CHILE MEDIA REPORT - JANUARY 13

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SUBJECT: CHILE MEDIA REPORT - JANUARY 13

Leading Stories
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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
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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
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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
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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
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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