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E.O. 12958: N/A 
TAGS: KMDR KPAO PGOV ECON PREL SNAR EFIN CI
SUBJECT:  CHILE MEDIA REPORT - MARCH 9 
 
Leading Stories 
--------------- 
¶1.  One major Santiago daily reported that the Vice President Biden 
plans to attend the Progressive Leaders' summit in Chile, March 
27-28.  Consumer habits in Chile have changed drastically in view of 
the economic crisis.  Lowering the consumer tax (IVA) is among the 
proposals in the government's second financial crisis recovery plan. 
 
 
Vice President Joe Biden 
------------------------- 
¶2.  "Vice President Joe Biden Prepares Trip to Chile for Summit in 
Vina del Mar)" 
Vice President Jose Biden will attend the Summit of Progressive 
Leaders in Vina del Mar on March 27 and 28.... La Moneda sees 
Biden's trip as a strong political signal on the part of the United 
States....  Biden's participation will also mark the return of the 
White House to this summit, which the Bush administration did not 
attend.  The GOC's also believes that the visit of the second man in 
the White House will enhance the Progressive Summit, which takes 
place in Latin America for the first time....  The Executive Office 
had kept Biden's trip in strict reservation (La Tercera, 
conservative, independent, circ. 101,000, 3/7). 
 
¶3.  Vice President Biden will be among the participants at the 
progressive leaders' summit in Vina del Mar....  As Chairman of the 
Senate Foreign Relations Committee in 2008, Biden said the United 
States "should prepare for the transition in Cuba," but was in favor 
of lifting the embargo immediately.  He believes both countries 
should establish a regular postal exchange service and that the U.S. 
should renew trips to the island (La Tercera, 3/8) 
 
¶4.  La Moneda is planning to apply tight security measures for the 
Progressive Leaders' Summit in Vina del Mar.... Biden's attendance, 
however, will not vary these plans, said senior Carabineros police 
and Executive Office officials....  "The security is the maximum 
that can be established," said the Governor of Valparaiso Ricardo 
Bravo... who added that a (Carabinero) officer will be assigned to 
each delegation to coordinate deployments and security....  There 
will also be coordination with foreign police entities, such as the 
FBI, to monitor any terrorist activities (La Tercera, 3/8). 
 
¶5.  The Obama administration will announce the visit of Vice 
President Biden next week....  Yesterday in La Moneda no one 
commented on Biden's agenda.  In any case, government sources assume 
that there will be a bilateral with President Bachelet.  "His 
(Biden's) visit is highly significant, especially because this is 
the first time this group (Progressive Leaders) meets in Latin 
America," said Minister Secretary to the Presidency Jose Antonio 
Viera-Gallo (La Tercera, 3/8). 
 
Summit of the Americas 
---------------------- 
¶6.  The Presidents of Chile and the United States will meet 
bilaterally for the first time in Port of Spain....  Both Presidents 
have spoken on the phone twice and the U.S. President has expressed 
his willingness to work together in hemispheric forums on issues 
related to Latin America.  Diplomatic sources say Obama has been 
clear on pointing to the presidents of Brazil, Mexico, and Chile in 
developing his policy toward the region (El Mercurio, 3/9). 
 
Other U.S.-Related News 
----------------------- 
¶7.  PAS placement of op-ed by Secretary of State Hillary Clinton, 
"International Women's Day," (El Mercurio, 3/8) 
 
¶8.  Interview with Robert George of the President's Council on 
Bioethics, who is in Chile invited by the Institute for Studies on 
Society.  Among the greatest ethical challenges ahead, said George, 
are human cloning, genetic manipulation to improve health, strength, 
or beauty (El Mercurio, 3/8). 
 
¶9.  The bodies of the two Chileans murdered in Pensacola on February 
26 arrived to Chile on Saturday.  About 2,000 people attended the 
funeral that was held in Valparaiso on Sunday (All dailies, 3/8 
-3/9). 
 
¶10.  Former U.S. Senator Charles Clary III opened an account with 
the Beach Community Bank to help pay for the medical expenses and 
therapy of the three Chilean students injured by Danny Baker in 
Pensacola (Las Ultimas Noticias, leading-circulation, popular, circ. 
140,000, 3/9) 
 
¶11.  On March 12, 1989, the U.S. market closed its door to Chilean 
fruit after the Food and Drug Administration (FDA) declared that the 
fruit was contaminated with cyanide.  Over 12,000 boxes of fruit 
were inspected; two grapes were found allegedly with cyanide.  The 
incident resulted in US$900 million in losses for Chilean exporters 
and affected 200,000 workers.  Twenty years later, the owner of the 
packing presumably responsible of the contamination, the foreign 
minister of the time, and other entrepreneurs recall the incident, 
underscoring that the so-called "poisoned grapes case" concluded 
with evidence that the grapes had not been contaminated in Chile. 
In addition to no U.S. apologies, they underscored that no 
indemnification was paid to any of the affected exporters, and there 
were no charges brought against anyone (El Mercurio, 3/8). 
 
UNASUR 
------ 
¶12.  Defense Minister Jose Goni inaugurated the UNASUR Defense 
Council in Santiago.  He said the goal is to create an alliance that 
strengthens mutual trust through integration, dialogue, and 
cooperation (Government-owned, editorially independent La Nacion, 
3/9). 
 
Cuba and the OAS 
---------------- 
¶13.  OAS Secretary General Jose Miguel Insulza is in Santiago 
promoting the elimination of the clause that excludes Cuba from his 
organization.  "I believe that overall there is a certain 
willingness... to change things regarding Cuba," said Insulza, 
adding that this is something in which "the United States has a lot 
to say." Sources close to Insulza said that the Obama 
administration's willingness to lift the commercial embargo and 
begin a dialogue with Havana were elements that encouraged Insulza 
to reopen the debate on this topic.  One source said that Washington 
in January persuaded Insulza to stay in the OAS, stating that he 
could become a bridge to facilitate dialogue between the White House 
and the Castro regime (La Tercera, 3/7). 
 
Poll: Chileans Support Economic Model 
------------------------------------- 
¶14.  A survey shows that in spite of the economic crisis, there is 
growing support among Chilean for the free trade, open market 
economic model.  Asked if they agree or disagree with the existing 
model based on freedom of prices, an open economy to the world, and 
more private than state-owned companies, 63% said they agree.  This 
is eight points higher than in 2007 (La Tercera survey, 3/8). 
 
SIMONS