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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 - JUNE 16 
 
Leading Stories 
--------------- 
¶1. Santiago dailies noted that the Government Coalition and the 
Communist Party (PC) signed an agreement to collaborate in the 
upcoming presidential campaign.  Front pages also reported on 
President Michelle Bachelet's announcement to allocate approximately 
$34 million dollars to fully renovate the National Stadium in 
Santiago. 
 
U.S.-Related News 
----------------- 
¶2.  The State Department's latest Country Reports on Terrorism 
issued on April 30 noted that the U.S. Embassy in Santiago continued 
to "monitor the Coordinadora Arauco Malleco (CAM), a violent Mapuche 
Indian group in southern Chile that has burned fields and attacked 
police while fighting for land it claims belongs to it."  The 
document also pointed out that the group appeared as using 
"increased planning and a more professional use of weapons and 
tactics."  Yesterday, the Embassy's Press Office said that (the 
Embassy) "maintains regular contact with law enforcement 
institutions in Chile to obtain information on the situation in the 
area of conflict and activities of the Coordinadora Arauco Malleco" 
and has not conducted its own investigations of the conflict (La 
Tercera, conservative, independent, circ. 101,000, 6/16). 
 
¶3. Three American scholars will speak this week in Santiago at a 
Cultural Policy Seminar organized by Chile's National Council for 
Culture and the Arts, the Binational Center, and Catholic University 
of Chile.  Ms. Denise Rehg, Chair of Culture Works in Dayton; Frank 
Hodsoll, Chairman of the U.S. Cultural Committee at UNESCO and 
former President of the National Endowment for the Arts; and Wayne 
¶P. Lawson, Executive Director of the Ohio Arts Council are the 
guests of honor (La Nacion, government-owned, editorially 
independent, circ. 5,000, 6/16). 
 
New Electoral Pact 
------------------ 
¶4.  The Government Coalition and the Communist Party (PC) partnered 
with other left-wing allies under the "Juntos Podemos" (Together We 
Can) group signed an agreement to collaborate in the upcoming 
presidential campaign and beyond.  The pact seeks to secure seats in 
Congress for the PC, to maintain two legislators in those districts 
already controlled by the Concertacion, and to neutralize the 
opposition's predominance in one of Santiago's largest districts (El 
Mercurio, 6/16). 
 
Chile-Peru 
---------- 
¶5.  President Bachelet confirmed that Chile will not challenge the 
competency of International Court of Justice at The Hague over the 
maritime demand filed by Peru.  As recommended by Chilean Foreign 
Ministry experts, the strategy will focus on collecting the 
necessary information to present by March 9, 2010 a response to 
counter Peru's position (La Tercera, 6/16). 
 
Chile-Economy 
------------- 
¶6.  The Ministry of Finance corrected the country's growth 
projection for 2009. It was originally set on 4 percent, but with 
updated information estimates range between -0.75 percent to +0.25 
percent. In addition, the Executive Branch decided to issue $4 
billion dollars of accumulated foreign sovereign funds during the 
second semester of this year to finance additional needs caused by 
the economic crisis (El Mercurio, conservative, influential 
newspaper-of-record, circ. 129,000, 6/16). 
SIMONS