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R 272032Z JAN 10
FM AMEMBASSY SANTIAGO
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RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
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UNCLAS SANTIAGO 000094 
 
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. 27 Media Report 
 
Jan. 27 Media Report 
 
 
 
Lead Story 
 
¶1.      310 Chileans are waiting to be evacuated near the Machu 
Picchu ruins in Peru, where bad weather left them in isolation with 
no food or water (All dailies, 1/27). 
 
 
 
Haiti 
 
2        Chilean Ambassador to Haiti, Marcel Young, has been in 
Port-au-Prince six years.  He has lived through President 
Aristide's exile, the arrival of Chilean troops amid chaos, the 
2005 election, and three hurricanes. Asked about the arrival of the 
U.S. contingent, Young said: "The arrival of their troops has been 
imposing.  Although what they have done to re-establish air traffic 
is positive. . .   in terms of military presence the demonstration 
of force has been excessive.  I believe in showing the necessary 
force and in showing respect for the local authorities, but that is 
not what we are seeing.  They forget that this is a sovereign 
country and have been unnecessarily aggressive.  They took control 
of the international airport and word is that they have deflected 
four flights carrying medical and humanitarian assistance. . . 
They set their own criteria and land their planes.  (Concern for) 
Everyone else comes after that" (Conservative, influential el 
Mercurio, 1/27). 
 
3        UNICEF has warned of children disappearing from hospitals, 
prompting local authorities to tighten controls in hospitals and 
along the border with the Dominican Republic. The concern is that 
children are being taken out of the country for adoption without 
having exhausted the efforts to locate their families.  Sabas 
Burgos, formerly in charge of immigration along the border with 
Dominican Republic, said that criminal organizations that have 
operated in Haiti for a long time are taking advantage of the 
confusion to increase trafficking in children (El Mercurio, 1/27). 
 
 
 
4        The confusion in Haiti is encouraging the trafficking in 
children, which has been taking place in Haiti for years.  In light 
of denouncements that children have disappeared from hospitals, 
UNICEF has called on the international community to stop massive 
and express adoptions to prevent the separation of families who, 
due to poverty, had placed their children in orphanages.  But in 
spite of UNICEF's call, countries such as the United States, 
France, and Canada have continued with adoption procedures 
(Government-owned, La Nacion, 1/27). 
 
 
 
5        OAS Secretary General Jose Miguel Insulza visited the most 
devastated areas of Port-au-Prince yesterday and will meet today 
with President Rene Preval (El Mercurio, 1/27). 
 
 
 
Chile-U.S. Taxation Agreement 
 
¶6.   President Bachelet led in La Moneda the subscription of an 
agreement to avoid double taxation with the United States and 
Australia. The treaty must yet be ratified by Congress. The 
agreement is expected to have a significant impact in the mining 
and services sectors because of the large presence of U.S. and 
Australian companies in those areas (El Mercurio, 1/27). 
 
 
 
¶7.   After a long negotiation process that included lifting the 
banking secrecy, Chile will sign a tax agreement to avoid double 
 
taxation with the United States and Australia.  The government and 
the private sector anticipate a greater flow of investment as a 
result of the agreement (Conservative, independent La Tercera, 
1/27). 
 
¶8.   President Bachelet said the tax agreements with the United 
States and Australia would "boost investment, create new sources 
for growth, and create more jobs" (Business, financial Estrategia, 
1/17). 
 
 
 
Local 
 
¶9.   Defense Minister Francisco Vidal and Air Force 
Commander-in-Chief Ricardo Ortega announced yesterday's Chile's 
purchase of eighteen used F16s from Holland, 12 Brazilian training 
airplanes, three KC135 transportation aircraft, and 12 Bell 412 
helicopters, all of which will start arriving on February 18. 
Vidal said this will transform Chile's air force into an important 
force in Latin America.  Ortega on his part said, "All those who 
are looking at us know that we have the capability to strike back 
with force.  This means that it is best that we are left alone" (El 
Mercurio, 1/27). 
 
 
 
Venezuela and TV Chile 
 
¶10.  TVN said yesterday that Venezuela's National 
Telecommunications Committee (Conatel) had accepted the documents 
submitted by the station to register as an international producer. 
TVN said the Venezuelan cable operators that carry its 
international signal have all been informed of the committee's 
decision and therefore expected Caracas to lift the suspension of 
its signal soon.  However, Conatel Director Diosdado Cabello said 
that Venezuela should demand "reciprocity" with regard to these 
signals. "Why doesn't the United States allow Telesur to air in its 
country?  Who censors who? . . .  Why is it that Telesur can only 
be seen on Direct TV in Chile and not in other cable operators? . . 
.  We should ask for reciprocity. You want to be seen here?  Then 
let us air where you are," said Cabello (El Mercuric, 1/27). 
 
 
 
¶11. Editorial:  "Obama Besieged": " . . .  Obama is well aware of 
the discouragement among citizens, but many say that he has not 
fully weighted the message or the magnitude of the consequences of 
this discouragement . . .  Obama has important merits, such as the 
timely intervention to confront the global financial crisis and the 
recession in the United States, and most importantly the change of 
the image of the United State abroad.  But part of Obama's problems 
stem from the vices of U.S. democracy: lobbyism, populism, 
conflicts of interests, and other parliamentary abuses.  The 
concrete issue, however, is that polls indicate that unless there 
is a change in the way he governs and in the depth of his 
decisions, Obama will not be re-elected and is risking the 
congressional majority and several Democratic Party governors' 
seats . . .  The repercussions are important for the world, because 
it is not good news for the quality of the leadership of the 
world's major power to be questioned" (El Mercuric, 1/27). 
URBAN