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TAGS: KMDR KPAO PGOV ECON PREL SNAR EFIN CI
SUBJECT:  CHILE MEDIA REPORT - MARCH 13 
 
Leading Stories 
--------------- 
¶1.  Late morning on-line dailies report that La Moneda confirmed 
Vice President Joe Biden's participation at the Progressive 
Governance Summit, March 27-28 in Chile. Dailies also ran extensive 
coverage on Foreign Minister Alejandro Foxley's departure and the 
subsequent cabinet shuffle.  Dailies also report that the Central 
Bank lowered the interest rate to 2.25%. 
 
U.S.-Related News 
----------------- 
¶2.   After the seizure of a large illegal cargo of ephedrine at 
Santiago international airport, the head of the Drug Enforcement 
Agency (DEA) in Chile, David Horan, noted that investigations during 
the past year in Peru, Paraguay, Uruguay, and Argentina have 
revealed that Mexican drug cartels are operating in the southern 
cone.  He labeled this "alarming," and recalled that the murder of 
three businessmen last year in Argentina was in connection to the 
sale of ephedrine and these cartels.  "The clear message is that 
Mexican drug cartels have an international scope and that their 
members travel throughout the world looking and buying the chemicals 
needed for the illegal production of methamphetamines," said Horan. 
The 100 kilos of ephedrine seized at the airport were on their way 
to Mexico for the production of synthetic drugs for the U.S. market 
(La Tercera, conservative, independent (circ. 101,000, 3/13). 
 
¶3.  In an informative session at the Inter-American Dialogue in 
Washington, White House advisor for the Summit of the Americas 
Jeffrey Davidow said that President Obama would not arrive to the 
summit "as Santa Clause, with a gift for every country."  His 
remarks were in answer to OAS Secretary General Jose Miguel 
Insulza's warning that Latin America countries were expecting more 
than "just a handshake and a photograph" with President Obama. 
Assistant Secretary Thomas Shannon, who was also at the informative 
session, said Washington's proposal is to assist in the development 
of proposals for the region, "through a dialogue among equals." 
Shannon said that the U.S. administration's goal is to promote an 
agenda based on social justice, equity, the fight against poverty 
and climate change (Government-owned, editorially independent, La 
Nacion, circ. 4,200, 3/13). 
 
¶4. Editorials:  "It was absurd to expect Obama to undue an economic 
crisis such as today's in just 60 days, because the administration's 
plans need time to show results.  Upcoming announcements... could 
help improve expectations, but the delay is fulfilling these 
expectations and is already playing against him....  For now it's 
clear that the U.S. President has been unable to earn the trust of a 
key sector:  the market (La Segunda, conservative, afternoon daily, 
3/12). 
 
Cabinet Changes 
--------------- 
¶5.  Alejandro Foxley resigned as Foreign Affairs Foreign Minister 
and will be replaced by current Ambassador to the United States 
Mariano Fernandez.  Defense Minister Jose Goni was named Ambassador 
to the U.S. and government spokesman Francisco Vidal will take over 
as Minister of Defense.  Congresswoman Carolina Toha will replace 
Vidal as spokesperson (All dailies, 3/13). 
 
¶6.  Bachelet named Jose Goni Ambassador to the United States. 
However, it is odd that she did not wait for the U.S. agreement.  On 
his new office, Goni said, "Representing Chile today in the United 
States is of special importance, because of the Obama presidency. 
We are in a historic moment and amidst an international crisis in 
which Obama is looking to implement new leadership not just in his 
country, but also worldwide" (El Mercurio, conservative, influential 
newspaper-of-record (circ. 129,000, 3/13). 
 
¶7.  Polls showed that Minister Foxley was the government official 
best evaluated by public opinion.  Opposition representatives are 
not happy with Francisco Vidal's appointment to Defense given the 
"confrontational" style that characterized him as spokesman (El 
Mercurio, 3/13). 
 
¶8.  Column by the dean of the journalism school of Universidad 
Adolfo Ibaez, Ascanio Cavallo:  "Foxley's resignation is the 
culmination of a series of disagreements with the Executive over the 
handling of foreign affairs, which gradually moved the subject for 
which Foxley is responsible to the President's inner most circle of 
advisors... turning foreign policy into an agenda of trips abroad, 
many of which were the result of personal inclinations" (La Tercera, 
3/13). 
 
¶9.  In the opposition there is the perception that Bachelet "settled 
accounts" with Foxley over the persistent differences the two had 
regarding foreign relations, in which the President's trip to Cuba 
was crucial.  UDI Juan Antonio Coloma said it is a mistake for 
Foxley to leave office just a week before Peru is due to file its 
border claim against Chile with the International Court of The Hague 
(La Tercera, 3/13). 
 
SIMONS