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Viewing cable 08SANTIAGO1123, CHILE MEDIA REPORT - DECEMBER 19

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Reference ID Created Released Classification Origin
08SANTIAGO1123 2008-12-19 18:09 2011-08-25 00:00 UNCLASSIFIED Embassy Santiago
VZCZCXYZ0002
RR RUEHWEB

DE RUEHSG #1123/01 3541809
ZNR UUUUU ZZH
R 191809Z DEC 08
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 4165
INFO RUEHAC/AMEMBASSY ASUNCION 3687
RUEHBO/AMEMBASSY BOGOTA 2224
RUEHBU/AMEMBASSY BUENOS AIRES 1202
RUEHBR/AMEMBASSY BRASILIA 0596
RUEHCV/AMEMBASSY CARACAS 1887
RUEHPE/AMEMBASSY LIMA 5870
RUEHMN/AMEMBASSY MONTEVIDEO 4158
RUEHQT/AMEMBASSY QUITO 2040
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RHEHNSC/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS SANTIAGO 001123 
 
SIPDIS 
 
STATE FOR R/MR, I/PP, WHA/BSC, WHA/PDA, INR/IAA 
 
E.O. 12958: N/A 
TAGS: KMDR KPAO PGOV ECON PREL SNAR EFIN CI
SUBJECT:  CHILE MEDIA REPORT - DECEMBER 19 
 
Lead Story 
---------- 
1.  Dailies highlighted that state-owned copper mine Codelco is 
studying the possible merger of its Andina mine with privately-owned 
Los Bronces (Anglo American).  The merger would create the largest 
copper mine in the world. 
 
U.S.-Related News 
----------------- 
2.  The fall in the price of copper has forced U.S. mining company 
Nova Ventura to suspend its operations in Taltal, in the II Region. 
The company is linked to the investment bank Quantek Asset 
Management, and had resumed operations just a year ago.  The mine 
decreased its labor force from over 500 to around 70 (Diario 
Financiero, business and financial daily, circ. 30,000, 12/19). 
 
3.  Finance Minister Andres Velasco will meet this week in New York 
with Brian O'Neill, a senior official of the U.S. Department of the 
Treasury with responsibilities for the Western Hemisphere, as well 
as with the Vice President of the Federal Reserve Bank of New York, 
and with leaders of J.P. Morgan and Goldman Sachs.  Velasco will 
also have lunch at the Council of the Americas (El Mercurio, 
conservative, influential newspaper-of-record, circ. 129,000, 
12/19). 
 
4.  It took American Duane Pederson nine years to complete the 
process of building a luxury resort in Chilean Patagonia, in the XI 
Region.  Pederson said that it "will be the most luxurious in South 
America.  The lodge will be on the hills of Margarita Island, amid 
cascades, rivers, and white sand beaches.  Accommodations will cost 
from US$900 to $2,000 per night.  Pederson spent years in obtaining 
authorization to build the marina, the right to use rivers for a 
hydroelectric plant, and the necessary environmental approvals, 
among other things. "The process is exhausting, because no pocket 
can sustain this amount of paperwork," he said.  Clients will be 
flown to the island on a private plane (Que Pasa, conservative, 
influential weekly, 12/19). 
 
Local 
----- 
5.  Foreign investment in Chile grew 254% from January until the 
first two weeks of December 2008, when compared to the same period 
in 2007; total growth is reported at US$ 2,959 billion.  This is a 
record for the last ten years, reports the Foreign Investment 
Committee (Estrategia, business and financial daily, circ. 30,000, 
12/19). 
 
Chile and Other Countries 
------------------------- 
6.  UNASUR members have been unable to reach consensus on a 
candidate to occupy the office of the entity's Executive Secretary, 
and have started looking for new names.  Reportedly, one of these 
names is that of former Chilean President Ricardo Lagos (La Tercera, 
conservative, independent, 12/19). 
 
7.  Cuban President Raul Castro and his Brazilian counterpart Lula 
da Silva met in Brazil and issued a series of messages for the 
United States and Europe.  "Latin America and the Caribbean are 
beginning to understand each other," they said.  Lula said that Cuba 
should receive some form of reparation for its expulsion from the 
OAS, including an apology.  Castro referred to Brazil as Latin 
America's "older brother," adding that "We want our neighbors in the 
north and in Europe to know that we will defend our people." 
Castro, however, lost his smile when a journalist asked him about 
the "prisoners of conscience" in Cuba.  "If you want the dissidents, 
I can send them to you tomorrow, with family and all.  But give back 
our five heroes," declared Castro, referring to the five Cuban 
agents imprisoned in the United States.  Washington responded by 
"recommending" the immediate release of the dissidents, noting that 
they were imprisoned for expressing their opinion (La Nacion, 
government-owned, editorially independent, circ. 4,200, 12/19). 
 
Survey 
------ 
8.  A survey conducted by the Diego Portales University shows that 
the majority of Chileans want the government to take a more active 
role in pension funds, public transportation, banking, universities, 
and even in the supermarket sector.  71.6% of respondents said that 
utility companies should be state-owned; 67.2% that pension fund 
administration should be state-owned; 65.7% that there should be 
more state banks; 58.1% that the government should own and 
administer public transportation; 52.3% that the state should 
administer universities; and 51.9% that there should be a 
state-owned supermarket chain.  Other results: There was a 52.7% 
rate of approval for Michelle Bachelet. 37.2% said they would vote 
for Sebastian Piera, 17.1% for Ricardo Lagos, 6.5% for Eduardo 
Frei, and 5.5% for Jose Miguel Insulza (All dailies, 12/19). 
 
SIMONS