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UNCLAS SANTIAGO 000614 
 
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 - JULY 1 
 
Leading Story 
------------- 
¶1.  National unemployment rate was 10.2% for March-May, the highest 
for this period since 2004. Six of the fifteen regions have 
two-digit unemployment rates and highest is in the 15-24 age bracket 
(23.4%). 
 
Chile-U.S. 
---------- 
¶2.  Chilean and U.S. government sources say that the bilateral 
meeting held by Presidents Obama and Bachelet on the 23rd marked a 
change in the bilateral agenda (La Tercera, conservative, 
independent, 6/28). 
 
¶3.  Barack Obama and Bachelet met for 35 minutes. They talked about 
Lugo in Paraguay, Funes' election in El Salvador, and on how to 
rebuild U.S. ties with Bolivia and Venezuela.  Obama asked Bachelet 
what she thought about Chile adopting a more active role in building 
bridges with other countries in the region. Another topic was the 
State Department's love-hate relationship with OAS Secretary General 
Jose Miguel Insulza.  Washington values Insulza's handling of 
crises, but also sees him as too autonomous with regard to U.S. 
foreign policy.... Bachelet told Obama that Chile would support 
Insulza's reelection and that it would be "inconvenient" for the 
United States to object to his election in the context of regional 
ties. In the joint press conference, Obama summarized what he 
expected from Bachelet: "We are looking for advice." Vice President 
Joseph Biden had an eloquent gesture with Bachelet.  He asked his 
team and the Chilean delegation to exchange direct telephone 
numbers. When Biden did this, Bachelet and her advisors realized 
that they had gained direct access to the highest U.S officials 
(Journalist Fernando Paulsen in La Tercera, 6/28). 
 
¶4.   Bachelet urged President Obama not to let the positive outcome 
of the Summit of the Americas slip away. Obama, for his part, 
suggested that Chile could help the United States expand its ties 
with other countries, specifically Brazil, confirming that the USG 
wants Brazil to become the axis of its ties with South America. 
Energy was also a topic of discussion.  The two presidents, however, 
did not talk about nuclear energy. In her meeting with U.S. 
Congressmembers, Bachelet repeated what she had said in the White 
House: That the United States must not publicly criticize Venezuela, 
Cuba or any other country with which it has conflicts and must try 
to engage in a private dialogue. Sources said that Bachelet did not 
ask either Obama or the Congressmembers to support Cuba's eventual 
accession to the OAS.  This means that Chile will not apply pressure 
in favor of Cuba. Bachelet believes the OAS is the setting in which 
the United States can avoid bilateral tension by working 
multilaterally (Alvaro Vargas Llosa in La Tercera, 6/28). 
 
¶5.    Front-page photo of Bachelet and Obama in the Oval Office: 
Bachelet is no longer looking for a big-brother relationship with 
the United States. She is looking for a partner.  These are two 
leaders who have turned the obstacles they have faced in life into 
victories.... They are examples of resilience, strength, and 
optimism. (El Mercurio, conservative, influential 
newspaper-of-record, Saturday magazine, 6/27). 
 
 
¶6.  The "scientific bridge" between Chile and the United States will 
focus on astronomy, climate change, renewable energy, health and 
earth sciences, foods and forensic science.  This was the result of 
the III Chile-U.S. Science and Technology Joint Commission that 
yesterday concluded its meeting in Washington, D.C. 
 
Coup in Honduras 
---------------- 
¶7.  Foreign Affairs Minister Mariano Fernandez said that the 
government of Chile "strongly condemns" the coup in Honduras and 
"demands the reestablishment of democracy and the restitution of 
President Zelaya" (El Mercurio, 6/29). 
 
¶8.  Manuel Zelaya received the full support of the international 
community. Some countries, such as Bolivia, have recalled their 
Ambassadors. Brazil's Ambassador was out of the country and will not 
return, and the European Commission in Honduras has decided to 
withhold official contact with Micheletti. Zelaya also has the 
support of the United States which, however, said it would not 
cancel its financial aid (El Mercurio, 6/28). 
 
¶9.  President Obama said that the success of a coup in Honduras 
"would set a terrible precedent" in Latin America, "which has shown 
enormous democratic progress in the last 20 years" (La Tercera, 
6/30). 
 
¶10.  White House advisor Dan Restrepo outlined the U.S. position 
with regard to Honduras. President Obama, he said, is advocating for 
the restitution of the legitimate President and "will support a 
democratic solution.  However, he does not want to intervene or give 
out signals that the United States is dictating domestic policy," 
added the U.S. official. The United States, he said, believes in a 
"clear course of action but with restraint, so as to avoid any 
action that could make Honduras step away from a democratic solution 
to this crisis. We are working with all parties to find a solution," 
he said (La Tercera, 6/30). 
 
¶11.  Editorial:  "Coup in Honduras": "What happened in Honduras is a 
breach of democratic order through the use of force... which is 
unacceptable.... The Inter-American community must confront this 
incident with determination and find a solution.... avoiding 
unilateral excesses.... But in order for things to return to 
normal... President Zelaya must avoid the temptation of moving away 
from democratic principles and take action within the norms of rule 
of law" (La Tercera, 7/1) 
 
Digital Television 
------------------ 
¶12.  The Japanese Vice Minister for Communication, Tersaki Akira, is 
in Chile to promote the Japanese-Brazilian digital television 
standard (El Mercurio, 6/30). 
 
SIMONS