Identifier
Created
Classification
Origin
09SANTIAGO618
2009-07-02 21:32:00
UNCLASSIFIED
Embassy Santiago
Cable title:
CHILE MEDIA REPORT - JULY 2
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UNCLAS SANTIAGO 000618
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 - JULY 2
Leading Story
-------------
UNCLAS SANTIAGO 000618
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 - JULY 2
Leading Story
--------------
1. The prosecutor's office has made public an array of e-mails
which reveal that pharmaceutical chains not only colluded amongst
themselves to hike prices of medical products, but also with
pharmaceutical laboratories, who suggested on their part to raise
"base" prices of an array of medications.
Chile-U.S.
--------------
2. Chile is among the countries that are trying to get the U.S.
Congress to eliminate a subsidy paid to U.S. cellulose and paper
producers. The American producers take advantage of a legal vacuum
and mix pulp with 0.01% diesel to become eligible for the subsidy
which is intended to promote the use of alternative fuels. For 2009,
the subsidy could amount to US$6 billion dollars. But the American
Forest & Paper Association (AF&PA) is increasing its pressure on
Congress to retain the subsidy, claiming that there is no evidence
that it distorts the market or violates World Trade Organization
regulations, because it is not specific." The chairman of the Senate
finance committee Chairman Max Baucus already submitted a draft bill
to eliminate the subsidy (El Mercurio, conservative, influential
newspaper-or-record, 7/2).
3. Chile will host the 2nd Finance Ministerial of the Americas and
the Caribbean on Friday. World Bank President Robert Zoellick is
among those who will attend. Guest star U.S. Secretary of the
Treasury Tim Geithner will be unable to attend (La Segunda,
afternoon daily, 7/1).
Honduras
--------------
4. The 72-hour deadline that the OAS gave Micheletti to put Zelaya
back on office was suggested by Washington, which wants the incident
resolved before Sunday, when President Obama is due to travel to
Europe. The concern is that if this does not happen, Hugo Chavez
could take the lead against Micheletti. Washington sources said that
former Assistant Secretary Thomas Shannon is leading the U.S.
actions with regard to Honduras and that he has the authority to
instruct U.S. officials to negotiate Zelaya's return with a Honduran
delegation. Reportedly, the condition for Zelaya's return is that he
does not convoke a referendum to reform the constitution. Micheletti
confirmed that a delegation traveled to Washington, but to explain
the reasons for ousting Zelaya (La Tercera, conservative,
independent, 7/2).
5. In an interview with El Pais, Micheletti said that Zelaya would
be arrested if he returns to Honduras, "Because he has several
pending judicial accusations.... We tried by all means for Zelaya to
realize that it was illegal to convoke the referendum.... The United
States tried to mediate in this matter, I can attest to that" (La
Tercera, 7/2).
SIMONS
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 - JULY 2
Leading Story
--------------
1. The prosecutor's office has made public an array of e-mails
which reveal that pharmaceutical chains not only colluded amongst
themselves to hike prices of medical products, but also with
pharmaceutical laboratories, who suggested on their part to raise
"base" prices of an array of medications.
Chile-U.S.
--------------
2. Chile is among the countries that are trying to get the U.S.
Congress to eliminate a subsidy paid to U.S. cellulose and paper
producers. The American producers take advantage of a legal vacuum
and mix pulp with 0.01% diesel to become eligible for the subsidy
which is intended to promote the use of alternative fuels. For 2009,
the subsidy could amount to US$6 billion dollars. But the American
Forest & Paper Association (AF&PA) is increasing its pressure on
Congress to retain the subsidy, claiming that there is no evidence
that it distorts the market or violates World Trade Organization
regulations, because it is not specific." The chairman of the Senate
finance committee Chairman Max Baucus already submitted a draft bill
to eliminate the subsidy (El Mercurio, conservative, influential
newspaper-or-record, 7/2).
3. Chile will host the 2nd Finance Ministerial of the Americas and
the Caribbean on Friday. World Bank President Robert Zoellick is
among those who will attend. Guest star U.S. Secretary of the
Treasury Tim Geithner will be unable to attend (La Segunda,
afternoon daily, 7/1).
Honduras
--------------
4. The 72-hour deadline that the OAS gave Micheletti to put Zelaya
back on office was suggested by Washington, which wants the incident
resolved before Sunday, when President Obama is due to travel to
Europe. The concern is that if this does not happen, Hugo Chavez
could take the lead against Micheletti. Washington sources said that
former Assistant Secretary Thomas Shannon is leading the U.S.
actions with regard to Honduras and that he has the authority to
instruct U.S. officials to negotiate Zelaya's return with a Honduran
delegation. Reportedly, the condition for Zelaya's return is that he
does not convoke a referendum to reform the constitution. Micheletti
confirmed that a delegation traveled to Washington, but to explain
the reasons for ousting Zelaya (La Tercera, conservative,
independent, 7/2).
5. In an interview with El Pais, Micheletti said that Zelaya would
be arrested if he returns to Honduras, "Because he has several
pending judicial accusations.... We tried by all means for Zelaya to
realize that it was illegal to convoke the referendum.... The United
States tried to mediate in this matter, I can attest to that" (La
Tercera, 7/2).
SIMONS