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DE RUEHSG #1021/01 3252002
ZNR UUUUU ZZH
R 202002Z NOV 08
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 3975
INFO RUEHAC/AMEMBASSY ASUNCION 3635
RUEHBO/AMEMBASSY BOGOTA 2179
RUEHBU/AMEMBASSY BUENOS AIRES 1142
RUEHBR/AMEMBASSY BRASILIA 0536
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RUEHMN/AMEMBASSY MONTEVIDEO 4102
RUEHQT/AMEMBASSY QUITO 1988
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RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SANTIAGO 001021 
 
SIPDIS 
 
STATE FOR R/MR, I/PP, WHA/BSC, WHA/PDA, INR/IAA 
 
E.O. 12958: N/A 
TAGS: KMDR KPAO PGOV OPRC PREL PGOV EFIN CI
SUBJECT:  CHILE MEDIA REPORT ? NOVEMBER 20 
 
MAJOR STORIES 
---------------------- 
¶1.   30,000 workers march in Valparaiso for the third day of the 
Association of Public Employees (Anef) strike.  There were no 
incidents; Chile will face its first fiscal deficit in six years 
due to the drop in copper revenues. 
 
U.S. Related 
--------------- 
¶2.   Editorial ?U.S. Economic Measures?:  ?It?s very likely that 
history will hold U.S. Secretary of the Treasury Henry Paulson 
largely responsible for the current financial crisis.... But his 
most recent decisions seem to be heading in the right direction. 
Last week he announced his decision not to buy toxic financial 
assets... and now opposes a bailout plan for the automobile 
industry.... Saving inefficient companies is not a good way to 
invest public resources and that is a lesson Chile must learn.... 
It?s also wise to leave part of the financial bailout resources 
for the next administration.  Basically, the government is doing 
what it must do, which is to help create liquidity for the 
economy through an array of initiatives? (El Mercurio, 
conservative, influential newspaper-of-record, circ. 129,000). 
 
¶3.    Foreign Minister Alejandro Foxley is proposing opening 
five new seats in the G20 for countries such as Chile. Foxley 
will discuss this idea with U.S. Secretary of State Condoleeza 
Rice in a bilateral meeting at APEC (La Tercera, conservative, 
independent, circ. 101,000). 
 
¶4.    The Court of Appeals confirmed proceedings against 
former Air Force (FaCh)intelligence agent Rafael Gonzalez for the 
murder of American citizen Charles Horman, who was killed after 
the 1973 military coup. Gonzalez has testified that he 
interrogated Horman in General Augusto Lutz? office and that the 
general ordered Horman killed. The trial began in October 2003, 
but Lutz is no longer alive (La Nacion, government-owned, 
editorially independent, circ. 4,200). 
 
¶5.    Extensive photo coverage of the Embassy?s Election Night 
at the InterContinental Hotel (Caras and Ercilla magazines). 
 
¶6.    Editorial: ?The leaders at APEC will have to decide  on how 
to face the current crisis with agility and countries such as the 
United States, Japan or China will have to show how they intend 
to stop the crisis from deepening further (La Nacion). 
 
Local 
------ 
¶7.    On the third day of the national public employee strike, 
30,000 workers congregated in Valparaiso to reaffirm their 
salary demands, as union leaders met with congressmen.  The 
government had proposed a graduated increase of up to 10 percent 
for the lower income bracket, but congressmen insisted on an 
equal increase for all.  The government then proposed an overall 
9.5 percent increase, but workers argue that this would amount to 
only a 5.5 percent real increase, due to the current inflation 
rate. 
 
The President of the Exporters Association (Asoex), Ronald Bown, 
says the strike is severely hurting exports, adding that it could 
result in suits for breach of contract (El Mercurio). 
 
¶8.    Mexican President Felipe Calderon will arrive in Santiago 
today. Mexican Ambassador Mario Leal said this will be a good 
opportunity for both countries to ?coordinate their stance in 
international fora,? on an array of issues, such as UNASUR. Chile 
and Mexico signed an FTA in 1999 that was complemented with a 
Strategic Association Agreement (El Mercurio). 
 
¶9.    Attorney General Sabas Chahuan appointed eleven prosecutors 
to prosecute violations of environmental, public health, nuclear 
security, and cultural patrimony laws (La Nacion). 
 
¶10. The Capital Goods Corporation (CBC) reports that investment 
projects amounting to US$2.36 billion have been postponed due to 
the international financial crisis (El Mercurio). 
 
¶11.  Chile will face its first fiscal deficit in six years, due 
to the drop in the price of copper and Molybdenum (El Mercurio). 
 
 
SIMONS 
 
 
*********************** 
Cecilia Pe$afiel 
U.S. Embassy Santiago 
e-mail: penafielcx@state.gov 
***********************