Santiago Times for January 2, 2000 Via NY Transfer News * All the News That Doesn't Fit Santiago Times for January 2, 2000 January 2, 2001 * HEADLINE: CHILE IN 2001 What Does The New Year Hold? KEYWORDS: CULTURAL; POLITICAL; ECONOMY SOURCE: SANTIAGO TIMES TEXT: If President Ricardo Lagos is hoping that 2001, his center-left government's second year in power, is calmer than last year, he may well be disappointed. In 2000, Chileans experienced presidential and municipal elections, several strikes, fresh revelations of human rights abuses under the former military regime, several political scandals and a high rate of unemployment. This year is likely to be just as convoluted, with several important political, judicial and economic developments expected. The congressional elections in December will loom large over the political scene, as Lagos' coalition tries to prevent the opposition right parties from building on their success in last October's municipal elections. The ongoing issues of high unemployment and labor relations will also dominate government policy. The government's controversial new labor legislation is expected to receive a stormy reception in Congress from the political right, while unions will be watching carefully for evidence that the government has not sold out their interests to big business. In the area of human rights, legal proceedings against Chile's former military leader Augusto Pinochet on charges of torture, kidnapping and murder are entering their decisive phase. Pinochet, who began last year in detention in the United Kingdom, begins 2001 facing 202 legal cases relating to human rights abuses under his regime. In December, Judge Juan Guzman Tapia indicted Pinochet for alleged involvement in the "Caravan of Death" case, a 1973 action in which military officers toured the country and summarily executed at least 74 political prisoners who opposed the military regime. This indictment was later overruled by the Supreme Court, however, which accepted defense lawyer's appeals that the judge had not followed due process. Pinochet also faces legal action from abroad. A Chilean judge will rule early this year on Argentina's request for the senator's extradition, although it is widely expected the request will be denied. Argentina requested Pinochet's extradition in late October on charges that he was the intellectual author of the 1974 assassination in Buenos Aires of Chile's former Army Commander-in-Chief Carlos Prats and his wife Sofia Cuthbert. Early this month, the former military ruler will undergo a decisive medical examination to determine whether he is fit to stand trial. Most analysts bet that mental and neurological examinations will find sufficient deterioration in the 85-year-old senator to allow him to escape trial. Other highly significant human rights cases are also expected to be resolved in 2001. In particular, Judge Sergio Munoz has completed investigations into the 1982 murder of Tucapel Jimenez, the leader of the National Grouping of Business Workers (ANEF). Munoz will now schedule a trial for the former military officers involved in the case, who include the former head of the Army's legal service, Fernando Torres Silva, and Gen. Hernan Ramirez Hald, the first active-duty general to be indicted on human rights charges. Chile's economy failed to create new jobs in 2000 despite a growth rate of 5 percent. In 2001 the economy is expected to increase its rate of growth, with authorities looking for more foreign investment after a sharp drop off in 2000. This year may also see spin-off results from Lagos' visit to Silicon Valley in late November, where he encouraged U.S. high technology companies to increase their investment in Chile. Early January also brings the opening of negotiations in Santiago between Chile and the United States regarding a possible free trade treaty. Chile would like to make significant progress in the talks quickly, but many experts predict that late January's change of administration in the United States will significantly delay negotiations, as the incoming Bush administration is likely to have other legislative priorities. Whatever happens in Chile in 2001, and there are surely be some surprises in store, readers can be assured that the Santiago Times will keep them informed of the latest developments. Happy New Year! * HEADLINE: CURRENT EVENTS BRIEFS KEYWORDS: POLITICS; INTERNATIONAL; ENVIRONMENT SOURCE: LA NACION SOURCE: LA TERCERA TEXT: Today's other headline stories in brief: -- ARMED FORCES CHIEFS TO REVEAL CONCERNS. Chile's National Security Council (COSENA) meets today, Tuesday, to discuss an as yet unknown agenda set by the Armed Forces chiefs, although it is clear that human rights issues will dominate proceedings. Army Commander-in-Chief Ricardo Izurieta called for the COSENA meeting in early December immediately following the expedited indictment of former military junta leader Augusto Pinochet. The COSENA, a Pinochet-era creation, is designed to give Chile's Armed Forces a voice in national affairs during times of national crisis, and has an equal representation of military and civil authorities. The eight-person council is headed by the President of the Republic and includes the Senate President, the Chief Justice of the Supreme Court, the National Comptroller General, the leaders of Chile's three military services and the head of the Carabineros (national police). Despite initial government reluctance to convoke the COSENA on grounds that there was no national crisis, President Ricardo Lagos accepted the council meeting, but only after the appeal against Pinochet's indictment was heard. Had Lagos not accepted the request to convoke the COSENA, Izurieta had the authority to call the council meeting, given that it may be convened at the request of any two members without the president's consent. This would have frustrated the increasingly good relations that are said to be developing between Lagos and the Armed Forces chiefs. Following the Supreme Court's dismissal of Pinochet's indictment on Dec. 20, observers have been focusing on whether the COSENA meeting's agenda has been drawn with an eye on the Jan. 6 deadline for submitting anonymous information on the whereabouts of the disappeared. The remains of over 1,000 victims of the political violence that followed the 1973 military coup have yet to be recovered. Last week Lagos specified that neither the roundtable talks nor the role of the judiciary would be dealt with by the COSENA, but accepted that human rights issues would be on the agenda. "The agreements of the roundtable talks won't be discussed. However, if there's a series of issues that are complicating matters, then of course they'll be dealt with," Lagos said. The Pinochet case and the indictment of other high-ranking officers have created widespread unease within the Armed Forces and as a result, new information on the disappeared has not been as forthcoming as was originally hoped. Given that the COSENA meeting comes just four days before the Jan. 6 deadline, sources believe the Armed Forces commanders will want to discuss solutions to solve the current deadlock regarding the submission of information. Lagos may opt to extend the deadline by another six months, by which time many expect the current impasse in the Pinochet case to have been resolved. -- GREEN LIGHT GIVEN TO PURCHASE JETS MADE IN USA. Chile's Air Force (FACh) received government approval late last week to purchase 10 new F-16 fighter jets from the United States in a US$600 million deal. The F-16, produced by Lockheed Martin, was selected from a shortlist of three purchase options presented to President Ricardo Lagos by the FACh Commander-in-Chief Gen. Patricio Rios earlier this month. Although the FACh favored the purchase of the F-16, the ultimate decision lay with the president, who had to consider the economic and strategic implications of the multi-million dollar deal. The other jets considered were the Swedish-made JAS-39 Gripen, made by Saab, and the French-made Mirage 2000-5 Mk. II, made by Dassault. Defense sources said Lagos' approval of the option favored by Gen. Rios demonstrated a clear sign of support to the Armed Forces at a time when that institution is facing increased pressure regarding charges of human rights abuses committed during the military regime of former military junta leader Gen. Augusto Pinochet. Chile's decision to favor the purchase the U.S.-made F-16s is also a favorable sign to the U.S. government now that the two countries are embarking on negotiating a free trade agreement.. "This welcome announcement is another notable example of the strength and depth of our dynamic bilateral relations, and complements the current negotiations to the highest degree in terms of mutual political, economic, commercial and strategic interest," U.S. Ambassador to Chile John O'Leary said. Lagos, however, claimed the F-16 had been chosen on its technical merits and not as a result of the pending free trade agreement. The Lockheed Martin package includes commitments by the company to invest some US$650 million in Chile to offset the purchase, although details of the investment are not yet known. The FACh has been waiting over four years for government authorization to replace its fleet of A-16 Dragonfly jets, which are nearing the end of their useful life. Gen. Rios' predecessor had hoped to increase the FACh's fleet to some 60 fighter jets, but authority was denied by then-President Eduardo Frei, who deemed such a multi-million dollar purchase inappropriate during the severe recession of 1998 and 1999. As a result of Chile's improved economic situation, Lagos this year gave the green light for the FACh to submit its long awaited bid for its replacement jets. The purchase will be financed by the 10 percent tithe paid to Chile's Armed Forces by the state-owned National Copper Corporation (Codelco), which is part of the 1980 constitution written by the former military regime. The FACh is expected to complete negotiations with Lockheed Martin by mid-2001 and should receive the first jets in 2004. -- BISHOPS CALL FOR CHILEANS TO SHOW POLITICAL MATURITY. In a statement to mark the Jan. 6 end of the Catholic Church's Jubilee Year, Chile's Conference of Catholic Bishops issued a call for Chileans to demonstrate their political maturity. The Conference asked Chilean Catholics to work together for reconciliation both in their public and private lives. The Church also called on the government and business leaders to work together to solve Chile's high unemployment rate. Bishops said Chilean society had a "moral obligation" to reduce unemployment, even if "this means postponing some other plans." The Conference added that as a practical measure, every parish in Chile should try to take on at least one new employee. Conference spokesperson Enrique Palet said he hoped Chileans would reflect on spiritual values before the end of the Jubilee Year. The Jubilee is a year-long celebration, decreed by the Pope to mark the beginning of the third Christian millennium. -- CHILE REJECTS TOXIC FISH CLAIM. Citing a recent study, Chilean officials have rejected claims by a Spanish newspaper that fish captured in Chile's national waters contain a dangerous level of dioxins. Representatives from the Chilean fishing sector were angered by an article published in December in the electronic edition of the Spanish newspaper ABC. The article stated that two independent EU studies warned of the high incidence of dioxins in southern Pacific fish, including catches from Chile and Peru. An industrial by-product, dioxins are a known carcinogen and have been linked to the development in humans of congenital deformities, nervous system disorders, hormonal changes and infertility. The claims are potentially very damaging for the Chilean fishing industry, given that fishmeal is Chile's third largest export commodity. The fishing sector employs 600,000 people and has an annual sales of almost US$2 billion, according to the National Fishing Society (Sonapesca). The National Fishing Service (Sernapesca) recently commissioned an investigation into accusations made by the European Union (EU) in 1999 that Belgian poultry had been contaminated with dioxins after being fed Chilean and Peruvian fishmeal. The results of the study, which was conducted in the United States and cost over US$600,000, indicated that Chilean fishmeal contained almost no trace of dioxins, according to Ines Montalva, Sernapesca Health Department manager. Montalva said, "We believe the Spanish paper's error arose as a result of either a misunderstanding or poor writing." She added that it was unlikely that Chile produced sufficient dioxins to present a health risk, given the limited industrial activity in the country. However, environmentalists have noted that dioxins are also a by-product of the mining industry. Various lawsuits have already been filed against Chilean mining companies in recent years for environmental contamination. * HEADLINE: CHRISTMAS EVE AT PUNTA PEUCO A Festive Evening With Chile's Most Notorious Human Right Violators KEYWORDS: POLITICS SOURCE: THE CLINIC TEXT: (Ed. note: The Clinic, a bi-weekly newspaper begun two years ago, offers some of the most biting social commentary to be found in Chile today. The following piece satires the handful of human rights violators who have been prosecuted and convicted and who are now serving time at the specially built Punta Peuco prison just north of Santiago. Chief among these is Manuel Contreras, "Mamo," former head of Pinochet's DINA secret police). A delegation of officers was named from the three Armed Services and the Carabineros police to go to the Punta Peuco prison and help make Christmas eve a bit more enjoyable for the inmates there. To make sure it was a really good time, five lieutenants dressed as women. Inside the jail, the party was in full swing. A poster of Jesus Christ hung on one wall for those who were into throwing darts. The guards, all very low ranking, ran back and forth with trays of food and pisco sours. They had to accept, as part of their duty, the ass grabbing on the part of the inmates. But since country, God and torture were of the greatest concern, the ass-grabbing was a minor sacrifice. Mamo was in great spirits. Since several of his former underlings were there, he decided to dress up as Santa Clause and hand out gifts. To wit: - For animal lovers, a dead cat. - For literary buffs, "The Road I Have Taken" by Pinochet, but duly edited and corrected by Contreras himself. - For sentimental types, a cassette of songs interpreted by Alvaro Corbalan, with a chorus arrangement by Patricia Maldonado. - For hard headed types, a transcript of statements given by Guaton Romo, to better understand what real loyalty is about. - For the weak in character, a photo of Gen. Prats' body. - And for the newly arrived, a manual explaining torture techniques. Everyone applauded the presents. Sometime before midnight a special call came from Paul Schaeffer, still in hiding, and the group sang, "I once had a comrade..." One group of enthusiastic inmates improvised a skit. They tied up the most timid of their bunch, beat the shit out of him, put out their cigarettes on his body and stuck his head under water. More than just laughs, the skit brought back fond memories. And since nostalgia is a very serious emotion, it is then that the carnival really began. Everyone looked for someone to torture. Whoever appeared first was beaten and strangled. It was an orgy of bodies piled one upon the other. Mamo, seated on his chair, looked upon the scene like a father enjoying the antics of his children. The first person to lose consciousness was hung from his thumbs as a consolation prize. The second had his fingernails pulled out and the third was put beneath a dull knife which crudely tattooed, on his belly, the word DINA. The cuckoo clock struck midnight - time for serious reflection. The group put on a video tape of the celebrated Channel 13 commentator, Father Hasbun, defending and justifying the DINA. The group read statements, recorded in their secret files, by Sergio Fernandez, Francisco Javier Cuadra, Mandredo Mayol, Hernan Felipe Errazuriz and other civilians who had vigorously defended the work of the "security forces." Then they looked at the compromising photographs they had of these same people. It was now very late and they realized they were all alone. In the distance, outside, they could hear the noise of the fireworks. * HEADLINE: MINING NEWS ROUNDUP KEYWORDS: ECONOMY SOURCE: FINNING NEWS TEXT: Today's top mining stories: -- OVERALL COPPER PRODUCTION INCREASES. Chile produced 398,172 tons of copper in November 2000, which represented an 8.2 percent increase compared to the 368,058 tons produced in November 1999, according to the National Statistics Institute (INE). A total of 4.22 million tons of copper was produced in the first 11 months of 2000, a 5.0 percent rise on the 4.02 million tons produced during the same period of 1999. Of the November 2000 output, 184,521 tons of copper-in-concentrates was produced, as were 184,308 tons of electrolytic or cathode output. Chile's gold production, meanwhile, was 9.8 percent down in November last year over the same month in 1999, and silver output was up 26.3 percent. The INE said overall mining production, as measured by its Mining Activity Index, grew 7.3 percent in November compared to the same month of 1999, and was 1.2 percent down on October last year. Mining production rose 4.7 percent in the first 11 months of last year over the same period in 1999. Metallic mining activity increased by 7.7 percent in November 2000 compared to the same month the previous year. Mining of non-metallic or industrial minerals decreased BT was 1.2 percent down. In the first 11 months of 2000, metallic mining production increased 4.9 percent, and non-metallic mining was down 0.1 percent. The Escondida mine, the largest copper mine in the world, produced 73,188 metric tons of copper during the penultimate month of 2000, which represented a 4.1 percent increase compared to the same period in 1999. This production consisted of 61,708 tons of copper-in-concentrates and 11,480 tons in cathodes. The figures bring output for the first 11 months of 2000 to 837,508 metric tons of copper, a 4.95 percent decrease on the 881,131 tons produced during the same period of 1999. Gold production at Escondida produced 10,048 ounces of gold in November, with total output for the first 11 months of 116,325 ounces. In November 1999, Escondida produced 9,272 ounces of gold and 138,501 ounces during the January to November period in 1999. * HEADLINE: BUSINESS BRIEFS KEYWORDS: ECONOMY; INTERNATIONAL SOURCE: FINNING NEWS SOURCE: EL DIARIO TEXT: Today's top business stories: -- VALUE OF CHILEAN EXPORTS REACHES RECORD LEVELS. Between January and October 2000, Chile recorded exports worth US$15.3 billion, the largest 10-month total ever. This represents an improvement of 19.3 percent compared with the first 10 months of 1999. According to Director General of Economic Relations Osvaldo Rosales, the record result is in part thanks to the strong dollar, which has made Chilean sales more valuable in peso terms. In the 10-month period the value of the dollar against the peso rose by 9.1 percent, or by 47.4 pesos per dollar. "In general, the value of exports has continued to be high, and in the period between August and October their value rose by 10.5 percent compared with the same period of 1999," Rosales said. The strong growth in the value of exports is also partly explained by the buoyant international prices of copper and wood pulp, two of Chile's key exports. The country's export success is driving economic growth in Chile, and analysts consider the sector as crucial to the country's future economic growth, which was in general sluggish in 2000. Secretary-General of the National Exporters Corporation Luis Palma predicted that overall exports at the end of 2000 could reach US$18.2 billion, a 16 percent improvement on 1999. "Although November's figures were apparently slightly down, December saw a marked improvement and we should be able to beat the US$18 billion dollar mark," Palma said. Copper cathodes, ore and concentrates accounted for 37.0 percent of exports in the 10 month period, while wood pulp provided 4.3 percent of the total. Exports of grapes and wine also performed well, accounting for 3.7 percent and 2.4 percent of exports respectively. Chile's biggest market for exports remained the United States, which purchased 17.1 percent of the overall 10-month total. The next most significant markets were Japan (13.1 percent), the United Kingdom (5.8 percent), China and Hong Kong (5.4 percent), Brazil (5.2 percent), Italy (4.5 percent) and Korea (4.5 percent). -- NEW MOBILE TELEPHONY LICENSES TO BE AUCTIONED. Chile's telecommunications regulator, the Under Secretariat of Telecommunications (Subtel), will put new bandwidths up for auction in the next few months. In late December, Chile's Anti-Monopoly Commission ruled that Subtel should hold a competition for new 30 MegaHertz bandwidths, rather than simply assigning them to companies with 25 MHz bandwidths. Telefonica Movil and Bellsouth, who hold licenses for 25 MHz bandwidths, had complained that without increased bandwidth they could not expand their services. However, December's ruling by the Anti-Monopoly Commission will oblige the two companies to compete for the licenses in an open auction. Another telecommunications company, Chilesat, has already announced its intention to bid for one of the licenses. Smartcom is also reportedly considering participating in the auction. The commission told Chile's biggest telecommunications company, Entel PCS, that it could not bid for the new bandwidths, as Entel already holds two 30 MHz licenses. Entel PCS and Telefonica Movil each have over a million customers, while Bellsouth has 400,000 and Smartcom 200,000. -- CHICKEN PROCESSORS FOCUS ON VALUE ADDED PRODUCTS. Faced with poor market conditions in Chile, leading chicken processing companies are now concentrating on developing value-added products and exporting to new markets. In order to capitalize on the value-added market, Agrosuper, the holding company which operates Super Pollo and Pollo King, last month invested US$1 million in developing its range of chicken, turkey, pork and beef burgers. Agrosuper dominates the chicken produce market with a 56 percent share. "The growth opportunities lie in the production of processed and boneless products," Agrosuper Sales Manager Guillermo Diaz del Rio said. At present, of all chicken products produced by the industry, only 22 percent are chicken pieces, while 77 percent are whole chickens. Agrosuper is also focusing on the international market, where it believes it can increase its export sales by 30 percent from US$7 million this year to over US$9.5 million in 2001. Poultry Product Association President (APA) Juan Miguel Ovalle predicts total export sales in 2001 for the chicken industry of US$20 million and said the APA hoped to begin exporting to Canada by mid-2001. Ovalle said the industry needs to increase investment in the sector by 20 percent if it is to achieve its 2001 goals, which would involve a total investment of US$60 million. Agrosuper has already earmarked US$30 million for 2001 to improve its distribution network and increase its foothold in the value-added and export chicken market. As a result of these improvements, the holding company expects to increase its sales from US$180 million in 2000 to US$192 million in 2001. -- ENVIRONMENTAL APPROVAL DELAYS CONSTRUCTION PROJECT. Developers are still waiting for official planning permission to begin construction on the US$300 million Hacienda Topocalma project. The tourism project, which has been on hold since March 1999, will encompass a 7,000 hectare area near Lituche, in the province of Cardenal Caro in south-central Region VI. The project involves the construction of tourist amenities and vacation homes along a 15-kilometer stretch of beach. The developers want to construct more than 5,000 buildings, including houses, shops and services. Land in the area is currently reserved for agricultural or forestry use. Nonetheless, Genera construction company, a subsidiary of CGE, said it hopes the Region IV Environmental Commission will approve the project in the near future. Several other regulatory bodies still have to approve the project, so work is not expected to begin until 2003. -- CHILE NOW HAS 850 KILOMETERS OF HIGH QUALITY HIGHWAY. Since the Ministry of Public Works (MOP) launched its concession system in 1995, 850 kilometers of highway have been improved, the majority on the Pan-Americana Highway. Public Works Minister Carlos Cruz said that by early 2001 Chile would have around 2,000 kilometers of four-lane highway. This is an advance in the government's original goal that 10 percent of the country's 13,000 kilometers of highway should be converted to four lanes by 2010. During 2000, 400 kilometers of the country's highways have been expanded to four lanes. This number should increase significantly next year, as various other highway projects are scheduled to be completed. In particular, the government has granted a number of concessions to the private sector to develop the Pan-American Highway, which runs through two-thirds of the length of Chile. The concessions run from the northern limit of Region IV to the highway's southernmost reach, Puerto Montt in Region X. In mid-2000, MOP said it will tender out the far northern section, between Regions IV and the Peruvian border in Region I, as three concessions. One will cover the stretch of highway between Arica and Antofagasta (Region II), the other between Antofagasta and Caldera (Region III) and the third will link Caldera and La Serena. The bidding process for these three concessions will begin in early 2001 and work is expected to begin on the projects in 2002. The improvement and extension work on the 1,600 kilometer stretch of highway will require overall investment of around US$600 million. That stretch of the Pan-Americana is used by less traffic than the central and southern parts of the highway, so MOP has suggested that the government will provide subsidies to the private sector in addition to the receipts companies will receive from tollsc. -- CALICHERA WILL NOT SELL SQM SHARES. The Pampa Calichera investment company will not sell its stake in the fertilizer producer Soquimich (SQM), according to a report submitted to the Securities and Exchange Committee (SVS). By maintaining its current 17.8 percent stake in SQM, Pampa Calichera will retain sufficient shares in SQM to ensure its right to elect 25 percent of SQM's board of directors. Pampa Calichera is controlled by SQM President Julio Ponce Lerou. Pampa Calichera was obliged to make this commitment in order to obtain a US$20 million loan from the Bank of America for its subsidiaries Calichera Caiman and Roga Trading. The loan, which was authorized on Dec. 19, will be used to pay off a debt with Santander Investment Bank Ltd and Nomura Securities. * -- BASIC ECONOMIC INDICATORS: Dollar's value: Observed, 573.65; Accord, 523.91 Interbank, 573.90 Today's Unidad de Fomento, UF: $15,772.97 Copper Price: Down 0.19% to US$0.8203 Stock Exchange: IGPA, Down 0.02% to 4,869.04, IPSA, Up 0.05% to 96.37 * ================================================================= NY Transfer News Collective * A Service of Blythe Systems Since 1985 - Information for the Rest of Us 339 Lafayette St., New York, NY 10012 http://www.blythe.org e-mail: nyt@blythe.org ================================================================= pvtsa-01.05.01-02:49:07-24804