VZCZCXYZ0025
RR RUEHWEB

DE RUEHSG #0104/01 0291956
ZNR UUUUU ZZH
R 291955Z JAN 10
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 0633
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
RUEHAC/AMEMBASSY ASUNCION
RUEHBR/AMEMBASSY BRASILIA
RUEHBU/AMEMBASSY BUENOS AIRES
RUEHCV/AMEMBASSY CARACAS
RUEHMN/AMEMBASSY MONTEVIDEO
RUEHPE/AMEMBASSY LIMA
RUEHSG/AMEMBASSY SANTIAGO

UNCLAS SANTIAGO 000104 
 
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: Embassy Santiago Jan. 29 Media Report 
 
Jan. 29 Media Report 
 
Lead 
 
¶1.      Unemployment decreased 0.5 percent compared to the previous 
quarter and now stands at 8.6 percent. The participation of women 
in the labor market was 41.3 percent which is 5.6 percent higher 
than a decade ago, although still the lowest in the region 
(Conservative, independent, La Tercera, 1/29). 
 
 
 
Assistant Secretary Arturo Valenzuela (based on teleconference) 
 
¶2.      Assistant Secretary Valenzuela was asked what was needed 
for Honduras to re-enter the Organization of American States (OAS): 
"Fulfill the San Jose agreements, that is, create a national 
unified government and a truth commission. . . .  President Lobo 
has assumed this. . . .  Honduras is heading in the right direction 
and is retaking the democratic process. . . .  This is not an issue 
that concerns the United States only; all countries are concerned, 
because there cannot be a precedent of a coup or of a country's 
isolation.  There is good dialogue with the Rio Group and a 
resolution will be reached." Asked about Zelaya: "I was with Manuel 
Zelaya on Tuesday and he said, 'My term ends here' (La Tercera, 
1/29). 
 
 
 
¶3.    Arturo Valenzuela said Manuel Zelaya's exit for Honduras had 
been an "important step."  He said the United States is "very 
satisfied because "from here on we can work with other countries so 
that Honduras can return to the OAS" (Radio Cooperativa on line, 
1/29). 
 
 
 
U.S.-Related News 
 
¶4.    Editorial: "Contributions to U.S. Policy":  "In a ruling that 
surprised experts and was questioned by President Obama, the U.S. 
Supreme Court struck down the law that prohibits corporations from 
paying for advertisements to either support or oppose a candidate. 
. . .  The argument is that this falls in the spirit of the First 
Amendment that guarantees freedom of speech. . . .  It is 
interesting that the Supreme Court deems that citizen organizations 
have the same rights as individuals" (Conservative, influential El 
Mercurio, 1/29). 
 
 
 
¶5.      Commentary by Fernando Purcel, Catholic University and 
University of California history professor: "Obama is in a 
difficult situation, because his administration has been forced to 
focus on the economic crisis and not so much on implementing the 
proposals with which he won voters' confidence.  Obama has many 
pending task ahead. . . .  To accomplish them, he should start by 
focusing his charisma and inspiring leadership . . .  toward 
political circles, something he has not yet fully achieved.  He 
also needs to attain a degree of political leadership that 
transcends ideals and principles" (La Tercera, 1/29). 
 
 
 
¶6.      Press release on the meetings being held in Santiago by 
Department of State, USAID,  and Chile's International Cooperation 
Agency officials to discuss trilateral cooperation efforts to 
assist the region (Financial daily Diario Financiero, 1/29). 
 
 
 
State of the Union Address 
 
¶7.      President Obama used the appeal of his charisma and a solid 
address. . . .  But his proposals did not reflect any fundamental 
change to re-enchant the people who are disappointed with the 
management of the economy and the bailout of the banking sector. 
 
The president's remarks did not show that he understood, as 
Financial Times columnist Clive Cook said, "That the country is 
sending him a message and that he is listening closely to it" 
(Diario Financiero, 1/29). 
 
 
 
¶8.      The president announced plans for the middle-class; 
insisted on the need to reform the financial system and the health 
reform; called for bipartisan efforts to move forward on change, 
and even took  part of the blame because his major proposal is 
still unfulfilled. . . .  He also scolded Republicans for 
obstructing (change) and Democrats for not being strong enough to 
pass reforms, and even the Supreme Court for allowing corporation 
to finance election campaigns.  But he still stuck to the middle 
ground in his address and took no risks...and it was that cautious 
approach which undermined the strength of his address (El Mercurio, 
1/29). 
 
 
 
Local Politics 
 
¶9.      Forbes magazine ranked Chilean President-elect Sebastian 
Pi????era as the 15th most influential person in the world, based on 
his financial standing, business interest, and the fact that he is 
now president (El Mercurio, 1/29). 
 
 
 
Haiti 
 
¶10.  Rescue workers have recovered 170,000 bodies in 
Port-au-Prince, said President Preval yesterday.  He also said that 
France had offered to start rebuilding the government palace 
(Conservative, afternoon La Segunda, 1/28). 
 
 
 
Honduras 
 
¶11.  Editorial:  "It is not very encouraging that the person who 
instigated the coup in Honduras has become the big winner from the 
crisis in that country. . . .  But that is exactly what has 
happened with Roberto Micheletti. . . .  Among the losers (of the 
crisis) are Hugo Chavez . . . but also the OAS, headed by Jose 
Miguel Insulza, who took a rigid stance against Micheletti... 
preventing the organization from becoming an effective element in 
the solution of the crisis. . . . The outcome was not positive for 
Brazil either.  President Lula, who was set on Zelaya's return, was 
unable to impose his role as a regional power once the United 
States - in a change of stance - decided it would no longer support 
the ousted president and recognized the validity of Lobo's 
election. . . .  The U.S. pragmatism . . . made others losers too: 
Those who after the Trinidad Summit (of the Americas) had great 
hopes that Obama would start a new era, where Latin American- U.S. 
joint interests would weigh more than U.S. foreign policy strategic 
interests (Conservative, afternoon La Segunda, 1/28). 
 
 
 
Venezuela 
 
¶12.  Note: The director of Venezuela's National Telecommunications 
Committee (CONATEL) questioned a few days ago the absence of a wide 
airing of Telesur in Chile, claiming this amounted to censorship). 
In answer to his comments, local cable operators said that the 
reason why Telesur is not widely broadcast in Chile "is simply 
because there is no interest locally in the signal" (La Segunda, 
1/28). 
URBAN