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R 302004Z OCT 09
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 0207
INFO RHEFDIA/DIA WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
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UNCLAS SANTIAGO 001028 
 
SIPDIS 
STATE FOR R/MR, I/PP, WHA/BSC, WHA/PDA, INR/IAA 
 
E.O. 12958: N/A 
TAGS: ECON KMDR KPAO PGOV PREL SNAR EFIN CI
SUBJECT: Santiago Oct. 30 Media Report 
 
Lead Story 
 
¶1.            The Ministry of Education warned public teachers who 
are on strike that it could be forced to extend classes until 
December 29 to complete the days required for any given academic 
year (Conservative, independent, La Tercera, 10/30). 
 
 
 
Chile-U.S. 
 
¶2.        President Obama invited Chile's next president to take 
part in a presidential summit on nuclear energy that will be held 
in Washington on April 12.  The U.S. President invited 40 other 
countries, including G8 nations. Although the summit will focus on 
nuclear energy, with an emphasis on nuclear non proliferation, 
diplomatic circles (in Santiago) view the invitation as a signal 
for Chile.  The analysis here is that the White House has a 
positive opinion of Chile's role as a moderate ally in the region 
compared to the axis formed by Venezuela, Ecuador, and Bolivia. 
Assistance for Chile to attain a diversified and more stable energy 
matrix is, therefore, important to strengthen its ties with the 
United States and its role in South America. Chile is the only 
Latin American country invited to the summit that does not have a 
nuclear plant.  Diplomatic circles note that the invitation to the 
summit is unrelated to an eventual visit of the U.S. President to 
Brazil and Chile in the end of this year or the beginning of next 
(El Mercurio, 10/30). 
 
 
 
¶3.        The New York Times published an article praising 
President Bachelet as she prepares to end her term in office.  The 
article highlights her handling of the economy during the global 
financial crisis, noting that she overcame gender barriers "in a 
deeply conservative country" that elected Bachelet on her own 
account and not as the wife of a popular president, as has been the 
case in other Latin American countries (La Nacion, La Segunda, El 
Mercurio, 10/30). 
 
 
 
¶4.        Chilean forestry companies complained to the Foreign 
Ministry their concern over new tax benefits that U.S. cellulose 
producers will receive in 2010.  The Chilean companies said that 
the new tax exemptions constitute unfair competition, because in 
practice they will triple the amount of subsidy that the U.S. 
companies receive today from the government.  The subject could 
come up for review with the Chile-U.S. Free Trade Agreement 
Administration Commission (El Mercurio, 10/30). 
 
 
 
Honduras 
 
¶5.        Deposed President Manuel Zelaya said he is a "moderate 
optimist" with regard to the agreement reached last night with de 
fact President Roberto Micheletti.  "It is a first step toward by 
restitution," said Zelaya.  El agreement foresees Zelaya's 
restitution pending approval from Congress and the Supreme Court. 
Zelaya said the discussion about deadlines would start tomorrow (El 
Mercurio on line, 10/30). 
 
 
 
¶6.        Roberto Micheletti and Manuel Zelaya reached an agreement 
pressed by the United States, which sent to Honduras a delegation 
headed by Assistant Secretary Thomas Shannon.  The U.S. official 
had said prior to the agreement that "time was running out" and 
that "from the viewpoint of the United States and the international 
community" an agreement was needed as soon as possible. Twelve 
hours later, OAS political affairs secretary Victor Rico and 
Shannon announced the agreement to the press. Shannon immediately 
said the United States would support the November election. "This 
is a great moment for Honduras.  The people of Honduras should be 
very proud of what they have achieved," said Shannon.  "There is no 
 
other country in the Americas that has suffered this kind of 
democratic rupture and resolved it through negotiation and without 
impositions or violence," added Shannon (Independent on-line news 
agency El Mostrador, 10/20). 
 
 
 
¶7.        Deposed President Manuel Zelaya said the agreement 
reached with Micheletti is "a victory for Honduras' democracy." 
Zelaya also thanked Assistant Secretary Thomas Shannon and the OAS 
for assisting in bringing the political crisis in Honduras to an 
end. The U.S. delegation "played a fundamental and key role, as 
well as the OAS, the European Union, as all other countries in the 
Americas," said Zelaya (La Tercera on line, 10/30). 
 
 
 
¶8.        "I want to congratulate the people of Honduras, President 
Zelaya, and Mr. Micheletti for reaching this historic agreement" 
said Secretary of State Hillary Clinton (Government-owned, La 
Nacion, 10/30). 
 
 
 
¶9.        Tom Shannon twists Micheletti's arm: de facto president 
Roberto Micheletti accepts Congress to decide on Zelaya's 
reinstatement (La Nacion, 10/30). 
SIMONS