Embassy Santiago Jan. 29 Media Report

UNCLAS SANTIAGO 000104 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: Embassy Santiago Jan. 29 Media Report Jan. 29 Media Report Lead ¶1. Unemployment decreased 0.5 percent compared to the previous quarter and now stands at 8.6 percent. The participation of women in the labor market was 41.3 percent which is 5.6 percent higher than a decade ago, although still the lowest in the region (Conservative, independent, La Tercera, 1/29). Assistant Secretary Arturo Valenzuela (based on teleconference) ¶2. Assistant Secretary Valenzuela was asked what was needed for Honduras to re-enter the Organization of American States (OAS): "Fulfill the San Jose agreements, that is, create a national unified government and a truth commission. . . . President Lobo has assumed this. . . . Honduras is heading in the right direction and is retaking the democratic process. . . . This is not an issue that concerns the United States only; all countries are concerned, because there cannot be a precedent of a coup or of a country's isolation. There is good dialogue with the Rio Group and a resolution will be reached." Asked about Zelaya: "I was with Manuel Zelaya on Tuesday and he said, 'My term ends here' (La Tercera, 1/29). ¶3. Arturo Valenzuela said Manuel Zelaya's exit for Honduras had been an "important step." He said the United States is "very satisfied because "from here on we can work with other countries so that Honduras can return to the OAS" (Radio Cooperativa on line, 1/29). U.S.-Related News ¶4. Editorial: "Contributions to U.S. Policy": "In a ruling that surprised experts and was questioned by President Obama, the U.S. Supreme Court struck down the law that prohibits corporations from paying for advertisements to either support or oppose a candidate. . . . The argument is that this falls in the spirit of the First Amendment that guarantees freedom of speech. . . . It is interesting that the Supreme Court deems that citizen organizations have the same rights as individuals" (Conservative, influential El Mercurio, 1/29). ¶5. Commentary by Fernando Purcel, Catholic University and University of California history professor: "Obama is in a difficult situation, because his administration has been forced to focus on the economic crisis and not so much on implementing the proposals with which he won voters' confidence. Obama has many pending task ahead. . . . To accomplish them, he should start by focusing his charisma and inspiring leadership . . . toward political circles, something he has not yet fully achieved. He also needs to attain a degree of political leadership that transcends ideals and principles" (La Tercera, 1/29). ¶6. Press release on the meetings being held in Santiago by Department of State, USAID, and Chile's International Cooperation Agency officials to discuss trilateral cooperation efforts to assist the region (Financial daily Diario Financiero, 1/29). State of the Union Address ¶7. President Obama used the appeal of his charisma and a solid address. . . . But his proposals did not reflect any fundamental change to re-enchant the people who are disappointed with the management of the economy and the bailout of the banking sector. The president's remarks did not show that he understood, as Financial Times columnist Clive Cook said, "That the country is sending him a message and that he is listening closely to it" (Diario Financiero, 1/29). ¶8. The president announced plans for the middle-class; insisted on the need to reform the financial system and the health reform; called for bipartisan efforts to move forward on change, and even took part of the blame because his major proposal is still unfulfilled. . . . He also scolded Republicans for obstructing (change) and Democrats for not being strong enough to pass reforms, and even the Supreme Court for allowing corporation to finance election campaigns. But he still stuck to the middle ground in his address and took no risks...and it was that cautious approach which undermined the strength of his address (El Mercurio, 1/29). Local Politics ¶9. Forbes magazine ranked Chilean President-elect Sebastian Pi????era as the 15th most influential person in the world, based on his financial standing, business interest, and the fact that he is now president (El Mercurio, 1/29). Haiti ¶10. Rescue workers have recovered 170,000 bodies in Port-au-Prince, said President Preval yesterday. He also said that France had offered to start rebuilding the government palace (Conservative, afternoon La Segunda, 1/28). Honduras ¶11. Editorial: "It is not very encouraging that the person who instigated the coup in Honduras has become the big winner from the crisis in that country. . . . But that is exactly what has happened with Roberto Micheletti. . . . Among the losers (of the crisis) are Hugo Chavez . . . but also the OAS, headed by Jose Miguel Insulza, who took a rigid stance against Micheletti... preventing the organization from becoming an effective element in the solution of the crisis. . . . The outcome was not positive for Brazil either. President Lula, who was set on Zelaya's return, was unable to impose his role as a regional power once the United States - in a change of stance - decided it would no longer support the ousted president and recognized the validity of Lobo's election. . . . The U.S. pragmatism . . . made others losers too: Those who after the Trinidad Summit (of the Americas) had great hopes that Obama would start a new era, where Latin American- U.S. joint interests would weigh more than U.S. foreign policy strategic interests (Conservative, afternoon La Segunda, 1/28). Venezuela ¶12. Note: The director of Venezuela's National Telecommunications Committee (CONATEL) questioned a few days ago the absence of a wide airing of Telesur in Chile, claiming this amounted to censorship). In answer to his comments, local cable operators said that the reason why Telesur is not widely broadcast in Chile "is simply because there is no interest locally in the signal" (La Segunda, 1/28). URBAN