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E.O. 12958: N/A 
TAGS: KMDR KPAO PGOV ECON PREL SNAR EFIN CI
SUBJECT:  CHILE MEDIA REPORT - JANUARY 17-20 
 
Leading Stories 
--------------- 
¶1.  Chilean dailies gave extensive coverage to inauguration 
preparations in Washington and President-elect Obama's activities. 
Newspapers also highlighted Israel's cease fire in Gaza and the 
arrest of Chile's Air Force (FACH) retired General Ramon Vega for 
allegedly receiving illegal payments during the purchase of Belgian 
fighter jets in 1994. 
 
U.S.-Related News 
----------------- 
¶2.  Chilean newspapers noted President-elect Barack Obama's remarks 
on Latin American and Hugo Chavez during an interview with Univision 
TV last week.  In response to questions about Obama's remarks, OAS 
Secretary General Jose Miguel Insulza underscored that "Obama has no 
interest in getting into a fight with President Chavez.  President 
Chavez is campaigning for his referendum, and naturally, he has 
taken on this issue" (El Mercurio, conservative, influential 
newspaper-of-record, circ. 129,000, 1/19). 
 
¶3.  Column by Chilean Ambassador to the U.S. Mariano Fernandez on 
the atmosphere in Washington preceding Inauguration Day entitled, 
"The Celebration in Washington."  "It will be a truly historic 
moment for democracy....  One perceives emotion, admiration, and 
pride....  The first power is preparing to leave a very difficult 
time behind (as it is expected by everybody) and begin a new era of 
resurgence headed by Obama and his Administration.  That is the 
perception today in Washington..." (La Tercera, conservative, 
independent, circ. 101,000, 1/18). 
 
¶4.  Americas Quarterly's latest edition carried a special edition 
featuring comments by 31 leaders in the Hemisphere on the upcoming 
Obama Administration.  President Michelle Bachelet and businessman 
Andronico Luksic contributed.  President Bachelet said, "If 
institutions are not democratized and redesigned in order to reflect 
the diverse and complex political environment, they will not be 
capable of providing the kind of government that we need for the 
21st Century."  Andronico Luksic suggested changes in three areas, 
notably an "extensive review" of the Cuban embargo, immigration, and 
promotion of stalled trade agreements (La Segunda, conservative, 
afternoon daily, circ. 33,000, 1/16). 
 
¶5.  As of January 1, Chile should have adhered to the UPOV 1991 Act 
of the International Convention for the Protection of New Varieties 
of Plants, as stated in the bilateral Free Trade Agreement with the 
United States. Attorney Jaime Silva noted that the issue hasn't been 
given legislative priority, which suggests "that it is a matter of 
low political priority in the country" (El Mercurio, 1/19). 
 
¶6.  U.S. Ambassador to Chile Paul Simons visited the Maipu District 
in Santiago to seek future cooperation opportunities.  Maipu Mayor 
Alberto Undurraga pointed out that "it is not usual for ambassadors 
to visit municipalities; we are excited that he is interested in 
learning about our work and projects" (El Mercurio, 1/19). 
 
Chile-Other Countries 
--------------------- 
¶7.  The Executive Branch is preparing a draft bill aimed at granting 
Chile's Internal Revenue Service with access to banking accounts and 
deposits.  The initiative seeks to comply with the Organization for 
Economic Cooperation and Development's (OECD) requirements in this 
area (La Tercera, 1/18). 
 
Local 
----- 
¶8.  Chile's Air Force (FACH) retired General Ramon Vega and other 
three high-ranking retired officers were arrested January 19 for 
allegedly receiving US$ 15 million dollars in illegal payments 
during the purchase of Belgian fighter jets in 1994 ( All dailies, 
1/20). 
 
¶9.  The Public Ministry prepared a new strategy to stop the surge of 
recent bombings and bomb threats in Santiago and other cities. 
Prosecutor Xavier Armendariz was appointed exclusively to 
investigate the attacks (El Mercurio, 1/17). 
 
¶10.  Christian Democratic Presidential candidate Eduardo Frei was 
officially proclaimed Presidential candidate by the Socialist Party 
in an event that had a poor turnout.  Of the 1,129 delegates 
expected to attend, only 350 showed-up (La Tercera, 1/18).  Eduardo 
Frei gave the first speech in his presidential campaign to the 
Socialist Party's National Convention.  In his remarks he sought to 
connect with the far-left in the Government coalition by defending 
the role of the State in times of crisis such as the current one (El 
Mercurio, 1/18). 
 
Editorials 
---------- 
¶11.  Editorial piece entitled, "Historic Change of Power at the 
White House"  "The new President has been elected to protect the 
country's interests; therefore one should not expect a strong thump 
at the helm, even on issues such as Iraq and Afghanistan.  It could 
frustrate the hopes of those who dream of a new United States" (La 
Tercera, 1/20). 
 
¶12.  Column by Former Foreign Minister Hernan Felipe Errazuriz, 
"Obama and the U.S."  "Obama's ability to change the United States 
and the U.S.' power to change the world are limited" (El Mercurio, 
1/17). 
 
¶13.  Opinion piece by OAS Secretary General Jose Miguel Insulza, 
"The Challenges of the New U.S. President"  "To truly go into 
history as a great President, Obama needs to face four enormous 
challenges.  First, he must comply with the promise of equality 
established by the Civil Rights Movement....  Second, Obama came to 
power through the hands of many people who saw in him the hope to 
end the war in Iraq and, more generally, to substantially change the 
U.S. foreign policy and to create a new era of peace by exerting 
global moral and political leadership, rather than military.... 
Third... the entire world expects to see how he reduces the deficit 
while rescuing the financial system, eluding unemployment and 
putting the economy at work....  Fourth, the alarm caused by global 
warming continues.  There is little time to negotiate agreements to 
outstrip the Kyoto goals and significantly reduce emissions.... 
Latin America -- which also is living a period of profound changes 
-- expects from Obama a closer dialogue and a truly collaborative 
attitude....  We hope that for the good of the world, Obama succeeds 
in his struggle against the crisis, the war, discrimination and 
environmental damages.  We wish to see from him true willingness to 
address the issues in our shared agenda (economic crisis, trade, 
migration, global warming, drug trafficking, and Cuba -- yes, also 
Cuba) without prejudice and by listening to everybody's interests" 
(La Tercera 1/20). 
 
¶14.  Editorial entitled, "Barack Obama"  "Globally, there is a 
variety of expectations, but its axis is the establishment of better 
international relations.  One of the heaviest burdens left by Bush 
is the sentiments against the United States caused by Bush's 
international policy....  With the arrival of this lawyer to the 
White House, there is a ray of hope for a better world order and a 
more integrated United States" (Diario Financiero, business and 
financial, circ. 30,000, 1/20). 
 
SIMONS