VZCZCXYZ0028
RR RUEHWEB

DE RUEHSG #0639/01 1902043
ZNR UUUUU ZZH
R 092043Z JUL 09
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 5187
INFO RUEHAC/AMEMBASSY ASUNCION 4062
RUEHBO/AMEMBASSY BOGOTA 2475
RUEHBU/AMEMBASSY BUENOS AIRES 1576
RUEHBR/AMEMBASSY BRASILIA 0994
RUEHCV/AMEMBASSY CARACAS 2162
RUEHPE/AMEMBASSY LIMA 6274
RUEHMN/AMEMBASSY MONTEVIDEO 4480
RUEHQT/AMEMBASSY QUITO 2479
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SANTIAGO 000639 
 
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 9 
 
Leading Story 
------------- 
¶1.  The Health Ministry has instructed public hospitals to postpone 
5,000 surgeries so that the respective physicians and resources can 
be used to treat the high number of patients with respiratory 
emergencies related to the outbreak of AH1N1. 
 
Chile-U.S. Military Sales 
------------------------- 
¶2.  The Chilean Government downplayed the U.S. reaction to Chile's 
decision to buy Russian helicopters.  Spokesperson Carolina Toha 
said it was "normal" for bidders to express their views when they 
lose a bid. She also underscored the importance of choosing "what is 
most convenient," in reference to the lower cost of the Russian 
aircraft (El Mercurio, conservative, influential 
newspaper-of-record, 7/9). 
 
¶3.  The Chamber of Deputies defense committee is questioning the 
operation and called the Ministers of Interior and Defense to 
testify next Tuesday on why had they been officially notified that 
the helicopter chosen was the U.S.-manufactured Bell 412, what 
ministry would pay for the equipment, and if the planned Russian 
purchase is for the same type of helicopter that nose-dived during 
the 2002 Air and Space Fair (Fidae). Meanwhile, Senate defense 
committee Chairman Jorge Arancibia said his committee had been 
informed of the acquisition and that it had considered the decision 
to buy Russian "adequate." (El Mercurio, conservative, influential 
newspaper-of-record, 7/9). 
 
¶4.  During the controversy over the Russian helicopters, Chile is 
negotiating a US$275-million deal with the United States for 
long-range artillery and support vehicles, pending U.S. 
Congressional approval (El Mercurio, 7/9). 
 
¶5.  Congressman Alberto Cardemil (RN) said it is "odd" for the Army 
to buy Russian aircraft, when "it has been consistently 
standardizing all its equipment by acquiring western-manufactured 
weapons and aircraft." Reportedly, only Venezuela and Peru are using 
Russian helicopters (La Segunda, conservative, afternoon, 7/8). 
 
¶6.  The Foreign Ministry received a second letter from Secretary of 
Commerce Gary Locke, but this time in reference to the Secretary's 
upcoming visit to Santiago for the Americas Competitive Forum in 
September (La Tercera, conservative, independent, 7/9). 
 
¶7. House defense committee member congressman Ivan Moreira (UDI) 
said the GOC must "give priority to quality and safety" over cost, 
in purchasing the aircraft (La Segunda, 7/8). 
 
Honduras 
-------- 
¶8. OAS Secretary General Jose Miguel Insulza was "surprised" so see 
that some are trying to give the impression that the OAS is against 
Oscar Arias' mediation of the crisis in Honduras, adding that Arias 
has the hemispheric organization's full support (El Mercurio, 7/9). 
 
¶9.  Honduran Foreign Affairs Minister Patricia Rodas sent Honduran 
diplomats an e-mail informing them that the current ambassador to 
Chile, Francisco Martinez, has "lost authority" to represent the 
government of Honduras in Chile (La Segunda, 7/8).  Rodas is loyal 
to Zelaya. 
 
Arturo Valenzuela Hearing 
------------------------- 
¶10.  In the Senate's foreign relations hearing, Arturo Valenzuela 
said it is necessary to resolve not just Zelaya's ousting, but also 
the "underlining problems" that led to the crisis in Honduras. He 
said the main issue in this case is that there was "an 
unconstitutional transfer of power" in Honduras. Valenzuela labeled 
the coup in Honduras "unacceptable" (El Mercurio; La Nacion, 
government-owned, editorially independent, 7/9). 
 
¶11.  Arturo Valenzuela defended the role of the OAS, stating that it 
had been the region's "unanimous decision" to condemn the coup 
against Zelaya. "For too long Latin America resolved democracy's 
problems by interrupting the democratic order.... That cannot happen 
again," he said. Valenzuela said Arias and the OAS will also have to 
deal with the fact that "it's possible that Venezuela played a role 
in the situation in Honduras" (La Tercera, 7/9). 
 
Chilean economy 
--------------- 
¶12.  Alberto Ramos, Goldman Sachs senior economist for Latin 
America, predicts that Chile's economy will begin moderately 
recovering after the second quarter (El Mercurio, 7/9) 
 
URBAN