Identifier
Created
Classification
Origin
09SANTIAGO652
2009-07-13 20:38:00
UNCLASSIFIED
Embassy Santiago
Cable title:  

CHILE MEDIA REPORT - JULY 13

Tags:  KMDR KPAO PGOV ECON PREL SNAR EFIN CI 
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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 13
July 13, 2009

Chile-U.S.
----------
UNCLAS SANTIAGO 000652

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 13
July 13, 2009

Chile-U.S.
--------------

1. Secretary Hillary Clinton informed the Bachelet government that
the United States would not support Jose Miguel Insulza's reelection
to the OAS. The United States reiterated its position just before
Bachelet's visit to Washington. Sources in Washington and of the
GOC confirmed on Friday (7/10) that Secretary Clinton herself had
communicated twice with the Bachelet government over the past weeks
to express its concern with Insulza's efforts for Cuba to reenter
the OAS. Sources tied to the Democratic Party said that Secretary
Clinton was concerned about Insulza's push for Cuba to reenter the
OAS without conditions, when the United States was doing exactly the
opposite. Washington sources said that on June 2, Clinton had
informed Chilean officials, including Foreign Minister Fernandez,
that "the United States did not view Insulza's reelection
positively" (El Mercurio, 7/12).


2. The OAS resolution to eliminate the ban on Cuba's membership
generated a wave of criticism in the United States that did not
leave the Obama administration indifferent; Influential Hispanic
Senator Robert Menendez was among those who strongly criticized the
resolution. Sources tied to Assistant Secretary Thomas Shannon said
Clinton spoke to the Chilean government again just before Bachelet
traveled to Washington to reiterate that the United States would not
support Insulza's reelection. The crisis in Honduras was another
element in this matter. Clinton's appointment of President Oscar
Arias as the sole negotiator in the Honduran crisis was a major blow
to Insulza, because it relegated him to a secondary role in the
resolution of the crisis (El Mercurio, 7/12).


3. CNN interviewed OAS Secretary General Insulza to discuss the
press report that the United States would not support his reelection
to the OAS. Insulza denied this, basing his argument on official
sources such as Chilean Foreign Minister Fernandez and Assistant
Secretary State Thomas Shannon. But CNN insisted that its
correspondents had "confirmed the information with Department of

State sources" (Mercurio, 7/13).


4. Insulza said the news on the eventual rejection of the United
States to his reelection came as a surprise, adding that "this has
more to do with Honduras than with anything else (...) These are
the same individuals who were lobbying against me in 2005... who
believe the OAS should be different from what it is today and will
insist on that" (Mercurio, 7/13).


5. Foreign Affairs Minister Mariano Fernandez refuted press reports
that the USG had informed of Chile of its position regarding
Insulza's reelection. In local political circles there was unanimous
support for Insulza after reports that the United States would not
give him its vote. However, there is also the general view that
Insulza's efforts to bring Cuba back into the organization left him
in an uncomfortable position with regard to the Obama
administration. Sebastian Pinera suggested Insulza should "apply the
2001 Democratic Charter with more conviction." Senate foreign
relations committee member Roberto Munoz said that the U.S. decision
to replace Insulza as a mediator in the Honduras crisis has left the
Secretary General in a difficult position (El Mercurio, 7/13).


6. Department of State sources said the United State has not
informed the Bachelet government of any decision regarding Insulza's
reelection to the OAS. Both Secretary Clinton and Assistant
Secretary Shannon's office said that the only time that Obama and
Bachelet discussed Insulza was during the Chilean president's visit
to Washington, when Bachelet "insisted on us supporting his
reelected. But we did not commit our position, said the source (La
Tercera, conservative, independent, 7/13).


7. Assistant Secretary Thomas Shannon said, "The United States has
not expressed a position to the government of Chile on this issue."
But it's widely known among those in Washington responsible for
Latin America that U.S.-OAS relations have become tense over the
past weeks. They were strained when Insulza sided with Chavez and
endorsed Cuba's reentry into the OAS without conditions and got
worse with Zelaya's ousting in Honduras. The USG hoped Insulza would
seek channels of communication to find a peaceful solution; The last
straw was Zelaya's attempt to return to Honduras (La Tercera,
7/13).


8. Foreign Affairs Minister Mariano Fernandez "denied" that the
United States had notified Chile of its decision not to support Jose
Miguel Insulza's reelection to the OAS. "That is not accurate. I
don't know the source. I have spoken three times to her (Bachelet)
and she has not mentioned this," said Fernandez. The Foreign
Minister also expressed his support for Insulza's work. "We've
received positive opinions from several governments (on Insulza's
reelection) that we won't reveal, because we must wait for them to
express this in writing," said Fernandez (La Tercera) and
government-owned, editorially independent La Nacion, 7/13).


9. Assistant Secretary Thomas Shannon confirmed Foreign Affairs
Minister Fernandez who denied that the United States has not
informed the GOC of its position on Insulza's reelection. Analysts
believe that the information is a message for Insulza to change his
approach to some issues (La Nacion, 7/13).


10. In the Senate foreign relations committee hearing, Assistant
Secretary nominee Arturo Valenzuela focused on the consolidation of
democracy. Valenzuela noted that all countries in the hemisphere
have legitimately elected presidents, which is why the situation in
Honduras is "unacceptable." Jim DeMint then asked if this meant,
"That we will use democracy to legitimize autocrats." Valenzuela
responded, "Democracy's problems must solved in democracy and
constitutionally" (La Tercera, 7/13).


11. Upon arriving in Santiago, Insulza rebutted reports that the
United States would not back his reelection: "The few sources that
have a name are from right-wing people in the United States, which
oppose the U.S. government. They are not the most qualified sources,
but for some reason newspapers believe they are credible"
(Cooperativa Radio on-line, 7/13).


12. "The important thing in the end is that all countries in the
hemisphere have already established in the OAS the parameters and
principles that must guide any negotiation in this crisis....
Insulza had a crucial role in that which should be considered as
countries assess the secretary general's reelection" (Boris Yopo
commentary, La Nacion, 7/12).

Chile-Peru
--------------

13. "Chile is always saying, 'We are transparent,' but this is not
enough when it buys (weapons) beyond what is considered reasonable
for any country in the region," said Peruvian Defense Minister
Antero Flores-Araoz to the information that Chile would be
negotiating the acquisition of weapons from the United States (La
Tercera, 7/11)

Chilean and Russian helicopters
--------------

14. Editorial: "The purchase of... Russian transportation
helicopters... has created a controversy.... Some say there was
pressure from Russia and domestically in this transaction to
increase bilateral trade with Moscow.... Having diverse suppliers
has its advantages for national security, especially considering the
increase in military material of U.S. origin and the precedent of
the (U.S.) embargo through the Kennedy Amendment.... But the
technical analysis must have priority and all political
considerations must be eliminated" (El Mercurio, 7/12).

DEA
---

15. The Public Ministry issued an order for the DEA to join the
investigation of an operation to smuggle 1.4 tons of ephedrine - a
chemical used to manufacture methamphetamines - to Mexican cartels.
The DEA will examine the computers, documents and telephone numbers
in this case (La Tercera,7/13).

URBAN