CHILE MEDIA REPORT - JULY 27

UNCLAS SANTIAGO 000714

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 27

Lead Story
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1. "La Tercera" telephone survey on 800 registered voters shows that
in an eventual presidential election, Sebastian Pinera would receive
30%, Eduardo Frei 25%, and Marco Enriquez-Ominami 21% Frei (La
Tercera, 7/26).

U.S.-Related News
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2. Last week, former military regime Justice Minister Monica
Madariaga said she had pressured a judge in 1982, to prevent
Sebastian Pinera - the 2009 presidential candidate of the right -
from going to prison. Pinera, whose brother was Labor and Mining
Minister at the time, faced charges for fraud as CEO of a local
bank. The judge in question, Luis Correa-Bulo, confirmed Madariaga's
remarks and said he was told to "leave Pinera alone" (La Nacion,
government-owned, 7/26).


3. Santiago leftist weekly "El Siglo" reports that CIA declassified
files reveal that the U.S. Embassy in Santiago helped Sebastian
Pinera flee the country in 1982 when he was facing charges for
fraud. Embassy Minister Counselor George Jones met with Pinera's
father, allegedly a CIA collaborator, to discuss how he would flee.
The operation was handled directly by Ambassador James Theberge, who
spoke to the Supreme Court Chief Justice to revoke a warrant of
arrest against Pinera who faced charges for setting-up paper
companies that receiving fraudulent loans. Daily says the author of
this article was threatened by a right-wing vigilante group (La
Nacion, 7/26.)


4. The CIA declassified files prove that the presidential candidate
of the right, Sebastian Pinera, had close ties to the Pinochet
regime. They also show he was very influential, because the U.S.
Ambassador at the time lobbied with the Supreme Court to annul a
warrant of arrest against Pinera (Atinachile.bligoo.com, 7/26).


5. Alvaro Vargas Llosa wrote that Republican Senator Jim DeMint has
become President Obama's "main opponent" and the reason
Chilean-American Arturo Valenzuela has not yet been confirmed. "This
is not a personal matter with Mr. Valenzuela," said DeMint. "It's a
much wider issue that has to do with the Department of State's
general direction in Latin America, where U.S. policy in Honduras
has at times aligned with Chavez and Castro, the most
anti-democratic regimes," said DeMint (La Tercera, conservative,
independent, 7/26).

Honduras
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6. "The OAS resolutions on Cuba and Honduras were auspicious,
because they addressed the issues at stake: the non-exclusion from
the organization for ideological reasons and zero tolerance to coup
d'tats.... Without the OAS and other forums such as the Rio Group
or Unasur, recent crisis such as those between Colombia and Ecuador
and in Bolivia would have had a worse outcome. The new Obama team
understands this very well and for that reason has reiterated its
support to the OAS. In the end, it is the 'realist' alternative
given the current circumstances" (Professor Boris Yopo, La Tercera,
7/27).


7. OAS Secretary General Insulza asked former president Ricardo
Lagos to join a committee of regional leaders -- Uruguayan Julio
Maria Sanguinetti and Peruvian Javier Perez de Cuellar among them -
to enforce an eventual agreement between Micheletti and Zelaya (El
Mercurio, El 7/26).


8. OAS Secretary General Inzulza said his decision not to meet with
Micheletti in Tegucigalpa, "was a clear message to all those in the
region who are still dreaming about an authoritarian project."
Insulza said that Zelaya's attempt to return to his country "is
absolutely legitimate," although "given the complex situation, it
would be best for Zelaya to wait for the diplomatic efforts underway
to conclude." Insulza said the OAS would review "all measures that
are timely, convenient and within its reach," concluding that the de
facto Honduran government will have a "very difficult time without
external financing" (La Nacion, 7/26).


9. Editorial: "The international community miscalculated. It
didn't consider the Honduran government's determination to resist
international pressure or its total opposition to Zelaya's
restitution.... It was unaware of how unpredictable Zelaya is, the
ineptitude of his government, and his dependence on Chavez and
Ortega... and underestimated the potential for bloodshed and the
terrible precedent of a foreign intervention for the region.... It
would be best to be pragmatic... and move the presidential election
forward as much as possible so that the people of Honduras can
resolve the crisis democratically without Zelaya or Micheletti in
the presidency" (El Mercurio, 7/25).

OAS
---

10. President Bachelet's trip to Paraguay was a success, because
President Lugo officially stated his country's decision to support
Jose Miguel Insulza's reelection to the OAS (La Tercera, 7/26).

Cuba
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11. A group of U.S. military officers and of Cuba's Revolutionary
Armed Forces (FAR) met in Santiago de Cuba to plan a joint military
exercise in the surroundings of Guantanamo Bay July 10-19. About 200
soldiers took part in the planning exercise intended to coordinate
action in cases of natural disasters, hurricanes, medical
transportation, and problems surrounding the base. Unofficial
sources said the Cuban-American exercises are a long-standing
agreement to maintain a minimum level of coordination with regard to
Guantanamo. For American officers it falls under the principle of
"shared responsibility" (La Nacion, 7/26).

Health
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12. Health authorities confirmed the presence of dengue fever
serotype 4 in Easter Island. Since 2002, the island has had dengue
type 1. Precautions have been taken locally to prevent the spread
(La Segunda, conservative, afternoon, 7/24).


SIMONS