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TAGS: KMDR KPAO PGOV ECON PREL PGOV SNAR EFIN CI
SUBJECT:  CHILE MEDIA REPORT -- DECEMBER 3 
 
Lead Stories 
------------ 
¶1.  Chilean headlines noted that former FARC hostage Ingrid 
Betancourt will meet with President Bachelet today.  Dailies also 
highlighted government coalition opposition Senators expressed their 
willingness to discuss the education law that will go to Congress 
today. 
 
U.S. - Related News 
------------------- 
¶2.  Headline: "Gary Roughead, USN Chief of Naval Operations: 'I am 
not concerned with the Joint Venezuela-Russia Exercises'" 
In just a few months, Latin America's seas became the center of 
attention of global powers.  First, the U.S. Navy resuscitated the 
Fourth Fleet after 58 years of inactivity.  The response came from 
Russia, with the arrival of a powerful fleet to Venezuela.  Admiral 
Roughead, who is in Chile for the Exponaval fair, downplayed both 
events and press reports of an alleged "Russian threat" in the 
region.  "As I see it, there is a positive motivation in the Russian 
and Venezuelan joint exercises.  I have no concern about this 
(exercise)," he said.  The Admiral also demystified the goals of the 
Fourth Fleet, which Venezuela, Cuba, and to a lesser degree Brazil, 
view as a U.S. attempt to maintain its control of the region.  "The 
Fourth Fleet has no war vessels, no aircraft, and no submarines," 
emphasized Roughhead, who underscored the Navy's humanitarian 
activities in needy zones and cooperation with other navies, such as 
during the Panamax exercises.  "The Fourth Fleet is the same 
organization we have in other parts of the world to conduct naval 
operations.  When I became Chief of Naval Operations, I found it odd 
that we did not have an effective organization in our own 
hemisphere" (El Mercurio, conservative, influential 
newspaper-of-record, circ. 129,000, 12/3). 
 
¶3.  Headlines: "Admiral Gary Roughhead Impressed with the Chilean 
Navy":  "No Concern with the Venezuelan-Russian Joint Exercises" 
Admiral Gary Roughead, Commander of the world's most powerful fleet, 
was impressed with Chile's Navy, particularly with the 
professionalism displayed, the technical capability developed by the 
local industry and the recently acquired frigates.  "Chile has a 
very important role to play in securing maritime commercial routes 
in the western hemisphere," said Roughead, adding that the situation 
in the region is in general positive, but there is concern with 
narcotics trafficking.  The Admiral said his visit to Exponaval is 
an opportunity to expand cooperation between the navies of both 
countries.  As to the Venezuela-Russian naval exercises, viewed by 
local analysts as Moscow's incursion into an area traditionally 
under U.S. influence, Roughhead was emphatic in stating that this is 
not an issue of concern (Regional daily El Mercurio de Valparaiso, 
12/3). 
 
¶4.  James Poterba, Chairman of the National Bureau for Economic 
Research, the man who decreed the beginning of the recession in the 
United States," said that in his view, "the series of negative blows 
will make this recession the worse since the war" (Diario 
Financiero, business and financial, circ. 30,000, 12/3). 
 
Venezuela 
--------- 
¶5.  Venezuelan Ambassador Maria Lourdes Urbaneja arrived in Punta 
Arenas, southern Chile.  She will make a donation to a public 
school, and meet with regional authorities, youth, social and 
political organizations, and with the Hugo Chavez support network: 
The Bolivarian Committee.  Asked about what Venezuela expects from 
the Obama administration, Urbaneja  said, "The greatest expectation 
is that with Obama there will be respect of Venezuela's internal 
(political) process and respect for the sovereignty of nations... 
and the promotion of dialogue among countries (La Prensa Austral 
regional daily). 
 
Chile-Peru 
---------- 
¶6.  Foreign Minister Alejandro Foxley said yesterday the following 
about the Chile-Peru impasse over the inflammatory remarks made by 
Peruvian General Donayre:  "We are not trying to escalate this, but 
we've been clear and are waiting for the issue to be resolved 
according to the stated terms we understood."  The government 
believed the General would be removed immediately.  Foxley 
forewarned that Chile could decide to recall its Ambassador in Lima 
if the General is not retired (La Nacion, government-owned, 
editorially independent, circ. 4,200, 12/3). 
 
Economy 
------------ 
¶7.  ProChile, the government's network of commercial offices abroad, 
has put together a registry to show how the financial crisis is 
affecting Chile's exports in different parts of the world.  The data 
shows that exports to the United States will be most affected 
because of the drop in demand for products tied to the construction 
sector.  It also reflects a drop in the demand for logistics 
services, such as maritime, land and air freight; for financial 
services, and in tourism.  However, the data also reveals that the 
dollar exchange rate has been profitable for Chilean exporters and 
that the crisis has opened new business opportunities, such as the 
export of frozen and canned food (El Mercurio, circ. 129,000), 
12/3). 
 
¶8.  Column by Carlos Cantero, Chairman of the Senate's 
Transportation and Telecommunications Commission: "It's important 
for the government to make a decision in the short-term on the type 
of digital television standard that Chile will use....  I prefer the 
Japanese standard, because it seems to me that there is a strategic 
development in connection to this standard and that it is moving at 
a much faster pace than the others.  What we don't want is for 
economic blocs or access to markets in the framework of free trade 
agreements to affect the decision.  We've seen pressure along those 
lines.  I hope the final decision is for the common good" (El 
Mercurio, 12/3). 
 
URBAN