CHILE MEDIA REPORT - JULY 14

UNCLAS SANTIAGO 000656

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 14
July 13, 2009

Lead stories
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1. Several Investigations Police detectives under investigation for
their participation in a children's prostitution network have been
reincorporated into the force, igniting controversy.

Chile-U.S. and Insulza
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2. In answer to a request for an interview with Secretary Clinton on
the alleged U.S. objection to Insulza's reelection to the OAS, the
Department of State issued a statement through the U.S. Embassy
that, "The United States does not publicly comment its internal
deliberation on candidacies to international organizations." The
statement adds that the United States "appreciates" the efforts of
the OAS Secretary General "in creating the space to allow the
current talks" with regard to Honduras. The statement, however, does
not mention Insulza's actions with regard to Cuba, which is what has
generated greatest controversy with the United States. Secretary
Clinton's press office had said in a prior statement that, "The
United States does not comment on the Secretary's private
correspondence" (El Mercurio, 7/14).


3. In a meeting with the Madrid Club in La Moneda, Foreign Minister
Mariano Fernandez reiterated that, "no U.S. official had said at any
time that the USG does not support Insulza's candidacy to the OAS"
(El Mercurio, 7/14).


4. Yesterday Bachelet said it was "absolutely false" that Secretary
Clinton had notified her of Washington's position on the Insulza's
reelection. She said that in their latest conversation they had not
talked about the OAS and added, "The government of Chile has not
received any official information with regard to this" (All dailies,
7/14).


5. The GOC is fully aware that relations between Washington and the
OAS are tense because of Insulza's role in ending Cuba's exclusion
from the OAS and his reaction to the coup in Honduras. Insulza said
in answer to press reports about his reelection that, "The few
sources that have a name are from right-wing people in the United
States who oppose the U.S. government" (La Tercera, conservative,
independent, 7/14).


6. Alvaro Vargas Llosa column: "Did the U.S. government tell Chile
that it doesn't support Insulza's reelection to the OAS?.... It's
unlikely that the United States would inform a close partner such as
Chile of such a decision and with such anticipation.... The USG
responded to Insulza's questionable role in Honduras... by putting
President Oscar Arias as a mediator. That's a much smarter way to
react" (La Tercera, 7/14).


7. In a radio interview, Foreign Minister Mariano Fernandez said he
"almost believes" that the controversy over Insulza and the OAS "has
more to do with local politics," recalling that some here have also
questioned Insulza's role in Honduras (La Segunda, 7/13).


8. Column by Foreign Minister Fernandez on Honduras: "A phenomenon
has occurred that must be recorded in history.... The hemisphere has
a unanimous and unified position against military coups.... and now
believes that a government in power by force is unacceptable" (El
Mercurio, 7/14).


9. Column by Juan Emilio Cheyre, Center for International Studies,
Catholic University: "If there is one positive aspect of this crisis
(Honduras) it's that the United States has channeled its concern
through a regional organization (OAS) and Inter-American law,
without being in the limelight or exercising hegemony.... The crisis
has also made it evident that the region faces the challenge of
dealing with questionable democracies, despite their legitimate
arrival in power. And that is where the OAS and its secretary
general must make true changes" (La Tercera, 7/14).

Chile-U.S.
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10. Enthusiasm and excitement are the two words that best describe
the day spent yesterday by crewmembers of the USS Kauffman and the
children of the public school Centenario. This is the second year
that Kauffman crewmembers visited the school, showing great
affection for the students, who had a chance to practice their

English by listening to the sailor's stories. "Last year the crew
not only helped the students with their English, they also painted
and repaired the facilities and cut the children's hair. We are
happy to receive them again," said Headmaster Daniel Moreno
(Regional daily La Estrella de Arica, 7/11).


11. The Kauffman was greeted by local cowboys ("Huasos") and
children in Arica. The ship has just concluded its participation in
multinational naval exercises and its crew will participate in a
series of activities, including baseball and basketballs games with
local teams (La Estrella de Arica, 7/10).


12. Wal-Mart announced that it would no longer buy Chilean salmon.
Chile produced 600,000 tons of salmon last year, but this year will
only produce an estimated 70,000 tons. The outbreak of the ISA
virus has hurt the ability of local producers to fulfill the demand
for its product abroad (All dailies, 7/14).

URBAN