Monday, January 16, 2006

HIGH RANKING MEMBER OF DICTATORSHIP CHARGED WITH MURDER

General Alejando Medina, president of the Chilean Circle of Retired Admirals and Generals was arrested Monday for the murder of seven paratroopers immediately following the 1973 military coup. Thirty-two years after the paratroopers were executed by members from their own unit, Gen. Medina, then director of the military’s school of paratroopers, as well as six other retired military officials, were charged with two counts of aggravated kidnapping and five counts of homicide.

Gen. Medina was placed under arrest after appearing before Judge Carlos Gajardo and transferred to the Military Police Battalion (BPM) in Peñalolen. He was later released shortly thereafter on a $200,000 peso (US$375) bail while awaiting sentencing.

Judge Gajardo convicted Gen. Merino on five counts of homicide for the murders of Alberto Ampuero, David González, Julio Martinez, Javier Sobarzo, Enrique Toledo, and the two counts of kidnapping for the disappearance of Luis Barraza, and Jorge Piérola whose bodies have never been found. All seven men were arrested on Sept. 11, 1973, the day of Chile’s military coup, and executed by a firing squad between Sept 12 and Sept. 15, 1973.

According to Nelson Caucoto, the prosecuting attorney in the case, the men were murdered because of suspected links to the Movement of the Revolutionary Left (MIR). After being arrested on the day of the coup, they were held at a detention center in Peldehue and later transferred to a military van for transportation to the National Stadium where approximately 7,000 suspected left wing political activists were tortured or killed immediately following the coup.

According to the court documents filed in the case, when the transport van reached kilometer 5 of the Gen. San Martín highway en route to the stadium, “the men were ordered out of the van, lined up with their backs facing La Leona hill…and shot with SIG 7.62 caliber assault rifles.”

Also charged in the deaths of the paratroopers were Brigadier Rafael Sánchez, Colonel Renato Alarcón, Major Carlos Sarabia, Sub-Major Domingo Cortés, and two junior officials Fidel Segovia and Hernán Arancibia.

Gen. Merino’s lawyers plan to appeal the court’s decision.

CHILE’S COMMERCIAL SECTOR PREDICTS GROWTH IN 2006

A newly released market analysis by Chile’s Production and Trade Confederation (CPC) predicts that Chile’s economy will grow by 5.5 percent in 2006. The report highlights internal demand as the continued driving force behind Chile’s economic expansion.

Strong gains are expected in the banking sector with a predicted growth rate of 13 percent in 2006. The construction industry is also expecting another boom year with the Chilean Chamber of Construction planning to increase investments in infrastructure by eight percent, slightly less than 2005, but private construction companies predict a 14 percent overall increase because of investments in production capacity over the last year.

The pulp and paper industry is also expected to increase its production capacity this year. The Chilean Wood Corporation (CORMA) estimates that cellulose, milled wood, lumber, and newspaper production will increase capacity by 10 percent, representing an 8.3 percent profit increase over 2005.
Mining should continue to boost Chile’s economy. The continued high price of copper, estimated at an average annual rate of US$1.65 to US$1.75 for 2006, as well as increases in production capacity, and the opening of new mining deposits has Chile’s National Mining Society (SONAMI) optimistic about the future. Chile expects to mine approximately 31.3 percent of the total world copper output this year which should translate into a five percent overall growth rate.

Sunday, January 15, 2006

ACHET ACCUSES LAN AIRLINES OF FALSE ADVERTISING

The Chilean Tourism Companies Association (ACHET) accused LAN Airlines of false advertising Thursday and announced that the association is considering a formal request that the National Economic Regulator (FNE) open an antimonopoly investigation into LAN Airlines.

The false advertising charges are based on reviews of promotional ticket prices offered by LAN airlines that ACHET claims are misleading to consumers. According to Lorena Arriagada, secretary general of ACHET, the ticket prices omit a series of costs that can increase the final ticket price by as much as 50 percent.

“The advertised prices are those of the cost of the plane ticket without security fees, the cost of fuel, or taxes,” Arriagada said. “This is where we enter into the issue of false advertising.”

ACHET is also concerned that LAN Airline’s December announcement to decrease independent travel agencies’ commissions by six percent represents unfair market manipulation. The organization has threatened to send the issue to the FNE for consideration. The decision to decrease commissions has the potential to seriously impact small and mid-size travel agencies because many up to 50 percent of their total profits from the commissions.

According to a letter from LAN to ACHET released on Jan. 4 by Abel Bouchon, the president of ACHET, LAN “does not have a definite opinion, much less a concrete plan regarding the decrease…When it is opportune, (LAN) will request a meeting with ACHET to analyze the possible effects of an eventual change with the hope of arriving at a beneficial agreement for (LAN’s) clients, the travel agencies, and LAN.”

ACHET is expected to announce this week whether or not the group will formally seek government intervention in the matter.

SUPREME COURT NOMINEE WILL GIVE COURT RECORDS TO SENATE

Supreme Court nominee Carlos Cerda reached an agreement with Supreme Court President Enrique Tapia to provide the Senate with internal court evaluations of his work. The agreement should diffuse the tension resulting from the Supreme Court’s refusal to release the documents to the Senate last week.

The agreement allows Judge Cerda to personally transmit his evaluations to the senate while allowing the court to maintain its decision to refuse the Senate’s request. The senate, in an unprecedented request, asked the Supreme Court to provide the nomination committee with records of the grades Cerda received since becoming a judge more than 20 years ago. Cerda nearly lost his job in the early 1980s after refusing to apply amnesty laws in several human rights investigations of officials in the military regime of former dictator Augusto Pinochet.

“The senate must get to know me and the evaluations are part of this process, said Cerda. “What I do not want to say is that I am judging, or criticizing, or commenting on the decision of the excellent Supreme Court.

The nine-to-eight Supreme Court decision to withhold the records cited existing norms of the court prohibiting court dissemination of the evaluations.

“The refusal is for his benefit”, said Supreme Court President Tapia. “My opinion is that he is entitled to his own opinion and, if he likes, he can give the senate the evaluations. I cannot show them.”

Judge Cerda was picked by President Ricardo Lagos from a list of five candidates to fill the seat of José Benquis who stepped down last year after reaching the mandatory retirement age of 75. The senate confirmation hearings are scheduled to begin on Jan 18.