Chile Lauds Honduran Agreement, Low Key on DCA Signing,

C O N F I D E N T I A L SECTION 01 OF 02 SANTIAGO 000893 SIPDIS AMEMBASSY BRIDGETOWN PASS TO AMEMBASSY GRENADA E.O. 12958: DECL: 2019/11/03 TAGS: PREL EINV ENRG PGOV CI SUBJECT: Chile Lauds Honduran Agreement, Low Key on DCA Signing, Working on AES Investment Problem CLASSIFIED BY: Paul Simons, Ambassador, State; REASON: 1.4(B),(D) ¶1. (C) Summary. On October 30, FM Fernandez and presidential foreign policy advisor Robledo strongly welcomed the U.S.-brokered agreement in Honduras, calling it an historical moment that would have positive consequences for the region. Those officials, when informed of the signing of the Defense Cooperation Agreement, noted that the public profile of the DCA has dropped considerably. Robledo said that Chile is trying to lower the rhetoric in its public spats with Peru. The Ambassador provided Robledo a letter from Commerce Secretary Locke to President Bachelet asking for a resolution to an investment problem for AES, a U.S. electricity company. End summary. ¶2. (U) The Ambassador met with Marcos Robledo, President Bachelet's foreign policy advisor, and had a telephone discussion with Foreign Minister Mariano Fernandez on October 30 to discuss the agreement in Honduras and the signing of the Defense Cooperation Agreement (DCA) between the United States and Colombia. Honduras -------------- ¶3. (C) Robledo opened his discussion with the Ambassador by noting Chile's satisfaction with the agreement between President Zelaya and de factor President Micheletti in Honduras, which Robledo said would have positive consequences throughout the region. He opined that President Zelaya had taken some risk in signing the agreement, since it was not clear what decision the Honduran congress would take on his restitution. The Ambassador noted that Micheletti had also evolved in his position, since the key element of the latest agreement is one that Micheletti had previously rejected. ¶4. (C) FM Fernandez was ebullient on the Honduras agreement, noting that it was an important diplomatic accomplishment for the Obama administration and should clear the way for the resumption of the positive agenda that our Presidents had discussed together in Trinidad and in the Oval Office. Fernandez expressed particular appreciation for the work of A/S Shannon. Ambassador and the FM also agreed on a coordinated press line that recognized the contributions of President Arias, the OAS, and the Honduran people to the restoration of democracy. ¶5. (U) On October 30, Fernandez also spoke publicly on the agreement in Honduras, crediting regional unity and diplomacy for supporting Hondurans' efforts to reach an agreement (informal Embassy translation): "In Honduras, we are living a historical moment for democracy in the Americas, because there has been a consolidation of the conviction that coups are not tolerable in Latin America, and because the OAS took an early decision. All the countries of the OAS have maintained that position. Last night, finally the Hondurans with great participation from diplomacy of the American continent -- with Tom Shannon, with the Secretary for Political Affairs of the OAS, Victor Rico, and with all of us working in silent diplomacy -- have arrived at an agreement.' Colombia -------------- ¶6. (C) The Ambassador informed Robledo and Fernandez that the United States had signed the Defense Cooperation Agreement with Colombia that morning in a low profile manner (reftel a). Robledo replied that the public profile of the DCA has dropped considerably in recent weeks, while Fernandez said the DCA was no longer a controversial issue in the Hemisphere. Media Coverage of Honduras and DCA -------------- SANTIAGO 00000893 002 OF 002 ¶7. (U) The Chilean press gave extensive, positive front page and television coverage of the Honduran agreement. As of October 1, there was very little media mention of the DCA signing (no coverage in the print media and two brief mentions on television). Peru -------------- ¶8. (C) In his meeting with the Ambassador, Robledo stated that Chile is trying to manage its relations with Peru "with patience." In reference to developments such as the squabble with Peru over a multinational military exercise (reftel c),Robledo said that the Government of Chile (GOC) is replying in a way that does not engage in the nationalistic logic that Peru is using in these public spats. He said that the GOC is doing so even though such an approach has domestic political costs for the government, and he continued that "we shall see" how this process plays out. ¶9. (C) On the Chilean-Peruvian maritime dispute, Robledo confirmed that Chile will present its response to Peru's submission to International Court of Justice shortly before the new Chilean government takes office on March 11, 2010. Reiterating a point made by the Foreign Ministry in April (reftel d),Robledo said that the Chilean government has reviewed the main points in its defense with legal advisors of the major presidential candidates, and that there is consensus on how to proceed with Chile's defense. ¶10. (C) Fernandez noted to the Ambassador that Chile has taken a constructive approach to Peru's proposal for a security initiative in the context of UNASUR. Chile, he said, is keenly interested in a more transparent disclosure regime for defense purchases in the region, an idea that goes back to President Bachelet's service as defense minister in the Lagos government. AES --- ¶11. (U) The Ambassador provided Robledo with a letter from Commerce Secretary Locke to President Bachelet on the problems facing AES, a U.S. electric power company (reftel b). In the letter, Secretary Locke acknowledged the efforts the GOC is taking to develop a solution to AES's problem, and asked that the GOC take appropriate, timely measures to develop a positive outcome for AES and its investment project. ¶12. (SBU) Robledo said that he would pass the letter to the president and other interested parties. He said that he has not followed the AES matter closely, but understands that the government is committed to finding a solution. Bachelet's End-of-year Travel -------------- ¶13. (SBU) Robledo outlined President Bachelet's international travel for the rest of 2009. She will stop in Korea and China before visiting Singapore for the APEC Summit on November 14-15), and then proceed to Rome for a Food and Agricultural Organization Summit. She will then return to Rome for joint meeting with the Pope, along with Argentina President Fernandez, on November 27-28, followed by a cultural summit, and then proceed to Portugal for a visit on December 1. SIMONS