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E.O. 12958: N/A 
TAGS: KMDR KPAO PGOV ECON PREL SNAR EFIN CI
SUBJECT:  CHILE MEDIA REPORT - JANUARY 6 
 
Leading Stories 
-------------- 
¶1.  Dailies highlighted President Michelle Bachelet's announcement 
of a USD 4 billion program to reactivate the economy; and OAS 
Secretary General Jose Miguel Insulza's official statement declining 
to run for the presidency of Chile. 
 
U.S.-Related News 
----------------------- 
¶2.  OAS Secretary General Jose Miguel Insulza's decision not to run 
for the Chilean presidency caused surprise among ambassadors of the 
OAS member states.  Allegedly, Insulza is planning to seek 
re-election at the international organization. Unidentified sources 
close to the Secretary General have said that two weeks ago, U.S. 
Ambassador to the OAS Hector Morales told Insulza that his country 
endorsed the idea that he remain in his current position, but if he 
were determined to leave the OAS and run for the presidency of 
Chile, they would expect his support in preventing Venezuela from 
gaining the OAS seat.  In Santiago and elsewhere in the region, it 
has been acknowledged that the atmosphere in Washington was becoming 
increasingly complex for Insulza.  (La Tercera, conservative, 
independent, circ. 101,000, 1/6) 
 
¶3. OAS Secretary General Jose Miguel nsulza's decision to decline 
from running for the presidency will keep him in Washington until 
the end of his tenure in 2010, and in a condition to be thinking 
about re-election.  Colombian Ambassador to the OAS Camilo Ospina 
noted that the stature gained by the organization under Insulza's 
tenure makes him a good candidate for re-election. (La Nacion, 
government-owned, editorially independent, circ. 4,200, 1/6). 
 
¶4. As reported yesterday by El Mostrador online daily, Former FBI 
Assistant Director William Esposito and five other ex-FBI agents 
were fined for conducting a private investigation in Chile without 
having an official permit. The former agents paid a fine and left 
the country. (La Tercera, 1/6). 
 
¶5. Chile's National Economic Prosecutor's Office (FNE) will start a 
probe on the prohibition imposed by Wal-Mart on D&S supermarkets for 
selling Cuban products. Wal-Mart recently launched a public offer to 
purchase the Chilean supermarket chain. PPD Legislators Eugenio Tuma 
and Rodrigo Gonzalez asked the FNE to investigate the case on 
grounds of allegedly violating free competition (Diario Financiero, 
business and financial, circ. 30,000, 1/6).  Congressman Tuma said 
he also plans to raise the issue with the Foreign Relations 
Committee in the Chamber of Deputies and even with the World Trade 
Organization, "to denounce the fact that in Chile there is pressure 
by foreign companies that apply measures which Chile does not share 
and that are related to the Cuban blockade" (La Tercera, 1/6). 
Although D&S has officially reported that it will stop selling 
products imported only from Cuba, it is rumored that upon Wal-Mart's 
arrival, the store will also stop carrying products from Venezuela, 
Iraq and Iran, due to the United States's diplomatic conflicts with 
those countries (El Mercurio, conservative, influential 
newspaper-of-record, circ. 129,000, 1/6). 
 
¶6. A full-page color advertisement announces that the Jumbo 
supermarket chain will carry "products from all around the world 
without restrictions."  The ad carries prominent illustrations of 
rum and other liquors from Cuba and Venezuela, along with products 
from Nicaragua, the Dominican Republic, Panama and Puerto Rico. 
 
Local 
------- 
¶7. OAS Secretary General Jose Miguel Insulza made a 15-hour visit to 
Santiago to officially announce his final decision to decline from 
running as a presidential candidate. During a press conference, 
Insulza explained that he stepped down for the "unity" of the 
governing coalition and voiced his support for Christian Democratic 
candidate and former Chilean President Eduardo Frei. The Christian 
Democratic Party (DC), the Socialist Party (PS) and the PPD started 
negotiations towards an agreement proclaiming Frei as their 
candidate, instead of holding primaries. (All dailies 1/6). 
 
¶8. The Government of Chile announced an ambitious and aggressive 
plan of USD 4 million in resources to stimulate the economy. The 
package includes eleven measures that seek to establish conditions 
for a 2% to 3% annual growth rate and the creation of 100,000 new 
jobs. The goal is to counteract the decline of the private sector's 
expectations, which have caused several companies to reduce their 
investments, plans and staffing. Public spending will be increased 
to approximately US $1.5 billion dollars, which represents a 10.7% 
hike. President Michelle Bachelet's announcement coincided with the 
Central Bank's monthly growth report released yesterday, showing a 
0.1% growth in November 2008, the lowest in almost seven years. (La 
Tercera, 1/6). 
 
Chile and Other Countries 
-------------------------------- 
¶9. The Christian Democratic Party (DC) declined the Government of 
Chile's invitation to participate in the official delegation that 
will accompany President Bachelet on her upcoming visit to Cuba. 
Government spokesperson Francisco Vidal explained that the DC's 
decision is due to the fact that they will not meet with the 
dissidents in Cuba.  Vidal explained that the President had made a 
determination based on protocol. (El Mercurio, 1/6). 
 
¶10.   Article on the complications faced by Chilean publishers in 
participating in the Havana Book Fair, February 12-22, which will be 
inaugurated by President Michelle Bachelet.  Several publishers have 
opted to refrain from attending, for political and economic reasons 
(El Mercurio, 1/6). 
 
SIMONS