VZCZCXYZ0003
RR RUEHWEB

DE RUEHSG #1156 3351526
ZNR UUUUU ZZH (CCY ADE60731 AMG7347-695)
R 011524Z DEC 09
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 0344
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEABND/DEA HQS WASHINGTON DC
RUEHSG/AMEMBASSY SANTIAGO

UNCLAS SANTIAGO 001156 
 
SENSITIVE 
SIPDIS 
C O R R E C T E D COPY CAPTION 
STATE PASS USTR FOR KKALUTKIEWICZ AND WLINDQUIST 
COMMERCE FOR KMANN 
 
E.O. 12958: N/A 
TAGS: ECON KIPR TRGY DEA CI BL
SUBJECT: Ambassador's Trip to Iquique: Positive Engagement on Drug 
Enforcement and Free Trade 
 
REF: SANTIAGO 690 
 
¶1.  (U) SUMMARY: The Ambassador visited Chile's 1st region October 
28-29 to meet local leaders and strengthen ties to an important 
economic area of the country.  Iquique, a city in far northern 
Chile built on the once-booming nitrate industry, is now home to 
one of Chile's two free trade zones.  In meetings with the 
Intendente, the President's representative in the region; Acting 
Mayor; and law enforcement officials, the Ambassador re-affirmed 
the United States' commitment to clean energy, drug enforcement, 
and trade.  The visit, which included meetings with American 
citizens, former U.S. grantees, and a speech on President Obama's 
energy policy at Universidad Arturo Prat, was covered widely by the 
local press. END SUMMARY. 
 
 
 
¶2.  (U) During meetings with Intendente Miguel Silva Rodriguez and 
Maria Angelica Vega, Municipal Secretary and Acting Mayor of 
Iquique, the Ambassador discussed law enforcement and energy 
issues.   According to the Intendente, crime and drugs remain 
primary concerns, particularly trafficking in small amounts of 
drugs.  He stated that enforcement measures are in place, including 
scanners that distinguish goods by color and surveillance aircraft 
equipped with night vision and movement detection devices. 
However, traffickers are able to smuggle goods through more than 
200 illegal crossings along the border with Peru and Bolivia.  The 
Intendente informed the Ambassador that Iquique is working to 
develop desalinization projects-the region is one of the driest in 
the world-but an affordable energy source is needed.  While solar 
energy is attractive, it is still too expensive. 
 
 
 
¶3.  (SBU) Iquique's Free Trade Zone (ZOFRI, according to its 
initials in Spanish), Chile's largest, is a major economic center, 
home to more than 1,650 companies with an annual turnover of U.S. 
$4.7 billion.  The ZOFRI's strategic location makes it a key entry 
point for trade with Bolivia and Peru; the United States is the 
second largest supplier of goods to the zone after China.  The 
Chairman of the ZOFRI Board met with the Ambassador and took him on 
a brief tour of the shopping area.  During the meeting a ZOFRI 
official noted that 55% of ZOFRI sales are to Chile and 25% to 
Bolivia.  Of the sales to Bolivia-totaling approximately 
$900,000,000-more than half are paid for in bulk U.S. dollars, a 
potential money laundering concern according to DEA Attache. 
 
 
 
¶4.  (U) The Ambassador hosted a lunch meeting with Juan Hernandez 
Rivera, National Narcotics Chief of the Investigations Police 
(PDI); Lieutenant Coronel Marcelo Araya Zapata, Chief, North Zone 
Drug Control Section; Regional Prosecutor Claudio Roe; and Embassy 
DEA Attache, during which the Ambassador discussed counternarcotics 
efforts in the region.  In the past 18 months there has been a 
significant increase in the amount of cocaine seized along Chile's 
northern border with Bolivia.  The planned construction in 
2009-2010 of a super highway from the port of Santos in Brazil, 
through Bolivia to Iquique is expected to increase the number of 
tractor-trailers delivering large quantities of cocaine to maritime 
container shipments leaving Chile for Europe, Asia, Africa, the 
Middle East, and the U.S.  As such, the Chile DEA Country Office 
has provided training and exchange programs for Chilean 
counterparts.  The Ambassador's meeting with high level contacts 
over lunch reinforced the United States' continued support at all 
levels. 
 
 
 
¶5.  (U) The Ambassador conducted several outreach events during his 
Iquique visit, including a meeting with former U.S. grantees 
(including the Fulbright and International Visitor Leadership 
Programs), a breakfast with American citizens, and a presentation 
to a packed audience of students and faculty at the Universidad 
Arturo Prat, which was also attended by the media.  The Ambassador 
spoke to the group about President Obama's energy and climate 
policy, a topic that generated a robust question and answer session 
at the conclusion of the presentation.  Media coverage of the 
Ambassador's visit was broad and included interviews with local 
print and television outlets, as well as the local CNN Chile 
affiliate. 
SIMONS