CHILE MEDIA REPORT - JANUARY 23

UNCLAS SANTIAGO 000078 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 - JANUARY 23 Leading Stories -------------- ¶1. Chilean dailies highlighted the detention of the former National Registry Service Director for mismanagement and embezzlement; the more than 40% rate reduction for calls to cell phones; and the violent attack of an estate in the indigenous Mapuche area in southern Chile. U.S.-Related News -------------- ¶2. Articles highlighted Secretary of State Hillary Clinton's confirmation and her remarks at the State Department building: "Hillary Announces 'New Era' in Diplomacy and Obama Commits to the Middle East" (El Mercurio, conservative, influential newspaper-of-record, circ. 129,000, 1/23); "Hillary Arrives at the State Department" (La Tercera, conservative, independent, circ. 101,000, 1/23); "Hillary Announces 'New Era' in her Country" (La Nacion, government-owned, editorially independent, circ. 4,200, 1/23). ¶3. In remarks to the media after receiving an award in London as "The Best Central Bank President in Latin America for 2008," Chile's Central Bank Chairman Jose de Gregorio commented on President Obama's Inauguration: "We have good relations (with the United States) and there is no reason for thinking that, from an economic perspective, they could be damaged. Undoubtedly, they must be maintained." Chairman de Gregorio ruled out the possibility of President Obama reviewing the bilateral Free Trade Agreement with Chile and noted: "It would be a big mistake to start moving along the path of protectionism today" (Diario Financiero, business and financial, circ. 30,000, 1/23; Estrategia, business and financial daily, circ. 30,000, 1/23). ¶4. Interview with two Chilean economists who are working in Washington with international financial organizations and their assessment and expectations of the Obama Administration. Mario Marcel, Institutional and Financial Capacity Manager at the Inter-American Development Bank (IDB): "Confronting the Crisis Should Become Obama's Priority." Dante Contreras, Executive Director for Argentina, Bolivia, Chile, Peru, Paraguay, and Uruguay at the World Bank: "The Party is Over and it is Time to Work" (Diario Financiero, 1/23). ¶5. Wal-Mart successfully completed the acquisition of 55% of Chilean retailer D&S' shares. Craig Herkert, Wal-Mart's Chairman and CEO for the Americas, is expected to arrive in Chile on Wednesday, January 28 (El Mercurio, conservative, influential newspaper-of-record, circ. 129,000, 1/23). Local -------------- ¶6. Six hooded individuals attacked an estate near Temuco in Chile's southern Region Nine (within the indigenous Mapuche area),causing $900 million pesos (approximately US$1.5 million dollars) in damages. The group set fire to a house and forestry equipment. This is the fourth similar assault in a month. Acting Minister of the Interior Patricio Rosende characterized the attack as "one of the worst in recent months." The business association in Region Nine accused the Government of acting with "blunt negligence" and blamed the police for not anticipating "reiterated terrorist activities" (El Mercurio, 1/23). Editorials -------------- ¶7. Opinion piece by international pundit Raul Sohr, "Obama Promises a Green Presidency" "Compared with President George W. Bush's Administration, there is a drastic change in language. The previous Administration maintained a skeptical stance about climate change. The White House rejected signing the Kyoto Protocol.... One of the (Obama) Administration's priorities is to stop job losses resulting from the economic crisis. Non-Conventional Renewable Energies are a source of employment.... In any case, a four-year term is too short to launch an energy and industrial reform. In order to be able to get a taste of success, the foundations of change should be built starting from the very first days of the Administration" (La Nacion, government-owned, editorially independent, circ. 4,200, 1/23). SIMONS