CHILE MEDIA REPORT - JULY 22

UNCLAS SANTIAGO 000686 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 22 Lead Story -------------- ¶1. Health authorities report that Chile has 11,293 cases of AH1N1, and only 68 deaths. The number of cases is beginning to decline in all regions, except two: Arica-Parinacota and Vaparaiso (La Nacion, 7/22). Chile-U.S. -------------- ¶2. Russian-American mathematician Boris Weisfeiler disappeared in ¶1985. His sister, Olga, is visiting Chile now for the eighth time hoping to find answers to his disappearance. Olga says that while her brother is not included in the Rettig Report as a victim of human rights violations, "he clearly is, because the investigation has shown that soldiers or "Carabineros" police were involved in his disappearance during the Pinochet regime. She added that because he entered the country legally and with an American passport the government of Chile is ultimately responsible for his disappearance. The investigation headed by Judge Zepeda "has become more intensive," she said, but asked for the FBI to be allowed to investigate (La Nacion, government-owned, 7/22). U.S.-Related News -------------- ¶3. Republican Senator Jim DeMint succeeded in postponing the confirmation of Chilean-American Arturo Valenzuela as Assistant Secretary of State for Western Hemisphere Affairs. DeMint argued that Valenzuela's remarks with regard to the crisis in Honduras were insufficient. In the hearing, Valenzuela endorsed the Obama administration's stance that Zelaya should return to power, while DeMint said Zelaya had "ousted himself" with his plans to remain in office (El Mercurio, conservative, influential newspaper-of-record, 7/22). ¶4. Steve Forbes will be in Chile on August 11, to speak on "Changes in the World after the Crisis," as Espacio Riesco, invited by magazine "Capital" and the University of Development (Universidad del Desarrollo). Forbes is heir to one of the most important business media holdings in the world (Diario Financiero, business and financial, 7/22). Honduras -------------- ¶5. The USG wants Zelaya to return to power, but with the commitment not to amend the constitution and leave office when his term is due, which is January 27, and is exerting pressure. Hugo Llorens, U.S. ambassador to Tegucigalpa, has warned business sectors, especially those that depend on the U.S market, about possible economic consequences. But Adolfo Facusse, president of the National Industrialists' Association, said they would "prefer the sanctions to Zelaya's return" (La Tercera, conservative, independent, 7/22). ¶6. Editorial: "... Hugo Chavez has threatened to intervene... and this is not just 'solidarity.' Chavez' reasoning seems to be that if the solution in Honduras does not suit his interests, other 'Bolivarian' governments will be at risk.... This is also no minor test for the Obama administration, which is determined to show with actions its 'new deal' toward the region.... The United States cannot change it firm position condemning the coup that ousted Zelaya, but it cannot let ALBA countries (Bolivarian Alternative for the Peoples of America) take the lead either.... The situation in Honduras has become in many ways alarming. We can only hope that the leaders of the different sectors of Honduras will be reasonable and responsible, which thus far they have not done (La Segunda, conservative, afternoon, 7/21). Chile-Peru -------------- ¶7. Peruvian Foreign Minister Jose Antonio Garcia said that Chile's military acquisitions will "incite an arms race" and should be discussed by the defense council of the Union of South American Nations, UNASUR (All dailies, 7/22). ¶8. This is not the first time that Peru has expressed concern over Chile's military acquisitions. But it's the first time that UNASUR has been included in the controversy, prompting Chilean Foreign Affairs Minister Mariano Fernandez to respond to his Peruvian counterpart: "Chile has experienced a significant growth and just as it must modernize its agriculture, it must have armed forces prepared to carry out the tasks they are expected to do." Fernandez also noted that Chile's expenses in defense amount to 1.2% of its GDP (El Mercurio, 7/22). ¶9. The Ambassador of Ecuador to Chile, Francisco Borja, did not endorse Peru's concerns. "There must be figures to say there is an arms race, to see if there is an expansion of military might or it is just involves the replacement of decommissioned elements," said Borja (La Nacion, 7/22). SIMONS