Embassy Santiago Jan. 28 Media Report

UNCLAS SANTIAGO 000096 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. 28 Media Report Lead: ¶1. The Organization for Economic Cooperation and Development (OECD) made several recommendations for Chile to stabilize its economic growth including stronger regulations for the financial market (Estrategia, 1/28). State of the Union Address ¶2. Headline: "President Obama's mea culpa: 'Change has not arrived fast enough' to the United States." Sub-headline: Obama said the United States faces "more a deficit of trust than a deficit of dollars." He tried to inject optimism by announcing that employment and proposals for the middle-class would be his first priority, and insisted on defending the health reform and asked for the support of both Democrats and Republicans in Congress. Lead: "I do not accept second place for the United States," said a defiant Obama. . . . His words were filled with optimism and directed at a nation that is increasingly disenchanted with the leadership of its president. Obama recognized the setbacks he has suffered, but said he would not yield in moving forth his proposals. Highlighted text: "Despite our hardships, our union is strong. We do not give up. We do not allow fear or division to break our spirit. In this new decade, it's time for the American people to get a government that matches their decency" (Conservative, influential newspaper-of-record El Mercurio, 1/28). ¶3. Headline: "Obama tries to regain credibility and support" Sub-headline: It was expected that the President would focus on issues such as lowering the deficit and the creation of jobs. Lead: President Obama made his best effort to regain credibility and reconnect with disenchanted constituents by placing emphasis on the economy, the creation of jobs, and saying that he has learned from his mistakes. Highlighted text: Obama plans to freeze the salaries of White House officials to save USD 4 million in fiscal year 2011. Photo caption: The U.S. President used the address to improve a weakened image and attempted to get closer to Americans, saying he understood their anger (Financial Diario Financier, 1/28). ¶4. Headline: "Obama calls for unification and promises to strengthen the U.S. economy." Sub-headline: In a speech where he re-launched his government in the face of the drop in popularity that he is facing, the president called on Americans to regain their confidence, admitting that he had "deserved" some of the political setbacks. Lead: President Obama . . . repeatedly called for Democrats and Republicans to unify and tried to recover the trust of the American people . . . by focusing his address on the economy and the creation of jobs (Conservative, independent La Tercera, 1/28). ¶5. Headline: "Obama directs his address at overcoming the "deficit of trust" among the American people" Lead: President Obama attempted to . . . appease the American people on the state of the economy and to regain support even among those in his own party (Government-owned, La Nacion, 1/28). Haiti ¶6. Looting and other kinds of crimes are becoming systematic in Haiti making the situation very difficult for the people of Haiti. The U.N. is alarmed by reports of violence and of the execution of alleged criminals by enraged crowds (La Nacion, 1/28). ¶7. NASA to analyze the geological fault responsible for the earthquake and detect changes that could lead to future quakes (Conservative, afternoon La Segunda, 1/27). OECD - Chile ¶8. The Organization for Economic Cooperation and Development (OECD) gave Chile several suggestions. The recommendations include the application of stronger financial market regulations, gradual elimination of fiscal stimulus packages, and the making of a more flexible labor market. The organization said that Chile is not yet up to OECD standards regarding education and recommended guaranteeing access to quality education for students with varying capabilities and from different social strata, increasing salary incentives for teachers, and distinguishing quality educational programs. It also recommended applying effective innovation programs and decreasing regulations and bureaucracy for the business sector (Financial dailies Diario Financiero and Estrategia, 1/28). Nuclear Energy ¶9. Ricardo Raineri, responsible for President-elect Sebastian Pi????era's nuclear agenda, said that the incoming administration has no plans to build a nuclear plant. Raineri said it would focus on moving forward on the regulatory framework (La Tercera, 1/28). Organization of American States (OAS) ¶10. At the request of its Venezuelan delegates, the OAS permanent council postponed set to ratify the date of the election of its secretary general, slated for March 24. In Chilean diplomatic circles, this can only mean that Caracas is still considering presenting its own candidate (El Mercurio, 1/28). ¶11. President-elect Pi????era said that he would take a stance regarding OAS Secretary General Jose Miguel Insulza's reelection after he takes office on March 11 (El Mercurio, 1/28). URBAN