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SUBJECT:  CHILE MEDIA REPORT -- MAY 22 
 
Leading Stories 
--------------- 
¶1. All dailies highlighted the annual May 21 Presidential address to 
the nation, which Bachelet gave at the Congress in Vina del Mar. 
Dailies also noted health authorities confirmed 29 AH1N1 cases in 
Chile, the most in South America. 
 
U.S.-Related News 
----------------- 
¶2.  Captioned photograph of President Obama and Chilean Ambassador 
Jose Goni in the Oval Office, as the latter presents his letters of 
credentials.  "How is your wonderful President," asked Obama.  The 
U.S. President underscored the shared values and the need to work as 
partners (El Mercurio, conservative, influential 
newspaper-of-record, circ. 129,000, 5/22). 
 
¶3.  On Friday, July 3, the region's finance ministers will attend a 
meeting in Vina del Mar.  U.S. Secretary of the Treasury Tim 
Geithner is among the expected guests (El Mercurio, 5/21). 
 
¶4.  Carlos Furche, head of Chile's Foreign Affairs International 
Economic Relations Bureau, DIRECON, played down the USTR's Priority 
Watch List, saying it "reflects the view of a U.S. industrial sector 
and is not part of the mechanisms or institutions in the bilateral 
Chile-U.S. FTA." (El Mercurio, 5/22). 
 
¶5.  President Bachelet will travel next week to Holland and France. 
Her trip ends in El Salvador, where she could come across U.S. 
Secretary of State Hillary Clinton (El Mercurio, 5/21). 
 
¶6.  Article on the wine-tasting event hosted by Ambassador Simons to 
promote California Zinfandel wines in Chile.  "The tasting event 
showed the friendliest and the more festive characteristics of the 
Zinfandel variety" (Capital monthly magazine, 5/20). 
 
¶7.  Ambassador Paul Simons addressed an audience of 150 government 
officials, members of the armed forces, professors, students, and 
public in general on the "The First One-Hundred Days of the Obama 
Administration" at University of Magallanes, in southern Chile 
(Regional daily El Pinguino de Magallanes, 5/20). 
 
¶8.  National Customs figures show that China was the main recipient 
of Chilean exports in April 2009.  Asia as a bloc received 43.5% of 
total Chilean exports, the highest percentage.  The United States 
remains Chile's largest bilateral trading partner (El Mercurio, 
5/21). 
 
Bachelet's May 21 Address 
------------------------- 
¶9.  Headline:  "Bachelet emphasizes achievements of her 
administration and avoids farewell tone."  In her address, the 
President highlighted her administration's social initiatives and 
sound fiscal policy.  Bachelet also said she would "work unit the 
very last day" in office, and proposed three main lines of action to 
face the economic crisis.  Unlike previous years, she did not 
criticize candidate Sebastian Pinera or express support for 
"Concertacion" candidate Eduardo Frei. The opposition criticized the 
absence of self-criticism and mention of Chile's growing crime rate 
(El Mercurio, 5/22). 
 
¶10.  Headline: "Bachelet announces bonuses and subsidies of US$330 
million during her last year in office" (El Mercurio, 5/22). 
 
¶11.  Headline: "Bachelet announces social benefits in an address 
marked by a strong defense of her administration" 
The President chose to expand subsidies and highlight that the seal 
of her administration is social protection.  The President did not 
endorse in any way Eduardo Frei's presidential candidacy (La 
Tercera, conservative, independent, circ. 101,000, 5/22). 
 
¶12.  In her last May 21 address, Bachelet announced that two percent 
of the annual budget will be used to create "quality cultural 
centers" in every community with over 250,000 inhabitants (La 
Nacion, government-owned, editorially independent, circ. 4,200, 
5/22). 
 
¶13.  Dailies concurred on the most significant announcements:  The 
US$72 monthly bonus to help families with winter expenses, totaling 
4 million people; the pension reform to benefit the poorest sector 
of the population; a bill that sets a ceiling on the fuel tax; new 
housing subsidies; a bill establishing penal responsibility for 
businesses and individuals involved in price collusion; a bill to 
prevent the use of privileged information in the stock market; 
delivery of 60,000 computers to low-income public school 7th graders 
with the highest GPA; 2,000 additional scholarships to study English 
and another 3,500 for graduate studies; mortgage insurance for those 
who have lost their jobs; construction of 12 new hospitals and the 
expansion of the list of diseases that are fully covered by the 
public health system.  On foreign policy, Bachelet specifically 
regretted Peru's decision to file a claim with the international 
court in The Hague over maritime borders. 
 
ICC 
--- 
¶14.  The Chamber of Deputies passed the constitutional reform that 
would allow Chile to ratify the Rome Statute to adhere to the 
International Criminal Court (All dailies, 5/22). 
 
Digital Television 
------------------ 
¶15.  A source familiar with the negotiations in Congress to approve 
the digital TV law and allow stations to broadcast in high 
definition noted the Executive Office is pressuring Congress to pass 
the law before the 2010 World Soccer Cup.  Reportedly, the 
television industry is making a strong lobby, because the World Cup 
generates a peak in demand for new television sets (La Segunda, 
conservative, afternoon, circ. 33,000, 5/20). 
SIMONS