Cablegate: Ambassador's Trip to Iquique: Positive Engagement On Drug

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DE RUEHSG #1156 3351526
ZNR UUUUU ZZH (CCY ADE60731 AMG7347-695)
R 011524Z DEC 09
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 0344
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEABND/DEA HQS WASHINGTON DC
RUEHSG/AMEMBASSY SANTIAGO

UNCLAS SANTIAGO 001156

SENSITIVE
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C O R R E C T E D COPY CAPTION
STATE PASS USTR FOR KKALUTKIEWICZ AND WLINDQUIST
COMMERCE FOR KMANN

E.O. 12958: N/A
TAGS: ECON KIPR TRGY DEA CI BL
SUBJECT: Ambassador's Trip to Iquique: Positive Engagement on Drug
Enforcement and Free Trade

REF: SANTIAGO 690

1. (U) SUMMARY: The Ambassador visited Chile's 1st region October
28-29 to meet local leaders and strengthen ties to an important
economic area of the country. Iquique, a city in far northern
Chile built on the once-booming nitrate industry, is now home to
one of Chile's two free trade zones. In meetings with the
Intendente, the President's representative in the region; Acting
Mayor; and law enforcement officials, the Ambassador re-affirmed
the United States' commitment to clean energy, drug enforcement,
and trade. The visit, which included meetings with American
citizens, former U.S. grantees, and a speech on President Obama's
energy policy at Universidad Arturo Prat, was covered widely by the
local press. END SUMMARY.

2. (U) During meetings with Intendente Miguel Silva Rodriguez and
Maria Angelica Vega, Municipal Secretary and Acting Mayor of
Iquique, the Ambassador discussed law enforcement and energy
issues. According to the Intendente, crime and drugs remain
primary concerns, particularly trafficking in small amounts of
drugs. He stated that enforcement measures are in place, including
scanners that distinguish goods by color and surveillance aircraft
equipped with night vision and movement detection devices.
However, traffickers are able to smuggle goods through more than
200 illegal crossings along the border with Peru and Bolivia. The
Intendente informed the Ambassador that Iquique is working to
develop desalinization projects-the region is one of the driest in
the world-but an affordable energy source is needed. While solar
energy is attractive, it is still too expensive.

3. (SBU) Iquique's Free Trade Zone (ZOFRI, according to its
initials in Spanish), Chile's largest, is a major economic center,
home to more than 1,650 companies with an annual turnover of U.S.
$4.7 billion. The ZOFRI's strategic location makes it a key entry
point for trade with Bolivia and Peru; the United States is the
second largest supplier of goods to the zone after China. The
Chairman of the ZOFRI Board met with the Ambassador and took him on
a brief tour of the shopping area. During the meeting a ZOFRI
official noted that 55% of ZOFRI sales are to Chile and 25% to
Bolivia. Of the sales to Bolivia-totaling approximately
$900,000,000-more than half are paid for in bulk U.S. dollars, a
potential money laundering concern according to DEA Attache.

4. (U) The Ambassador hosted a lunch meeting with Juan Hernandez
Rivera, National Narcotics Chief of the Investigations Police
(PDI); Lieutenant Coronel Marcelo Araya Zapata, Chief, North Zone
Drug Control Section; Regional Prosecutor Claudio Roe; and Embassy
DEA Attache, during which the Ambassador discussed counternarcotics
efforts in the region. In the past 18 months there has been a
significant increase in the amount of cocaine seized along Chile's
northern border with Bolivia. The planned construction in
2009-2010 of a super highway from the port of Santos in Brazil,
through Bolivia to Iquique is expected to increase the number of
tractor-trailers delivering large quantities of cocaine to maritime
container shipments leaving Chile for Europe, Asia, Africa, the
Middle East, and the U.S. As such, the Chile DEA Country Office
has provided training and exchange programs for Chilean
counterparts. The Ambassador's meeting with high level contacts
over lunch reinforced the United States' continued support at all
levels.

5. (U) The Ambassador conducted several outreach events during his
Iquique visit, including a meeting with former U.S. grantees
(including the Fulbright and International Visitor Leadership
Programs), a breakfast with American citizens, and a presentation
to a packed audience of students and faculty at the Universidad
Arturo Prat, which was also attended by the media. The Ambassador
spoke to the group about President Obama's energy and climate
policy, a topic that generated a robust question and answer session
at the conclusion of the presentation. Media coverage of the
Ambassador's visit was broad and included interviews with local
print and television outlets, as well as the local CNN Chile
affiliate.
SIMONS

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