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Cablegate: Embassy Santiago Jan. 28 Media Report

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R 281722Z JAN 10
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 0602
INFO RHEFDIA/DIA WASHINGTON DC
RHMFISS/HQ USSOUTHCOM MIAMI FL
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RUEHSG/AMEMBASSY SANTIAGO

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E.O. 12958: N/A
TAGS: ECON KMDR KPAO PGOV PREL SNAR EFIN CI
SUBJECT: Embassy Santiago Jan. 28 Media Report

Lead:

1. The Organization for Economic Cooperation and Development
(OECD) made several recommendations for Chile to stabilize its
economic growth including stronger regulations for the financial
market (Estrategia, 1/28).

State of the Union Address

2. Headline: "President Obama's mea culpa: 'Change has not
arrived fast enough' to the United States."

Sub-headline: Obama said the United States faces "more a deficit of
trust than a deficit of dollars." He tried to inject optimism by
announcing that employment and proposals for the middle-class would
be his first priority, and insisted on defending the health reform
and asked for the support of both Democrats and Republicans in
Congress.

Lead: "I do not accept second place for the United States," said a
defiant Obama. . . . His words were filled with optimism and
directed at a nation that is increasingly disenchanted with the
leadership of its president. Obama recognized the setbacks he has
suffered, but said he would not yield in moving forth his
proposals.

Highlighted text: "Despite our hardships, our union is strong. We
do not give up. We do not allow fear or division to break our
spirit. In this new decade, it's time for the American people to
get a government that matches their decency" (Conservative,
influential newspaper-of-record El Mercurio, 1/28).

3. Headline: "Obama tries to regain credibility and support"

Sub-headline: It was expected that the President would focus on
issues such as lowering the deficit and the creation of jobs.

Lead: President Obama made his best effort to regain credibility
and reconnect with disenchanted constituents by placing emphasis on
the economy, the creation of jobs, and saying that he has learned
from his mistakes.

Highlighted text: Obama plans to freeze the salaries of White
House officials to save USD 4 million in fiscal year 2011.

Photo caption: The U.S. President used the address to improve a
weakened image and attempted to get closer to Americans, saying he
understood their anger (Financial Diario Financier, 1/28).

4. Headline: "Obama calls for unification and promises to
strengthen the U.S. economy."

Sub-headline: In a speech where he re-launched his government in
the face of the drop in popularity that he is facing, the president
called on Americans to regain their confidence, admitting that he
had "deserved" some of the political setbacks.

Lead: President Obama . . . repeatedly called for Democrats and
Republicans to unify and tried to recover the trust of the American
people . . . by focusing his address on the economy and the

creation of jobs (Conservative, independent La Tercera, 1/28).

5. Headline: "Obama directs his address at overcoming the
"deficit of trust" among the American people"

Lead: President Obama attempted to . . . appease the American
people on the state of the economy and to regain support even among
those in his own party (Government-owned, La Nacion, 1/28).

Haiti

6. Looting and other kinds of crimes are becoming systematic in
Haiti making the situation very difficult for the people of Haiti.
The U.N. is alarmed by reports of violence and of the execution of
alleged criminals by enraged crowds (La Nacion, 1/28).

7. NASA to analyze the geological fault responsible for the
earthquake and detect changes that could lead to future quakes
(Conservative, afternoon La Segunda, 1/27).

OECD - Chile

8. The Organization for Economic Cooperation and Development
(OECD) gave Chile several suggestions. The recommendations include
the application of stronger financial market regulations, gradual
elimination of fiscal stimulus packages, and the making of a more
flexible labor market. The organization said that Chile is not yet
up to OECD standards regarding education and recommended
guaranteeing access to quality education for students with varying
capabilities and from different social strata, increasing salary
incentives for teachers, and distinguishing quality educational
programs. It also recommended applying effective innovation
programs and decreasing regulations and bureaucracy for the
business sector (Financial dailies Diario Financiero and
Estrategia, 1/28).

Nuclear Energy

9. Ricardo Raineri, responsible for President-elect Sebastian
Pi????era's nuclear agenda, said that the incoming administration has
no plans to build a nuclear plant. Raineri said it would focus on
moving forward on the regulatory framework (La Tercera, 1/28).

Organization of American States (OAS)

10. At the request of its Venezuelan delegates, the OAS permanent
council postponed set to ratify the date of the election of its
secretary general, slated for March 24. In Chilean diplomatic
circles, this can only mean that Caracas is still considering
presenting its own candidate (El Mercurio, 1/28).

11. President-elect Pi????era said that he would take a stance
regarding OAS Secretary General Jose Miguel Insulza's reelection
after he takes office on March 11 (El Mercurio, 1/28).
URBAN

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