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DE RUEHSG #0491/01 0681851
ZNR UUUUU ZZH
R 091851Z MAR 06
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 8627
INFO RUEHBY/AMEMBASSY CANBERRA 0126
RUEHJA/AMEMBASSY JAKARTA 0065

UNCLAS SANTIAGO 000491 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR WHA/BSC AND H 
 
AMEMBASSIES FOR PAO/IO 
 
E.O. 12958: N/A 
TAGS: OREP PREL PGOV KPAO AR BR CI
SUBJECT: MEDIA SCENESETTER FOR SECRETARY OF STATE RICE'S CHILE VISIT 
(MAR 10-12) 
 
¶1. SUMMARY: The media in Chile are competitive, modern and free but 
neither overly confrontational nor inclined to investigative 
reporting.  Editors concentrate on the main international issues of 
the day.  Many leading journalists speak English, which creates the 
prospect of one-on-one English-language interviews.  Press 
conferences are generally conducted in Spanish with the assistance 
of a translator.  Questions that may arise during Secretary Rice's 
visit--and their proposed responses--follow.  END SUMMARY. 
 
¶2. MEDIA OVERVIEW: The media in Chile are numerous.  In Santiago 
alone, there are six television channels and eight daily newspapers. 
 Among the national newspapers, two chains dominate.  The older 
chain, headed by Chilean newspaper-of-record "El Mercurio," remains 
the most prestigious, but the rival Copesa chain's flagship "La 
Tercera" nips at its heels in terms of readership.  In the battle to 
be there first, the Chilean media have constantly modernized their 
equipment and printing capabilities and are universally immersed in 
the on-line technological revolution.  By international standards, 
most media are conservative in their political orientation. 
 
There are a number of other important regional newspapers and 
television stations in Chile, but radio remains the preferred means 
through which much of Chile's rural population follows the news. 
The wealth of media in Chile has made them keenly competitive. 
 
¶3. WHAT TO EXPECT: Despite the intense competition among the media, 
Chilean journalists traditionally tend to be more respectful and 
less confrontational than their U.S. counterparts.  In part this is 
attributable to Chilean culture, which is more deferential and less 
critical toward authority than is American culture.  Moreover, many 
senior Chilean journalists are still influenced by the strict 
restraints placed upon them in the not-too-distant past during 
General Augusto Pinochet's regime, and continue to exercise a 
cautious degree of self-censorship.  While cultural conservatism and 
media reticence are gradually changing, comparatively few media 
entities--most notably the "La Tercera" daily and several television 
news programs--conduct investigative reports into Chile's most 
sensitive issues.  Problems persist: journalists do not always 
corroborate their sources prior to going to print, nor do they 
always provide equal time for opposing viewpoints.  Since 
"disrespect for authority" provisions still exist and are 
occasionally used to rein in journalists or commentators for 
"offensive" comments, complete press freedom is yet to be fully 
achieved. 
 
¶4. LOGISTICS OF PRESS APPEARANCES: While many top Chilean 
journalists speak English, most reporters prefer conducting 
interviews in Spanish.  The Public Affairs Section uses top-flight 
simultaneous translators to facilitate such interviews. 
 
The Secretary should expect photo sprays at the top of her meetings 
with President Lagos, President-elect Bachelet and her bilateral 
encounters with Presidents Vasquez, Morales, Berger and 
President-elect Preval.  The following questions may appear in the 
Secretary's CNN en Espaol interview. 
 
SIPDIS 
 
¶5. POSSIBLE MEDIA QUESTIONS AND ANSWERS: 
 
Chile's New President 
 
¶Q.  What came out of your meeting with President Bachelet? 
¶A.  My meeting with President Bachelet today left me confident that 
our two countries, which share so much in common, will further build 
during her administration upon the strong relationship we nurtured 
during former President Lagos' tenure. 
¶Q.  What did you discuss during the meeting? 
¶A.  It's President Bachelet's first day in office.  Let's give her a 
day or two to catch her breath before we start talking specifics. 
What I will say is that I congratulated President Bachelet on her 
historic election and look forward to future collaboration with her 
and the members of her administration. 
 
United Front Concerning Venezuela 
 
¶Q.  What is your reaction to former Chilean President Ricardo Lagos' 
distancing of the Chilean government from your February comments in 
the U.S. House of Representatives concerning the creation of a 
united front to address Venezuelan President Hugo Chavez' policies 
in Latin America? 
¶A.  Chile has been a positive influence in the region.  Its embrace 
of judicial and economic reforms and its constructive engagement in 
bilateral and multilateral forums provide powerful examples of the 
positive force democracy and good governance can wield.  Also, I 
must highlight Chile's contribution to important peacekeeping 
operations such as the one that restored democracy in Haiti. 
Indeed, Haitian President-elect Rene Preval's presence at President 
Bachelet's inauguration today would have been impossible without 
 
Chile's vital support.  We look forward to working with Chile to 
address important regional issues during President Bachelet's term. 
 
Background: In the wake of Secretary Rice's February 16 testimony 
before the House Committee on International Relations, which 
included an allusion to Chile as a possible partner in counteracting 
Venezuelan President Hugo Chavez' actions in the region, former 
Chilean President Ricardo Lagos indicated that no one in his 
government had discussed with anyone in the U.S. administration 
joining such a partnership.  Subsequently, in a Chilean radio 
interview, Lagos urged a more moderate tone toward Chavez. 
 
 
 
 
Intellectual Property Rights 
 
¶Q. The United States recently expressed concerns with Chile's 
enforcement of intellectual property rights.  How do you 
characterize Chile's performance in that area? 
 
¶A. Chile does not appear to be fully living up to its Free Trade 
Agreement (FTA) obligations with respect to the protection of 
pharmaceutical test data and patents. 
 
-- We hope new Chilean regulations will eliminate practices that are 
contrary to Chile's FTA obligations, but are concerned the new 
regulations leave too many loopholes prone to misinterpretation by 
the health authority and include too many impermissible 
prerequisites and exceptions to the protections Chile agreed to 
provide in the FTA. 
 
-- We plan to work with the GOC to resolve the outstanding issues 
related to this matter and expect the GOC's cooperation to remove 
the black cloud lingering over an otherwise successful FTA. 
 
International Criminal Court/Article 98 Agreements 
 
¶Q. What is the U.S. opinion of the GOC's stated intention to accede 
to the International Criminal Court? 
 
¶A. The United States respects the right of other nations to become 
parties to the Rome Statute but asks that other countries respect 
our right not to do so.  The United States is concerned with 
protecting its military and civilian personnel worldwide.  Article 
98 of the Treaty of Rome permits nations to arrive at bilateral 
accords concerning their citizens and the ICC.  We have broached the 
possibility of such accords with governments around the world, 
including the Chilean government. 
 
The United States is engaged in a worldwide effort to conclude 
bilateral Article 98 agreements that would prohibit the surrender of 
U.S. persons to the International Criminal Court (ICC) without the 
consent of the United States Government. As a basic principle, the 
United States believes that states, not international courts, are 
primarily responsible for ensuring justice and that the best way to 
combat serious offenses is to build domestic judicial systems and 
strengthen political will. 
 
¶Q. What are the consequences for Chile in terms of equipment and aid 
if it becomes party to the ICC? 
 
¶A.  Under the provisions of the American Servicemembers' Protection 
Act (ASPA), the provision of military assistance (e.g., 
International Military Education and Training, Excess Defense 
Articles, and Foreign Military Financing) is prohibited to any 
country that is a party to the International Criminal Court. 
 
The President is authorized to waive ASPA restrictions for any 
country that has entered into an Article 98 Agreement with the 
United States or where he determines that it is important to the 
national interest of the United States to do so.  The United States 
has signed more than 100 Article 98 agreements.  We will continue to 
visit this theme with the Chilean government and are pleased this 
issue has yet to interfere with future military sales, bilateral 
relations, or exchanges or humanitarian operations between our 
countries' armed forces. 
 
The United States continues to be among the most forceful advocates 
for the principle of accountability for war crimes, genocide and 
crimes against humanity. 
 
Background:  2006 levels of military assistance to Chile have not 
yet been determined, but in 2005 Chile received more than one 
million dollars in U.S. assistance under these programs.  Suspension 
of these aid programs would not affect other types of cooperation 
between the U.S. and Chilean military, such as bilateral and 
 
multilateral military exercises.  Nor would ASPA sanctions affect 
other U.S. government initiatives, exchange programs or cooperative 
efforts with Chilean government agencies, universities and other 
organizations. 
 
Blackwater/Red Tactica 
 
¶Q.  Is the United States government associated with the Blackwater 
or Red Tactica companies that have recruited former Chilean military 
personnel to serve as armed security guards in Iraq? 
 
¶A.  The United States government maintains strict and transparent 
guidelines for its contractors--in Iraq and everywhere else in the 
world.  For details about a specific contractor I would refer you to 
the Federal agency that granted the contract. 
 
(If pushed) Blackwater and Red Tactica are both independent and 
private companies.  Any questions about the companies' personnel, 
financing, activities, or recruiting procedures should be directed 
to Blackwater or Red Tactica representatives. 
 
Background:  The Chilean company Red Tactica, working under contract 
with the U.S.-based company Blackwater Security Consulting, has 
recruited former Chilean military and police officials to serve in 
an armed security capacity in Iraq.  In October, a Chilean 
investigative television show released a video purportedly showing 
retired USG personnel training the recruits at an undisclosed 
location in Chile.  The owner of Red Tactica, Chilean citizen Jose 
Miguel Pizarro, also claims American citizenship. 
Bolivia-Access to the Sea 
¶Q.  What is the U.S. position on Bolivia's campaign for access to 
the Pacific Ocean? 
 
¶A.  As Ambassador Kelly and other U.S. officials have stressed on 
numerous occasions, the U.S. government considers Bolivia's request 
for access to the sea a bilateral matter between Chile and Bolivia. 
 
 
Background: In the past two years, the Bolivian government has used 
comments by Venezuelan President Hugo Chavez, UN Secretary General 
Kofi Annan, and former U.S. President Jimmy Carter to renew its 
longstanding effort to regain the access to the sea it lost to Chile 
123 years ago as a result of the War of the Pacific.  Bolivian 
President Evo Morales has implied that Chile must consider granting 
Bolivia access to the ocean before expecting any shipments of 
Bolivian natural gas to Chile. 
 
Maritime Boundaries with Peru 
 
¶Q.  What is the U.S. opinion of Peru's recent passage of legislation 
redrawing its maritime boundary with Chile? 
 
¶A.  The maritime limits between Peru and Chile are a bilateral issue 
between Peru and Chile. 
Chilean Arms Race 
¶Q.  Does the U.S. believe the Chilean military is engaging in an 
arms race, as some of Chile's neighbors have recently contended? 
¶A.  The United States and Chile have long enjoyed very beneficial 
military relations.  We laud the positive role Chile has played in 
the region, most recently as a member of the international 
peacekeeping force bringing hope to Haiti, and we appreciate the 
transparent manner in which Chile has articulated its military 
capabilities in accord with the timetable long outlined in Chile's 
White Book of Defense. 
Background: In January of last year Chile took delivery of the 
refitted British destroyer Sheffield.  The first of the Chilean 
Navy's two new Spanish/French consortium-built Skorpene submarines 
arrived in Chile in December.  The first two of four reconditioned 
Dutch frigates arrived in the Chilean port of Valparaiso this week. 
Last month, Chile inked a deal to purchase 18 used Dutch F-16s. 
(Note: Lockheed-Martin will give the airplanes a Mid-Life Upgrade.) 
 High-ranking Peruvian officials have labeled Chile's purchase an 
arms race and recently advocated that the GOP bring its concerns to 
international organizations such as the Organization of American 
States or the UN. 
 
F-16s 
 
¶Q.  Will the U.S. supply AMRAAM missiles for the F-16s U.S. company 
Lockheed Martin is now delivering to Chile? 
 
¶A.  The Chilean government has not requested that the U.S. sell and 
deliver Advanced Medium-Range Air-to-Air Missiles (AMRAAM) as part 
of its F-16 purchase. 
 
(If asked)  However, Chile has been able to purchase AMRAAM software 
and training.  The understanding between the U.S. and Chile is that 
 
the U.S. would favorably consider sale and delivery of the missiles 
if other countries in the region were to introduce Active-Radar, 
Beyond-Visual-Range (AR-BVR) missiles.   As the technology already 
exists in the region, the U.S. would consider an AMRAAM sale to 
Chile.  (FYI: Peru has AR-BVR technology.) 
 
 
Riggs Bank 
 
Q: Have there been any recent developments in the Riggs Bank case? 
 
A: As the Riggs matter is an ongoing Chilean investigation we have 
no comment. 
 
Background: Following the July 2004 revelation by the Senate 
Permanent Subcommittee on Investigations, Committee on Government 
Affairs, that General Pinochet and his family maintained personal 
bank accounts with Riggs Bank during the 1990s, the Department of 
State asked the Government of Chile to direct questions regarding 
the case to the U.S. Department of Justice.  In 2004, Chilean Judge 
Sergio Muoz opened probes into the Pinochet family accounts at 
Riggs between 1994-1998 and into the Chilean Internal Revenue 
Service's allegations of tax fraud by Pinochet, members of his 
family, and his former financial advisor, Oscar Aitken.  (Note: 
Judge Carlos Cerda now oversees the investigations.) 
 
Thunderbird 
 
¶Q. Do you have any comment on the status of Thunderbird company's 
lawsuit against the Chilean Gaming Commission? 
 
¶A. Obviously, we are following the case with interest but as it is 
an ongoing matter I won't comment. 
 
¶Q. Are you providing assistance to Thunderbird? 
 
¶A. We are confident that Thunderbird's petition to the Chilean court 
will receive the fair consideration that it merits. 
 
Background: Citing U.S. company Thunderbird's failure to deposit 
funds corresponding to 50% of the value of its bid, the Chilean 
Gaming Commission disqualified Thunderbird from a competition to 
build and operate casinos in six Chilean cities.  Thunderbird sought 
a second opinion from Chile's quasi-independent State Defense 
Council (CDE), which found that Thunderbird had complied with the 
bidding process rules.  The Commission set aside the CDE's findings 
and maintained its disqualification.  Thunderbird filed a motion in 
a Santiago court to halt the Commission's bidding process for the 
construction and operation of six casinos.   When the Commission 
appealed Thunderbird's action, the Santiago Appeals Court suspended 
the casino bidding process for Talca, Antofagasta, Rancagua and 
Algarrobo.  In January, three of the competing casino operators 
joined the Commission's suit against Thunderbird.  Subsequently, a 
Santiago court ruled that the wider competition could continue for 
casinos projects on which Thunderbird was not actively bidding. 
 
KELLY