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E.O. 12958: N/A 
TAGS: KMDR KPAO PGOV ECON PREL SNAR EFIN CI
SUBJECT:  CHILE MEDIA REPORT - JANUARY 13 
 
Leading Stories 
--------------- 
¶1. Chilean Dailies highlighted: 1) dramatic losses affecting the 
Chilean Private Social Security System (AFP) during 2008; 2) Chilean 
physicians outranking their foreign counterparts in a national exam; 
and 3) Paris-Dakar automobile rally taking place in Argentina and 
Chile. 
 
U.S.-Related News 
----------------- 
¶2.  In the first press interview of the new AmCham President Ricardo 
Garcia, the executive assessed the Chile-U.S. bilateral trade and 
its prospects for 2009.  Garcia characterized Wal-Mart's arrival in 
Chile as "flattering" and said that it is proof that the end of the 
world is not upon us and that companies continue doing business in 
the midst of a global recession context.  With regard to the ongoing 
discussion over Wal-Mart's petition on Chilean supermarket chain D&S 
-- for whom it has launched a public purchase offer -- not to sell 
Cuban products, Garcia commented that "this is nothing new.  One 
must be clear that this legislation not only affects Wal-Mart but 
all U.S. companies and I haven't seen that IBM, Alico, Microsoft, 
Johnson & Johnson or Procter & Gamble have had a problem in Chile. 
This is not an issue for Wal-Mart.  This is a U.S. matter that has 
certain regulations and laws that limit U.S. companies' trade ties 
with those countries that have difficulties with terrorism and 
security, both in domestic and foreign businesses" (El Mercurio, 
conservative, influential newspaper-of-record, circ. 129,000, 
1/13). 
 
¶3.  Chilean exports to three of its major destinations dropped in 
¶2008.  Although the United States ranks second among Chile's main 
export markets, exports to that country during 2008 experienced the 
highest decline.  Chile's National Customs Service released its 
annual report that showed U.S. imports of Chilean products  dropped 
by 8.4% compared to the previous year (La Tercera, conservative, 
independent, circ. 101,000, 1/13). 
 
¶4.  Congressman Eugenio Tuma, Chairman of the Finance Committee at 
the Chamber of Deputies, announced the introduction of a draft bill 
to counter Wal-Mart's blockage on Cuban products.  The initiative 
seeks to withdraw the permit that would allow the retailer from 
operating in Chile should Wal-Mart decline to enforce the eventual 
legislation (La Tercera, 1/13). 
 
Local 
----- 
¶5.  Ten hooded individuals assaulted an estate near Lautaro, in 
Region Ten (within the indigenous Mapuche area).  The heavily armed 
group attacked the warden and his wife, and set fire to their house 
and two barns.  Farmers denounced the presence of an extremist cell 
that "recurrently" attacks manors and estates in the region (El 
Mercurio, 1/13). 
 
¶6.  Prosecutor Nancy Gonzalez acknowledged the existence of a new 
corruption network operating within Chilean courts, which is 
different from another that was dismantled last year.  The Public 
Ministry initiated a probe to identify the members of the ring that 
once again includes judicial and civil police officers (El Mercurio, 
1/13). 
 
Chile and Other Countries 
------------------------- 
¶7.  Peru is seeking to re-establish bilateral talks with Chile under 
the so-called "2+2" mechanism, an initiative in which the Foreign 
and Defense Ministers of both countries hold coordination meetings. 
Lima's decision to file a complaint over maritime boundaries before 
the International Court at The Hague in 2007 resulted in Chile's 
postponing such meetings indefinitely.  Last Friday, the Army chiefs 
of Peru and Chile held a private conference in Arica.  The event is 
viewed by Peru as a clear signal of normality, leaving behind the 
controversy caused by former Peruvian Army General Edwin Donayre who 
remarked that any Chilean invading Peru would "leave either inside a 
coffin or a plastic bag" (La Tercera, 1/13). 
 
Editorials 
---------- 
¶8.  Opinion piece by international commentator Andres Oppenheimer: 
"Questions Over the Flow of Presidential Visits to Cuba"  "The 
 
sudden surge of visits to Cuba by Latin American presidents, which 
disrupts decades of Cuban military regime's diplomatic ostracism, 
lead me to ask whether we are witnessing a total abandonment of the 
democratic commitment in the region -- which had been a combined 
effort to achieve a political opening in the Island....  Although 
(Chilean President Michelle) Bachelet will try to 'open spaces' in 
Cuba, she will not meet with the Cuban opposition.  When I asked 
why, (a Chilean high-ranking official) said that there are many ways 
in which countries exert pressure to achieve democratic changes and, 
meeting dissidents during an official visit, would not be 
appropriate to accomplish them...." 
 
¶9.  "Peaceful Cuban opponents have said that when Fidel Castro or 
his brother visited Latin American countries, they always met with 
leaders in the opposition.  Why can't Latin American presidents do 
likewise in Cuba, they ask...?  I am not against Latin American 
presidents -- or from elsewhere -- visiting a totalitarian country 
like Cuba.  On the contrary, they should go and do what is expected 
of them:  meet with the government and civil society, including 
leaders in the peaceful opposition, just like democratic presidents 
do around the world.  By not doing so, this legitimizes a military 
dictatorship and establishes a terrible precedent in the region. 
Today, they are abandoning the combined defense for democracy in 
Cuba.  Tomorrow, it could happen to any country, whose presidents 
are turning their backs on the Cuban people" (El Mercurio, 1/13). 
 
SIMONS