Santiago Feb. 11 Media Report

UNCLAS SANTIAGO 000206 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 Feb. 11 Media Report Lead Story ¶1. President-elect Pi????era instructed his new cabinet members to resign from any company boards and foundations to which they belong by February 28. He also instructed them to sell their shares in companies that could in any way lead to a conflict of interest or that are supervised by their respective ministries (Conservative, independent La Tercera, 2/11). OAS ¶2. In an editorial published yesterday, The Washington Post launched an offensive against the reelection of Jose Miguel Insulza to the Organization of American States (OAS). The editorial criticized Insulza's performance and called on the USG to promote another candidate. The organization, says the editorial, has "failed in consolidating and promoting representative democracy" and has "served the leaders of the left in the region, frequently disavowing the organization's Democratic Charter." The criticism occurs just a few weeks after A/S for Western Hemisphere Arturo Valenzuela said that the United States had not yet taken a stance regarding the election of a new secretary general in the OAS. President-elect Pi????era has not discussed this topic directly, but the current government assures that Insulza will have the support of the incoming administration (Conservative, influential newspaper-of-record, El Mercurio, 2/11). ¶3. Headline: "Conservative U.S. newspaper declares war on Insulza." In yesterday's editorial, The Washington Post said that Insulza's leadership of the OAS was inefficient. But the fact is that Insulza is the only candidate for the election of secretary general for the next period, although the election is just a month away (Government-owned La Nacion, 2/11). ¶4. The United States must not endorse Insulza's reelection to the OAS, said The Washington Post, because the organization had failed in consolidating and supporting democracy in Latin America. The daily recommends the U.S. Congress to review its financial support to the organization. But Insulza's reelection is practically assured, because 17 countries have already given him their vote: Mercosur (Argentina, Brazil, Uruguay, and Paraguay),Chile, Colombia, Dominican Republic, Panama, and Caricom countries (La Tercera, 2/11). Local Politics ¶5. President-elect Pi????era held yesterday his first cabinet meeting, where one of the main topics of discussion was the need for all cabinet members to become independent from their businesses to avoid conflict of interest (El Mercurio, 2/11). ¶6. Pi????era's ministers met yesterday with their counterparts in the Bachelet administration to start the power transfer (Business daily Estrategia, 2/11). ¶7. In accordance to the new law, President Bachelet appointed the board members that will represent her in state-owned copper company Codelco. They will remain in office until May 2011, when President-elect Pi????era can appoint his own representatives (Government-owned La Nacion, 2/11). URBAN