Identifier
Created
Classification
Origin
09SANTIAGO632
2009-07-08 18:29:00
UNCLASSIFIED
Embassy Santiago
Cable title:  

CHILE MEDIA REPORT - JULY 8

Tags:  KMDR KPAO PGOV ECON PREL SNAR EFIN CI 
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UNCLAS SANTIAGO 000632 

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 8

Leading Story
-------------
UNCLAS SANTIAGO 000632

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 8

Leading Story
--------------

1. President BacheletQed a second dQree in a month related to
AH1N1. The decree instructs clinics and hospitals to give priority
to individuals with respiratory diseases and regulates the
indiscriminate sale and distribution of antiviral medication. It
also grants regional health officials the authority to cancel large
public events, if necessary. Chile has 9,135 confirmed cases of
AH1N1, of which 381 are in serious condition.

Chile-U.S. Military Sales
--------------

2. Headline: "White House Pressures Chile over its Purchase of
Russian Helicopters." U.S. Secretary of Commerce Gary Locke handed
the Chilean Embassy in Washington a letter dated July 1, expressing
the USG's "disappointment" with the Chilean Air Force's (FaCh)
decision to buy five transportation helicopters from Russia.
American company Sikorsky was bidding with Black Hawks, but they
cost twice as much as the Russians.


3. The complaint is of special importance given the recent
Obama-Bachelet bilateral. The fact that it was Locke and not
another official who filed the complaint puts more pressure on the
issue. The Foreign Ministry saQaint was a "delicate
matter."

4. Defense sources said that although the deal with Russia is not
officially sealed, it's a given that Chile will go ahead with it.
Bachelet visited Moscow in April with an agenda focusing on defense,
trade, and the eventual conclusion of an FTA with Russia.
Therefore, Chile's helicopter acquisition would be a gesture to
confirm its true interest in strengthening ties with Moscow.


5. The daily claims it repeatedly tried to get Secretary Locke's
office to comment. Locke has plans to attend the Competitiveness
Forum of the Americas in Santiago in September (El Mostrador, on
line news agency, 7/7).


6. Under Secretary of Foreign Affairs Undersecretary Alberto Van
Klaveren downplayed Secretary Locke's letter: "We mustn't magnify
situations such as these. It's common for a country that has lost a
bid to manifest its disagreement" (El Mostrador, 7/8).


7. Defense Ministry sources said yesterday that Chile would buy
US$275 million worth of weapons from the United States, pending U.S.
congressional approval. This would be the largest investment the
Chilean army has made in decades. The request was placed with the
Defense and Security Cooperation Agency (DSCA) just days before the
Bachelet-Obama bilateral on June 23 (El Mercurio on-line, 7/7).


8. The list of material to be sold includes long-range artillery
with transportation vehicles (M109 A5 and M109 A3 Howitzers),
Command Post Carriers (M577 A2),Armored Personnel Carriers (M113
A2),Logistics Carriers (M548 A1),mid-range artillery, automatic
grenade launchers, two mobile Firefinder electronic radars to locate
artillery, and a unspecified amount of ammunition. Germany had
offered the same package, but at a much higher price. The
acquisition of this material would make Chile's army the best
equipped with heavy artillery in South America, surpassing even
Brazil (El Mercurio on-line, 7/7).


9. The U.S. Department of Defense notified Congress in June about
the possible sale of military equipment to Chile for US$275 million.
The announcement of the deal coincides with yesterday's press
report of the USG's "disappointment" over Chile's decision to buy
Russian helicopters, rather than U.S. manufactured Black Hawks La
Tercera, conservative, independent, 7/8).

Honduras
--------------

10. After meeting with Honduran President Zelaya, Secretary of
State Hillary Clinton announced that President Oscar Arias, of Costa
Rica, would be the mediator in the crisis. He displaces OAS
Secretary General Insulza. Clinton urged Zelaya to avoid situations
such as last Sunday's, when his attempt to return provoked a
military reaction that left one person dead. Clinton called on both
parties to "abstain from resorting to acts of violence and to look
for a peaceful, constitutional, and long-lasting solution" (Alvaro
Vargas Llosa, conservative, independent La Tercera, 7/8).

11. Clinton's announcement was perfect for Micheletti, who
publicized he had spoken to Arias. A high-level USG source said that
the United States had been looking for a mediator to remove Hugo
Chavez from the limelight and one that both parties would accept.
OAS Secretary General Insulza was perceived as being too close to
Zelaya. Michelletti promptly informed the United States that he
accepted Arias as mediator (Alvaro Vargas Llosa, La Tercera, 7/8).

URBAN