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Cablegate: Embassy Santiago Jan. 27 Media Report

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TAGS: ECON KMDR KPAO PGOV PREL SNAR EFIN CI
SUBJECT: Embassy Santiago Jan. 27 Media Report

Jan. 27 Media Report

Lead Story

1. 310 Chileans are waiting to be evacuated near the Machu
Picchu ruins in Peru, where bad weather left them in isolation with
no food or water (All dailies, 1/27).

Haiti

2 Chilean Ambassador to Haiti, Marcel Young, has been in
Port-au-Prince six years. He has lived through President
Aristide's exile, the arrival of Chilean troops amid chaos, the
2005 election, and three hurricanes. Asked about the arrival of the
U.S. contingent, Young said: "The arrival of their troops has been
imposing. Although what they have done to re-establish air traffic
is positive. . . in terms of military presence the demonstration
of force has been excessive. I believe in showing the necessary
force and in showing respect for the local authorities, but that is
not what we are seeing. They forget that this is a sovereign
country and have been unnecessarily aggressive. They took control
of the international airport and word is that they have deflected
four flights carrying medical and humanitarian assistance. . .
They set their own criteria and land their planes. (Concern for)
Everyone else comes after that" (Conservative, influential el
Mercurio, 1/27).

3 UNICEF has warned of children disappearing from hospitals,
prompting local authorities to tighten controls in hospitals and
along the border with the Dominican Republic. The concern is that
children are being taken out of the country for adoption without
having exhausted the efforts to locate their families. Sabas
Burgos, formerly in charge of immigration along the border with
Dominican Republic, said that criminal organizations that have
operated in Haiti for a long time are taking advantage of the
confusion to increase trafficking in children (El Mercurio, 1/27).

4 The confusion in Haiti is encouraging the trafficking in
children, which has been taking place in Haiti for years. In light
of denouncements that children have disappeared from hospitals,
UNICEF has called on the international community to stop massive
and express adoptions to prevent the separation of families who,
due to poverty, had placed their children in orphanages. But in
spite of UNICEF's call, countries such as the United States,
France, and Canada have continued with adoption procedures
(Government-owned, La Nacion, 1/27).

5 OAS Secretary General Jose Miguel Insulza visited the most
devastated areas of Port-au-Prince yesterday and will meet today
with President Rene Preval (El Mercurio, 1/27).

Chile-U.S. Taxation Agreement

6. President Bachelet led in La Moneda the subscription of an
agreement to avoid double taxation with the United States and
Australia. The treaty must yet be ratified by Congress. The
agreement is expected to have a significant impact in the mining
and services sectors because of the large presence of U.S. and
Australian companies in those areas (El Mercurio, 1/27).

7. After a long negotiation process that included lifting the
banking secrecy, Chile will sign a tax agreement to avoid double

taxation with the United States and Australia. The government and
the private sector anticipate a greater flow of investment as a
result of the agreement (Conservative, independent La Tercera,
1/27).

8. President Bachelet said the tax agreements with the United
States and Australia would "boost investment, create new sources
for growth, and create more jobs" (Business, financial Estrategia,
1/17).

Local

9. Defense Minister Francisco Vidal and Air Force
Commander-in-Chief Ricardo Ortega announced yesterday's Chile's
purchase of eighteen used F16s from Holland, 12 Brazilian training
airplanes, three KC135 transportation aircraft, and 12 Bell 412
helicopters, all of which will start arriving on February 18.
Vidal said this will transform Chile's air force into an important
force in Latin America. Ortega on his part said, "All those who
are looking at us know that we have the capability to strike back
with force. This means that it is best that we are left alone" (El
Mercurio, 1/27).

Venezuela and TV Chile

10. TVN said yesterday that Venezuela's National
Telecommunications Committee (Conatel) had accepted the documents
submitted by the station to register as an international producer.
TVN said the Venezuelan cable operators that carry its
international signal have all been informed of the committee's
decision and therefore expected Caracas to lift the suspension of
its signal soon. However, Conatel Director Diosdado Cabello said
that Venezuela should demand "reciprocity" with regard to these
signals. "Why doesn't the United States allow Telesur to air in its
country? Who censors who? . . . Why is it that Telesur can only
be seen on Direct TV in Chile and not in other cable operators? . .
. We should ask for reciprocity. You want to be seen here? Then
let us air where you are," said Cabello (El Mercuric, 1/27).

11. Editorial: "Obama Besieged": " . . . Obama is well aware of
the discouragement among citizens, but many say that he has not
fully weighted the message or the magnitude of the consequences of
this discouragement . . . Obama has important merits, such as the
timely intervention to confront the global financial crisis and the
recession in the United States, and most importantly the change of
the image of the United State abroad. But part of Obama's problems
stem from the vices of U.S. democracy: lobbyism, populism,
conflicts of interests, and other parliamentary abuses. The
concrete issue, however, is that polls indicate that unless there
is a change in the way he governs and in the depth of his
decisions, Obama will not be re-elected and is risking the
congressional majority and several Democratic Party governors'
seats . . . The repercussions are important for the world, because
it is not good news for the quality of the leadership of the
world's major power to be questioned" (El Mercuric, 1/27).
URBAN

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