Santiago Sept. 30 Media Report

UNCLAS SANTIAGO 000938 SIPDIS STATE FOR R/MR, I/PP, WHA/BSC, WHA/PDA, INR/IAA E.O. 12958: N/A TAGS: ECON KMDR KPAO PGOV PREL SNAR EFIN CI SUBJECT: Santiago Sept. 30 Media Report Lead Story -------------- ¶1. The Executive Office submitted a bill to Congress that creates a ministry for indigenous affairs and a new agency to implement indigenous policies (Government-owned La Nacion, 9/30). Secretary Locke -------------- ¶2. U.S. Secretary of Commerce Gary Locke said the Obama administration is satisfied with the progress in the debate about IPR in Chile, but noted that there is "some concern" with the delay in applying the IPR bill. Intellectual property rights are one of the pending issues in the Chile-U.S. bilateral free trade agreement. "We have concerns regarding the calendar and the progress of our agreement with Chile on the protection of intellectual property," said Locke. With regard to the region, Locke ruled out reactivating the Free Trade Area of the Americas that Washington promoted in the 90s and said his government would focus on the bilateral agreements under negotiation with Colombia and Panama (Conservative, influential El Mercurio, 9/30). ¶3. Secretary Locke said yesterday that the United States is not looking to apply protectionist measures. He also said that China's decision to protect its poultry market and the U.S. application of tariffs on Chinese tires does not mean both countries are engaged in a commercial war. "We oppose protectionism because it hurts both parties," said Locke, adding that this was about "enforcing a trade agreement already in place." The secretary was also optimistic on the recovery of the U.S. economy, but warned that this recovery would not be fast because of the high unemployment rate (Financial daily Diario Financiero, 9/30). ¶4. The ministers and vice ministers of trade and industry at the Americas Competitiveness Forum (ACF) agreed that competitiveness is necessary to assure sustained prosperity and growth in the region. The officials also launched the Inter-American Competitiveness Network to provide a structure and support to initiatives in this area. Another panel concluded that one priority in the region must be to eliminate the bureaucracy associated to business (Diario Financiero, 9/30). ¶5. Secretary Gary Locke said that his country supports all proposals that help promote global trade, including Hugo Chavez' "Alternativa Bolivariana para las Americas" (ALBA). "We believe in all these commercial agreements and would not in any way interfere with trade agreements that President Chavez or any country is engaging in," said Locke. Asked about the future of the Free Trade Area of the Americas (FTAA),Locke said he was not familiar with this initiative, but one of his staffers noted that there is nothing new regarding the reactivation of this commercial accord (AmericaEconomia, 9/30) ¶6. Secretary Locke said he doubted that the U.S. Congress would approve the free trade agreement with Colombia this year because of its focus on the health reform, but said President Obama is working with Congress to ratify the agreements with both Colombia and Panama, "because they are for mutual benefit" (Ansa, 9/30). ¶7. Mississippi, Santo do Brazil, and the Panama Canal Representatives at the ACF agreed that investment in port infrastructure is key to optimizing operations and increasing competitiveness (Diario Financiero, 9/30). ¶8. Coverage of the official ACF dinner includes a photo of Chilean Foreign Minister Mariano Fernandez, Central Bank President Jose de Gregorio, U.S. Ambassador Paul Simons, and U.S. Secretary of Commerce Gary Locke (Diario Financiero, 9/30). Salitre Military Exercise -------------- ¶9. Defense Minister Francisco Vidal announced that as a guarantee of transparency, Chile's Air Force had invited its Peruvian counterpart to send observers to attend the "Salitre" military exercise in Antofagasta, dismissing Peru's request to cancel the exercise. Peruvian Defense Minister Rafael Rey has asked Chile to cancel the exercise twice, noting that Peru had cancelled its exercises in Arequipa to "avoid hurting (Chile's) feelings" (El Mercurio, 9/30). ¶10. Chile invited Peru's military authorities to participate in the "Salitre 2009"military exercise as observers as a sign of transparency and to lower the tension between both countries amid Lima's claims of an arms race in the region. Peru questions the timing of the exercise, but "Salitre" has been taking place for years and has no relation to the current situation between Chile and Peru (La Nacion, 9/30). G-20 -------------- ¶11. Editorial: "Just a few years ago the demand to find a way to control the banking sector was something urgent and imminent.... The need to change this has not disappeared from the global agenda and is still a problem, but the G20 prefers to treat the issue with more caution .... This, however, does not disavow the important signal of greater multilateral balance that the G20 represents" (La Nacion, 9/30). Honduras -------------- ¶12. Human Rights Watch-Americas Director Jose Miguel Vivanco said the international community must maintain its pressure on the de facto government of Honduras to resolve the crisis in that country. Vivanco said he not only hopes that the United States maintains its sanctions, but also increases them. (La Nacion, 9/30). Other -------------- ¶13. The Chilean Navy changed the current Naval District of Chiloe to the Fifth Naval Zone and appointed Francisco Garcia Huidobro as its new chief (El Mercurio, 9/30). SIMONS