision was approved by President Michelle Bachelet and is interpreted as an "underhand way" of issuing a complaint against the Israeli offensive. The signal could affect relations with a government with whom Chile has trade, military and intelligence ties (El Mostrador, liberal, online daily, 1/16). ¶6. Foreign Minister Alejandro Foxley noted that reactivating the so-called "2+2" talks between Chile and Peru's Ministers of Foreign Affairs and Defense, "is not part of the agenda" (La Tercera, conservative, independent, circ. 101,000, 1/16). SIMONS