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DE RUEHSG #1034/01 3062027
ZNR UUUUU ZZH
R 022026Z NOV 09
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 0212
INFO RHEFDIA/DIA WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHAC/AMEMBASSY ASUNCION
RUEHBO/AMEMBASSY BOGOTA
RUEHBR/AMEMBASSY BRASILIA 0123
RUEHBU/AMEMBASSY BUENOS AIRES 0120
RUEHCV/AMEMBASSY CARACAS 0074
RUEHMN/AMEMBASSY MONTEVIDEO
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RUEHQT/AMEMBASSY QUITO
RUEHSG/AMEMBASSY SANTIAGO

UNCLAS SANTIAGO 001034 
 
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 Nov. 2 Media Report 
 
Lead Story 
 
¶1.            Undersecretary of the Interior Patricio Rosende 
denounced the use of children as shields in illegal land 
occupations and demonstrations by Mapuche indigenous communities. 
Video material confirming his remarks was shown to the Senate's 
Constitutional Committee last week (Conservative, influential El 
Mercurio 11/1). 
 
 
 
U.S.-Related News 
 
¶2.    Secretary of State Hillary Clinton greeted a small group of 
Chilean women entrepreneurs attending the "Pathways to Prosperity 
in the Americas" Conference (Conservative, independent La Tercera 
11/1). 
 
 
 
¶3.   Article on U.S. Ambassador Paul Simons' remarks on 
"Environmental Policies of President Obama" to regional 
authorities, students, and professors at Universidad Arturo Prat in 
Iquique (www.unap.cl  , 11/2). 
 
 
 
¶4.    According to the American Chilean Chamber of Commerce, 
Chile's commercial exchange with Florida in 2008 totaled US$5.358 
billion; Texas US$4.372; California US$2.825; and Georgia US$213 
million (La Tercera, 11/1). 
 
 
 
¶5.    Senate President Jovino Novoa has just returned from 
Washington, D.C., where he met with Obama administration officials 
and congressmen to learn about the checks and balances used in the 
U.S. Congress.  Based on his trip, Novoa prepared a draft proposal 
that includes, among other things, the Senate's participation in 
the nomination of three government officials who are appointed by 
the President: the directors of the Electoral Service, Civil 
Registration and Identification Service, and the National Economic 
Prosecutor (El Mercurio, 11/2). 
 
 
 
Honduras 
 
¶6.    U.S. Ambassador to Honduras Hugo Llorens announced that in 
support of the agreement reached by both parties, the United States 
would re-open its Non-Immigrant Visa service starting November 2. 
The United States did not, however, say when and if it would 
reestablish financial aid (La Tercera, 11/1). 
 
 
 
¶7.    The agreement in Honduras was the result of direct and strong 
U.S. pressure.  The United States sent some of its highest ranking 
Department of State officials to Tegucigalpa to "diplomatically" 
remind the parties in conflict that the United States would not 
endorse the November election without a solution to the crisis and 
that it is the main destination for Honduran exports. Negotiations 
began to move smoothly after that. The road ahead is not easy, but 
Honduras has taken the most important first step (Government-owned 
La Nacion, 11/1-7). 
 
 
 
¶8.    Spanish daily "El Pais" said that Assistant Secretary Shannon 
had met in Tegucigalpa with Porfirio Lobo, who has a good chance to 
become Honduras' next president, to explain the agreement. 
Reportedly, Shannon said that Zelaya needed a guarantee that 
Congress would vote in favor of his reinstatement and asked Lobo to 
commit his party's votes in Congress (El Mercurio, 11/2). 
 
¶9.    Just two days after signing the agreement, Manuel Zelaya and 
the government led by Roberto Micheletti began disagreeing on the 
agreement's terms and deadlines for Zelaya's reinstatement (El 
Mercurio, 11/2). 
 
 
 
¶10.   The breakthrough in Honduras was possible thanks to the U.S. 
delegation led by Thomas Shannon, Craig Kelly, and Dan Restrepo. 
U.S. sources said that Micheletti had yielded when the U.S. 
officials affirmed that the accord would limit Zelaya's power and 
that the Supreme Court and Congress would decide if he is 
reinstated. Reportedly, Micheletti wanted assurance that he is not 
the target of international scorn and that whomever takes office in 
January is internationally recognized (La Tercera, 10/31). 
 
 
 
¶11.   It was Washington, and not the OAS or President Arias, who 
succeeded in persuading the two parties to sign an agreement.  Why? 
Because the OAS... and Arias had embraced Zelaya's position from 
the beginning of the crisis.  This earned them the distrust of a 
wide sector of Honduras society and contributed to further dissent 
.... The United States... took a distance from events from the 
start... and gave the two parties in conflict room to save face.... 
OAS Secretary General Jose Miguel Insulza therefore missed the 
chance for his organization to win back its prestige and validity 
(????lvaro Vargas Llosa column, La Tercera, 11/1). 
 
 
 
¶12.   Editorial concludes: "The way in which the agreement was 
reached in Honduras clearly shows that U.S. diplomacy and muscle 
still have great influence in the region" (La Tercera, 10/31). 
 
 
 
¶13.   Manuel Zelaya threatened that he would not recognize the 
United Reconciled Government if Congress does not reinstate him in 
office by Thursday (La Nacion, 11/2). 
 
 
 
¶14.   Editorial: "Micheletti and Zelaya accepted signing an 
agreement under U.S. direct pressure.... For months no one, not the 
OAS, presidents, foreign ministers nor delegations from other 
countries in the region succeeded in this endeavor .... The crisis 
in Honduras shows that neither the region nor the United States are 
willing to accept a constitutional rupture that implies a 
presidential ousting.  But it also shows that there is no mechanism 
to deal with a democratically elected head of state who exceeds his 
attributions... The resolution of the crisis in Honduras will 
probably unblock Arturo Valenzuela's nomination in the U.S. 
Senate.... His confirmation would be a positive sign from the 
United States for the region" (El Mercurio, 11/2). 
SIMONS