VZCZCXYZ0008
RR RUEHWEB

DE RUEHSG #1826/01 3181112
ZNR UUUUU ZZH
R 141112Z NOV 07
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 2404
INFO RUEHBO/AMEMBASSY BOGOTA 1855
RUEHBR/AMEMBASSY BRASILIA 3894
RUEHBU/AMEMBASSY BUENOS AIRES 0598
RUEHCV/AMEMBASSY CARACAS 1539
RUEHPE/AMEMBASSY LIMA 5286
RUEHQT/AMEMBASSY QUITO 1772
RUEHLP/AMEMBASSY LA PAZ 5483

UNCLAS SANTIAGO 001826 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR IIP/G/WHA, INR/R/MR, WHA/BSC, WHA/PDA, INR/IAA 
 
E.O. 12958: N/A 
TAGS: OPRC KMDR KPAO PGOV PREL VE CI
SUBJECT: MEDIA REACTION - CHAVEZ AND THE IBERO-AMERICAN SUMMIT 
 
¶1.  Summary:  The verbal flap between King Juan Carlos of Spain and 
Venezuelan President Hugo Chavez dominated news about the 
Ibero-American Summit in Santiago.  Foreign Minister Foxley's public 
statements after the Summit reflected the GOC's discontent with 
Chavez, emphasizing the need for tolerance and respect for others. 
Both President Bachelet and Foxley lamented the outburst and 
dismissed Chavez's offer to subsidize low-priced oil to help 
Santiago's new, troubled public transportation system.  Taking a dig 
at Chavez, the Foreign Minister noted that Chile maintains a 
strategic alliance with Spain and values its example in social and 
commercial areas.  Editorials criticized Chavez's grandstanding and 
influence.  End Summary. 
 
¶2.  "El Mercurio," conservative, influential newspaper-of-record 
(circ. 129,000, November 11-12) reported that Foreign Minister 
Alejandro Foxley stood by Spain in this incident, underscoring that 
Chile has more in common with Spain than with Venezuela.  "We signed 
a strategic cooperation alliance in multiple areas with Spain...and 
a free trade agreement, which is a higher level of alliance," said 
Foxley, adding that Spain is a strategic ally.  Foxley referred the 
personal verbal attacks as "regrettable."  "The King of Spain is a 
very important figure of Spanish democracy and I want to express a 
very deep solidarity with the King, with President Rodriguez 
Zapatero, and with former President Aznar....  We will stand by 
them," said Foxley. 
 
¶3.  On November 13, "El Mecurio" reported: The incident between 
Chavez and the King of Spain has brought to the forefront again 
questions about Bachelet's leadership skills and her ability to deal 
with difficult situations.  The general view is that things got out 
of hand and that Bachelet should have put a stop to Chavez, and the 
King, who was a guest. 
 
Meanwhile, Former Venezuelan Foreign Minister Jose Vicente Rangel 
labeled the incident as one "between a respected leader (Zapatero) 
and one who truly defends Latin Americans (Chavez)," over Jose Mara 
Aznar, "a sinister individual and Bush lieutenant in the Iraqi 
genocide." 
 
Senators and Congressmen from all political parties, except from the 
Socialist and Radical parties, plan to propose resolutions against 
Venezuela.  One will ask the Executive Branch to reject Chavez' 
"intervention and insults," another will request President Bachelet 
not to travel to Venezuela or Cuba. 
 
Government-spokesman Ricardo Lagos Weber said, "In Chile we 
understand diversity as a situation in which there is deep 
respect...for the way in which things are done." 
 
¶4.  On November 11, "El Mercurio" reported:  President Bachelet 
expressed her dislike over the verbal confrontation between the King 
of Spain and Hugo Chavez.  Although she did not mention either one 
by name, she called for respect.  "Chiefs of state and government 
must respect diversity, differences, and express themselves with 
respect.  That is how we do things here...with respect and not by 
insulting others, because that does not set the foundations for 
consensus." 
 
¶5.  Conservative, independent "La Tercera" (circ. 101,000, November 
10-11) and "El Mercurio" reported:  Hugo Chavez upon arriving in 
Santiago criticized the summit's slogan -- "social integration" that 
President Bachelet proposed -- stating that "social transformation" 
would be a more appropriate term.  Foreign Minister Alejandro Foxley 
remarked that Chile has undergone "a deep social transformation," 
and proof of that is that the country has cut poverty from 45% to 
13%.  "I would invite any head of state, including Chavez, to study 
in detail the successful social transformation that Chile has 
carried forth in democracy," said Foxley.  The Foreign Minister 
highlighted that these accomplishments were done "In democracy with 
full freedom of the press, with a strong and respected opposition." 
 
 
Chavez also called Bolivia's claim for access to the sea as "just" 
and "legitimate." 
 
¶6.  On November 11, "La Tercera" reported: Chavez offered to sell 
Chile oil 40% cheaper to help finance Chile's transportation system. 
 President Bachelet dismissed the assistance, saying that it was not 
feasible because the transportation system is in private hands.  But 
she also sent Chavez a message.  "I hope that this matter is 
resolved in the budget discussion in the Chilean Congress, because 
it is a domestic issue" said Bachelet.  Foxley also rejected 
Chavez's offer.  "We don't want subsidies and are not used to being 
told what to do from abroad," he said, and invited oil producing 
countries, such as Venezuela, to lower the price of oil rather than 
offer subsidies.  "That would be true solidarity," said Foxley. 
 
Editorials:  Critical of Chavez, Silence of Latin Left 
--------------------------------------------- --------- 
 
¶7.  On November 12, "La Tercera" carried a column by international 
commentator Patricio Navia entitled, "Why Don't You Speak Up?" 
Quote: 
 
"The timely intervention of Spanish head of state Rodriguez Zapatero 
reflects the deep ideological differences on the left and the lack 
of leadership among the leaders of the moderate left, including the 
Chilean President.  It also shows that despite of everything, Chavez 
still sets the agenda....  The Socialist President (Zapatero) 
demanded respect... while the other presidents of the moderate left 
chose not to get involved.  This untimely silence says a lot about 
Chavez's influence.  It shows that leftist presidents in Latin 
America are afraid of upholding their view if this means crossing 
Chavez's path, which allows Chavez to monopolize the left in the 
continent....  Regardless of what Bachelet wants, Chavez stole the 
limelight once again and his histrionic ways underscored the great 
vacuum of leadership within the continent's leftists." 
 
¶8.  On November 12, conservative, afternoon "La Segunda" (circ. 
33,000) ran an editorial entitled, "The Chavez Factor at the 
Ibero-American Summit."  Quote: 
 
"Although the applause and opinions in the halls show an overall 
criticism of the Venezuelan leader, we missed - with the exception 
of Alan Garca -- an official complaint from the other delegations. 
It seems some are already far too committed with Chavez' donations 
and that others are unwilling to run the risk of becoming a target 
of his rage.  But Chavez did not receive explicit support either, 
aside from that of President Ortega and Vice President Lage." 
 
¶9.  On November 13, "El Mercurio" carried an editorial entitled 
"After the Summit."  Quote: 
 
"Latin America has today two very important assets to accelerate its 
path toward development.  With the exception of Cuba, it has 
democracy, high economic growth rates... and political and economic 
freedom, which are creating unprecedented changes and opportunities 
for people.  This should lead to greater integration...and cannot be 
undermined by the nationalist and populist policies that Chavez and 
his allies want to impose on countries with equal or more democratic 
worth, or by altering the search for consensus in inter American 
organizations." 
 
¶10.  On November 13, "La Tercera" carried a column by Bolivian 
analyst Sergio Molina.  Quote: 
 
"At this point no one knows the results of the official Summit.... 
Chavez, on the other hand, prefers his own agenda, a good scandal 
and some inflammatory remarks....  The incident had a high cost in 
Chile, but other millions of Latin Americans watch television and 
will choose what represents them best.  Understanding that is the 
secret of Chavez's success." 
 
SIPDIS 
 
URBAN