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UNCLAS SANTIAGO 000763 
 
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 - AUGUST 10 
 
Lead Story 
---------- 
¶1.  Indigenous radical Mapuche groups set fire to a crane and a 
summer cabin in the Region of Araucania on the same day. The 
"Coordinadora Arauco Malleco" (CAM) claimed responsibility for the 
first incident and pamphlets alluding to the Mapuche cause were 
found in both locations (El Mercurio, conservative, influential 
newspaper-of-record, 8/10). 
 
Bachelet-UNASUR 
--------------- 
¶2. In Ecuador, President Bachelet made a very good assessment of the 
first year of the Union of South American Nations (Unasur).  "All 
world leaders know now who to call if they want to have relations 
with South America," she said alluding to President Obama's request 
to meet with the bloc in April to talk about "a new deal."  Bachelet 
will hand the bloc's presidency to Rafael Correa, of Ecuador, amid 
tension in the bloc with regard to Colombia's decision to allow U.S. 
presence in it military bases (El Mercurio, 8/10). 
 
¶3. Unasur officials were discussing the details of the final 
declaration until midnight.  The discussion was marked by the 
insistence of Chavez bloc countries to include a clause with regard 
to U.S. use of Colombian military bases (La Tercera, conservative, 
independent, 8/10). 
 
¶4.  On July 30, in Brazil, Bachelet endorsed President Lula da 
Silva, who expressed concern over the U.S. bases in Colombia and 
supported his proposal to discuss the matter at Unasur. The GOC says 
that Bachelet's remarks in Brazil were "misinterpreted," and that 
the President had never intended to antagonize Colombia or the 
United States. It seems that Lula is concerned with the presence of 
U.S. troops in the Brazilian Amazon and because Alvaro Uribe did not 
forewarn him about the agreement (La Tercera, 8/9). 
 
¶5.  The Washington-Bogota agreement includes negotiations related to 
sea and air surveillance and the presence of 800 soldiers and 600 
contractors in the bases to assist Colombia in its fight against 
narcotics trafficking and the FARC (La Tercera, 8/9). 
 
¶6.  Lula da Silva is concerned that increased U.S. presence in 
Colombia could undermine Brazil's leadership in the region.  His 
other concern is that the agreement will become a new element of 
tension among South American countries, particularly in the context 
of Hugo Chavez' warning that the Colombian-U.S. agreement might lead 
to a "war" in the region. Lula also believes that the fight against 
narcotics "must be done through Unasur's Defense Council without the 
interference of other countries," said Brazilian analyst Gaudencio 
Torquato (La Tercera, 8/8). 
 
U.S.-Related News 
----------------- 
¶7.  The Republicans were able to postpone Arturo Valenzuela's 
ratification as Assistant Secretary of State for Western Hemispheric 
Affairs until after the Senate's summer recess, in September. 
Valenzuela, however, already has the votes for his ratification (El 
Mercurio, 8/10). 
 
¶8.  Interview with Steve Forbes entitled, "Most of President Obama's 
proposals will do more damage than good." Forbes will be speaking at 
CasaPiedra in Santiago on the 11th (El Mercurio, record, 8/8). 
 
¶9. A "Newsweek" magazine article entitled, "Chile Starts Early," 
praises the country's preschool education policy, highlighting that 
2.5 preschool facilities are built every day (El Mercurio, 8/10). 
 
¶10.  Obama's insistence to move forward on the health reform is 
because the financial crisis has already resulted in a recession and 
the risk is that it will become a social crisis. Obama has much at 
stake in the reform of the health system and his conservative 
enemies know that (Government-owned La Nacion, 8/9). 
 
¶11.  The most powerful country in the world has the most deficient 
health system of all developed countries. Obama wants to change that 
and is set on setting a social protection system....  He is fully 
set on this goal and the right-wing sees this as a chance to credit 
it as a defeat (La Nacion, 8/9). 
 
U.S.-Honduras 
------------- 
¶12.  Honduras' de facto government has agreed for OAS Secretary 
General Jose Miguel Insulza to visit the country, but only as an 
observer. The date of the visit has not yet been determined. In 
Quito, ousted President Manuel Zelaya said Washington's efforts with 
regard to the coup in his country "have been insufficient" (El 
Mercurio, 8/10.) 
 
¶13.  The United States has begun to move away from President Zelaya. 
 The change can be seen in a Department of State letter to Senator 
Richard Lugar criticizing Zelaya for incurring in "provocative" 
actions after his ousting.  The letter underscores that U.S. policy 
"must not rest on support for any particular individual, but rather 
on the search for a solution that best serves the people of Honduras 
and their democratic aspirations," and "rejects" the application of 
tougher economic sanctions on Micheletti. The letter adds that the 
U.S. administration "has not yet made a final decision" on whether 
Zelaya's ousting was a coup d'tat. This is strong blow for Zelaya 
who believes the United States is the only country with the leverage 
to put him back in office (La Tercera, 8/8). 
 
Indigenous Mapuche conflict 
--------------------------- 
¶14.  Undersecretary of Interior Patricio Rosende expressed concern 
with the presence of members of Askapena in the region where violent 
Mapuche attacks are taking place. Askapena is the political arm of 
terrorist Basque organization ETA (El Mercurio, 8/8). 
 
Weapons Acquisitions 
-------------------- 
¶15.  Brazil has begun an ambitious military modernization program. 
Several Brazilian analysts explain why: Lula wants to strengthen 
Brazil's geopolitical standing in the region, which is accomplished 
diplomatically, but also by upgrading its military; Hugo Chavez' 
weapons acquisitions from Russia have altered the military balance 
in South America; there is concern with the growing tension between 
Colombia and Venezuela, which could affect Brazil's border; the FARC 
needs to be kept out of Brazil; and Lula is concerned with foreign 
incursion into the Amazon, which is rich in natural resources (El 
Mercurio, 8/8). 
 
SIMONS