CHILE MEDIA REPORT -- June 22

UNCLAS SANTIAGO 000584

SIPDIS

STATE FOR R/MR, I/PP, WHA/BSC, WHA/PDA, INR/IAA

E.O. 12958: N/A
TAGS: KMDR KPAO PGOV OPRC PREL PGOV SNAR CI
SUBJECT: CHILE MEDIA REPORT -- June 22

Leading Stories
--------------

1. The media highlighted President Michelle Bachelet plan to call
for an early retirement of Investigative Police Director Arturo
Herrera as a result of his undistinguished performance in removing
high-ranking officials involved in a prostitution ring. Newspapers
also noted the Chamber of Deputies will tighten procedures and
accountability instruments in response to the case of a legislator
who admitted mishandling funds assigned for office-space rental.

U.S.-Related News
--------------

2. Article described Chile's nuclear energy agenda, claiming a
likely coincidence with the U.S. "strategy" on the nuclear issue.
The piece noted that Energy Minister Marcelo Tokman "will attend the
historic (presidential) visit to the White House (June 23),where he
will sign a cooperation agreement on Non-Conventional Renewable
Energies (NCRE)." The article indicated that "last February,
Minister Tokman met with U.S. Secretary of Energy Steven Chu in a
very productive meeting where they agreed to strengthen bilateral
ties on energy matters." In an interview with El Mostrador online
daily, "U.S. Ambassador to Chile Paul Simons noted that Chile is an
important partner for the United States due to its unique solar
energy resources. Chile also has remarkable geothermal
capabilities, ocean wave and wind energy, and a large quantity of
natural resources," he said. The agreement with the United States
at this time will only be focused on Non-Conventional Renewable
Energy. Ambassador Simons commented that nuclear energy may become
a part of the agenda in the future, "should the Government of Chile
decide it needs collaboration in that area. The United States has
considerable experience, where almost 20 percent of its power is
nuclear. We have already exchanged information. But meanwhile, the
agreement is focused on renewable energy and energy efficiency" (El
Mostrador, online, liberal, 6/22).


3. As of 8 p.m. tonight President Michelle Bachelet and her
delegation will depart on a short visit to the United States and
Mexico. She is scheduled to meet with President Barack Obama in the
Oval Office, Tuesday, June 23, at 2 p.m. (El Mercurio, conservative,
influential newspaper-of-record, circ. 129,000, 6/22).


4. Foreign Minister Mariano Fernandez characterized President
Michelle Bachelet's official visit to the United States as her most
important tour of the year. During her trip, President Bachelet
will convey to U.S. officials Chile's apprehensions over the
forestry subsidies that benefit U.S. cellulose producers, which are
harming the local forestry industry (Diario Financiero, business and
financial, circ. 30,000, 6/22).


5. Story on Mapuche leader Hector Llaitul's "unknown" conference to
recruit youths, last November 10, in Temuco. Llaitul, currently a
fugitive, is the military leader of the Coordinadora Arauco Malleco
(CAM) indigenous subversive group. In his speech, Llaitul summoned
an audience of approximately 50 students to join "the fight." In
its latest Country Reports on Terrorism, the Department of State
stated that the Coordinadora Arauco Malleco has shown increased
planning and a more professional use of weapons and tactics. The
report even said that the Embassy in Santiago is monitoring the
actions carried out by CAM in Chile. Nevertheless, the Chilean
Government downplayed the report and ruled out the reorganization of
the radicalized group (El Mercurio, 6/21).


6. Article compared the U.S. and French "cultural models," noting
they are radically different but equally successful. While the
Ministry of Culture in France celebrates in July its fiftieth
anniversary, the United States has never had a government agency
dedicated to the issue. Nevertheless, First Lady Michelle Obama is
already being called "Minister" of the subject due to the important
role that she is assuming. In the United States, private donations
are essential. Counselor for Public Affairs Laurie B. Weitzenkorn
highlighted the Obama Administration's US$50 million stimulus
package, which was provided to the National Endowment for the Arts.
Cultural Affairs Attach Michael D. Orlansky highlighted that 10
percent of funding in the United States comes from the public
sector, while 90 percent is supplied by the private sector." (El
Mercurio, 6/21)


7. Editorial: "Free Market and Ways to Solve the Crisis" "President
Barack Obama recently announced measures to increase the regulations
on market and financial institutions, and stronger protections for
consumers and investors. Some legislators have questioned several
aspects of his proposal.... Nevertheless, beyond the specifics, the
most notable fact is that it does not propose in depth reforms to
the ongoing economic model.... The plan seeks to improve regulations
while respecting and encouraging the fundamentals of market freedom;
President Obama and the European leaders are paving the way to a
speedier recovery" (La Tercera, 6/22).

Chile-Nuclear Energy
--------------

8. Minister of Energy Marcelo Tokman stated that by December 2010
the Government will be in condition to determine whether it will
incorporate nuclear energy in its power matrix. It is estimated
that by that date, the next administration will have the necessary
data to make a decision. In the next three months, the Government
expects to open the bidding process for three other studies on
nuclear energy, which will address the legal framework,
environmental risks, and power regulations (La Tercera,
conservative, independent daily, circ. 101,000, 9/20).

Chile-OAS
--------------

9. Interview with OAS Secretary General Jose Miguel Insulza on
local politics and the results of last week's CEP opinion poll.
With regard to his plans to run for a second term as chief of the
regional organization, Insulza responded: "We have spoken with
(Chile's) Foreign Minister and it is in my plans" (El Mercurio,
6/20).

Peru-Bolivia
--------------

10. Opinion piece by former Chilean Foreign Minister Hernan Felipe
Errazuriz entitled "Alan and Evo: Maximum Tension" "Animosity
between Peru and Bolivia continues to escalate.... It is worrisome
that (Chilean) officials claim that we have the best relations in
history with Bolivia while they are tense with Peru.... We are
interested in both Peru and Bolivia being successful. Unfortunately
this is not happening.... (El Mercurio, 6/20).

Iran
--------------

11. Column by international pundit Libardo Buitrago, headlined
"Iran: The Streets' Uproar" "Depending on how the Ayatollahs
manage (the current situation) they will find out whether the
Islamic Revolution is the target of the protests. By using rifle
butts, bullets, and restrictions as means to stop the protests, they
are only increasing them. They have chosen this path, the most
risky one" (Diario Financiero, 6/22).
SIMONS