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FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0530
INFO WESTERN HEMISPHERIC AFFAIRS DIPL POSTS

C O N F I D E N T I A L SECTION 01 OF 03 SANTIAGO 000009 
 
SIPDIS 
AMEMBASSY BRIDGETOWN PASS TO AMEMBASSY GRENADA 
AMEMBASSY OTTAWA PASS TO AMCONSUL QUEBEC 
AMEMBASSY BRASILIA PASS TO AMCONSUL RECIFE 
 
E.O. 12958: DECL: 2020/01/15 
TAGS: PREL ETRD SNAR OAS CI HO BL
SUBJECT: A/S Valenzuela Reviews Regional Issues with Chilean Foreign 
Minister Fernandez 
 
REF: SANTIAGO 38 
 
CLASSIFIED BY: Paul Simons, Ambassador; REASON: 1.4(B), (D) 
 
¶1.   (C) Summary.  In a January 12 meeting with WHA A/S Valenzuela, 
FM Fernandez pressed to set the timing for an extraordinary OAS 
meeting to elect a new Secretary General.  The two discussed 
Honduras, agreeing on the importance of resolving the status of 
both de facto President Micheletti and President Zelaya.  On 
Bolivia they considered possible regional cooperation to combat 
drug trafficking in that country.  They discussed the possibility 
of the United States initiating confidence building measures with 
UNASUR, in part to deflect tension arising from the U.S.-Colombia 
DCA.  They also reviewed the (pre-earthquake) situation in Haiti 
and Chile's relations with Peru and Argentina.  They signed an 
extradition treaty and an MOU on U.S./Chile cooperation in third 
countries.  End summary. 
 
 
 
¶2.  (U) Assistant Secretary Valenzuela met with Foreign Minister 
Mariano Fernandez on February 12.  Fernandez was accompanied by 
Under Secretary Angel Flisfisch, Ambassador to the U.S. Jose Goni, 
and Director for North America Isauro Torres.  The U.S. delegation 
included the Ambassador, EPOL Counselor, and Senior Political 
Officer. 
 
 
 
TWO NEW BILATERAL AGREEMENTS 
 
 
 
¶3.  (U) Fernandez opened the meeting by noting the importance of 
two documents that he and the Assistant Secretary were to sign 
immediately following their meeting, a new extradition treaty and a 
memorandum of understanding on development cooperation in third 
countries.  Fernandez said that the U.S./Chilean trilateral 
development cooperation builds on similar work that Chile is doing 
with Japan and hopes to start with Australia.  He welcomed the new 
extradition treaty as an upgrade to the existing treaty that was 
signed in 1900 and highlighted the importance of combatting 
international crime. 
 
 
 
OAS 
 
 
 
¶4.  (SBU) Fernandez raised Chile's request that the Organization of 
America States (OAS) set a date for an extraordinary general 
assembly to consider the reelection of Jose Miguel Insulza as 
Secretary General.  Fernandez noted that the date for the 
discussion of this request had been pushed back from January 13 to 
January 20.  He emphasized that Chile is seeking to establish an 
improved institutional framework to select OAS Secretaries General. 
To reinforce his case, he cited several instances of long lame-duck 
periods or gaps.  He said some Secretaries General were elected 
more than six months before the incumbent left office, while 
Insulza's term expires May 25 but the next regular general assembly 
will be in June.  He argued that it would be best to hold the 
election before Insulza's term expires to simplify any transition. 
Chile believes that there should be a transition period of at least 
three months, so the election could be held in January, February or 
early March.  Fernandez acknowledged that Insulza is seeking 
reelection but asserted that even so, he would likely change some 
of his team.  He concluded by claiming that 30 countries support 
Chile's proposal, with the United States and Venezuela as the hold 
outs.  He added that Venezuela is holding out because it hopes to 
identify an ALBA candidate, but he did not understand U.S. 
concerns. 
 
 
 
¶5.  (SBU) A/S Valenzuela said that while the United States does not 
have a position on Insulza's candidacy, he now had a better 
appreciation for the reasons behind Chile's request for the 
extraordinary session.  He said that the United States would 
consider the matter and that he would be back in touch with FM 
Fernandez to discuss dates. 
 
 
 
HONDURAS 
 
SANTIAGO 00000009  002 OF 003 
 
 
¶6.  (C) In response to Fernandez's inquiry about Honduras, the 
Assistant Secretary said the situation is complicated, since the 
parties there have not fully complied with the San Jose-Tegucigalpa 
Accord.  He added that the election of Porfirio Lobo as president 
is an important but not sufficient development to restore Honduras 
in the international community.  He continued that a major 
challenge is the status of both de facto president Micheletti and 
President Zelaya.  He wondered if Brazil, which has offered Zelaya 
refuge at its embassy in Tegucigalpa, would be willing to receive 
Zelaya.  Fernandez agreed that Zelaya's presence in Honduras is a 
problem and offered to talk to Brazil about the matter. 
 
 
 
BOLIVIA 
 
 
 
¶7.  (SBU) Fernandez turned to Bolivia, saying that while the two 
countries do not have full diplomatic relations, Chile enjoys the 
best imaginable non-diplomatic relations with Bolivia.  He said 
that Chile has tried to promote stability in Bolivia and provide a 
positive influence.  He added that Chile is looking to work with 
Bolivia on its request for access to the sea, but noted that Peru's 
maritime dispute with Chile could affect Chile's ability to work 
with Bolivia, as it could cut off maritime access for any sovereign 
corridor.  He then turned to the Andean Trade Preferences Act 
(ATPA), noting the value of Bolivia's renewed participation in the 
program along with the other Andean beneficiaries. 
 
 
 
¶8.  (C) A/S Valenzuela replied that the big problem for the United 
States is that Bolivia has expelled Drug Enforcement Administration 
(DEA) agents from Bolivia, severely compromising Bolivia's ability 
to combat drug trafficking.  He noted that increased Bolivian drug 
flows create problems for Bolivia's neighbors, including Chile, 
Brazil, Argentina, and Paraguay.  He suggested that the United 
States look for ways to work with those neighboring countries to 
jointly promote counternarcotics efforts in Bolivia.  If 
successful, that effort would both reduce narcotics flows and 
facilitate Bolivia's participation in the ATPA.  In response, 
Fernandez said, "Let's do something." 
 
 
 
PERU AND ARGENTINA 
 
 
 
¶9.  (C) Fernandez said that there are strong anchors in Chile's 
relations with Peru, with over $7 billion in Chilean investments in 
Peru and a large resident Peruvian community in Chile.  He 
attributed the problems in Peruvian-Chilean relations to a core 
group close to President Garcia, but said that Chile is not worried 
about those complications because it knows how to handle them. 
Fernandez said that Chile's relations with Argentina are excellent, 
noting that the two countries have agreed to construct a tunnel 
through the Andes to facilitate travel between them as part of a 
new integration treaty. 
 
 
 
HAITI 
 
 
 
¶10.  (SBU) Reflecting on the U.S.-Chile agreement to cooperate on 
development projects in third countries, Fernandez said that Chile 
has 200 police officers working in Haiti, and wondered if 
U.S.-Chile cooperation could be extended to Haiti.   He noted that 
government institutions in Haiti are weak and institutional 
rebuilding is insufficient.  He asked whether the World Bank and 
the Inter-American Development Bank could play a larger role in 
infrastructure and institution building, to which A/S Valenzuela 
said that the lenders are considering the matter.  (Note:  This 
discussion took place before the large earthquake hit Port au 
Prince later on January 12.  For Chilean emergency assistance to 
Haiti, see reftel.) 
 
SANTIAGO 00000009  003 OF 003 
 
 
UNASUR AND THE DCA 
 
 
 
¶11.  (C) Fernandez said that the U.S./Colombia Defense Cooperation 
Agreement (DCA) is still a sensitive point for some South American 
countries and makes Colombia an easier target for criticism, 
particularly by Chavez.  He asked how the United States could help 
lower profile of the DCA.  A/S Valenzuela said that Ecuador, as 
president pro tempore of UNASUR, in response to a letter on DCA 
from Secretaries Clinton and Gates, had asked whether the United 
States would be willing to enter into a discussion with UNASUR. 
The Assistant Secretary said that the United States is waiting for 
Ecuador to define the terms of reference for the discussion.  He 
added that he is also considering what confidence building measures 
the United States and UNASUR could jointly undertake.  Fernandez 
welcomed the suggestions, and Under Secretary Flisfisch said that 
Brazil should be brought into the process early on.   Ambassador 
Goni suggested that the confidence building measures should include 
social projects, although Flisfisch cautioned that the social side 
of UNASUR is new, while the defense discussions are well 
established. 
 
 
 
BILATERAL RELATIONS 
 
 
 
¶12.  (U) As the meeting concluded, the Ambassador noted that 
discussion had focused on pressing regional issues.  The absence of 
concerns on the bilateral side reflects the excellent state of 
bilateral relations. 
 
 
 
SIGNING CEREMONEY AND PRESS CONFERENCE 
 
 
 
¶13.  (U) After the meeting, the Assistant Secretary and Foreign 
Minister signed an extradition treaty and MOU on trilateral 
cooperation.  After the signing ceremony they held a brief press 
conference. 
 
 
 
¶14.  (U) The Assistant Secretary cleared this cable. 
SIMONS