CHILE MEDIA REPORT - JANUARY 17-20

UNCLAS SANTIAGO 000061

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 17-20

Leading Stories
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1. Chilean dailies gave extensive coverage to inauguration
preparations in Washington and President-elect Obama's activities.
Newspapers also highlighted Israel's cease fire in Gaza and the
arrest of Chile's Air Force (FACH) retired General Ramon Vega for
allegedly receiving illegal payments during the purchase of Belgian
fighter jets in 1994.

U.S.-Related News
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2. Chilean newspapers noted President-elect Barack Obama's remarks
on Latin American and Hugo Chavez during an interview with Univision
TV last week. In response to questions about Obama's remarks, OAS
Secretary General Jose Miguel Insulza underscored that "Obama has no
interest in getting into a fight with President Chavez. President
Chavez is campaigning for his referendum, and naturally, he has
taken on this issue" (El Mercurio, conservative, influential
newspaper-of-record, circ. 129,000, 1/19).


3. Column by Chilean Ambassador to the U.S. Mariano Fernandez on
the atmosphere in Washington preceding Inauguration Day entitled,
"The Celebration in Washington." "It will be a truly historic
moment for democracy.... One perceives emotion, admiration, and
pride.... The first power is preparing to leave a very difficult
time behind (as it is expected by everybody) and begin a new era of
resurgence headed by Obama and his Administration. That is the
perception today in Washington..." (La Tercera, conservative,
independent, circ. 101,000, 1/18).


4. Americas Quarterly's latest edition carried a special edition
featuring comments by 31 leaders in the Hemisphere on the upcoming
Obama Administration. President Michelle Bachelet and businessman
Andronico Luksic contributed. President Bachelet said, "If
institutions are not democratized and redesigned in order to reflect
the diverse and complex political environment, they will not be
capable of providing the kind of government that we need for the
21st Century." Andronico Luksic suggested changes in three areas,
notably an "extensive review" of the Cuban embargo, immigration, and
promotion of stalled trade agreements (La Segunda, conservative,
afternoon daily, circ. 33,000, 1/16).


5. As of January 1, Chile should have adhered to the UPOV 1991 Act
of the International Convention for the Protection of New Varieties
of Plants, as stated in the bilateral Free Trade Agreement with the
United States. Attorney Jaime Silva noted that the issue hasn't been
given legislative priority, which suggests "that it is a matter of
low political priority in the country" (El Mercurio, 1/19).


6. U.S. Ambassador to Chile Paul Simons visited the Maipu District
in Santiago to seek future cooperation opportunities. Maipu Mayor
Alberto Undurraga pointed out that "it is not usual for ambassadors
to visit municipalities; we are excited that he is interested in
learning about our work and projects" (El Mercurio, 1/19).

Chile-Other Countries
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7. The Executive Branch is preparing a draft bill aimed at granting
Chile's Internal Revenue Service with access to banking accounts and
deposits. The initiative seeks to comply with the Organization for
Economic Cooperation and Development's (OECD) requirements in this
area (La Tercera, 1/18).

Local
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8. Chile's Air Force (FACH) retired General Ramon Vega and other
three high-ranking retired officers were arrested January 19 for
allegedly receiving US$ 15 million dollars in illegal payments
during the purchase of Belgian fighter jets in 1994 ( All dailies,
1/20).


9. The Public Ministry prepared a new strategy to stop the surge of
recent bombings and bomb threats in Santiago and other cities.
Prosecutor Xavier Armendariz was appointed exclusively to
investigate the attacks (El Mercurio, 1/17).


10. Christian Democratic Presidential candidate Eduardo Frei was
officially proclaimed Presidential candidate by the Socialist Party
in an event that had a poor turnout. Of the 1,129 delegates
expected to attend, only 350 showed-up (La Tercera, 1/18). Eduardo
Frei gave the first speech in his presidential campaign to the
Socialist Party's National Convention. In his remarks he sought to
connect with the far-left in the Government coalition by defending
the role of the State in times of crisis such as the current one (El
Mercurio, 1/18).

Editorials
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11. Editorial piece entitled, "Historic Change of Power at the
White House" "The new President has been elected to protect the
country's interests; therefore one should not expect a strong thump
at the helm, even on issues such as Iraq and Afghanistan. It could
frustrate the hopes of those who dream of a new United States" (La
Tercera, 1/20).


12. Column by Former Foreign Minister Hernan Felipe Errazuriz,
"Obama and the U.S." "Obama's ability to change the United States
and the U.S.' power to change the world are limited" (El Mercurio,
1/17).


13. Opinion piece by OAS Secretary General Jose Miguel Insulza,
"The Challenges of the New U.S. President" "To truly go into
history as a great President, Obama needs to face four enormous
challenges. First, he must comply with the promise of equality
established by the Civil Rights Movement.... Second, Obama came to
power through the hands of many people who saw in him the hope to
end the war in Iraq and, more generally, to substantially change the
U.S. foreign policy and to create a new era of peace by exerting
global moral and political leadership, rather than military....
Third... the entire world expects to see how he reduces the deficit
while rescuing the financial system, eluding unemployment and
putting the economy at work.... Fourth, the alarm caused by global
warming continues. There is little time to negotiate agreements to
outstrip the Kyoto goals and significantly reduce emissions....
Latin America -- which also is living a period of profound changes
-- expects from Obama a closer dialogue and a truly collaborative
attitude.... We hope that for the good of the world, Obama succeeds
in his struggle against the crisis, the war, discrimination and
environmental damages. We wish to see from him true willingness to
address the issues in our shared agenda (economic crisis, trade,
migration, global warming, drug trafficking, and Cuba -- yes, also
Cuba) without prejudice and by listening to everybody's interests"
(La Tercera 1/20).


14. Editorial entitled, "Barack Obama" "Globally, there is a
variety of expectations, but its axis is the establishment of better
international relations. One of the heaviest burdens left by Bush
is the sentiments against the United States caused by Bush's
international policy.... With the arrival of this lawyer to the
White House, there is a ray of hope for a better world order and a
more integrated United States" (Diario Financiero, business and
financial, circ. 30,000, 1/20).

SIMONS