VZCZCXYZ0001
RR RUEHWEB

DE RUEHSG #0313/01 0992129
ZNR UUUUU ZZH
R 082129Z APR 08
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 3066
INFO RUEHBR/AMEMBASSY BRASILIA 0251
RUEHBU/AMEMBASSY BUENOS AIRES 0875
RUEHLP/AMEMBASSY LA PAZ APR LIMA 5521
RUEHC/DEPT OF INTERIOR WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC

UNCLAS SANTIAGO 000313 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ENRG PGOV SENV CI
SUBJECT: AMBASSADOR PROMOTES ENVIRONMENTAL COOPERATION AND 
POSITIVE AGENDA IN SOUTHERN CHILE 
 
Summary 
------- 
¶1.  Promoting U.S.- Chile environmental cooperation was the 
primary focus of Ambassador Simons, visit to Chile's 12th 
and Southernmost region -- Magallanes -- March 27-31, 2008. 
Principal areas of interest were the Yosemite-Torres del 
Paine Sister Parks Agreement, the Wildlife Conservation 
Society-managed Karukinka Reserve, and promoting the new 
Chile-California Partnership.  The trip advanced our positive 
agenda in a region 3,000 km from Santiago, and helped move 
forward two Environmental Cooperation Agreement (ECA) 
biodiversity and conservation projects. 
 
Magallanes and its Close (yet far) Connection to Argentina 
--------------------------------------------- ------------- 
 
¶2.  The Magallanes Region -- proudly referred to by locals as 
the "Independent Republic of Magallanes" -- is home to 
roughly 150,000 inhabitants.  Although residents treasure 
their autonomy from "the Center" (Santiago Metro Region), 
Magallanes is becoming increasingly more open and 
interconnected.  The regional economy is principally driven 
by cattle and sheep farming, forestry, petroleum, fishing, 
and tourism.  Punta Arenas (the Capital of the Region with a 
population of 120,000) is a free trade zone and the location 
for an increasing number of tourism operators with 
destinations in Torres del Paine and Tierra del Fuego.  It is 
also a commonly-used port for U.S. Antarctic program ships, a 
hub for ecological and climate research (among others), and 
home to the world's largest methanol plant.  The Ambassador 
was accompanied throughout his visit by E/POL officer. 
 
¶3.  An interesting and common theme throughout the 
Ambassador's meetings in Punta Arenas was the close nexus 
between Magallanes and Southern Argentina.  Unlike in the 
North where the Andes create a formidable barrier between the 
two countries, in the South, the geographical proximity and 
the flat, open, pampas allow for a more fluid border 
crossing.  On a daily basis Chileans cross into Argentina 
(and vice versa) for work, transportation purposes, and/or 
because of cross-border familial ties.  However, these close 
connections do not always lead to the most complementary of 
comparisons.   One of the Ambassador's first meetings was 
with the Alcalde of Punta Arenas, Juan Morano Cornejo (of the 
governing coalition, will seek re-election in 2008).  Alcalde 
Morano espoused his municipality's efficiency by stating that 
while he had 450 employees on his payroll, Rio Gallegos in 
Argentina had 9,500, most of whom "sit around all day." 
Argentina and its gas supply was an unavoidable topic at 
Ambassador's meeting with ENAP at its Cabo Negro facility. 
ENAP informed the Ambassador that while Argentina's coastal 
pipeline is full, they are currently re-injecting excess gas 
rather than selling it to Chile.  They have not received gas 
from Argentina in nine months. 
 
An "End of the Earth" Perspective on Energy and Environment 
--------------------------------------------- -------------- 
 
¶4.  While the Magallanes Region is self sufficient in natural 
gas, the energy situation in the rest of Chile is 
increasingly bleak.  Magallanes currently produces five 
million m3 of natural gas per day.  Three million is sold to 
the Canadian methanol plant (Methanex), while the remainder 
is used for domestic heating and elecricity generation in 
Punta Arenas.  ENAP explained that to decrease dependence on 
Argentine gas, the Mining Ministry awarded exploration and 
production contracts for ten blocks that cover most of Tierra 
del Fuego, a decision that could have environmental 
consequences.  Thus far nine exploration licenses have been 
awarded to five companies, including a license for two blocks 
to U.S. Apache Corporation.  ENAP is pushing for more 
exploration in 2008, but when pressed on next steps if 
insufficient or little natural gas is found, ENAP officials 
simply shook their heads.  The principal use for any new gas 
would be as a feedstock for the Methanex plant, as there is 
no available pipeline infrastructure to move the gas to 
Chile's energy poor central region. 
 
¶5.  Despite ENAP's (and Santiago's) preoccupation with the 
energy situation, for many Magallanes inhabitants, the energy 
debate takes on a much less urgent tone.  Instead, many 
people the Ambassador met with were eager to discuss 
environmental issues such as land conservation and climate 
change.  This is likely due to the Region's low population 
density, vast amounts of open space, unique ecosystems, and 
close proximity to Antarctica.  Antarctica and glacial 
 
melting are high on peoples, minds; the press asked the 
Ambassador about the U.S. position on climate change in every 
interview he gave.  Regional and local leaders expressed 
interest in increased conservation.  Both the Regional 
Intendente (President's representative) and Mayor of Punta 
Arenas were proud to mention the percentage of land already 
protected in Magallanes (one said 50%, the other said 60%). 
The Intendente is eager to connect tourism -- one of the 
Region,s primary economic sectors -- to environmental 
protection through developing a regional ecotourism strategy. 
 She stated that it is "the government's responsibility to 
develop in a sustainable manner." 
 
¶6.  During the Ambassador's meetings with the University of 
Magallanes (UMAG) and the Foreign Ministry-controlled 
Antarctic Research Institute (INACH), both institutions 
expressed similar interest in increased cooperation and 
collaboration with U.S. counterparts on ecological research. 
 They discussed the necessity for more English language 
instruction as well.  UMAG reiterated a desire for U.S. 
scientists that come through Punta Arenas to visit the 
University.  Despite being mere minutes away from each other, 
relations between the UMAG and INACH seem tense.  Although 
their research overlaps to a great degree, the two 
institutions have no formal agreement to work together.  One 
of the UMAG professors indicated that the tension is due to a 
personal conflict at the highest level of both entities. 
 
 
Karukinka Reserve and Torres del Paine 
-------------------------------------- 
 
¶7.  One of the principal reasons the Ambassador traveled to 
Magallanes was to express the State Department's continuing 
support of the Karukinka Reserve project (part of 2007-08 FTA 
Environmental Cooperation Agreement (ECA) Work Plan).  The 
2004 transfer from the Goldman Sachs Charitable Fund of 
680,000 acres in Tierra del Fuego to the Wildlife 
Conservation Society ("WCS") represents one of the largest 
gifts of private land ever.  Since 2004, the WCS and Goldman 
Sachs have established a formal Alliance to ensure continuity 
of the project and an Advisory Council to cooperate and 
manage the reserve. 
 
¶8.  National Geographic recently made a documentary ("Eden at 
the End of the World") that showcases the important role of 
this innovative public-private partnership in establishing 
the Reserve.  The Ambassador delivered remarks at the Punta 
Arenas premiere of the documentary and then traveled to the 
Reserve to meet with Advisory Council members and discuss the 
management challenges that lie ahead.  Among others, the WCS 
is developing a public use plan, working to control invasive 
species (namely beaver), and designing an environmental 
education program.  The Ambassador discussed moving forward 
with an English language instruction program for Karukinka 
rangers as soon as June, 2008.  WCS also expressed interest 
in exploring some sort of Sister Parks Agreement with a U.S. 
park, possibly in the Pacific Northwest. 
 
¶9.  While in the Torres del Paine National Park, the 
Ambassador offered similar support to the Patagonia Volunteer 
Project ("the Project") and Yosemite-Torres del Paine Sister 
Parks Agreement.  The Project had just finished restoring a 
section of trail in the days before the Ambassador arrived. 
This was the fourth iteration of a project funded with 
$50,000 in State Department support.  The Project is now 
self-sustaining and the next group of volunteers will arrive 
in October.  CONAF (National Forest Corporation) Torres del 
Paine Administrator Jose Linnebrink hosted the Ambassador in 
the Park.  Linnebrink's staff of approximately 50 is not 
sufficient to meet the record number of visitors that go to 
Torres del Paine each year (last year the Park had 128,402 
visitors).  Due to CONAF's limited resources, it is clear 
that the private concessions within the Park are largely in 
control of tourism. 
 
¶10.  While Linnebrink has done an admirable job given the 
situation, there are conflicts between private tourism 
operators and CONAF over the direction in which the Park is 
heading.  Increased tourism is welcomed by the private 
sector, but Regional CONAF Director Juan Jose Romero has 
stated he does not want visitor numbers to increase. 
Linnebrink is eager to move ahead on English language 
instruction for park rangers (part of Sister Parks 
Agreement), and the Embassy is working to find a teacher 
(similar to Karukinka) for as soon as June, 2008.  This 
 
instruction is more critical than ever as nearly 75% of Park 
visitors are foreigners.  Additionally, several Yosemite 
rangers will visit Torres del Paine in May or June to aide 
with the continuing development of an interpretation center. 
 
Comment 
------- 
 
¶11.  The Magallanes Region will continue to play a key role 
in the energy situation and development of protected areas in 
Chile.  While still rough around the edges, the Region has an 
interest in (and some political will to) increase 
conservation efforts and develop an ecotourism strategy. 
While Karukinka's successful public-private partnership 
provides an innovative management model, the struggle between 
the public and private sector in Torres del Paine remains of 
concern.  Through our Environmental Cooperation Agreement 
projects, the State Department has the opportunity to play a 
key role in ensuring conservation of Magallanes' unique 
ecosystems and helping to bridge the public-private gap. 
 
 
 
 
 
SIMONS