Cablegate: Chile's Apec Priorities: Asian Free Trade Area,

VZCZCXRO5036
PP RUEHCHI RUEHFK RUEHHM RUEHKSO RUEHPB
DE RUEHSG #2358 3131838
ZNR UUUUU ZZH
P 091838Z NOV 06
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC PRIORITY 0359
INFO RUEHZU/ASIAN PACIFIC ECON COOP COLLECTIVE PRIORITY
RUEHBO/AMEMBASSY BOGOTA PRIORITY 1574
RUEHQT/AMEMBASSY QUITO PRIORITY 1621
RUEHSJ/AMEMBASSY SAN JOSE PRIORITY 0818

UNCLAS SANTIAGO 002358

SIPDIS

SENSITIVE
SIPDIS

STATE FOR EAP/EP

E.O. 12958: N/A
TAGS: ECON ETRD PREL CI
SUBJECT: CHILE'S APEC PRIORITIES: ASIAN FREE TRADE AREA,
DOHA, APEC REFORM

REF: A. STATE 177258
B. SANTIAGO 2278

1. (SBU) Summary. The Ambassador delivered ref A demarche on
U.S. APEC priorities to FM Foxley on November 7. FM Foxley
listed Chile's priorities for the upcoming APEC summit as
discussion of an Asia-Pacific Free Trade Area, a jumpstart
for the Doha round, and a renewed push for APEC reform. End
Summary.

2. (U) Ambassador delivered ref A demarche points on U.S.
APEC priorities to FM Foxley on November 7. Senior Economic
Officer delivered ref A's points to Acting APEC Coordinator
German King on November 2.

3. (SBU) Both FM Foxley and King strongly supported the idea
of a broad Asia-Pacific Free Trade Area. King said he was a
bit surprised the U.S. had decided to support the concept.
Foxley mentioned in his meeting with the Ambassador that
Chile had first championed the idea when it hosted the APEC
summit in Santiago in 2004. King wondered how the U.S. was
going to reconcile a push for a regional FTA in Asia while
still trying to revive the WTO's Doha round.

4. (SBU) King listed as Chile's second priority the need for
APEC members to discuss Doha. Chile wanted APEC members to
focus on what would be lost if Doha did indeed end
unsuccessfully. He said he did not see how APEC members
could avoid a discussion of Doha.

5. (SBU) Chile's third main priority for APEC this year is to
further the organizational reform. King said that in the GOC
view, APEC reform was taking longer than expected.
Personally, he did not think APEC could realistically expand
its membership before the reform process was completed. FM
Foxley took on board the Ambassador's point that the
moratorium on expansion, which is set to expire in 2007, will
likely be extended. Foxley mentioned three Latin countries
that Chile considers viable candidates for future APEC
expansion: Costa Rica, Ecuador and Colombia.

6. (SBU) King said he thought APEC members would likely want
to discuss developments on the Korean peninsula as well. He
offered that it would be odd if the issue of the DPRK's
nuclear test were not discussed. He was unsure if these
discussions should take place inside the APEC context or on
its margins. He noted that with five of six foreign
ministers from the Six-Party Talks countries present, there
had to be a discussion in one form or another of North Korea.

7. (SBU) On Avian Influenza, King said that the GOC
delegation will be fully briefed and ready to discuss GOC
views on the threat of AI. Chile suffered an outbreak in
2002 among its bird population, but dealt with it rapidly and
successfully. Chile has been diligent in sharing AI
experience with APEC members in the past. Overall, King
thought that Vietnam had been doing a good job in planning
the summit and expected a successful APEC.
KELLY

© Scoop Media