CHILE MEDIA REPORT - JANUARY 30

UNCLAS SANTIAGO 000091

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 30

Leading Stories
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1. Dailies continued with extensive reporting on the effects of the
Cencosud conglomerate's decision to stop construction of its US$600
million, three-tower Costanera Center project. The media is
portraying this development as representative of Chile's economic
crisis. Dailies also continue to report on the investigation into
the Mirage sale scandal.

U.S.-Related News
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2. The Iraqi government will not renew Blackwater's permit to
supply security services for U.S. diplomatic personnel in Baghdad.
According to U.N. figures, 750 Chileans were working for Blackwater
in January 2007. The USG and Iraq authorities lost trust in
Blackwater when six of its employees murdered 17 Iraqis, including
children, and injured another 20 in Baghdad in 2007. A U.S. court
found five employees guilty of homicide and of attacking the Iraqi
population (El Mercurio, conservative, influential
newspaper-of-record, circ, 129,000, 1/30; La Segunda, conservative,
afternoon, circ. 33,000, 1/29).


3. The New York South District Court charged Chilean Mauricio Mazza
with money laundering and conspiracy. Mazza, owner of several money
exchange offices, was arrested in the United States in 2007,
carrying 2.5 million Euros in cash. In Chile he is under
investigation for money laundering and ties with the Colombian
narcotics organization "Los Pepes" (El Mercurio, 1/29).


4. In a press conference yesterday, Wal-Mart CEO Craig Herkert said
that experience shows that imposing a U.S. model on local markets
does not work and that, therefore, D&S would retain its brand.
Herkert also said the company plans to open 60 new stores by 2010,
which would amount to a US$200 million investment. With regard to
Wal-Mart's ban to sell products from Iraq, Cuba, or Venezuela,
Herkert stressed, "This is not a company policy, but a U.S. law"
(Estrategia, business and financial, circ. 30,000; La Tercera,
conservative, independent, circ. 101,000, 1/23).

Local
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5. The Santiago Court of Appeals unanimously upheld the sentences
dictated by Judge Alejandro Solis against the director and agents of
the military regime's repressive entity DINA for the murder of ARMY
Commander-in-Chief Carlos Prats and his wife on September 30, 1974.
Dina Director Manuel Contreras was sentenced to two life terms.
Other sentences ranged from 10 to 60 years (El Mercurio, 1/30). La
Nacion (government-owned, editorially independent) notes that this
is the first time that a court of justice refers to the DINA as a
"terrorist organization."


6. The dossier of the investigation of the 63 explosive devices
placed in the Metropolitan Region since 2005, includes a report
drafted by criminologist Erik Marin on anarchist activities in
Chile. Marin states the police have mistakenly focused on
subversive groups, when it is clear that these bombings differ
significantly from those conducted by subversive groups.
Anarchists, wrote Marin, blend into mainstream society. They are
college students or middle-class working class individuals who are
part of the "capitalist" system that they claim to abhor. They also
belong to organizations that promote indigenous rights,
environmental causes, or demand greater freedom from the state, but
through violent action and with the support of NGOs that share their
views. They use simple intelligence and communicate through the
Internet. Usually three individuals participate in placing the
bombs anytime between 11:30 pm and 1 am. They do not carry weapons
(El Mercurio, 1/30).

SIMONS