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UNCLAS SANTIAGO 000761 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/BSC 
 
E.O. 12958: N/A 
TAGS: PREL PGOV VZ CI PE BO
SUBJECT: BRISTLING AT THE "BOLIVARIAN PROJECT":  REMARKS BY 
CHILEAN PRESIDENTIAL CANDIDATE, FOREIGN MINISTER 
 
¶1. SUMMARY:  (SBU) Concertacion presidential candidate 
Eduardo Frei and Foreign Minister Mariano Fernandez publicly 
criticized populist leaders in the region during a seminar on 
Latin America held in Santiago August 4-5.  Frei warned that 
the "Bolivarian project" could threaten political and social 
stabiity in Latin America, and noted Venezuela and Honduras 
as countries where leaders "modify the rules of the 
democratic game for personal ambitions."  Fernandez departed 
from prepared remarks to assert that "a democratic recession" 
in the region is creating opportunities for "authoritarian 
and messianic" leaders, the strongest criticism to date of 
regional leaders by a Bachelet administration official. 
Fernandez and Frei advocated a leading role for Chile in 
promoting regional stability and integration.  END SUMMARY. 
 
FREI: "BOLIVARIAN PROJECT DESERVES SPECIAL ATTENTION" 
--------------------------------------------- -------- 
 
¶2. (SBU) On August 5, Concertacion presidential candidate 
Eduardo Frei cautioned that the "Bolivarian project deserves 
special attention" because it could be a source of political 
and social instability in Latin America.   Frei noted the 
Bolivarian call for regional expansion and said that this 
expansion has already led to diplomatic and military 
confrontations.  While the confrontations have not spilled 
over into actual conflict, the threat to regional stability 
still exists. 
 
¶3. (SBU) Frei pointed to Venezuela and Honduras as examples 
of the recent trend in Latin America where leaders "modify 
the rules of the democratic game for personal ambitions."  He 
identified the rush in Venezuela to consolidate power in the 
executive and eliminate space for the opposition as steps 
that move that country away from being a true democracy. 
Frei added that economic measures such as nationalization 
could upset the basic economic order that is needed for 
democratic governance. 
 
¶4. (SBU) The financial crisis and drug trafficking are two 
other threats to stability in Latin America, Frei told the 
audience of government, military, and academic officials at a 
conference convened by the British think tank International 
Institute for Strategic Studies.  The response to the 
financial crisis, which Frei considers the biggest regional 
test in 20 years, will determine the future of the region's 
leftist governments.  He added that drug trafficking had 
spread from being an Andean problem to a threat that menaces 
Brazil, Paraguay, and Chile. 
 
FM FERNANDEZ:  VEILED REFERENCES REVEAL FRUSTRATION WITH 
POPULISM 
--------------------------------------------- ----------- 
 
¶5.  (SBU) While not as direct as Frei, a series of unscripted 
remarks by Foreign Minister Mariano Fernandez revealed 
similar frustrations with Latin American populism.  In his 
August 4 comments to the conference, Fernandez said that 
Latin America was experiencing a "democratic recession." 
Weak institutions and serious fractures in society were 
creating the conditions for "authoritarian and messianic" 
leaders to emerge, he asserted.  Some of his criticisms 
seemed to target Honduras, as he said pointedly that as Latin 
America has become more democratic in recent decades, "in 
most cases, elected governments have not been unduly 
questioned by other members of society."  The region needs 
stronger political parties that can respond to strident media 
attacks, he continued.  Later, in a remark seemingly aimed at 
Peru, the Foreign Minister noted that "some countries in the 
region have exploited border conflicts to promote nationalism 
and domestic political goals." 
 
FREI AND FERNANDEZ:  CHILE TO PROMOTE REGIONALISM AS A 
"TRUSTED PARTNER" 
--------------------------------------------- --------- 
 
¶6. (SBU) Frei maintained that Chile must contribute to 
 
regional stability and expressed a personal desire for Chile 
to be a leader in Latin America.  He acknowledged that the 
country will be occupied by border disputes with Peru and 
Bolivia in upcoming years and suggested these disputes will 
hinge on a strong international public relations campaign as 
much as a strong legal case.  Frei advocated for sustained, 
pro-active engagement by Chile in regional groups and 
emphasized the importance of being considered a "trusted 
partner."  He also underscored the need to cultivate 
relationships with Mexico and Brazil because of their 
influence on the larger world stage. 
 
¶7. (SBU) Frei said Chile must do more to change the 
perception that it is "cold, calculating, and arrogant."  He 
proposed that Chile think of Latin America as a political and 
economic extension of itself, then act accordingly.  He 
highlighted the GOC's actions in Haiti as an example of the 
attitude Chile must adopt towards the region.  According to 
Frei, increased economic, cultural, scientific exchanges are 
key to changing perceptions and behavior within the region. 
 
¶8.  (SBU) Foreign Minister Fernandez called for Chile to 
promote regionalism, saying that the integration of Latin 
America will promote democracy.  For years, carelessly drawn 
borders and economies based on exporting goods to more 
developed countries -- both legacies of Spanish colonialism 
-- have stifled regional integration, he said.  Now, however, 
Chile and other Latin American countries are beginning to 
overcome this legacy, with increasing amounts of Chilean 
exports and Chilean investment destined for Latin American 
countries.  Nonetheless, some parts of the regional project 
--  particularly infrastructure -- are far behind.  Chile and 
Argentina share a 5,300 km border (the third longest in the 
world) and yet have just a few border crossings.  Bolivia, 
the "kidney of Latin America," has five borders, but no paved 
roads to other countries. 
 
¶9. (SBU) COMMENT:  Frei's comments about Venezuela are the 
strongest words yet from a member of the ruling Concertacion, 
an alliance of four center-left and left parties.  His 
willingness to openly discuss the threat posed by Chavez, 
albeit without mentioning his name, is a stark contrast to 
President's Bachelet's silence.  Similarly, Fernandez's 
spontaneous comments, while indirect, offer a glimpse of 
Chile's exasperation with its more hot-headed neighbors.  END 
COMMENT. 
SIMONS