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Viewing cable 08SANTIAGO1117, CODEL MEEKS: PRAISE FOR "CHILEAN WAY;" EXCELLENT

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Reference ID Created Released Classification Origin
08SANTIAGO1117 2008-12-18 19:46 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Santiago
VZCZCXYZ0000
RR RUEHWEB

DE RUEHSG #1117/01 3531946
ZNR UUUUU ZZH
R 181946Z DEC 08
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 4155
INFO RUEHBO/AMEMBASSY BOGOTA 2216
RUEHBR/AMEMBASSY BRASILIA 0588
RUEHBU/AMEMBASSY BUENOS AIRES 1194
RUEHLP/AMEMBASSY LA PAZ DEC LIMA 5862
UNCLAS SANTIAGO 001117 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: OVIP PGOV PREF CI
SUBJECT: CODEL MEEKS: PRAISE FOR "CHILEAN WAY;" EXCELLENT 
BILATERAL RELATIONSHIP WILL CARRYOVER TO NEW U.S. 
ADMINISTRATION 
 
REF: SANTIAGO 1105 
 
------ 
Summary 
------- 
 
1. (SBU) Visiting CODEL Meeks emphasized to Acting President 
Perez Yoma that Chile's success in reducing poverty, 
establishing democratic institutions, and committing to open 
trade policies was much appreciated in the U.S., and that its 
policy choices are worthy of emulation. Chairman Meeks was 
confident the "excellent" U.S.- Chile relationship would be 
continued by the incoming U.S. adminstration.  Perez Yoma 
noted Chilean satisfaction with the state of relations - 
"normal and low-profile" - with occasional disputes (such as 
on trade) resolved amicably.  Perez Yoma worried about the 
global financial crisis which, he said, would hit Chile 
"hard" early in 2009.  Perez Yoma also informally agreed to a 
request to station some DEA personnel expelled from Bolivia 
in Chile.  End summary. 
 
2. (U) Representative Gregory Meeks (D-NY) led a CODEL to 
Chile December 15-17, joined by Ruben Hinojosa (D-TX) and 
Paul Ryan (R-WI).  The three met December 16 with Interior 
Minister Edmundo Perez Yoma (acting also as President during 
the absence of Michelle Bachelet, who was in Brazil) to 
discuss the overall state of U.S.- Chile relations.  Also at 
the meeting were Ambassador Simons, E/Pol Counselor, several 
CODEL staffers, and a GOC notetaker. 
 
-------------------- 
Spread the Good News 
-------------------- 
 
3. (SBU) Chairman Meeks told Perez Yoma he wanted "to thank 
Chile and President Bachelet" for being such a good friend to 
the U.S.  The U.S.-Chile Free Trade Agreement (FTA) had laid 
the foundation for enhanced cooperation and had also 
benefited both sides economically.  This was a message that 
had to be broadcast widely.  Moreover, Chile's ability to 
reduce poverty drastically, establish firm democractic 
institutions, and establish open trade ties globally was 
"nothing short of miraculous."  Meeks stressed his view that 
others should "get the hint" and follow the model.  Meeks 
offered that the U.S.-Chile relationship is great and that 
the incoming U.S. administration would want to build on the 
strong foundation.  Meeks said that President-elect Obama 
understands the regional approach necessary to resolve issues 
in Latin America and noted, also, that the President-elect 
had voted for the U.S.-Peru FTA.  His CODEL reflected, too, a 
bipartisan approach to maintaining good relations with Chile. 
 
4. (SBU)  Perez Yoma replied that President-elect Obama's 
election had been viewed "very favorably" in Chile, 
especially by its youth, who all wanted to be the "Chilean 
Obama."  Perez Yoma described relations as "very good," 
thanks in part to a stream of U.S. ambassadors who had worked 
to maintain "low-profile, normal" relations. Trade issues, 
including agricultural disputes, had been resolved 
expeditiously; both sides work well together.  Perez Yoma 
expected relations to remain on a positive, even-keel with 
the new U.S. administration. 
 
--------------------------- 
Chile Awaits the Other Shoe 
--------------------------- 
 
5. (SBU) Rep. Ryan noted he was impressed with the Chilean 
pension system.  Perez Yoma replied that the system was still 
functioning well, despite the global financial breakdown, 
although pension holdings had dropped dramatically.  He had 
been surprised by the relatively low level of "political 
criticism" the losses had generated. Perhaps there is "faith 
in the system; if it can survive this, it can survive 
anything."  Perez Yoma continued that Chile had yet to see 
the worst of the financial crisis.  While the overall 
national unemployment rate was still only at 8.2 percent, he 
expected that to rise to 10.5 percent by March/April 2009, 
when seasonal agricultural and service industry jobs petered 
out.  And in some regions dependent on exports - such as the 
BioBio region - where the forest industry was already 
suffering, unemployment could reach 15 percent. 
 
--------- 
OK to DEA 
--------- 
 
 
 
6. (SBU) Both Chairman Meeks and Rep. Hinojosa strongly 
seconded the Ambassador's request to Perez Yoma that Chile 
accept the stationing in Chile of some DEA personnel expelled 
from Bolivia; the Ambassador noted the expulsions could have 
destabilizing effects in the region.  Perez Yoma agreed to 
the request (reftel). 
 
--------------------- 
Other Regional Topics 
--------------------- 
 
7. (SBU) Noting that the CODEL was moving on next to Buenos 
Aires, Rep. Ryan asked for any counsel Perez Yoma might offer 
on what to watch out for when meeting with Argentine 
interlocutors.  Perez Yoma, who had served as Chilean 
ambassador to Argentina, bemusedly observed that Argentina is 
the "most disconcerting country you'll ever see."  While on 
the surface much seems to function well - "absolutely first 
world" - the political decision-making process is 
"unfathomable and the most disorganized ever."  Perez Yoma 
also said Chile continued to view developments in Bolivia, 
where the situation remains "fluid and difficult," with 
serious concern.  Venezuelan influence is problematic, 
although thanks to the diminishing price of oil, Chavez will 
have less money with which to influence. 
 
8. (U) The meeting closed with Chairman Meeks suggesting 
that, in its contacts with the Obama transition team, the GOC 
urge passage of the U.S.-Colombia FTA, stressing its 
importance to regional integration and economic growth. 
 
9. (U) CODEL Meeks did not clear this message. 
SIMONS