Cablegate: Santiago Nov. 19 Media Report

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SUBJECT: Santiago Nov. 19 Media Report

Lead Story

1. The Chamber of Deputies and the Senate expressed their
support to President Bachelet in the impasse with Peru and
expressed concern over Lima's "communications offensive to portray
Chile as an aggressive and bellicose country" (Conservative,
influential newspaper-of-record El Mercurio, 11/19).

Chile-Peru

2. Peruvian Foreign Minister Garcia Belaunde warned: Peru will
review its bilateral relation if Chile does not investigate the
alleged espionage. Chilean Foreign Minister Mariano Fernandez said
that the government would respond "adequately and in a timely
manner" to any request from Peru. In a television interview last
night, Fernandez noted that Chile is Peru's second largest investor
and that in this context, "at least one sector of Peruvian society
should call on the others to act reasonably" (El Mercurio, 11/19).

3. The GOC initially believed that President Garcia himself
had leaked the allegations of espionage to support his accusations
that Chile is militarily aggressive and could disavow The Hague's
decision regarding Peru's maritime border claim, it if antagonizes
its interests. But the GOC has received information from
individuals in Peru who don't want the impasse to escalate any
further, that the origin of the impasse is in nationalist sectors
in Peru. The ultimate goal of the nationalists was to prevent
Peruvian Mining Minister Mercedes Araoz from traveling to Santiago
this week. Araoz was going to sign a protocol with Bachelet that
would have consented to Chile's military acquisitions. Reports
indicate that the leak occurred without President Garcia's
knowledge. Chile's embassy in Lima received yesterday afternoon
the dossier that Lima claims shows there was espionage (La Tercera,
11/19).

4. In a special session in Congress, Foreign Minister
Fernandez said that Peru's internal political problems could
explain President Garcia's attitude and remarks. The Chilean
Executive was therefore not surprised when Garcia yesterday further
escalated the rhetoric (La Tercera, 11/19).

5. "They spy on us because they envy us," said Garcia, and
showing that relations with Chile impact Peru's domestic affairs,
called on Peruvians to "remain united, because divided is how they
conquered and invaded us" (Conservative, afternoon daily La
Segunda, 11/18).

6. Under Secretary for Foreign Affairs Alberto Van Klaveren
resigned yesterday to head the legal team that will address the
suit filed by Peru with The Hague to change maritime borders with
Chile. Foreign Ministry planning Director Angel Flisfisch is
replacing Van Klaveren (El Mercurio, 11/19).

Chile-U.S.

7. The willingness of the United States manifested at APEC to
launch a Trans-Pacific Trade Agreement will most likely determine
the future of Chile's international commercial agenda, said the
head of the Foreign Ministry's International Economic Relations
Bureau Carlos Furche (El Mercurio, 11/19).

8. In his visit to the Arica-Parinacota Region, U.S. Ambassador

Paul Simons commented on the Regional Development Corporation
project that provides solar heating systems for low-income homes.
"This is a very important achievement," said the Ambassador. He
said that the Embassy in Santiago is working on a series of pilot
programs with the Renewable Energy Center, mentioning the
possibility of contributing to solar initiatives in Arica (On-line
daily arica.hoy.cl, 11/19).

Poll

9. Further analysis of the data on the Centro de Estudios (CEP)
poll released two weeks on the presidential election shows that of
the 14 percent of undecided voters, 57 percent are women who are
over 35 years old and live in urban centers (La Tercera, 11/19).
SIMONS

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