VZCZCXYZ0002
RR RUEHWEB

DE RUEHSG #0086/01 0272007
ZNR UUUUU ZZH
R 272007Z JAN 09
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 4335
INFO RUEHAC/AMEMBASSY ASUNCION 3738
RUEHBO/AMEMBASSY BOGOTA 2265
RUEHBU/AMEMBASSY BUENOS AIRES 1253
RUEHBR/AMEMBASSY BRASILIA 0650
RUEHCV/AMEMBASSY CARACAS 1925
RUEHPE/AMEMBASSY LIMA 5926
RUEHMN/AMEMBASSY MONTEVIDEO 4198
RUEHQT/AMEMBASSY QUITO 2111
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RHEHNSC/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SANTIAGO 000086 
 
SIPDIS 
 
STATE FOR R/MR, I/PP, WHA/BSC, WHA/PDA, INR/IAA 
 
E.O. 12958: N/A 
TAGS: KMDR KPAO PGOV ECON PREL SNAR EFIN CI
SUBJECT:  CHILE MEDIA REPORT - JANUARY 27 
 
Leading Stories 
--------------- 
¶1.  Headlines noted Minister of Interior Edmundo Perez-Yoma will 
testify over the 1994 Belgium sale of Mirage aircraft to Chile. 
Former Air Force Commander-in-Chief Ramon Vega is one of several 
officers arrested on suspicion of embezzlement in this case. 
Dailies also highlighted that Eduardo Frei Ruiz-Tagle (DC) and Jose 
Antonio Gsmez (PRSD) formally registered to compete in the 
Concertacion's primaries for the 2009 presidential election. 
 
U.S.-Related News 
----------------- 
¶2.  Oscar Guillermo Garretsn op-ed entitled, "Obama and Dreams" 
"After the bellicose arrogance of Bush's conservatism, we are 
beginning to see the light of the U.S. ability to reinvent 
itself....  Obama has shown he is willing to confront the crisis 
with determination, but with a different foundation....  The issues 
that Obama has presented -- energy, education, technology, science, 
and global warming -- are also the challenges we face as a 
country....  It would not surprise me if the relationship between 
the United States and Latin America were to move forward with an 
emphasis on energy....  Obama's 'American Dream' requires safe 
energy and a Latin America with whom to share it" (La Segunda, 
conservative, afternoon, circ. 33,000, 1/26). 
 
¶3.  In his visit to Valdivia, Ambassador Paul Simons spoke at the 
local university about the new U.S. administration. "We all know 
that expectations are high, and the latest polls show that people 
are willing to be patient," said Simons.  The Ambassador said that 
in his campaign the President spoke about strengthening ties with 
Latin America, specifically on energy and green areas.  "Energy is 
an area on which we have been working with Chile and one that we 
will further strengthen," he said (Regional Diario Austral, 1/26). 
 
¶4.  Andres Oppenheimer article entitled, "Obama won the First 
Round." 
"By revoking some of Bush's policies, which triggered the 
anti-American sentiment worldwide, Obama has already began to hurt 
Chavez and other demagogues who have built their political careers 
blaming the United States for the underdevelopment in their 
countries....  If Obama wants to strengthen U.S. leadership in Latin 
America... he should take the follow actions before the Summit of 
the Americas in Trinidad and Tobago:  Include Brazil and Mexico in 
the G-8... name a special envoy for the region with direct access to 
his office... allow Americans to use their health insurance 
oversees.  This would help the U.S. health service, contribute to 
Washington's deficit, and inject money into the health and tourism 
industries in Latin America. 
 
¶5.  Obama should fulfill his promise and lower U.S. dependence on 
foreign oil and create an 'Energy Alliance for the Americas,' 
providing technological and finance assistance to Latin Americans 
industries that export alternative fuels.  This would help everyone 
expect Chavez....  He should ask Congress to pass the free trade 
agreements with Colombia and Panama....  If the world's perception 
of Obama continues to be that he a credible leader with good 
intentions, he will be able to demand that foreign leaders be judged 
on what they build rather than for what they try to blame on 
Washington.  And looking at his first days in office, he is off to a 
good start."  (El Mercurio, conservative, influential 
newspaper-of-record, circ. 129,000, 1/27). 
 
Local 
----- 
¶6.  Minister of Interior Edmundo Perez-Yoma will testify as a 
witness in the controversial purchase of 35 Belgium Mirage 
airplanes.  He was Defense Minister during the sale in 1994. 
According to the court, former Air Force Commander-in-Chief Ramon 
Vega and other officers received a total of US$15 million dollars in 
commissions, and will all stand trial for embezzlement of state 
funds.  Senate President Adolfo Zaldivar scheduled a special session 
for Friday to discuss the case (El Mercurio, 1/27). 
 
¶7.  A Belgian Anti-Corruption Police report concluded that Chilean 
General Ramon Vega also leaked information on the terms of other 
bids submitted to help the Belgium company interested in selling the 
Mirage airplanes (Government-owned, editorially independent, circ. 
4,200, La Nacion). 
 
Russia 
------ 
¶8.  A delegation of Russian experts will arrive in Santiago on 
February 12 to meet with their counterparts in the International 
Economic Affairs Bureau (Foreign Affairs Ministry) to set the 
foundation for an eventual free trade agreement.  Russian Ambassador 
to Chile Yuriv Filatov said that both countries can complement each 
other in energy, mining, and transportation.  But Russia has also 
been lobbying strongly to build nuclear plants in Chile. President 
Bachelet will travel to Russia in April (On-line news service El 
Mostrador, 1/27). 
 
Terrorism 
--------- 
¶9.  The Rancagua Prosecutor's Office concluded the investigation of 
two violent bank robberies committed in 2004 and 2005 by members of 
the subversive organization Ejercito Guerrillero de Los Pobres -- 
Patria Libre.  Among them is Elena Varela, who was arrested in May 
2008 as she filmed a documentary about the Mapuche conflict in 
southern Chile.  She is currently free on bail (La Tercera, 
conservative, independent, circ. 101,000, 1/27). 
SIMONS