VZCZCXYZ0002
RR RUEHWEB

DE RUEHSG #0643/01 1911849
ZNR UUUUU ZZH
R 101849Z JUL 09
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 5193
INFO RUEHAC/AMEMBASSY ASUNCION 4065
RUEHBO/AMEMBASSY BOGOTA 2479
RUEHBU/AMEMBASSY BUENOS AIRES 1579
RUEHBR/AMEMBASSY BRASILIA 0997
RUEHCV/AMEMBASSY CARACAS 2164
RUEHPE/AMEMBASSY LIMA 6277
RUEHMN/AMEMBASSY MONTEVIDEO 4482
RUEHQT/AMEMBASSY QUITO 2484
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SANTIAGO 000643 
 
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 10 
 
Leading Story 
------------- 
¶1.  The Central Bank lowered the interest rate from 0.75 to 0.5%, 
which will also lower the cost of consumer loans and mortgages. The 
bank will maintain this rate for at least six months. 
 
Chile-Russia Military 
--------------------- 
¶2.  Defense Minister Francis Vidal confirmed there have been talks 
with his Russian counterpart on the eventual acquisition of MI17 
helicopters.  Vidal said, however, "There is no signed contract, 
only an evaluation" with Russia (La Nacion, government-owned, 
7/10). 
 
Chile-U.S. 
---------- 
¶3. Foreign Affairs Minister Mariano Fernandez wrote the Senator Max 
Baucus a letter and Ambassador Goni met with Department of State and 
Commerce officials to relay the interest among Chilean wood 
producers in the elimination of the subsidy given to U.S. cellulose 
producers. The bill goes to Congress today (Diario Financiero, 
business and financial, 7/10). 
 
¶4.  Commentary on the Chile-California partnership:  A Model for the 
21st Century":  "Rather than depending on traditional government 
bureaucracies... contemporary international relations are moving 
toward establishing ties among like-minded regions and countries.... 
Such is the case of the Chile-California partnership... The 
association is convenient for Chile and the United States, because 
Washington has problems in the region and needs a new model based on 
shared interest"(Karin Ebensperger; El Mercurio, conservative, 
influential newspaper-of-record, 7/10). 
 
Obama-Africa/Iran/Russia 
------------------------ 
¶5.  In an interview with AllAfrica.com, President Obama said it was 
time for Africa to stop blaming colonialism for its problems. "For 
years we've been saying that corruption and poor governance are 
somehow the consequence of neo-colonialism and an oppressive and 
racist west.  But I am not a believer in excuses," said the U.S. 
President, adding that there can be no stability in Africa as long 
as there is corrupt governance, because there is a "direct 
correlation between good government and prosperity"(La Tercera, 
conservative, independent, 7/10). 
 
¶6.  President Obama wants Brazil to act as a mediator between the 
G-8 and Iran with regard to the latter's nuclear program. White 
House spokesperson Robert Gibbs said Brazil has "a unique 
opportunity to act as a mediator given its good commercial relations 
with Teheran" (La Nacion, 7/10). 
 
¶7.   Editorial:   "Several American presidents overestimated their 
ability to influence Soviet and Russian leaders... but Obama did not 
fall into that trap.  On the contrary, he found areas of common 
interest... where the main outcome was an agreement to reduce 
nuclear warheads and missiles.... Although today the main nuclear 
threat is to be found on Russia's periphery, the agreement is an 
important accomplishment.... The government and people of Russia 
hope, above all, to regain the power, influence and respect they 
enjoyed in the past... and this 'resetting' of relations with 
Washington is a step in that direction.  But Russia should also 
review its hard drive to recall the weaknesses and mistakes 
committed by those governments that it glorifies" (La Segunda, 
conservative, afternoon, 7/9). 
 
¶8.  "The announcement of nuclear disarmament (between Russia and the 
U.S. ... is key to improving relations between Washington and 
Moscow, which were severely eroded by the G.W. Bush 
administration....  Today the greatest threat comes from 
non-democratic and unstable countries such as North Korea and others 
that could have access to this technology and share it with similar 
countries or terrorist groups.  Obama and Medvedev showed there is a 
good understanding between them and although not all issues on their 
agenda were resolved... their talks seem to have set the foundation 
of a new era of understanding that will benefit the entire world" 
(El Mercurio, 7/10). 
 
Nuclear Energy 
------------- 
 
¶9. Energy Minister Marcelo Tokman said the government has opened a 
bidding process for new studies on the construction of nuclear 
plants. Tokman underscored the positive impact of nuclear-electric 
generation on climate change since it does release CO2 to the 
atmosphere (El Mercurio, 7/10). 
 
¶10.  A report submitted by the School of Engineers to the GOC 
proposes the construction of nuclear plants in the coastal areas of 
Tocopilla, San Antonio, and Papudo.  The mayor of Papudo was 
appalled that the government was even considering such a project in 
an area that has more seismic activity than the average Chilean 
coastal area(Subway daily, Publimetro, 7/10). 
 
Honduras 
-------- 
¶11. Editorial:  "The passivity of the OAS with regard to the 
situation in Honduras before the crisis and with regard to other 
ALBA countries... that use their legitimate democratic origins to 
weaken democratic institutions... indicates some sort of harmony 
between those countries and the OAS....  The OAS must... prove its 
importance and value in a region that has legitimate reasons to 
question its role" (La Tercera, 7/10). 
 
¶12.  Editorial:  "Zelaya is not innocent in the events affecting 
Honduras today.  But saying this does not mean agreeing with the use 
of force to remove a leader. It simply puts the events in a broader 
perspective" (Diario Financiero, 7/10). 
 
URBAN