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UNCLAS SANTIAGO 000707 
 
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 24 
 
Lead Story 
---------- 
¶1.  Unemployment in the Metropolitan Region is 11.9%, which is 0.9% 
lower than in March. This is the first drop since the end of 2008, 
and means that 30,800 people are no longer without a job (El 
Mercurio, conservative, influential newspaper-of-record, 7/24). 
 
Survey 
------- 
¶2.  The Market Research International (MORI) poll shows that 
Sebastian Pinera would be ahead of all presidential candidates in a 
first round, with 43%.  Eduardo Frei received 21% and independent 
Marco Enriquez-Ominami 13%.  In a hypothetical Pinera-Frei runoff, 
the first received 46% and the latter 30%; in a runoff with 
Enriquez-Ominami, Pinera would have received 47% and the latter 23%. 
 The poll was conducted in the Metropolitan Region only and 
represents 85% of the national population (All dailies, 7/24). 
 
Riggs Case 
---------- 
¶3.  Conservative think tank "Libertad y Desarrollo" (L&D) has been 
deploying major efforts among right-wing parties to stop Congress 
from passing a bill that would grant Chile's tax revenue system the 
authority to lift banking secrecy.  L&D's research director Axel 
Buchheister has been leading this position, arguing that the bill is 
a violation of people's right to privacy.  But there is more to 
Buchheister.  He helped set-up the first triangular operation to 
conceal Dictator Pinochet's assets abroad (El Mostrador, on-line 
news agency, 7/24). 
 
Mapuche conflict 
---------------- 
¶4.  Fifty indigenous Mapuches destroyed almost 1,000 ft. of fence 
and two wooden bridges to illegally occupy the property of Rene 
Urban, in southern Chile.  The Carabineros police were called, but 
were met with stones and resistance. The group's leader was arrested 
and charged with violent usurpation.  Urban has suffered 36 previous 
similar attacks that have amounted to US$1.2 million in losses (El 
Mercurio, conservative, influential newspaper-of-record, 7/24). 
 
¶5.  Another illegal occupation occurred just a few miles from 
Urban's land.  The Mapuches were met by the police and fled to the 
hills. Regional "Intendente" Cristian Dulansky said the government 
"does not yield to violence," adding that only 1% of the 1,800 
Mapuche communities in the area resort to violent usurpation (El 
Mercurio, 7/24). 
 
Local politics 
-------------- 
¶6.  Former Military regime Justice Minister Monica Madariaga said in 
an interview that in 1982 she had spoken to a judge to take 
Sebastian Pinera out of prison. Pinera was facing charges as 
president of a bank that had issued millions of pesos in loans to 
its owners (La Tercera, conservative, independent, 7/24). 
 
Salmon Industry 
--------------- 
¶7.  A Ministry of Economy report confirms that Chile's salmon 
industry used excess antibiotics in 2008: 325,616 kilos.  Norway, 
with a production comparable to Chile's, used only 941 kilos.  Cesar 
Barros, president of the local Salmon Producers' Association, 
explained the difference, arguing that unlike Chile, Norway was 
using a vaccine that was 100% effective against furunculosis. 
Environmental organization "Oceana" requested the information based 
on the new Transparency Law (El Mercurio, 7/24). 
 
Honduras 
-------- 
¶8.  In an interview with Alvaro Vargas Llosa, Honduran de facto 
President Roberto Micheletti said: "President Zelaya's return to 
power is not possible.... Let me remind you that there is a warrant 
of arrest against him for committing at least 15 crimes, which means 
he must be detained and handed to the courts of justice.... I'm 
willing to resign so that there is a national unified government and 
if former President Zelaya renounces to his objective and hands 
power to whoever wins the election.... There are no political 
prisoners here, nor deaths, torture or censorship.  There is no 
dictatorship.... The constitution is clear.  Any citizen, including 
the president, who commits an unconstitutional act or tries to 
reform it on his own, must be removed from office.... Zelaya has 
broken the law" (La Tercera, 7/24). 
 
¶9.  In Paraguay, President Bachelet said: "We believe that President 
Arias' proposal contains the essential points to guarantee the 
reestablishment of democracy (in Honduras)... but having that 
failed, we believe it is time for the OAS to take additional 
action... to create the conditions for Honduras to recover its 
democracy" (Diario Financiero, business and financial, 7/24). 
 
¶10.  Andres Oppenheimer column:  "The conflict in Honduras is 
quickly turning into a power struggle in Washington, which could be 
a bad sign for U.S. policy toward Latin America. We are already 
starting to see the signs of this.  Republican Senator Jim DeMint 
blocked Arturo Valenzuela's confirmation as head of hemispheric 
affairs and Thomas Shannon's as ambassador to Brazil, the largest 
country in Latin America....  The delay to confirm the man 
responsible for U.S. policy toward the region, plus the fact that 
Obama has not yet appointed a Special Envoy for the Americas could 
have a very high cost for Washington in the region" (El Mercurio, 
7/24). 
 
SIMONS