Cable Viewer

Currently released so far... 5440 / 251,287

### Articles

Brazil Sri Lanka United Kingdom Sweden Editorial United States Latin America Egypt Yemen Jordan

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/10 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11

### Browse by creation date

66 72 73 75 79 86 88 89 90 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1986/05
1988/01
1989/12
1990/01 1990/07 1990/08 1990/10
2000/06 2000/09 2000/11
2001/02 2001/03 2001/07 2001/10
2002/02 2002/03 2002/11
2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Amsterdam American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Casablanca Consulate Cape Town
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai
Embassy Freetown
Embassy Guatemala Embassy Gaborone Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Hermosillo Consulate Hamburg
Iran RPO Dubai Embassy Islamabad Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kigali Embassy Khartoum Embassy Kampala Embassy Kabul
Embassy Luxembourg Embassy Luanda Embassy London Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy La Paz Consulate Lagos
Mission USNATO Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maputo Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Montreal Consulate Monterrey Consulate Milan
Embassy New Delhi Embassy Nassau Embassy Nairobi Consulate Naples
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate Shenyang Consulate Shanghai Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn
USUN New York USEU Brussels US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE Embassy Ulaanbaatar
Embassy Vilnius Embassy Vienna Embassy Vatican Consulate Vladivostok
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AR ASEC AEMR AORC AJ AF AMGT ACOA AO AE AU AFIN AX AMED ADCO AG AODE APER AFFAIRS AC AS AM AL ASIG ABLD ABUD AA AFU ASUP AROC ATFN AVERY APCS AER ASECKFRDCVISKIRFPHUMSMIGEG AEC APECO AGMT ATRN
BA BR BL BO BH BTIO BEXP BU BIDEN BM BK BY BG BE BF BB BC BBSR BMGT BRUSSELS BTIU BILAT BX
CO CS CH COUNTER CVIS CASC CDG CI CU CIS CA CBW CF CM CLINTON CMGT CN CE CJAN CONDOLEEZZA COE CR CY CG CD CTM COUNTRY CLEARANCE CPAS CWC CT CKGR CB CACS COM CJUS CARSON CL COUNTERTERRORISM CIA CACM CDB CV CAN
DR DA DHS DOE DEA DK DJ DISENGAGEMENT DS DTRA DOD DEAX
ETTC EG ECON EINV EFIN ETRD EAGR ELAB ENRG ECPS EWWT EUN EAID EU EAIR ECIN EPET ER EINT EIND EMIN ELTN EFIS EI EN ES EC EXTERNAL EINVETC ENVR ENIV EZ EINN ENGR EUR ECA ET ESA ELN ENERG EK ENGY ETRO ETRDEINVECINPGOVCS ETRDEINVTINTCS ESENV ENVI EFTA ELECTIONS ECUN EINVEFIN ECIP EINDETRD EUC EREL ECONEFIN
FR FAO FTAA FREEDOM FI FARC FBI FJ FMLN FINR
GE GG GR GM GH GTIP GV GT GOI GCC GAZA GZ GA GANGS GTMO
HUMAN HILLARY HO HA HYMPSK HR HU HURI HK HSTC
IS IAEA IC IZ IR IT ITPHUM IV IPR IWC IQ IN IO ID ICTY ISRAELI IRAQI IIP ICRC ICAO IMO IF ILC IEFIN INRB INTELSAT IL IA IBRD IMF INR IRC ITALY ITALIAN INTERPOL IRAJ INRA INRO
JOSEPH JA JO JP JOHNNIE JUS JAMES
KCRM KPAL KDEM KE KWMN KPAO KNNP KJUS KGHG KN KS KISL KTIP KDRG KSCA KCOR KIPR KTLA KIRF KV KCFC KHLS KGIC KRAD KSPR KG KZ KTFN KTIA KHIV KWBG KACT KPRP KU KAWC KOLY KCIP KCFE KOCI KPKO KTDB KMRS KFRD KLIG KBCT KICC KMCA KGIT KSTC KMDR KUNR KPAK KNEI KSEP KPOA KFLU KNUP KNNPMNUC KVPR KOMC KAWK KO KTER KSUM KHUM KRFD KBIO KBTR KDDG KWWMN KFLO KSAF KBTS KPRV KMPI KHDP KNPP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNAR KWMM KERG KFIN KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KTBT KCRS KRVC KSTH KREL KIRC KNSD KTEX KPAI KHSA KPLS KR KPWR KWAC KMIG KSEC KIFR KDEMAF KGCC KPIN KNUC KCOM KDEV
LY LE LG LH LI LU LO LOG LT
MASS MNUC MEPP MOPS MARR MTCRE MK MTRE MX MU MCAP ML MO MP MA MY MIL MDC MTCR MAR MEPI MRCRE MI MT MR MQADHAFI MD MAPS MUCN MASC MASSMNUC MERCOSUR MC MPOS MZ MOPPS MAPP MG MCC
NATO NE NS NPT NL NAR NO NI NIPP NZ NU NPG NK NSG NA NT NASA NG NGO NP NSF NATIONAL
OPDC OREP ODIP OTRA OVIP OSCE OPRC OAS OFDP OPIC OIIP OEXC OECD OPCW OSCI OIE OIC OTR OVP OFFICIALS OSAC
PGOV PTER PREL PHUM PINR PINS PARM PREF PBTS PARMS PORG PE PK PHSA PROP PO PA PM PMIL PL PTERE POL PF PALESTINIAN PY PGGV PNR POV PAK PAO PFOR PHALANAGE PARTY PRGOV PNAT PROV PEL PINF PGOVE POLINT PRL PRAM PMAR PGOVLO PHUMBA PHUS PHUMPREL PG POLITICS PEPR PSI PINT PSOE PU POLITICAL PARTIES PBIO PECON POGOV PINL PKFK PGOF
QA
RS RU RO RIGHTS RW RICE ROBERT RF RFE RP REGION
SMIG SNAR SENV SOCI SCUL SY SO SP SA SW SHUM SR SF SZ SU SL SYR ST SANC SC SAN SIPRS SK SH SI SNARCS STEINBERG SN SG
TERRORISM TSPA TH TU TO TBIO TW TX TFIN TD TRGY TSPL TZ TIP TPHY TS TK TNGD TI TC TINT TRSY TP TR TT
UNGA UNSC UK UNESCO UN UP UZ UY UE UAE UNO UNEP UG US USTR UNHCR UNMIK UNDP UNHRC USAID UNCHS UNAUS USUN USEU UNCHC UV
VE VT VM VZ VTPREL VN
WZ WMO WI WTRO WTRQ WHO WWARD WB WBG WEU WHA WTO WA
XF XM XA XL XZ XW XR XH XG XT XC XY XD XE XK XS
YM YI YE
ZI ZP ZK ZF ZB ZANU ZOELLICK ZR ZU ZA ZO ZJ

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 09SANTIAGO867, CHILE: Conservatives Beat Back Skeleton in Pinera's Closet

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09SANTIAGO867.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09SANTIAGO867 | 2009-10-09 15:03 | 2010-12-27 21:09 | CONFIDENTIAL | Embassy Santiago

`

    VZCZCXRO0994
    OO RUEHAO RUEHCD RUEHGA RUEHGD RUEHHA RUEHHO RUEHMC RUEHMT RUEHNG
    RUEHNL RUEHQU RUEHRD RUEHRG RUEHRS RUEHTM RUEHVC
    DE RUEHSG #0867/01 2821543
    ZNY CCCCC ZZH
    O R 091543Z OCT 09
    FM AMEMBASSY SANTIAGO
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 0136
    INFO WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
    RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
    RUEAIIA/CIA WASHINGTON DC

` `

    C O N F I D E N T I A L SECTION 01 OF 03 SANTIAGO 000867

    SIPDIS
    STATE PLEASE PASS TO WHA/BSC, INR/B
    AMEMBASSY BRIDGETOWN PASS TO AMEMBASSY GRENADA

    E.O. 12958: DECL: 2019/10/09
    TAGS: PGOV ECON KCOR CI
    SUBJECT: CHILE: Conservatives Beat Back Skeleton in Pinera's Closet

    REF: SANTIAGO 755

    SANTIAGO 00000867 001.2 OF 003

    CLASSIFIED BY: Carol Urban, Deputy Chief of Mission, State
    Department, US Embassy Santiago; REASON: 1.4(B)

    ¶1. (SBU) Summary: Eduardo Frei attempted to taint presidential
    challenger Sebastian Pinera with renewed allegations of insider
    trading. Pinera's skilled campaign team flipped the issue into a
    referendum on the NGO that reported the incident. A competitive
    businessman and politician prone to taking risks, Pinera has been
    linked to a number of questionable actions in the past and is
    likely to continue to face questions about past business deals, but
    voters seem relatively unconcerned by these charges. End Summary.

    Insider Trading Allegations Resurface...

    --------------------------------------------- ------

    ¶2. (U) A highly motivated businessman willing to take risks,
    Alianza presidential candidate Sebastian Pinera is no stranger to
    scandal. The most recent accusations of impropriety surfaced
    during a televised presidential debate on September 23, the first
    major debate of this election cycle. Assigned to talk about
    corruption, Concertacion candidate Eduardo Frei avoided speaking
    about a series of fairly minor scandals that have tainted his
    coalition's reputation and instead accused Pinera of insider
    trading, citing an annual and worldwide Transparency International
    report issued that day. The report noted that in July 2006, while
    president of LAN Chile, Pinera purchased 3 million LAN Chile shares
    just hours after receiving the company's latest and unpublished
    financial report. Chile's Securities and Exchange Commission
    investigated the transaction and charged Pinera with "abuse of
    privileged information" in 2007. Pinera paid a USD 700,000 fine
    and stepped down as president of the company, but denied any
    wrongdoing. One claim is that the purchase had been programmed
    before he obtained the company's financial report, and that his
    mistake was not cancelling the purchase after he obtained the
    information.

    ...but Attention Shifts to the Accuser

    --------------------------------------------- ---

    ¶3. (U) In response to Frei's charge during the debate, Pinera
    reiterated his denial of any illegal activity and demanded that
    Frei apologize. Immediately following the debate, Pinera advisors
    accused Chile Transparente, the local arm of Transparency
    International, of political bias. In the following week, the topic
    spurred a polemic debate--not about Pinera's actions, but rather
    about the accuracy and objectivity of the report. One board member
    of Chile Transparente, the local arm of Transparency International,
    very publicly resigned from the organization amid the clamor.
    Amidst the daily headlines questioning the objectivity and
    management of the previously respected organization, Pinera's
    alleged insider trading was all but forgotten.

    Pinera on the Lam?: Alleged Financial Fraud in the 1970s

    --------------------------------------------- ----------------------
    --------

    ¶4. (C) Frei's debate offensive marks the second time that old
    accusations of Pinera misconduct have resurfaced during the
    presidential campaign. In July 2009, a Pinochet-era Justice
    Minister stated that she had intervened on Pinera's behalf to
    obtain an injunction that would prevent Pinera from being served
    with an arrest warrant (reftel). This revelation related to
    charges stemming from Pinera's tenure as general manager of the
    Bank of Talca from 1979 - 1980, a period when there was little
    oversight or regulation of Chile's banking industry and many banks
    and bank executives enjoyed considerable success, often through
    shady dealings. Like many other banks of the time--and not unlike
    the recent financial crisis in the U.S.--the Bank of Talca made
    many very risky loans, which initially led to handsome profits but
    ultimately led to bankruptcy. However, Pinera and other Talca

    SANTIAGO 00000867 002 OF 003

    executives went beyond the typical improprieties of the day. In
    addition to the bad loans they approved, they also created dozens
    of fake companies, gave these companies loans from the bank, and
    then used the funds to buy more bank shares. They profited again
    when the government stepped in and bailed out the banking sector --
    and its shareholders -- while the loans to fake companies were
    written off and Pinera and other executives did not have to repay
    the principal.

    ¶5. (U) In April 1982, a judge ordered Pinera's arrest. Pinera
    went into hiding for 24 days in order to avoid being formally
    served with the arrest warrant. His lawyers placed an injunction
    on the case, which was heard by the Supreme Court. The injunction
    was accepted and the case dismissed. The charges were never
    investigated.

    Links to a Price-Fixing Pharmacy

    ------------------------------------------

    ¶6. (U) More recently, Frei also attempted to highlight the
    (relatively weak) link between Pinera and a 2008 price-fixing
    scandal. In December 2008, Chile's National Economic Prosecutor's
    Office sued three pharmacy chains for USD 15 million each, alleging
    that they had colluded to raise the price of more than 200
    medicines by as much as 200 percent in 2007 and 2008. In March
    2009, one of the firms, Farmacias Ahumada agreed to pay a USD 1
    million fine in exchange for having the charges dropped. The same
    month, the press reported that Sebastian Pinera owned 2 per cent of
    that retail chain via his investment fund, Santa Cecilia. Pinera
    confirmed that he owned a small stake in the company, but claimed
    he was unaware of these holdings, saying that he was "just like
    millions of Chilean investors and individuals whose pension funds
    hold stakes in the company." Pinera promptly sold his shares.

    How About Frei?

    ---------------------

    ¶7. (C) Concertacion candidate Eduardo Frei's past has also come to
    haunt him during this year's presidential campaign. In 1994,
    then-President Frei pardoned Angel Vargas Parga, a drug trafficker
    convicted of smuggling half a ton of cocaine into Chile. While
    Frei claimed that he was motivated by Vargas' good behavior in
    prison, opponents allege that Vargas' well-connected Christian
    Democrat family was the real reason behind the release. (Note: A
    longtime Frei confidante and advisor told us recently that
    then-Justice Minister Soledad Alvear made the decision to pardon
    Vargas. Frei was not involved in the decisionmaking and found out
    after the fact, but has to defend the decision nonetheless. End
    Note.) Alianza has also accused Frei of being improperly involved
    in managing his investments during his presidential term.
    Nonetheless, Frei--who is widely viewed as solid, respectable, and
    frankly a bit boring--seems to have fewer skeletons in his closet
    than his opponent.

    Do the Voters Care?

    --------------------------

    ¶8. (SBU) Chilean voters seem relatively unconcerned by the
    allegations against Pinera. Polls suggest that voters see
    corruption as a real problem in Chile, but don't rate tackling
    corruption as a top priority. In an August poll by Ipsos, 53% of
    those surveyed said that Chile was a corrupt country. However,
    polls consistently show that voters' top concerns are unemployment,
    crime, health, and education; corruption lingers near the bottom of
    the list. Moreover, Pinera's image as an astute businessman seems
    to be reflected in how voters see his strengths vis-a-vis Frei's.
    Frei comes out slightly ahead of Pinera in measures of perceived

    SANTIAGO 00000867 003.2 OF 003

    honesty, while Pinera has a wide lead in terms of perceived
    intelligence and ability to assemble a good political team.

    The Forgotten Skeleton in Pinera's Closet: "Pineragate"

    --------------------------------------------- ----------------------
    -------

    ¶9. (U) Other potential minefields in Pinera's political and
    business history remain and may surface during the presidential
    campaign. The most significant of these stems from a 1992 phone
    conversation in which Pinera discussed strategies to destroy
    political rival Evelyn Matthei. The call--which featured Pinera
    using coarse language and referring dismissively to Matthei as a
    little girl--was secretly recorded by military intelligence and
    passed to television-station owner Ricardo Claro, a business
    magnate and Pinera rival. It aired on Chilean television in August
    1992 when Claro made a surprise appearance on his station's public
    affairs show. The ensuing scandal, referred to as "Pineragate,"
    exposed Pinera's scheming; the fractious divisions within the
    right; and continued military interference in politics. The
    scandal torpedoed both Pinera and Matthei's hopes for the 1993
    presidential election, and led to a rift between the two that has
    only recently been repaired.

    Comment

    -------------

    ¶10. (C) Driven and competitive, Sebastian Pinera pushes both his
    businesses and his politics to the limits of the law and ethics.
    Some of his actions--such as lending money to fictitious
    companies--seem to clearly cross the line into legal impropriety.
    At other times, though, he seems more to be a victim of
    circumstance, carelessness, or the sheer vastness of his fortune.
    Disparaging your political opponent in a private telephone
    conversation or investing in one troubled company amidst a diverse
    portfolio hardly seems surprising for a hard-charging businessman
    turned politician. These charges have aired at various times in
    the past, and when they have resurfaced during this campaign have
    had relatively little impact on the general public, which seems to
    see them as a mix of old news and business as it used to be. What
    is particularly noteworthy about the latest episode is the way the
    tables have been completely turned to focus on the shortcomings of
    the manner in which Chile Transparente managed the report, rather
    than the underlying charges of insider trading. Such a reversal
    can be attributed to three things: an impressive Pinera campaign
    team eager to go on the attack, Frei's lackluster communication
    strategists, and the generally conservative Santiago press. End
    Comment.
    SIMONS

`