CHILE MEDIA REPORT - JULY 29

UNCLAS SANTIAGO 000720

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 29

Lead story
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1. Fifteen hooded individuals ambushed an inter-urban bus in
Temuco. They stopped the driver and passengers at gunpoint and
spray-painted the exterior of the bus with insults against President
Bachelet. The indigenous organization "Coordinadora Arauco Malleco"
(CAM) claimed responsibility (La Tercera, conservative, independent,
7/29).

U.S.-Related News
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2. The U.S. Senate Foreign Relations Committee voted in favor of
Arturo Valenzuela as Assistant Secretary of State for Hemispheric
Affairs. The full Senate has now to confirm his nomination (El
Mercurio, conservative, influential newspaper-of-record, 7/29).


3. Holding company CENCOSUR filed a complaint against Wal Mart's
D&S supermarket chain for misleading comparative advertisement (La
Segunda, conservative, afternoon daily, 7/28).


4. American entrepreneur Douglas Tompkins said that the eruption of
the Chaiten volcano last year sustains his argument that the
extension of the Southern Highway should go along the coast and not
through his park. Minister of Public Works Sergio Bitar, however,
said that the "political decision" has been made and that the
highway will run through the park (La Segunda, 7/28).

Science and Technology
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5. Yesterday, at the National Science Academy that is headquartered
at University of Talca, Ohio University scientists Bryan Marks and
Lonnie Thomson presented further evidence on the rate at which
glaciers are melting. They strongly urged the need to plan ahead to
confront the effects that this phenomenon wil have worldwide, such
as the decrease in water resources. This was a U.S. Embassy event
(El Mercurio, 7/29).

Local economy
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6. The copper mining industry is recovering. At the worst point of
the crisis there were only 900 producers, but today there are over
1,200, and yesterday the price of copper was US$2.55 per pound (El
Mercurio, 7/29).

Sebastian Pinera
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7. Former President Patricio Aylwin, unlike other "Concertacion"
offiials, said Sebastian Pinera does not need to explain his
situation in 1982, when he faced charges for bank fraud, because "he
was absolved and was not sentenced for any crime" (El Mercurio,
7/29).


8. Nelson Rivera, former member of the Financial Crime Brigade that
was ordered to detain Sebastian Pinera in 1982, said they had looked
for Pinera, but had been unable to locate him. Rivera said they had
even interviewed the candidate's wife who had admitted that Pinera's
location "was unknown," although he was aware of the pending warrant
of arrest (La Nacion, government-owned, 7/29).

Honduras
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9. Honduran de facto government officials can travel abroad freely.
But this might change with the U.S. announcement that its embassy in
Tegucigalpa had revoked the visas of four Micheletti officials, as
the decision might extend to other members of the de facto
government (La Nacion, 7/29).

Banking Secrecy
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10. The GOC is paving the way for Chile to join the Organization
for Economic Cooperation and Development (OECD) this year and will
submit today an observation to a draft bill in Congress to lift
banking secrecy (La Tercera, 7/29).

Nuclear energy
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11. Julio Vergara, a former member of Chile's Nuclear Energy
Commission, criticized the government's strategy to design a nuclear
energy development policy. Vergara said reports by foreign companies
do not provide knowledge, adding that such a project should be
designed by nuclear experts, of which Chile has none. "Tell me how
many individuals with graduate studies on nuclear energy there are
in Chile. None," stressed Vergara (El Mercurio, 7/29).


SIMONS