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UNCLAS SANTIAGO 000686 
 
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 22 
 
Lead Story 
---------- 
¶1. Health authorities report that Chile has 11,293 cases of AH1N1, 
and only 68 deaths.  The number of cases is beginning to decline in 
all regions, except two: Arica-Parinacota and Vaparaiso (La Nacion, 
7/22). 
 
Chile-U.S. 
---------- 
¶2. Russian-American mathematician Boris Weisfeiler disappeared in 
¶1985.  His sister, Olga, is visiting Chile now for the eighth time 
hoping to find answers to his disappearance. Olga says that while 
her brother is not included in the Rettig Report as a victim of 
human rights violations, "he clearly is, because the investigation 
has shown that soldiers or "Carabineros" police were involved in his 
disappearance during the Pinochet regime. She added that because he 
entered the country legally and with an American passport the 
government of Chile is ultimately responsible for his disappearance. 
The investigation headed by Judge Zepeda "has become more 
intensive," she said, but asked for the FBI to be allowed to 
investigate (La Nacion, government-owned, 7/22). 
 
U.S.-Related News 
----------------- 
¶3.  Republican Senator Jim DeMint succeeded in postponing the 
confirmation of Chilean-American Arturo Valenzuela as Assistant 
Secretary of State for Western Hemisphere Affairs. DeMint argued 
that Valenzuela's remarks with regard to the crisis in Honduras were 
insufficient. In the hearing, Valenzuela endorsed the Obama 
administration's stance that Zelaya should return to power, while 
DeMint said Zelaya had "ousted himself" with his plans to remain in 
office (El Mercurio, conservative, influential newspaper-of-record, 
7/22). 
 
¶4.  Steve Forbes will be in Chile on August 11, to speak on "Changes 
in the World after the Crisis," as Espacio Riesco, invited by 
magazine "Capital" and the University of Development (Universidad 
del Desarrollo). Forbes is heir to one of the most important 
business media holdings in the world (Diario Financiero, business 
and financial, 7/22). 
 
Honduras 
--------- 
¶5.  The USG wants Zelaya to return to power, but with the commitment 
not to amend the constitution and leave office when his term is due, 
which is January 27, and is exerting pressure. Hugo Llorens, U.S. 
ambassador to Tegucigalpa, has warned business sectors, especially 
those that depend on the U.S market, about possible economic 
consequences.  But Adolfo Facusse, president of the National 
Industrialists' Association, said they would "prefer the sanctions 
to Zelaya's return" (La Tercera, conservative, independent, 7/22). 
 
¶6.  Editorial:   "... Hugo Chavez has threatened to intervene... and 
this is not just 'solidarity.'  Chavez' reasoning seems to be that 
if the solution in Honduras does not suit his interests, other 
'Bolivarian' governments will be at risk.... This is also no minor 
test for the Obama administration, which is determined to show with 
actions its 'new deal' toward the region.... The United States 
cannot change it firm position condemning the coup that ousted 
Zelaya, but it cannot let ALBA countries (Bolivarian Alternative for 
the Peoples of America) take the lead either.... The situation in 
Honduras has become in many ways alarming. We can only hope that the 
leaders of the different sectors of Honduras will be reasonable and 
responsible, which thus far they have not done (La Segunda, 
conservative, afternoon, 7/21). 
 
Chile-Peru 
----------- 
¶7.  Peruvian Foreign Minister Jose Antonio Garcia said that Chile's 
military acquisitions will "incite an arms race" and should be 
discussed by the defense council of the Union of South American 
Nations, UNASUR (All dailies, 7/22). 
 
¶8.  This is not the first time that Peru has expressed concern over 
Chile's military acquisitions.  But it's the first time that UNASUR 
has been included in the controversy, prompting Chilean Foreign 
Affairs Minister Mariano Fernandez to respond to his Peruvian 
counterpart: "Chile has experienced a significant growth and just as 
it must modernize its agriculture, it must have armed forces 
prepared to carry out the tasks they are expected to do." Fernandez 
also noted that Chile's expenses in defense amount to 1.2% of its 
GDP (El Mercurio, 7/22). 
 
¶9.  The Ambassador of Ecuador to Chile, Francisco Borja, did not 
endorse Peru's concerns. "There must be figures to say there is an 
arms race, to see if there is an expansion of military might or it 
is just involves the replacement of decommissioned elements," said 
Borja (La Nacion, 7/22). 
 
 
SIMONS