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E.O. 12958: N/A 
TAGS: ECON KMDR KPAO PGOV PREL SNAR EFIN CI
SUBJECT: Santiago Oct. 2 Media Report 
 
Lead Story 
 
-------------- 
 
¶1.                  The Antofagasta Regional Environmental 
Commission (Corema) ordered gas company "Geotermica del Norte"  to 
cease exploration activities near El Tatio geyser field in northern 
Chile.  On September 8 operations resulted in a leak that sent 
water shooting 197 feet into the air, causing environmental damage. 
El Tatio is one of Chile's most important tourist attractions. 
Geotermica del Norte's negligence could result in the permanent 
loss of its authorization to explore geothermal energy in the area 
(La Tercera, 10/2). 
 
 
 
U.S.-Related News 
 
------------------------ 
 
¶2.         Interview with U.S. Ambassador Paul Simons on the Obama 
administration and the Israeli-Palestinian conflict.  "The 
President understands the issue, is familiar with it, and has 
publicly addressed it, unlike other administrations that waited 
until the third or last year to start moving forward on it," said 
Simons. The Ambassador said the United States is "willing to take 
an active role," noting that President Obama appointed George 
Mitchell as his Special Envoy to the Middle East just a few days 
after taking office.  Simons also highlighted the President's 
speech in Cairo on June 4 as an example of his commitment to move 
forward on Israeli and Palestinian talks and engage with the Muslim 
world. "We have moved forward significantly," said Simons (Al Damir 
Magazine, September edition). 
 
 
 
"Salitre" Military Exercise 
 
--------------------------------- 
 
¶3.         Peruvian Foreign Minister Jose Garcia-Belaunde attempted 
to lower the tension with Chile caused by Peruvian Defense Minister 
Rafael Rey's request for Santiago to cancel the "Salitre" exercise. 
"I don't believe there is a diplomatic impasse. What we have is an 
operation that is usually conducted by countries through their 
militaries," Garcia-Belaunde said.  Peruvian Minister Rey, however, 
insisted yesterday on criticizing the exercise on the grounds that 
it is "offensive" to Peru (Conservative, influential El Mercurio, 
10/2). 
 
 
 
Honduras 
 
------------ 
 
¶4.         OAS representative to Honduras John Biehl met with 
Manuel Zelaya in the Brazilian embassy. Biehl said he saw in the 
ousted president "favorably disposed" to negotiate, adding that he 
is seeing the same disposition in other groups. "There is a 
willingness to talk seriously to resolve the problem," said Biehl, 
who is scheduled to meet with Micheletti today (Conservative, 
afternoon La Segunda, 10/2). 
 
 
 
¶5.         Excerpts of an interview with Roberto Micheletti: "What 
we have done is ask Brazil to respect the law.  An embassy cannot 
be used for domestic politics and least of all to instigate 
violence....I am willing to find a solution, but cannot allow a man 
who broke the law and was legally removed from office... to elude 
his responsibility...I am willing to resign before the end of the 
term if the constitutional conditions are met...The international 
community does not understand what is happening in Honduras. It 
does not understand that we have our laws.   Institutions are 
working perfectly, and in accordance with the constitution there is 
 
 
an electoral process, which is the way to normalize the political 
situation" (Alvaro Vargas Llosa interview in conservative, 
independent La Tercera, 10/2). 
 
 
 
Local 
 
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¶6.         The IMF World Economic Outlook report foresees that 
Chile will experience 4% economic growth in 2010 and an increase in 
its per capita income, measured as purchasing parity, to US$14,299, 
the highest in Latin America (La Tercera, 10/2). 
 
 
 
¶7.         Presidential candidate Marco Enriquez-Ominami outlined 
his political program to an audience of entrepreneurs at the Centro 
de Estudios Publics (CEP), a think-tank.  His proposals, which were 
widely applauded, focus on tax reforms that would collect an 
additional US$2 billion a year, modernization of the government, 
and labor flexibility policies. He proposed modernizing the 
government by electing regional "Intendentes," rather than 
appointing them, introducing indigenous people's representatives, 
and setting Congressional term limits. He also talked about energy 
and digital television. The overall impression among entrepreneurs 
of Enriquez-Ominami's program was positive. "Very open minded," 
said Horst Paulmann, head of the Cencosud holding.  "An attractive 
candidate," said Francisco Perez Mackenna of the Luksic group 
(Financial daily Diario Financiero, and La Tercera, 10/2). 
SIMONS