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UNCLAS SANTIAGO 000806 
 
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 26 
 
Lead Story 
---------- 
¶1. The sale of retail products increased 8.8 per cent in July.  The 
sale of clothing shot up 26.1 and shoes 17.4 per cent, spreading 
optimism in the business sector (Conservative, independent La 
Tercera, 8/26). 
 
U.S.-Related News 
----------------- 
¶2. The Kennedy Amendment was the one issue that marked Ted Kennedy's 
relationship with Chile and the reason why some admired and others 
deplored him.  The amendment froze U.S. arms sale to Chile during 
the military regime and up to 1990. Kennedy visited Chile in 1986, 
to meet with union leaders, politicians, and Catholic Church 
officials. He had to be taken out of the airport on a helicopter, 
because demonstrators against his visit had blocked the access to 
the airport (Conservative, influential newspaper-of-record El 
Mercurio, 8/26) 
 
¶3.  Photographs and article of the USS Makin Island in its visit to 
Punta Arenas (Regional daily La Prensa Austral, 8/14). 
 
¶4.  The Council of the Americas will host a dinner for President 
Bachelet on September 23 in New York during her visit to the U.N. 
General Assembly (Afternoon daily La Segunda, 8/25). 
 
¶5. Economist Rolf Luders said that Ben Bernanke's management of the 
FED prevented the financial crisis in the United States from turning 
into a new Great Depression. Economist Juan Eduardo Coyeman said 
Bernanke's decisions generated confidence and helped consolidate the 
role of the Central Bank in times of crisis (El Mercurio, 8/26). 
 
U.S.-Colombia Agreement 
----------------------- 
¶6. In a meeting with Chilean Foreign Minister Mariano Fernandez on 
Monday, Colombian Chancellor Jaime Bermudez said that Bogota has not 
yet made a decision on the reelection of OAS Secretary General Jose 
Miguel Insulza. Colombia is in synchrony with the United States in 
this issue; Some weeks ago Secretary Clinton wrote the Chilean 
Foreign Ministry a letter saying that the U.S. final decision 
depending on "Insulza's performance" (El Mercurio, 8/26). 
 
Chile-Peru 
----------- 
¶7. Two days ago, Peruvian President Alan Garcia accused Chile and 
Bolivia of having a secret agreement to give La Paz access to the 
sea. Now Garcia said he would demand Chile and Bolivia to reveal 
their bilateral agenda at UNASUR on Friday, on the grounds that any 
decision involving territory that used to belong to Peru should 
include Lima (El Mercurio, 8/26). 
 
¶8.  Colombia filed a formal complaint with the OAS against 
Venezuelan President Hugo Chavez for his criticism of the 
U.S.-Bogota military agreement, which it considers an intervention 
in Bogota's internal affairs (Popular daily it Las Ultimas Noticias, 
8/26). 
 
Honduras 
-------- 
¶9.  De facto Honduran President Robert Micheletti refused to yield 
to the requests of the OAS delegation headed by Secretary General 
Jose Miguel Insulza. In a defiant tone, Micheletti said he does not 
fear international sanctions and will hold a presidential election 
on November 29 (La Tercera, 8/26). 
 
Ecuador 
------- 
¶10. In his meeting with President Bachelet, El Salvador President 
Mauricio Funes endorsed Bachelet's stance in "condemning the 
institutional breakdown in Honduras" (Government-owned La Nacion, 
8/26). 
 
Indigenous Mapuche Conflict 
--------------------------- 
¶11.  The Executive Office is reviewing an initiative it announced in 
April of last year and that creates the Council of Indigenous 
Peoples, a 42-member "indigenous parliament" representing all 
indigenous communities in the country. Council members would be 
elected for four years with the right to reelection and would be 
responsible for approving the National Indigenous Policy, monitoring 
governmental indigenous policy, reviewing all draft bills and 
budgets related to indigenous affairs, among other things (El 
Mercurio, 8/26). 
 
¶12.  Human Rights Watch-Americas Director Jose Miguel Vivanco 
expressed concern over the role of military courts in the Mapuche 
conflict. Yesterday, the Martial Court lifted charges against 
Mapuche leader Luis Tralca for attempted homicide of a policeman. 
Tralca, however,  still faces charges for illegal possession of 
weapons and for arson of private property and must remain in prison 
(La Nacion, 8/26) 
 
 
SIMONS