Wednesday, September 28, 2005

LAGOS WILL NOT SUPPORT AMNESTY FOR HUMAN RIGHTS VIOLATORS

(Sept. 28, 2005) President Ricardo Lagos met with the Assembly of Human Rights on Monday announcing that human rights violators would not be eligible for amnesty. The move was greeted with enthusiasm by the Assembly after waiting two years for an audience with the president and a recent series of set backs on the human rights front.

President Lagos drew sharp criticism on Sept 9 after he initially gave his support for a senate proposal to reduce the sentences of Pinochet-era human rights violators who have already spent 10 years in prison (ST. Sept 9). The initiative was brought to the floor by Hernán Larraín, senator for the right wing Independent Democratic Union Party (UDI).

Lagos’ statement was all the more startling coming so soon after he pardoned Manuel Contreras Donaire, a jailed military official involved in the 1982 murder of former trade union leader Tucapel Jiménez. However, the Human Rights assembly was very pleased that the president decided to change his position on the amnesty issue.

Jorge Saez is the Assembly Representative for the Group of Ex-Political Prisoners in Chile. He agreed to an interview with the Santiago Times on Wednesday. Saez spent two years in prison between 1974 and 1976. After being released from prison, he fled the Chile and lived in Germany until three days before the 1988 plebiscite that forced former military dictator Augusto Pinochet to step down as the ruler of Chile.

Saez attended the meeting with Lagos on Monday and, while pleased with the results, he was left with mixed feelings about the issue.

“Lagos agreed that he wouldn’t pardon anymore people while he is in office,” said Saez, “he steps down in March.”

“You see,” he told me, “Every Concertación government since the country transitioned to democracy has had a plan to bring closure to the issue of human rights abuses committed during the dictatorship. We have succeeded by not letting these laws get passed.”

In this sense, the assembly meeting with Lagos was a success, but the issues surrounding what happened to thousands of people disappeared during the 17 years of the military rule still remain. Saez believes that until the real truth about the fate of those disappeared is known, the country will not be able to heal.

“How can we reconcile, if we don’t even know what happened?”

CONAMA RAISES QUESTIONS ABOUT BARRICK GOLD DEAL

(Sept. 29, 2005) Barrick Gold Corporation’s attempt to buy citizen support for the development of its US$1.5 billion Pascua Lama gold mine has not satisfied government officials in charge of reviewing environmental legislation. Paulina Saball, director of the Region III National Environmental Commission (CONAMA) is still concerned about the proposed mine project even though Barrick has agreed to pay US$60 million for contamination and disruption of the Huasca River watershed.

The Company is proposing to relocate three glaciers from the proposed open-pit mining site to Guanaco, an area with similar surface characteristics and elevation located several kilometers to the south. Farmers from the Junta de Vigilancia, the group of local farmers that signed the agreement with Barrick, were concerned that the relocation of the glaciers would negatively impact their land that relies on the Huasca River for irrigation.

The protocol agreement between Barrick and the Junta was signed on June 30 by eight of the valley’s nine farmers. It agreed to provide US$3 million every year for 20 years to mitigate any damage to the farms as a result of mining operations. (ST, July 22).

The group originally proposed that Barrick agree to compensate them for the full value of their farms, estimated at US3 billion, in the event of contamination. The combined worth of the Junta is considerably higher than the US$60 million Barrick agreed to. However, farmers expressed concerns that if they refused the offer, the project would begin without their support, leaving them to deal with the contamination on their own.

Even though the company has agreed to compensate the farmers, Saball raised several questions left unanswered by Barrick. As Chile’s constitution grants every citizen the right to live in a clean environment free of pollution, she questioned whether one can actually give up their constitutional rights by signing a private agreement.

“Who is the community? she asked, “Is it only the farmers?”

Her commission will take up the issue on October 14 when they will review Barrick’s response to these and several other questions still pending.

“The (Barrick-Junta) agreement reached between the two groups will not influence our decision in any way to approve the environmental impact study done by Barrick.” said Saball, “The fact that they have an agreement between private parties is not a bad thing, but that doesn’t mean anything to us.”

Citizens have until Sept. 30 to register their concerns with the government.

Tuesday, September 27, 2005

CHILE CAMPAIGNS AGAINST HUNTA VIRUS

(Sept. 27, 2005) Chilean health officials are beginning their seasonal campaign this weekend to educate the public about the risks of Hanta virus, an infection contracted by contact with rodent feces that accumulate in closed spaces over the winter.

Chilean health officials take the threat very seriously because the virus is fatal in 30 percent of cases. There have been 46 confirmed cases of Hanta virus this year, 14 of them were fatal. Officials normally expect to see infection rates like this in October, but because of the large number of people infected with the virus so far this year, officials are launching their campaign to educate the public earlier than normal.

Symptoms of the virus are similar to the flu, with onset usually occurring two to three weeks after exposure. They include high fever, headache, and muscle aches, mostly in the thighs, hips, back and shoulders. If the virus is not treated promptly, the symptoms may worsen causing breathing difficulties, abdominal pain, nausea, and vomiting. If left untreated, the virus can be fatal.

The virus is most prevalent among agricultural workers and foresters but can affect anyone that goes into closed areas, such as cabins or camping shelters that have not been properly aired out after the winter season.

The regions with the highest prevalence rates are Aysén, Maule, Los Lagos, and Bíobío. These rural areas have higher rates of infection because of the large number of summer homes and cabins located in these regions that have to be reopened every year to prepare for the beginning of the tourist season.

Infection can occur after contact with rodent urine, saliva, or after being bitten by a rodent. The most common way of being infected is by breathing in the contagion on dust particles that are stirred up by moving around in buildings that were closed over the winter.

People should wear face masks and gloves when reopening closed buildings and allow rooms to air out for at least an hour before reentering them. Spay down all surfaces with disinfectant or bleach and steam clean any rugs or carpets that may have been contaminated.

If you think you have may have been infected with the virus seek medical attention immediately.

Monday, September 26, 2005

HISTORIC GRAPE HARVEST IN CHILE

(Sept. 27, 2005) Wine producers breathed a sigh of relief as Aníbal Ariztía, President of the Chilean Wine Association, announced a historic grape harvest this year - up 25 percent over 2004.

Wine producers have had a hard time over the last few years because of the high cost of primary materials needed to make their wine. In 2004 grape harvests decreased six percent from the year before at the same time as Chilean wine exports grew 20 percent. The high demand for grapes to create wine to export and the short supply of them in Chile drove up the overall cost of producing a bottle of wine.

On top of the rising cost of primary material, wine exporters suffered along with the rest of the world as the value of the dollar decreased on world markets. Chilean wine exporters have earned less in US markets because of the devaluation of the US dollar, further adding to their financial difficulties.

Vineyards have steadily increased the number of hectares planted with grape stock over the last several years in an effort to stabilize the supply of grapes. By increasing the amount of grapes available in Chile, primary material prices have gone down thereby allowing wine producers to recover share prices of investments in their companies.

“The increase in harvests should have a calming effect on the prices of primary material.” said Ariztía, “It should create equilibrium between supply and demand that will bring about a cycle of rising prices for red wines that will eventually level out and stay high.”

This does not mean that the price of a bottle of wine you buy at the store will decrease though. Because of high cost of grapes over the last couple of years, the market is just beginning to level out to where it was before 2004. The price of a bottle of Chilean wine should not go down until business can recover stock prices that have slowly decreased over the last several years.

GOLD FOUND ON ROBINSON CRUSOE ISLAND

(Sept 27, 2005) Legends of buried treasure, pirates and fortune hunters surround Robinson Crusoe Island but it seems that all the myths were true. Astonished explorers discovered what they claim is the long lost treasure of Spanish Conquistador Juan Esteban Ubilla y Echeverría worth over US$10 billion.

Last Wednesday a team from Wagner Technologies announced to the world that they had discovered 800 metric tons of gold, silver, and jewels on Robinson Crusoe Island, one of a tiny group of islands located 645 km off the coast of Chile. The team used new robot technology that can scan the atomic composition of materials such as water, metals and petroleum, buried up to 50 meters underground. Because the robot uses sonar to scan the ground, no digging has actually been done yet, but if they are right, the discovery would be the largest buried treasure ever found anywhere.

According to legend, the treasure originated in the Incan Empire and was stolen during the Spanish conquest of Perú in the 16th and 17th centuries. When the treasure was enroute to Spain around 1715, the navigator in charge of the ship landed on Crusoe Island and buried his cargo. Before he could return to unearth the booty, an English pirate named Cornelius Webb uncovered the Incan treasure and reburied it somewhere else on the island.

What became of the fortune afterwards has been the focus of speculation and myth that has survived on the island for over 300 years. Since 1998 the American millionaire Bernard Keiser has been excavating caves all over the island in search of the hidden loot. He has invested over US$1 million in the hunt, but has never been able to find the X that marked the spot.

“Arturito,” the little robot named after Star Wars character R2 D2, took only moments to locate the buried treasure after engineers from Wagner Technologies set him down on Cerro Tres Puntas (Three Peaks Hill) the site of the discovery.

Arturito is becoming famous for solving mysteries that people cannot. In June, it discovered the massive arms cache buried at the German rightwing paramilitary compound Colonia Dignidad. Then, in August, it detected the remains of the body of businessman Francisco Yuraszeck, who went missing in 2004. In both cases, officials were unable to find anything on their own and relied on Arturito to solve the mystery.

Representatives from Wagner Technologies and the government are now trying to decide how to divide the loot amongst them. The location of the site is under the jurisdiction of the Council of National Monuments on government property. As such, there are two laws that apply to the buried treasure.

The first involves the discovery of money, jewels, and other precious articles. The law states that in any discovery where the rightful owners cannot be determined, the finds should be divided equally between the discoverer and the property owner.

The second law involves discoveries on national monument property stating that any material of historical value, including ancient treasure, found on government property, is archaeological by default and therefore must be returned to the state to allow for historical research on the artifacts found.

The government has taken the stance that as the treasure is on national monument property, the second law applies in this case, entitling them to 100 percent of the find. As is to be expected, Wagner Technologies rejected this stance immediately.

Island officials have also weighed in, stating that they are entitled to the governments share of the find as it was discovered on their island, effectively making them the interested property owners.

Excavation is set to begin in October, but the turf wars have already begun.

Sunday, September 25, 2005

ROBINSON CRUSOE SITE DISCOVERED IN CHILE

(Sept. 26, 2005) The island home of Alexander Selkirk, the man whose true story inspired the famous novel “Robinson Crusoe,” has finally been uncovered on Robinson Crusoe Island, 645 kilometers off the coast of Chile in the Juan Fernández Archipelago.

Although the island has long been known as the place where Selkirk was cast away by the captain and crew of his British privateer, the location of his home where he spent four years waiting to be rescued has always been a mystery.

Japanese archaeologist Daisuke Takahashi led the expedition, sponsored by the National Geographic society, which discovered the remains of Selkirk’s base camp. Takahashi is the author of the Japanese best seller, “In Search of Robinson Crusoe” and has been searching for the site for over 13 years. He once spent a month alone on the island just to understand what Selkirk went through as a cast away.

The team found the remains of a fire pit, animal bones, and ceramic pots while surveying likely locations around the island. After carbon analysis confirmed that the artifacts matched the dates of Selkirk’s stay on the island, 1704 to 1710, they further excavated the area and unearthed the remains of two structures Selkirk built, as well as the tip a pair of navigational dividers buried in the dirt.

Selkirk was a Scottish sailing master aboard the British privateer Cinque Ports, pirating Spanish vessels off the coast of South America in the early 1700s. After a series of sea battles, the Cinque Ports was left badly damaged. Selkirk feared the ship would soon sink and asked the captain to set him ashore. When none of the other sailors joined him on shore, he begged the Captain to take him back but was refused and left on what was then the uninhabited island known as Más a Tierra. Weeks later the ship and most of its crew sank off the coast of Peru, the captain and other survivors were picked up by the Spanish and thrown into a Peruvian prison.

Selkirk spent four years and four months on the deserted island waiting to be rescued. In 1709 he was picked up by a British privateer and continued pirating the treasure laden Spanish ships off the coast of South America for another four years. Having made his fortune he returned to Scotland in 1712 and published the account of his adventures on Más a Tierra that was later fictionalized by famous author Daniel Defoe.

Takahashi’s is now working with Chilean officials and the National Geographic Society to reconstruct Selkirk’s island home using his original design. The findings will be published in the October issue of National Geographic.

Saturday, September 24, 2005

BUSINESS LEADERS SUPPORT BACHELET

(Sept. 23, 2005) Presidential candidate and frontrunner for December’s election Michelle Bachelet is working hard to make sure business leaders from across the political spectrum know who she is.

With a quiet group of progressive entrepreneurs supporting her, the socialist Concertación party candidate is drawing strength from the business sector in hopes of securing campaign support and continuing the country’s progress in economic development.

Ingrid Antonijevic is the head of the group of prominent business leaders who are working to introduce Bachelet to business groups across the country. As director of negotiations and development at Chile’s only state bank, BancoEstado, Antonijevic has used her position to woo wealthy and influential Chileans to Bachelet’s campaign.

The Concertación candidate has held five dinners for Chile’s political and financial leaders with the purpose of giving those invited a chance to share their concerns with Bachelet and sound her out on policy issues before the upcoming election, Antonijevic said.

Antonijevic has also been instrumental in the creation of an internet-based grassroots campaign to raise funds for the candidate. “Transparency, Austerity, and Citizenship,” a name chosen to highlight the kind of government Bachelet claims she will lead if elected, seeks individual donations of 1,000 pesos (US$1.86) for the former health and defense minister’s campaign.

If elected, Bachelet would be the second socialist president since Salvador Allende was ousted by General Augusto Pinochet in the infamous Sept. 11, 1973 military coup. Chile’s current president, Ricardo Lagos, is the first.

Elected in 2000, Lagos had to deal with a very wary business sector. At the time many businessmen feared that Lagos would be a divisive president, too much aligned with traditional Socialist Party politics. To their relief, however, Lagos’ policies were much “renovated” and Chile experienced strong economic growth under Lagos. Bachelet maintains she will continue in this line if elected.

Friday, September 23, 2005

FISHERMAN STOP CELCO SCIENTISTS

(Sept. 23, 2005) A team of engineers was run off by fishermen Monday after pulp and paper manufacturer Celulosa Arauco y Constitución (Celco) announced plans to dump industrial waste in their fishing grounds. The team was surveying potential dump sites near the coast of Corral in southern Chile when they were confronted by the concerned fishers and forced to leave the area.

The fishermen were protesting Celco’s decision to pipe industrial waste into regional waters, fearing pollution levels would damage the local fishing industry. Attempts to install pipelines from the plant to the Pacific Ocean were originally defeated by local groups in 1996, causing the company to change plans and route its effluent into the Cruces River near the city of Valdivia.

Ten years later, Valdivian community groups blamed the company for contaminating the city’s drinking water and polluting the nearby Carlos Anwandter Nature Sanctuary, decimating large populations of black-necked swans. Celco closed the plant on June 8 in response to the outcry.

Celco reopened on Aug. 12 after President Ricardo Lagos gave his approval to route the waste to the ocean. The approval has caused a lot of criticism from environmentalists, politicians and academics, and now seems have sparked locals to take action into their own hands.

VINEYARDS BET ON CARMENÈRE

(Sept. 23, 2005) If you are looking for that distinctive taste of Chile, Carmenenère may be what you’ve been waiting for. Ten years after Chilean vineyards invested heavily in the distinctive wine, connoisseurs around the world are ready to taste the fruits of their labors.

There was a “rediscovery” of Carmenenère wines in Chile in the early 1990s that caused producers here to invest heavily in the product. Planting hundreds of hectares of Carmenenère grapes between Regions IV and VIII (latitudes 30 and 40 degrees south) Chilean vineyards are starting to harvest the first crops of what they hope is a very successful flavor.

“This is a grape stock that requires a lot of care.” said Sergio Correa, chief wine expert for Grupo Tarapacá, “It takes a long time to produce and must be planted in warm valleys.”

The creation of a new wine requires years of hard work as well. “Purple Angel,” a new Carmenenère from Viña Montes, took over ten years to produce. According to Aurelio Montes, president of the company “The wine is 92 percent Carmenenère and 8 percent Petit Verdot; the Verdot gives it the acidity needed to preserve the flavor of the wine.”

Wine makers are hopeful that the Carmenenères will be successful internationally where they think a good bottle will sell for anywhere between US$30 and US$50. The asking price for a bottle of “Purple Angel” is US$50 and Montes says if the label is successful, he will be able to produce up to 20,000 cases a year.

Thursday, September 22, 2005

CHILE’S FINANCE MINISTER CALLS FOR SPENDING REFORMS

Tax Exemptions And Military Pension Fund Cost Chile Over US$5 Billion In 2005

(Sept 22, 2005) In an effort to reduce government spending, government officials reopened two controversial debates in Congress this past week: tax shelters for business development in the extreme regions of the country and the insolvency of the military pension plan.

Fundamental problems with the pension plan and tax exemption laws will cost the state over US$5 billion this year. Speaking to Congress, Chile’s Minister of Defense Jaime Ravinet called the pension deficit “absurd” and asked Congress to take immediate action to fix the bankrupt pension plan.

Finance Minister Nicolás Eyzaguirre called for a review of the myriad tax breaks and incentives originally designed to promote development in the mineral-rich north as well as the under-populated south. Last Wednesday, Eyzaguirre told Congress that these tax incentives were not achieving the desired results.

As early as 1966, Chile began to subsidize development costs in the extreme regions of the north and south of the country. In 1975 Chile enacted the “Zonas Extremas” law, which provided tax credits of up to 40 percent for business investments in these areas. More than six other tax exemption laws have been enacted in the last 30 years, the last one in 2003.

Eyzaguirre asked Congress to create a formal mechanism to systematically evaluate all of the tax exemption laws after a recent World Bank report found that the development incentives were no longer achieving their desired results.

Following on the heels of this request, Eyzaguirre and Ravinet criticized the Armed Forces for its totally insolvent pension plan. Citing a US$1 billion loss in 2005 and projecting worse conditions in the future, the two ministers urged Congress to do something about the plan that is estimated to consume 1.3 percent of the Gross Domestic Product (GDP) by 2010.

Defense Ministry reports show that in 2005 Chile will spend more money on retired soldiers and their families than it will on active-duty personnel. A recent swell of retirements in the 1990s put the pension plan in the red and currently, there are not enough soldiers contributing to the plan to keep it afloat.

Adding to the problem is the high number of non-military beneficiaries. In 2002, a third of those collecting money under the plan had never served in any branch of the armed forces.
Under current law, retired military personnel, their dependents, widows, and single daughters are all eligible to collect benefits indefinitely. Single daughters of retired military personnel received more than US$80.7 million in benefits this year, each taking in approximately US$560 monthly.

Both Ravinet and Eyzaguirre criticized abuses of the system, claiming that many take advantage of it by remaining permanently single.

“I understand the necessity of a special pension system for the armed forces, but there are problems with it that greatly increase the cost of the plan,” said Ravinet. “Many people who are benefiting from this are very indirectly associated with the military. We have to correct these problems because if we don’t, the military pension plan will collapse.”

Calls for revisions in these two areas have met with opposition and silence from many politicians and stakeholders as the country gears up for both presidential and congressional elections in December. Requests for comments on the pension plan were refused by all presidential candidates, highlighting the political sensitivity of the issues.

The defense minister was pessimistic about the chance of any action being taken in the foreseeable future, saying, “the electoral climate prevents any consensus for this reform.” Joaquín Lavín, presidential candidate for the rightist Independent Democratic Union Party, refused to speak on the subject unless “all the other candidates do too.”

Wednesday, September 21, 2005

COCHILCO INCREASES COPPER ESTIMATE

(Sept. 21, 2005) The Chilean Copper Commission (COCHILCO) increased the estimated price of copper to between US$1.50 and 1.55 per pound for the end of 2005.

With this new prediction, the state-owned copper company CODELCO expects to earn US$5 billion for the government this year. As well, tax revenue from private companies is expected to increase by US$200 million over estimates made at the end of July.

Patricio Cartagena, executive vice-president of COCHILCO, estimates that the 10-year price of copper will average US$0.99 per pound and that mining companies should estimate US$0.95 per pound for their long-term budgets.

He also cautioned that the price of copper has been very high for an unusually long period of time, but said that the market seemed to be stabilizing and that 10-year projections should remain relatively high.

Private investment in the mining industry has also made news recently, with US$18.5 million to be spent on mining projects between 2006 and 2015 (ST, Sept 9).

All of this is good news for Chile’s government, which recently presented the 2006 budget to Congress with a 6 percent increase in government spending for the fiscal year 2006 (ST, Sept 15). Chile is using high copper prices to help finance new government programs, and in 2006, notable increases will occur in health and education spending, including a historic new initiative to finance university educations for the nation’s poorest 60 percent of the population.

Still, Cartagena warned that between 2010 and 2020, many laws benefiting mining in the country will expire. The expiration of these laws jeopardizes many investments in mining and could reduce profit margins, forcing mines to close down.

“We need to increase our efforts to protect mining in the country” said Cartagena. “These laws are the reason there have been so many new investments in mining and technology, and we must keep them competitive.”

Tuesday, September 20, 2005

CHILE SIGNS WHEAT AGREEMENT WITH ARGENTINA

(Sept. 20, 2005) Chilean and Argentinean officials announced an agreement on wheat tariffs Friday. Following more than five years of tense negotiations, the agreement was greeted with mixed emotions around the country.

Chile agreed to suspend protective tariffs on 10,000 metric tons of Argentinean wheat - representing 0.8 percent of national wheat production – in return for Argentina’s agreement not to file anymore lawsuits against Chile with the World Trade Organization (WTO).

The move allows Chile to resume talks with Mercosur, the regional trade organization of which Chile is an associate, after a 2003 “stand by” was imposed on Chile pending resolution of the wheat issue.

Carlos Appelgren, Chile’s ambassador to Uruguay, praised the agreement as a step forward for Chilean business. He explained that because of the agreement, Mercosur will move forward on eliminating all import tariffs on Chilean manufactured goods to Argentina, Brazil, Uruguay, and Paraguay.

Chilean wheat and flour producers were upset with the agreement fearing that reduced tariffs will hurt production at home by driving down the price of wheat.

Even though government economist tried to assure Chilean wheat and flour producers that the agreement’s impact would be minimal, the news was greeted with protest.

“The Chilean market is very complicated and no miller will want to give up any of his business to the Argentineans” said Sergio Ossa, head of the Association of Millers. “The agreement will create competition that will cause wheat prices to fall and hurt Mill profits that are already very low.”

Manuel Riesco, president of the Southern Agricultural Consortium, promised to fight the agreement “town by town.”

The final word will now be given by an economic distortion committee who can decide whether to leave the tariffs in place for one more year, or give the green light to Argentine wheat imports.

Friday, September 16, 2005

ANTUCO FAMILIES SUE GOVERNMENT

(Sept. 16, 2005) Families of soldiers killed last May in a blizzard in southern Chile have sued the government for 13 billion pesos (US$24.3 million). Claiming moral and psychological damages from the event, 25 families have brought charges against six military officials for negligence in the line of duty.

The demand represents the largest amount of money ever sought in a lawsuit against the state of Chile.

45 soldiers died during military training exercises on the Atuco volcano in the southern Andes after an unexpected blizzard separated them from their units. Rescue efforts were hampered by continued bad weather conditions and contributed to the high number of casualties (ST, May 20).

Charges were originally brought against three officers for failing to fulfill their duties. No officers lost their lives in the tragedy prompting harsh criticism from families claiming that they had abandoned their sons in the snow. Investigators found that only one of the four units involved was properly equipped for the snowy conditions causing further criticism of the military.

State lawyers are not sure when they expect to reach a verdict.

CHILE INVESTS IN EDUCATION AND HEALTH CARE

2006 Budget Submitted to Congress

(Sept. 15, 2005) Chile’s Finance Ministry submitted the 2006 budget to Congress on Wednesday, continuing the socialist administration’s agenda for increased spending on health and education. The new budget reaffirms President Ricardo Lagos’ efforts to promote development and advance Chile’s international standing.

According to figures released by the Finance Ministry, the new budget will increase government spending by six percent, the highest increase since 1999, and, as expected, will focus on health and education.

In 2006, the government will increase spending on health care by 11 percent, focusing on doctor visits and primary services. A large portion of that funding will be directed towards costs associated with President Lagos’ new state health system, “Plan AUGE,” which aims to provide universal health care coverage for all of Chile’s people (ST, August 3).

More than 200,000 Chileans have benefited from the plan since its inauguration in July. With the new investment into health, the number of illness covered under AUGE will increase by 15, with a total of 40 illnesses now covered under the plan.

At the beginning of his presidential term in 2000, Lagos promised to increase spending on healthcare by 25 percent. In Lagos’ final budget, the new figures represent an 18 percent increase in healthcare spending since he took office.

In tandem with Plan AUGE, the current government’s priority has been improving the nation’s education system. In 2006, general education funding will increase by 10 percent, while appropriations for higher education will increase by 24 percent.

The budget emphasized a plan for a new program, to be implemented during the 2006 school year, which would provide the nation’s poorest 60 percent with funding to attend university.

Minister of Education Sergio Bitar, who presented the plan on Tuesday, explained how the system will work to improve national access to higher education. The plan creates a system of financial guarantees for eligible students to cover higher education expenses. While most grants will go to students who plan to attend 25 of the nation’s largest universities, the law also provides funding for students who will attend private universities, trade schools, and other professional institutes.

At a ceremony with many university representatives, President Ricardo Lagos signed the education initiative into law. “Every deserving student will have access to higher education,” the president said. “This achievement is unparalleled since the transition to democracy.”

Student leaders present at the ceremony praised the government for its efforts to make higher education more accessible, celebrating the event as a major victory for students everywhere.

Support for the program increased after the government made concessions to the Federation of Chilean Students (CONFECH), which staged a series of demonstrations in April and May to highlight inequalities within the old system and the proposed new one. Government officials agreed to sit down and negotiate with student groups after several protests turned violent. The cooperation between education officials and student groups came as a surprise to students and university officials, as the government had previously refused to consider any of the group’s demands.

Education officials announced that the new education initiative will be based on university entrance exams and family income. Students who achieve at least 550 points on their university entrance exam (PSU) and whose family income is less than 60 percent of the national average will receive a fixed amount of money from the government to pay for their university studies. Any expenses above this amount can be financed through government-backed loans repayable at low interest rates.

Students whose PSU scores are at least 475 and meet income requirements will also be eligible for government loans and lines of credit guaranteed by the state.

The plan also provides aid for students whose families earn between 60 and 80 percent of the national average. Students from these families can apply for government loans to pay for up to 90 percent of their education expenses.

Wednesday, September 14, 2005

COURT RELEASES COLONIA DIGNIDAD DOCTOR

(Sept 14, 2005) Ex-Colonia Dignidad doctor Harmut Hopp was released on bail last week after denying charges of human rights violations. Pointing the finger at Paul Schafer, leader of the right-wing paramilitary group of Germans in the south of Chile, Hopp denied any knowledge of illegal activities at the Colony compound.

Colonia Dignidad was a settlement founded by German immigrants in 1961 near Catillo in southern Chile. Members of the group have long been suspected of aiding the military regime of Augusto Pinochet to torture and execute political prisoners. The group’s leader, Paul Schafer, was arrested on March 10 outside of Buenos Aires after an eight-year man hunt. He was expelled from the country and returned to Chile to stand trial for multiple counts of child abuse, tax evasion, and human rights violations (ST Mar. 11).

Chilean authorities recently charged Schafer’s second-in-command, Harmut Hopp, as an accomplice in the kidnappings of three left-wing activists missing since 1976 as well as medical malpractice as the Colony’s doctor. Hopp denied taking part in the acts and blamed Schafer as “The only one responsible for what occurred inside Colonia Dignidad.”

After Chilean officials took control of the compound in August they found what might be the largest arms cache ever seized in Chile’s history. When questioned about the weapons, Hopp denied any knowledge of their existence.

The decision to release Hopp on bail was immediately appealed by the State Defense Council (CDE) Hernán Fernández. The lawyer then lodged a disciplinary complaint against lead judge Jorge Zepeda for the court’s decision to grant Hopp bail. The CDE stated that the Zepeda’s decision to release Hopp constituted functional negligence because it failed to consider the relevant facts of the case.

Fernández said “it is impossible that Hopp was not directly involved in the crimes that occurred at the Colony. Until very recently, Hopp was a key piece in this system of oppression.”

The case will now be sent to the Court of Appeals to decide whether any irregularities occurred in the decision to grant the Doctor bail.

CHILE TRAILS IN TECHNOLOGICAL DEVELOPMENT

(Sept. 13, 2005) A recent United Nations report on technological development ranked Chile 37th among advanced nations. Chile falls behind countries with similar populations because of weak numbers in research and development, as well as access to internet and cell phones.

Chile’s population places it in competition with countries such as Ireland and the Czech Republic. However, these countries beat Chile in the report’s rankings coming in eighth and 31st, respectively.

Fifteen years ago, Chile had zero per 1,000 people connected to the internet. In 2003, Chile had increased its per capita connection to 232 per 1000 with similar numbers using mobile phone technology and standard telephone lines.

Experts point to the low numbers accessing new technological advances as a significant roadblock for the Chilean economy, and warn that Chile runs the risk of losing its competitive advantage globally if the country does not improve these numbers.

“Market penetration of technology is really good; the best of the best, but our biggest problem is the general low levels of usage. People don’t have easy access to technology,” said Aldo Signorelli, head of the National Association of Information Technology Companies (ACTI).

The UN report also looked at technological efficiency: general connectivity and the ability to export high tech products outside of the country. In this respect, Chile not only trails other countries, but has fallen 3 percent below its own levels in 1990. At that time, five percent of all Chilean exports came from the technology sector. Today, that number is only two percent of total exports trailing copper, grapes, and salmon.

Signorelli blames the lack of public and private sector incentives for Chile’s poor performance. Chile spends 0.5 percent of its gross national product on research and development, compared with a minimum expenditure of 1.2 percent in Ireland and the Czech Republic. As well, Chile has an average of 419 researchers per 1 million citizens while countries with similar populations have an average of 1,500 researchers per 1 million.

Sunday, September 11, 2005

CHILE REMEMBERS 9/11 MILITARY COUP

Protesters Clash With Police In Santiago

(Sept. 12, 2005) Thousands of people took to the streets of Santiago on Sunday in remembrance of the military coup of Sept. 11, 1973. Many demonstrators carried flags and held photos of loved ones disappeared during the 17 years of Gen. Augusto Pinochet’s military regime. September 11 has been a polemical date ever since the coup: it was celebrated throughout the 17-year Pinochet dictatorship as a national holiday. The holiday was eliminated in 1998, but a sense of unease pervades the nation each year, most especially Santiago, when the coup anniversary date comes due. On Sunday, protestors clashed violently with police forces at some of the 13 commemorative events approved by government authorities. Demonstrators at the General Cemetery and the Plaza de Armas were the most combative. Thirteen protesters were arrested and three policemen were hurt after protesters hurled rocks at them. The violence first broke out in front of a McDonald’s restaurant on Recoleta Avenue in a march destined to the National Cemetery.City officials prepared themselves for anticipated trouble by taking a number of steps to curb violence. An additional 10,000 police forces were stationed around the city, empowered by new laws increasing penalties for violent crimes, including the use of Molotov cocktails.Sunday’s traditional march to the General Cemetery started from the Plaza Los Heroes, with an estimated 3,000 people joining the National Assembly of Human Rights to commemorate ex-president Salvador Allende, the democratically elected Marxist president who lost his life during the military bombardment of the government palace, La Moneda, on the day of the coup. Composed of family members of the disappeared, political action groups, and crowds of university students, the demonstrators called for the end of impunity for human rights violators and protested a recent government move to grant pardons to imprisoned human rights violators for acts committed during the military regime (ST, Sept. 9). Hortensia Bussi, the widow of former President Allende, spoke at a ceremony in the presidential palace, saying that the ideals her husband gave the country “lived on in the hearts and minds of the Chilean people.” Chile’s President Ricardo Lagos stood with the former first lady as participants visited the La Moneda entrance on Morandé Street, the site where Allende’s body was removed from the palace and later dedicated as a memorial in his honor. Lagos later commemorated the day by attending a service at the Evangelical Cathedral along with presidential candidates Michelle Bachelet, Joaquín Lavín, and Sebastián Piñera. Calling for national unity the president said, “We are not trying to forget the past, we are trying to learn from these experiences so that they will never happen again.” He continued by quoting from former president Salvador Allende’s last radio address to the nation: “´there will come a time when other men will overcome this dark moment,’ I believe we are arriving at the moment when we will overcome those dark times.” Lagos has recently been criticized for his support of proposed legislation pardoning human rights violators, as well as for a controversial pardon he granted to Manuel Contreras Donaire, a jailed military official involved in the 1982 murder of former trade union leader Tucapel Jiménez (ST, Sept. 8). Tomás Hirsch, the presidential candidate for Juntos Podemos Más, speaking from the National Assembly of Human Rights march, disagreed with the president’s actions saying, “To grant pardons to those who committed these crimes opens the door for these acts to be repeated in the future.” Survivors of the Villa Grimaldi torture center in Peñalolen hosted acts throughout the day to commemorate those who passed through the torture center – one of the most vicious of the Pinochet era. Villa Grimaldi in now planning the creation of a museum to document the nation’s past human rights abuses (ST, Aug. 9).Other officially sanctioned demonstrations included a commemorative ceremony of the Socialist party (PS) at the General Cemetery.A vigil was organized by the Collective “Profesor Manuel Guerrero” at the Plaza 28 de Octubre in Huechuraba, and numerous commemoratives were held elsewhere in Santiago and around the country.

Friday, September 09, 2005

THE END OF THE MAPU - translation

A Generation Of Leftist Leaders Moves Off Center Stage

(Ed. Note: The MAPU - a small cadre of well-educated, well-connected Socialist Party (PS) leaders - made their first appearance on Chilean politics in the heady years of the Allende government.

One of their best known members is José Miguel Insulza, who served in all three Concertación governments and who was recently elected head of the Organization of American States.

Another is PS Sen. José Antonio Viera-Gallo, who was recently denied the right to seek reelection after a competing, younger PS wrested the nomination from him.

This essay discusses the MAPU, and an influence they have exercised in Chile’s “transition to democracy” politics that is incommensurate with their numbers. It is written by sociologist/political commentator Eugenio Tironi.)

The Viera-Gallo case has been interpreted as signifying the end of the influence that a generation of Mapu leaders has exercised over Chilean politics in recent decades.

This is a fair interpretation to make. And one that is rejoiced over by those who have been complaining for many years about MAPU’s influence during the transition to democratic rule and their influence on Chilean political life. What remains to be seen are the consequences that their decline will have, especially with respect to the Concertación political coalition.

So where did the dark legend of the MAPU come from?

The Mapu was a small political party formed at the end of the 1960s by Christian Democratic Party youth. The group split up in 1972 and had totally disintegrated by the mid 1980s.

When first formed, the MAPU brought together the cream of the intellectual and professional youth during a era that was formative for our country in almost every respect.

They were there at the beginning of Allende’s Unidad Popular (UP) government, and helped give the UP the imprimatur of the progressive Catholic world they came from, and they worked as intermediaries between the communist party and the socialist party, which were always at each other’s throats. This, plus the participation of their members in key government post in the Allende government, as well as their intellectual competence and their ability to organize their own forces gave them an influence not reflected in their electoral weight.

After the military coup, the influence of the MAPU on the political left grew even stronger. This was partly because the group experienced less repression than other leftist groups.

But, more than any thing else, MAPU activists brought together the conditions necessary to establish bonds of trust between groups whose strong antagonisms had facilitated the collapse of democracy in Chile. The MAPU were the vehicle used by the Chilean left to link up with the Catholic Church, whose role in defense of human rights and support of the return to democracy was vital during the years of the military dictatorship.

This group – which had ample opportunity to organize while exiled from Chile – exerted their influence during a time of renewal in leftist thought and helped construct the intellectual framework that later sustained the transition to democracy. The MAPU activists were also key in the process that reestablished the friendship and collaboration between the old UP and the Christian Democrats, giving rise, finally, to the (now governing) Concertación coaltion.

After 1990 - now working as part of either from the PS or the PPD - the ex-MAPU exercised a fundamental role in the three successive Concertación governments. They constituted a transverse group of people that helped bridge two political cultures that until then had been antagonistic: the social Christians and the social lay people.

The heart of the Concertación coalition is found here, in this group of people. It gave life to the Concertación, making it much more than just a formal agreement between leaders of parties.

This has been MAPU’s legacy: the creation and implementation of the alliance between the left and the Christian Democrats that gave rise to the Concertación as we know it today. And with it, a political culture oriented and based on agreements. And for this, the MAPU deserves homage.

But now things have changed. The bridges have been built. This same Concertación coalition has now become institutionalized. And its success now rests within the parties themselves, not the interconnected relationships of before.

And now Chile’s parties are comfortable with their historic identities: they have renounced the goal of constructing a common political community that capitalized on the transition process. It is the end of the MAPU. Let’s hope it’s not also the death of the Concertación.

REAL ESTATE SALES GROW AT RECORD RATES

(Sept 9, 2005) Real Estate sales jumped 11.4 percent nationally in the first half of 2005 with the largest growth coming from the capital city, Santiago. The sale of new homes and apartments set industry records in Santiago, further illustrating the strong pace of the national economy.

In Santiago, real estate sales increased overall by 4.7 percent in July, reflecting an addition of 3,328 new housing units sold. This addition puts the total sales of new homes and apartments at 16,568 units for the year, an increase of 8.3 percent over the same time period in 2004. New apartment sales led July’s rankings in Santiago with an increase of 12.6 percent, while housing sales fell 5.3 percent.

In apartment sales, downtown Santiago led the rankings in July, followed by the communities of Las Condes, Recoleta, Conchalí, and Independencia while the community of Maipú led the rankings in home sales, followed by Cerrillos y Pudahuel.

“These numbers reinforce the progress we have seen in this sector” said Otto Kunz, President of the Chilean Chamber of Construction, “we hope the next six months maintain this same level of growth.”

At the national level the real estate industry is reporting good numbers for the first half of the year also. With the addition of 26,593 new housing units, national real estate sales grew 11.4 percent over the same period in 2004.

July was a good month for real estate nationally with an addition of 4,958 housing units sold outside of the capital. This represents 5.2 percent increase for the month with apartments leading the sales figures, up 11.2 percent over 2004, while home purchases fell 1.6 percent relative to new home purchases. All together the country saw an increase of 12.3 percent in real estate sales for the month of July.

The Chilean Chamber of Construction is projecting an overall growth in real estate sales of 9 percent in 2005.

Tuesday, September 06, 2005

DUTCH COURT REJECTS D&S LAWSUIT

(Sept. 6, 2005) Chilean supermarket retailer Distribucíon y Servicios SA (D&S) lost the first round in its two-year-old lawsuit against the Dutch company Royal Ahold on Tuesday. D&S is seeking US$46 million in compensation for the sale of its retail stores in Argentin .

D&S claims the Dutch company used Argentine money conversion laws to evade full payment of an outstanding debt. In 2000 Ahold acquired D&S’s ten Ekono supermarkets, located in Argentina, for US$150 million. Ahold paid an initial sum of US$ 60 million and was to pay the remaining US$90 million later.

After this purchase, Argentina’s congress approved new laws of pesification allowing Ahold to complete their payments in Argentinean pesos. D&S claims that this allowed Ahold to pay less than what was originally agreed upon.

D&S Chief of Finances, Miguel Nuñez said, “From our point of view, this discussion is just beginning…while this has not be definitively resolved, in our opinion and in the opinion of our lawyers, the loss of the first round should not have any effect on the profits of the company.” D&S plans to appeal the decision.