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DE RUEHSG #0096/01 0281731
ZNR UUUUU ZZH
R 281722Z JAN 10
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 0602
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
RUEHBO/AMEMBASSY BOGOTA
RUEHBR/AMEMBASSY BRASILIA
RUEHBU/AMEMBASSY BUENOS AIRES
RUEHCV/AMEMBASSY CARACAS
RUEHLP/AMEMBASSY LA PAZ
RUEHMN/AMEMBASSY MONTEVIDEO
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RUEHQT/AMEMBASSY QUITO
RUEHSG/AMEMBASSY SANTIAGO

UNCLAS SANTIAGO 000096 
 
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. 28 Media Report 
 
Lead: 
 
¶1.      The Organization for Economic Cooperation and Development 
(OECD) made several recommendations for Chile to stabilize its 
economic growth including stronger regulations for the financial 
market (Estrategia, 1/28). 
 
 
 
State of the Union Address 
 
¶2.      Headline: "President Obama's mea culpa: 'Change has not 
arrived fast enough' to the United States." 
 
Sub-headline: Obama said the United States faces "more a deficit of 
trust than a deficit of dollars." He tried to inject optimism by 
announcing that employment and proposals for the middle-class would 
be his first priority, and insisted on defending the health reform 
and asked for the support of both Democrats and Republicans in 
Congress. 
 
 
 
Lead:  "I do not accept second place for the United States," said a 
defiant Obama. . . .  His words were filled with optimism and 
directed at a nation that is increasingly disenchanted with the 
leadership of its president.  Obama recognized the setbacks he has 
suffered, but said he would not yield in moving forth his 
proposals. 
 
Highlighted text:  "Despite our hardships, our union is strong.  We 
do not give up.  We do not allow fear or division to break our 
spirit.  In this new decade, it's time for the American people to 
get a government that matches their decency" (Conservative, 
influential newspaper-of-record El Mercurio, 1/28). 
 
¶3.  Headline: "Obama tries to regain credibility and support" 
 
Sub-headline:  It was expected that the President would focus on 
issues such as lowering the deficit and the creation of jobs. 
 
 
 
Lead:  President Obama made his best effort to regain credibility 
and reconnect with disenchanted constituents by placing emphasis on 
the economy, the creation of jobs, and saying that he has learned 
from his mistakes. 
 
 
 
Highlighted text:  Obama plans to freeze the salaries of White 
House officials to save USD 4 million in fiscal year 2011. 
 
 
 
Photo caption:  The U.S. President used the address to improve a 
weakened image and attempted to get closer to Americans, saying he 
understood their anger (Financial Diario Financier, 1/28). 
 
 
 
¶4.    Headline:  "Obama calls for unification and promises to 
strengthen the U.S. economy." 
 
Sub-headline:  In a speech where he re-launched his government in 
the face of the drop in popularity that he is facing, the president 
called on Americans to regain their confidence, admitting that he 
had "deserved" some of the political setbacks. 
 
 
 
Lead: President Obama  . . .  repeatedly called for Democrats and 
Republicans to unify and tried to recover the trust of the American 
people . . .  by focusing his address on the economy and the 
 
creation of jobs (Conservative, independent La Tercera, 1/28). 
 
 
 
¶5.  Headline:  "Obama directs his address at overcoming the 
"deficit of trust" among the American people" 
 
Lead:  President Obama attempted to . . .  appease the American 
people on the state of the economy and to regain support even among 
those in his own party (Government-owned, La Nacion, 1/28). 
 
 
 
Haiti 
 
¶6.    Looting and other kinds of crimes are becoming systematic in 
Haiti making the situation very difficult for the people of Haiti. 
The U.N. is alarmed by reports of violence and of the execution of 
alleged criminals by enraged crowds (La Nacion, 1/28). 
 
 
 
¶7.    NASA to analyze the geological fault responsible for the 
earthquake and detect changes that could lead to future quakes 
(Conservative, afternoon La Segunda, 1/27). 
 
 
 
OECD - Chile 
 
¶8.    The Organization for Economic Cooperation and Development 
(OECD) gave Chile several suggestions.  The recommendations include 
the application of stronger financial market regulations, gradual 
elimination of fiscal stimulus packages, and the making of a more 
flexible labor market.  The organization said that Chile is not yet 
up to OECD standards regarding education and recommended 
guaranteeing access to quality education for students with varying 
capabilities and from different social strata, increasing salary 
incentives for teachers, and distinguishing quality educational 
programs. It also recommended applying effective innovation 
programs and decreasing regulations and bureaucracy for the 
business sector (Financial dailies Diario Financiero and 
Estrategia, 1/28). 
 
 
 
Nuclear Energy 
 
¶9.  Ricardo Raineri, responsible for President-elect Sebastian 
Pi????era's nuclear agenda, said that the incoming administration has 
no plans to build a nuclear plant.  Raineri said it would focus on 
moving forward on the regulatory framework (La Tercera, 1/28). 
 
 
 
Organization of American States (OAS) 
 
¶10. At the request of its Venezuelan delegates, the OAS permanent 
council postponed set to ratify the date of the election of its 
secretary general, slated for March 24.  In Chilean diplomatic 
circles, this can only mean that Caracas is still considering 
presenting its own candidate (El Mercurio, 1/28). 
 
 
 
¶11.  President-elect Pi????era said that he would take a stance 
regarding OAS Secretary General Jose Miguel Insulza's reelection 
after he takes office on March 11 (El Mercurio, 1/28). 
URBAN