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E.O. 12958: N/A 
TAGS: KMDR KPAO PGOV ECON PREL SNAR EFIN CI
SUBJECT:  CHILE MEDIA REPORT - JANUARY 28 
 
Leading Stories 
--------------- 
¶1.  Dailies continue to cover as front page news the 1994 Mirage 
purchase scandal and the economic crisis, highlighting that 
unemployment in Santiago is up to 9.7%.  President Obama's interview 
with Al-Arabiya is also highlighted. 
 
U.S.-Related News 
----------------- 
¶2.  Headline: "Obama gives his first official interview to Arab TV 
Al- Arabiya: 'We are not your enemies.'" 
Subheadline:  The U.S. President even spoke about Osama bin Laden 
and stated very clearly that a strategy will be developed after 
Special Envoy George Mitchell visits the Middle East. 
Photo caption: "Major effect:  The President made his debut on a 
Muslim (TV) station (La Segunda, 1/27). 
 
¶3.  Headline:  "Obama Pals with Arab Station." 
"Obama has had it with fighting: 'We Americans are not your 
enemies,' he told Al-Arabiya in his first interview with an Arab 
station.  He said he would 'lend his hand to Muslims,' but not to 
terrorists" (Las Ultimas Noticias, leading-circulation, popular, 
circ. 140,000, 1/28). 
 
¶4.  Headline:  "Obama says he is willing to 'lend a hand' to Iran" 
Subheadline:  The U.S. President sent the Muslim world a sign by 
giving an interview with Arab station Al Arabiya.  He assured that 
his country is willing to listen to all parties involved in the 
conflict in the Middle East and that the United States "is not an 
enemy" of the Muslim world (La Tercera, conservative, independent, 
circ. 101,000, 1/18). 
 
¶5.  Headline:  "New Relations:  Obama's first official interview was 
with an Arab network" 
Subheadline:  The President made a gesture that would have been 
impossible to see with President Bush.  He told the Islamic world, 
"Americans are not your enemies" (El Mercurio, 1/28). 
 
Cuba 
---- 
¶6.  The Miami Herald ran an article headlined, "Chile looks for 
rapprochement with Havana," that reproduces Foreign Minister 
Alejandro Foxley's remarks to Chilean daily La Segunda on January 
¶23.  In that interview, Foxley said, "The Cold War is over and Chile 
in interested in having some degree of closeness and exchanges with 
Cuba, because if it truly joins the Latin America community there 
will be a series of issues in which we want our voice to be heard 
(La Segunda, conservative, afternoon, circ. 33,000, 1/27). 
 
ICC 
--- 
¶7.  The government and the opposition alliance have a consensus bill 
that would allow Chile to ratify the International Criminal Court 
(ICC) during the first semester of this year, said Secretary General 
to the Presidency Jose Antonio Viera-Gallo.  He said the goal is to 
submit the bill to Congress in March (La Segunda, 1/27). 
 
Trafficking in Persons 
---------------------- 
¶8.  A 35-year old woman from the Dominican Republic, who arrived to 
Chile to work in a beauty parlor, was held captive by a couple and 
forced into prostitution for eight months.  She was rescued by a 
fireman.  The National Women's Service (Sernam) has given the woman 
psychological and legal assistance.  Sernam Minister Laura Albornoz 
regretted that the bill in Congress to punish "trafficking in 
persons" has not yet been approved (La Segunda, (1/27). 
 
Corruption 
---------- 
¶9.  The judge investigating the irregular sale of Belgium Mirage 
airplanes to Chile has expanded the probe to the sale of 202 Dutch 
Leopard tanks for US$80 in 1997, when General Pinochet was still 
head of the Army, and the acquisition of communications equipment 
and radars from British company Racal (La Tercera, conservative, 
independent, circ. 101,000, 1/28). 
 
¶10.  The former chief of the Investigations Police (PDI) Telephone 
Monitoring Department, sub prefect Jorge Donoso Zabala, was 
sentenced to 541 days in prison.  Donoso confessed to burning a tape 
with telephone interceptions of the former director of the Civil 
Registry who was under investigation for an array of illegal 
activities during his tenure.  Donoso failed to turn in the tape at 
the request of the Public Ministry in August (La Segunda, 1/27). 
 
¶11.  Sheriff Edgardo Bastidas, of the Investigations Police Special 
Brigade (Bipe), and former PDI official Fernando Torres, were 
charged with obstruction of justice and receiving bribes.  The two 
helped smuggle into the country illegal merchandise.  Telephone taps 
revealed the existence of a warehouse in Santiago with merchandise 
worth millions of pesos, including pirated Nike tennis shoes, 
sunglasses, CDS, and an array of other products (El Mercurio, 
conservative, influential newspaper-or-record, circ. 129,000, 
1/28). 
 
Military 
-------- 
¶12.  The International Institute for Strategic Studies (IISS) in 
London reports that Latin America's military expenses increased 91% 
from 2003 to 2008.  The institute, however, states that most 
countries are renewing material that dates back to the 50s and 60s 
and does not reflect an arms race.  Reportedly, Venezuela 
experienced the largest military growth due to its acquisitions from 
Russia as a result of the U.S. embargo that prevented Chavez from 
renewing its F-16 fleet.  Chavez spent US$4.4 billion on Russian 
weapons and there is the possibility he will buy SU-30s fighter 
jets, transportation aircraft SII-76, Kilo submarines and MI-28 
helicopters, and might even turn to China to diversify its 
acquisitions (El Mercurio, 1/28). 
 
Narcotics 
--------- 
¶13.  The Investigations Police (PID) dismantled an organization of 
Chileans and Peruvians establishing a laboratory in the community of 
Padre Hurtado that was processing 52 kilos of high quality cocaine 
(La Segunda, 1/28). 
 
SIMONS