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Cablegate: Santiago Sept. 25 Media Report

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SUBJECT: Santiago Sept. 25 Media Report

Lead Stories

---------------

1. On Wednesday's presidential debate, Eduardo Frei cited a
Transparency International (TI) report released the day before
which mentions a fine levied by Chile's Securities and Stocks
Regulator against Pinera for the use of privileged information to
buy LanChile shares in 2006. Yesterday, TI's local Chapter, "Chile
Transparent," issued a statement saying that it had not seen or
approved the text of the report before its release. Pinera's
campaign team is severely questioning TI's release of the report
right before the presidential debate and the fact that one of its
drafters also works for the Ministry of Finance (Conservative
independent, La Tercera, 9/25).

2. In the framework of this controversy, Transparency
International spokesperson in New York, Gipsy Guillen, explained
that the different chapters in each country are responsible for
drafting the report on their country and on deciding what cases to
include. Guillen said that TI had selected September 23 as the date
to release its latest report time ago so that it would coincide
with the U.N. General Assembly. The president of Chile's
Transparency Chapter, Karen Poniachic, however, claims that the
entity's board did not see the text of the report until it was
released. Other board members are questioning the report based on
the fact that one of its drafters is also an advisor to a
government ministry (El Mercurio, 9/25).

Secretary of Commerce Gary Locke and Americas Competitiveness Forum

--------------------------------------------- ----------------------
------------------------

3. Four-page supplement sponsored by the American Chilean
Chamber of Commerce, AmCham, highlighting the excellent economic
relations between Chile and the United States: "The Benefits of the
Commercial Exchange with Chile," by Secretary Locke; "Reflections
on a Dynamic Bilateral Relation," by U.S. Ambassador Paul Simons,
and "Social Corporate Responsibility: Transfer of U.S. Company
Experience" (Financial daily Diario Financiero, 9/25).

4. President Luiz Inacio Lula da Silva confirmed he will not
attend the ACF (La Tercera, 9/25).

Indigenous Mapuche Conflict

------------------------------------

5. In the United Nations Human Rights Council, Chile denied
abusing the application of the antiterrorist law in cases affecting
members of the indigenous Mapuche community. Ambassador Carlos
Portales told the council that from 1999 to 2009, this special law
has been applied to 16 cases, and only two have involved Mapuches
(Conservative, afternoon, La Segunda, 9/24).
SIMONS

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