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R 231953Z NOV 09
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 0313
INFO RHEFDIA/DIA WASHINGTON DC
RHMFISS/HQ USSOUTHCOM MIAMI FL
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
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RUEHBR/AMEMBASSY BRASILIA 0176
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RUEHSG/AMEMBASSY SANTIAGO

UNCLAS SANTIAGO 001128 
 
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. 21-23 Media Report 
 
Chile-Peru 
 
¶1.      Peruvian Foreign Minister Jose Antonio Garcia Belaunde said 
that the government of Peru was not responsible for leaking the 
information to the press about the alleged espionage.  He added 
that his government does not agree with reviewing the FTA with 
Chile over this incident as proposed by a group of opposition 
congressmen in Peru, but insisted that the only satisfactory 
response for Peru would be for Chile to open an investigation 
(Conservative, influential El Mercurio, 11/21). 
 
 
 
¶2.      Chilean Foreign Minister Mariano Fernandez said his 
ministry would study the dossier sent by Lima and respond to Peru's 
note verbale with another note verbale note, but did not say when. 
Fernandez recalled the case of a Peruvian caught spying on Chile 
earlier this year, noting that Chile had accepted "in good faith" 
Lima's explanations and excluded the government of Peru from any 
responsibility (Conservative, afternoon La Segunda, 11/20). 
 
 
 
¶3.      The Peruvian press leaked the e-mails sent by the alleged 
Peruvian spy.  One of the mails is an inquiry about the performance 
of MIGs compared to the F-16s - similar to those acquired by Chile 
-- during an exercise between the Peruvian air force and its U.S. 
counterpart in 2007 (La Tercera, 11/21). 
 
 
 
¶4.      Former Peruvian Foreign Minister Jose de la Fuente 
criticized President Alan Garcia's handling of the espionage case, 
stating that Peru should have investigated first, reached a 
determination, and only then demanded Chile for an explanation (La 
Tercera, 11/23). 
 
 
 
¶5.      "There is the belief in Peru that Chile is improving its 
military capabilities to defend its investments in that country. 
That sounds crazy in Santiago, but not in Peru.  The supposition is 
that Peru's true goal is to block a maritime agreement between 
Chile and Bolivia.  That sounds crazy in Peru, but not in Chile. 
There is no evidence to sustain either position, but history shows 
that until mutual trust between the two countries is restored, the 
situation between the two is both tragic and funny, but serious" 
(Ascanio Cavallo column, La Tercera, 11/22). 
 
 
 
¶6.      "Nationalist sectors in Peru... see Chile's military 
acquisitions... and investment ...  as part of a master plan to 
take over Peru. These sectors ... believe that Garcia's defense of 
an economic integration with Chile (FTA) and policy to address the 
maritime issue and bilateral relations along different channels... 
put Peru at a disadvantage.  Garcia was forced to react to contain 
these sectors .... Chile must consider this complicated context. 
Garcia is not anti-Chilean and these nationalist sectors are not 
necessarily a majority.... Chile must find an intelligent way to 
provide Peru with an explanation ... and lift a weight off its 
shoulders" (Alvaro Vargas Llosa column, La Tercera, 11/22). 
 
 
 
Local Politics 
 
¶7.      Universidad del Desarrollo and La Segunda conducted a 
survey on the effect of television spots.  Asked how the spots had 
changed their view of the candidates, 42 percent said they had 
improved regarding Enriquez-Ominami; 34 percent regarding Pinera, 
21 percent regarding Frei.  The largest percentage of rejection was 
for Frei with 28 percent (La Segunda, 11/20). 
 
U.S/-Related News 
 
¶8.   According to Investigations Police Chile immigration records, 
the United States deported 169 Chileans from January 2007 to 
September 2009; 70% for immigration reasons and the remainder for 
crimes (La Tercera, 11/22). 
 
 
 
¶9.      The State University of New York and the Technological 
University of Chile Inacap signed a distance learning and student 
and teacher exchange cooperation agreement (El Mercurio, 11/22). 
 
 
 
¶10.  U.S. company Bio Architecture Lab set up a branch office in 
Chiloe to harvest 100 hectares of macro-algae to produce ethanol. 
The raw material will be processed in a pilot plant to be built in 
the Region of Los Lagos (El Mercurio, 11/23). 
 
 
 
¶11.  A group of young American surfers created the "Surf Valpo 
Project," a program to teach surf to children from low-income areas 
in the port of Valparaiso.  "The goal is to teach them skills that 
will allow them to succeed, such as determination and self respect, 
and to show them they have the power to change their lives," said 
one of the young surfers (La Tercera, 11/21). 
 
 
 
¶12.  The New York Times columnist Thomas Friedman believes that in 
spite of the absence of any agreement between the United States and 
China at the upcoming Copenhagen summit, the conference will ignite 
a change that will speed up measures to lower green house gases (La 
Tercera, 11/23). 
 
 
 
¶13.  Melvin J. Hinich, expert in electoral processes and creator of 
a mathematical theory to analyze voting patters, said that 
"everything indicates that Sebastian Pinera will win" the 
presidential election (La Tercera, 11/22). 
 
 
 
Honduras 
 
¶14.  OAS Secretary General Jose Miguel Insulza foresees a strong 
division in the international community between those who will 
accept and those who will reject the validity of the November 
election in Honduras.  Insulza said the United States is "still 
waiting for a gesture from both parties" in the conflict to start 
moving forward (Government-owned, La Nacion, 11/23). 
 
 
 
China 
 
¶15.  Editorial: "In China and the United there are some who believe 
that the two countries are bound to enter a new Cold War....That is 
why President Obama's visit to China - which some view as poor in 
results -- can be seen as the first step in a process of 
rapprochement that will benefit the international community" (El 
Mercurio, 11/23). 
 
 
 
Terrorism 
 
¶16.  An explosive device detonated at the entrance of BBVA bank 
office in Las Condes yesterday at 3 pm. Pamphlets "against the 
state and against capitalism" were found (La Tercera, 11/23). 
SIMONS