CHILE MEDIA REPORT - JANUARY 13

UNCLAS SANTIAGO 000054 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 13 Leading Stories -------------- ¶1. Chilean Dailies highlighted: 1) dramatic losses affecting the Chilean Private Social Security System (AFP) during 2008; 2) Chilean physicians outranking their foreign counterparts in a national exam; and 3) Paris-Dakar automobile rally taking place in Argentina and Chile. U.S.-Related News -------------- ¶2. In the first press interview of the new AmCham President Ricardo Garcia, the executive assessed the Chile-U.S. bilateral trade and its prospects for 2009. Garcia characterized Wal-Mart's arrival in Chile as "flattering" and said that it is proof that the end of the world is not upon us and that companies continue doing business in the midst of a global recession context. With regard to the ongoing discussion over Wal-Mart's petition on Chilean supermarket chain D&S -- for whom it has launched a public purchase offer -- not to sell Cuban products, Garcia commented that "this is nothing new. One must be clear that this legislation not only affects Wal-Mart but all U.S. companies and I haven't seen that IBM, Alico, Microsoft, Johnson & Johnson or Procter & Gamble have had a problem in Chile. This is not an issue for Wal-Mart. This is a U.S. matter that has certain regulations and laws that limit U.S. companies' trade ties with those countries that have difficulties with terrorism and security, both in domestic and foreign businesses" (El Mercurio, conservative, influential newspaper-of-record, circ. 129,000, 1/13). ¶3. Chilean exports to three of its major destinations dropped in ¶2008. Although the United States ranks second among Chile's main export markets, exports to that country during 2008 experienced the highest decline. Chile's National Customs Service released its annual report that showed U.S. imports of Chilean products dropped by 8.4% compared to the previous year (La Tercera, conservative, independent, circ. 101,000, 1/13). ¶4. Congressman Eugenio Tuma, Chairman of the Finance Committee at the Chamber of Deputies, announced the introduction of a draft bill to counter Wal-Mart's blockage on Cuban products. The initiative seeks to withdraw the permit that would allow the retailer from operating in Chile should Wal-Mart decline to enforce the eventual legislation (La Tercera, 1/13). Local -------------- ¶5. Ten hooded individuals assaulted an estate near Lautaro, in Region Ten (within the indigenous Mapuche area). The heavily armed group attacked the warden and his wife, and set fire to their house and two barns. Farmers denounced the presence of an extremist cell that "recurrently" attacks manors and estates in the region (El Mercurio, 1/13). ¶6. Prosecutor Nancy Gonzalez acknowledged the existence of a new corruption network operating within Chilean courts, which is different from another that was dismantled last year. The Public Ministry initiated a probe to identify the members of the ring that once again includes judicial and civil police officers (El Mercurio, 1/13). Chile and Other Countries -------------- ¶7. Peru is seeking to re-establish bilateral talks with Chile under the so-called "2+2" mechanism, an initiative in which the Foreign and Defense Ministers of both countries hold coordination meetings. Lima's decision to file a complaint over maritime boundaries before the International Court at The Hague in 2007 resulted in Chile's postponing such meetings indefinitely. Last Friday, the Army chiefs of Peru and Chile held a private conference in Arica. The event is viewed by Peru as a clear signal of normality, leaving behind the controversy caused by former Peruvian Army General Edwin Donayre who remarked that any Chilean invading Peru would "leave either inside a coffin or a plastic bag" (La Tercera, 1/13). Editorials -------------- ¶8. Opinion piece by international commentator Andres Oppenheimer: "Questions Over the Flow of Presidential Visits to Cuba" "The sudden surge of visits to Cuba by Latin American presidents, which disrupts decades of Cuban military regime's diplomatic ostracism, lead me to ask whether we are witnessing a total abandonment of the democratic commitment in the region -- which had been a combined effort to achieve a political opening in the Island.... Although (Chilean President Michelle) Bachelet will try to 'open spaces' in Cuba, she will not meet with the Cuban opposition. When I asked why, (a Chilean high-ranking official) said that there are many ways in which countries exert pressure to achieve democratic changes and, meeting dissidents during an official visit, would not be appropriate to accomplish them...." ¶9. "Peaceful Cuban opponents have said that when Fidel Castro or his brother visited Latin American countries, they always met with leaders in the opposition. Why can't Latin American presidents do likewise in Cuba, they ask...? I am not against Latin American presidents -- or from elsewhere -- visiting a totalitarian country like Cuba. On the contrary, they should go and do what is expected of them: meet with the government and civil society, including leaders in the peaceful opposition, just like democratic presidents do around the world. By not doing so, this legitimizes a military dictatorship and establishes a terrible precedent in the region. Today, they are abandoning the combined defense for democracy in Cuba. Tomorrow, it could happen to any country, whose presidents are turning their backs on the Cuban people" (El Mercurio, 1/13). SIMONS