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UNCLAS SANTIAGO 000714 
 
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 27 
 
Lead Story 
---------- 
¶1. "La Tercera" telephone survey on 800 registered voters shows that 
in an eventual presidential election, Sebastian Pinera would receive 
30%, Eduardo Frei 25%, and Marco Enriquez-Ominami 21% Frei (La 
Tercera, 7/26). 
 
U.S.-Related News 
----------------- 
¶2. Last week, former military regime Justice Minister Monica 
Madariaga said she had pressured a judge in 1982, to prevent 
Sebastian Pinera - the 2009 presidential candidate of the right - 
from going to prison. Pinera, whose brother was Labor and Mining 
Minister at the time, faced charges for fraud as CEO of a local 
bank. The judge in question, Luis Correa-Bulo, confirmed Madariaga's 
remarks and said he was told to "leave Pinera alone" (La Nacion, 
government-owned, 7/26). 
 
¶3.  Santiago leftist weekly "El Siglo" reports that CIA declassified 
files reveal that the U.S. Embassy in Santiago helped Sebastian 
Pinera flee the country in 1982 when he was facing charges for 
fraud. Embassy Minister Counselor George Jones met with Pinera's 
father, allegedly a CIA collaborator, to discuss how he would flee. 
The operation was handled directly by Ambassador James Theberge, who 
spoke to the Supreme Court Chief Justice to revoke a warrant of 
arrest against Pinera who faced charges for setting-up paper 
companies that receiving fraudulent loans.  Daily says the author of 
this article was threatened by a right-wing vigilante group (La 
Nacion, 7/26.) 
 
¶4.  The CIA declassified files prove that the presidential candidate 
of the right, Sebastian Pinera, had close ties to the Pinochet 
regime.  They also show he was very influential, because the U.S. 
Ambassador at the time lobbied with the Supreme Court to annul a 
warrant of arrest against Pinera (Atinachile.bligoo.com, 7/26). 
 
¶5.  Alvaro Vargas Llosa wrote that Republican Senator Jim DeMint has 
become President Obama's "main opponent" and the reason 
Chilean-American Arturo Valenzuela has not yet been confirmed. "This 
is not a personal matter with Mr. Valenzuela," said DeMint. "It's a 
much wider issue that has to do with the Department of State's 
general direction in Latin America, where U.S. policy in Honduras 
has at times aligned with Chavez and Castro, the most 
anti-democratic regimes," said DeMint (La Tercera, conservative, 
independent, 7/26). 
 
Honduras 
-------- 
¶6.  "The OAS resolutions on Cuba and Honduras were auspicious, 
because they addressed the issues at stake: the non-exclusion from 
the organization for ideological reasons and zero tolerance to coup 
d'tats.... Without the OAS and other forums such as the Rio Group 
or Unasur, recent crisis such as those between Colombia and Ecuador 
and in Bolivia would have had a worse outcome. The new Obama team 
understands this very well and for that reason has reiterated its 
support to the OAS. In the end, it is the 'realist' alternative 
given the current circumstances" (Professor Boris Yopo, La Tercera, 
7/27). 
 
¶7.  OAS Secretary General Insulza asked former president Ricardo 
Lagos to join a committee of regional leaders -- Uruguayan Julio 
Maria Sanguinetti and Peruvian Javier Perez de Cuellar among them - 
to enforce an eventual agreement between Micheletti and Zelaya (El 
Mercurio, El 7/26). 
 
¶8.  OAS Secretary General Inzulza said his decision not to meet with 
Micheletti in Tegucigalpa, "was a clear message to all those in the 
region who are still dreaming about an authoritarian project." 
Insulza said that Zelaya's attempt to return to his country "is 
absolutely legitimate," although "given the complex situation, it 
would be best for Zelaya to wait for the diplomatic efforts underway 
to conclude." Insulza said the OAS would review "all measures that 
are timely, convenient and within its reach," concluding that the de 
facto Honduran government will have a "very difficult time without 
external financing" (La Nacion, 7/26). 
 
¶9.  Editorial: "The international community miscalculated.  It 
didn't consider the Honduran government's determination to resist 
international pressure or its total opposition to Zelaya's 
restitution....  It was unaware of how unpredictable Zelaya is, the 
ineptitude of his government, and his dependence on Chavez and 
Ortega... and underestimated the potential for bloodshed and the 
terrible precedent of a foreign intervention for the region.... It 
would be best to be pragmatic... and move the presidential election 
forward as much as possible so that the people of Honduras can 
resolve the crisis democratically without Zelaya or Micheletti in 
the presidency" (El Mercurio, 7/25). 
 
OAS 
--- 
¶10. President Bachelet's trip to Paraguay was a success, because 
President Lugo officially stated his country's decision to support 
Jose Miguel Insulza's reelection to the OAS (La Tercera, 7/26). 
 
Cuba 
---- 
¶11.  A group of U.S. military officers and of Cuba's Revolutionary 
Armed Forces (FAR) met in Santiago de Cuba to plan a joint military 
exercise in the surroundings of Guantanamo Bay July 10-19. About 200 
soldiers took part in the planning exercise intended to coordinate 
action in cases of natural disasters, hurricanes, medical 
transportation, and problems surrounding the base. Unofficial 
sources said the Cuban-American exercises are a long-standing 
agreement to maintain a minimum level of coordination with regard to 
Guantanamo.  For American officers it falls under the principle of 
"shared responsibility" (La Nacion, 7/26). 
 
Health 
------ 
¶12. Health authorities confirmed the presence of dengue fever 
serotype 4 in Easter Island.  Since 2002, the island has had dengue 
type 1.  Precautions have been taken locally to prevent the spread 
(La Segunda, conservative, afternoon, 7/24). 
 
 
SIMONS