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UNCLAS SANTIAGO 000330 
 
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 - APRIL 7 
 
Leading Stories 
--------------- 
¶1.  Economic activity in February declined 3.9%, the worst drop 
since 1999.  The Llaima volcano continues to spew ashes and lava. 
One-hundred people have been evacuated from the surrounding areas. 
 
 
U.S.-Related News 
----------------- 
¶2.  U.S. Royal Gold will buy the Andacollo gold mine in the IV 
Region.  A Canadian firm owns 90% of the mine and Chile's State 
Mining Company (ENAMI) owns the remaining 10%.  Both Mining Minister 
Santiago Gonzales and ENAMI officials said they were unaware of the 
transaction (Diario Financiero, business and financial, circ. 
30,000, 4/7). 
 
¶3.  President Obama has not yet appointed the person who will direct 
the White House's relations with Latin America. Among the likely 
candidates are Chilean Arturo Valenzuela, Director of Georgetown's 
Center for Latin American Studies; Ann Patterson, former Ambassador 
to El Salvador; Craig Kelly, former Ambassador to Chile; Latin 
American expert Julia Sweig from the Council for Foreign Relations; 
Harriet Babbit, former Ambassador to the OAS (America Economica 
on-line, 4/7). 
 
Pharmaceutical Collusion 
------------------------ 
¶4.  Amid accusations and the investigations that the three largest 
local pharmacy chains colluded to hike prices and the participation 
of pharmaceutical laboratories in the process, the General Manager 
of Laboratory Chile, Hernan Pfeifer, admitted that laboratories have 
the practice of suggesting to pharmacies what to charge for 
products, but have no way to "impose" prices (La Nacion, 
government-owned, editorially independent, circ. 4,200, 4/7). 
 
OECD Accession 
-------------- 
¶5.  In the process of Chile's eventual accession to the OECD, the 
organization issued a report suggesting Chile should pass 
legislation to promote collective bargaining.  This would coincide 
with the Executive Office's agenda, which has plans to submit to 
Congress in May the Labor Defense Law that strengthens collective 
negotiations and union participation (La Nacion, 4/7). 
 
Indigenous Affairs 
------------------ 
¶6.  U.N. Special Rapporteur for Indigenous Rights and Fundamental 
Freedoms, James Anaya, said, "There is no question that there has 
been progress," in this area in Chile since 2004.  He valued the 
ratification of Convention Nr. 169, today's vote in Congress for the 
Constitutional recognition of indigenous peoples, and the inclusion 
of multicultural issues in the educational reform.  "Chile is among 
the countries that are doing more today with regard to this issue," 
he said.  However, he said there are still some pending issues, 
primarily with regard to land claims. Anaya will travel today to 
southern Chile to meet with indigenous organizations (La Segunda, 
conservative, afternoon, circ. 33,000, 4/6; La Nacion, 4/7). 
 
Chile-Peru 
---------- 
¶7.  A Peruvian was arrested as he took photographs inside the Navy's 
Special Command facilities in Vina de Mar.  The man entered the 
restricted building as he delivered supplies to the Naval Hospital. 
He was arrested by Navy guards and expelled from the country. 
Yesterday, Foreign Affairs Under Secretary Juan Pablo Lira met with 
Peruvian Charg d'Affaires Guido Toro to "warn" the diplomat that 
the GOC would take different measures if it encountered another 
similar incident.  Lira said that although the individual was 
expelled for violating the immigration law 
-- he was working, but was on a tourist visa -- the incident has 
raised concerns regarding espionage. Government sources said the 
individual had photographed other sensitive facilities (La Tercera, 
conservative, independent, circ. 101,000, 4/7). 
 
International Affairs 
--------------------- 
¶8. Editorial:  "Another U.N. Failure."  "On Sunday, North Korea 
launched its missile... openly violating Resolution 1718....  The 
U.N. was far from being able to prevent the crisis....  It's time 
for the U.N. to reorganize... to become an organization that truly 
reflects today's international political system....  For the safety 
and stability of the world, countries must know that their actions 
have consequences, and the only way to achieve this is for the 
Security Council to show greater determination and efficiency" (El 
Mercurio, conservative, influential newspaper-of-record, circ. 
129,000, 4/7). 
 
SIMONS