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### Viewing cable 08SANTIAGO98, INDIGENOUS RIGHTS, SOCIAL ISSUES, ENERGY SHORTAGES

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08SANTIAGO98 | 2008-01-31 20:08 | 2010-12-13 21:09 | CONFIDENTIAL | Embassy Santiago

`

    VZCZCXYZ0016
    RR RUEHWEB

    DE RUEHSG #0098/01 0312014
    ZNY CCCCC ZZH
    R 312014Z JAN 08
    FM AMEMBASSY SANTIAGO
    TO RUEHC/SECSTATE WASHDC 2718
    INFO RUEHBU/AMEMBASSY BUENOS AIRES 0776
    RUEHLP/AMEMBASSY LA PAZ JAN LIMA 5433

` `

    C O N F I D E N T I A L SANTIAGO 000098

    SIPDIS

    SIPDIS

    E.O. 12958: DECL: 01/29/2018
    TAGS: PGOV PHUM PINR PREL SOCI CI
    SUBJECT: INDIGENOUS RIGHTS, SOCIAL ISSUES, ENERGY SHORTAGES
    ON MIND OF SEGPRES MINISTER

    Classified By: E/Pol Counselor Juan A. Alsace for reasons 1.5 (b) and (
    d).

    ------
    Summary
    -------

    ¶1. (C) Secretariat General of the Presidency Minister Viera
    Gallo told the Ambassador January 30 that the GOC - and
    Chilean society - are only belatedly taking seriously a
    growing problem with Chile's indigenous (largely Mapuche)
    population, which has never been fully integrated and is
    becoming increasingly radicalized. Mapuche alienation and
    protest activity could impact on issues such as terrorism,
    energy, and development in environmentally sensitive regions.
    Chile's energy shortage was the country's "biggest problem"
    in the near term, although Chile was also struggling with
    issues arising out of modernization and globalization, with
    youth and women seeking their place in an evolving Chilean
    society. End summary.

    ¶2. (U) Ambassador Simons paid a courtesy call January 30 on
    Minister of the Secretariat General of the Presidency
    (SEGPRES) Jose Antonio Viera-Gallo, whose ministry is
    responsible for coordinating relations between the Presidency
    and three sets of key political actors: the four parties of
    the center-left governing Concertacion coalition, the
    center-right opposition, and the Congress. The Ambassador
    was accompanied by E/Pol Counselor.

    -------------------------------------------
    An Increasingly Vocal Indigenous Population
    -------------------------------------------

    ¶3. (C) After opening pleasantries - Viera Gallo noted that
    since Chile's return to democracy relations with the U.S.
    have been very good across the board - the Minister was
    briefly interrupted by two phone calls. The second was from
    President Bachelet and the short conversation (topic unclear)
    was notable for its formality, with no apparent warmth,
    (Comment: This tracks with the common view that Veira-Gallo,
    a political operative, was brought into the cabinet as a
    "fixer" and not because he is in Bachelet's inner circle.)
    The first call was from Archbishop Goic, who has been serving
    as an intermediary between the GOC and hunger-striker
    Patricia Troncoso, who has been protesting her incarceration,
    the result of her involvement in the torching of a rural
    farm, located on land that the Mapuche indigenous population
    claim was stolen from them. The accord has been front page
    news and the government has taken some heat for bowing to
    Troncoso's demands, but also for failing to take seriously
    the "Mapuche issue." As a result, Bachelet recently named a
    "Presidential Commissioner" to head a panel to review how the
    GOC is dealing with the long-simmering complaints of the
    indigenous population (septel).

    ¶4. (C) Viera-Gallo agreed with E/Pol Counselor that the issue
    cut across several lines, including terrorism, energy, and
    development. The Minister noted that several Mapuche had
    ties to the Basques, including possibly to the ETA. They are
    involved in protests against construction of dams that would
    produce hydro-electric power, impacting Chile's energy needs.
    Mapuche are linked to NGO's opposed to development in lands
    both claimed by the Mapuche and which are also
    environmentally sensitive. Nonetheless, Viera-Gallo
    continued, the Mapuche have legitimate concerns. Both
    moderates and extremists, with some justification, view
    themselves as having been "mistreated by Chile." While
    essentially a conservative people ("they vote for the right")
    they also have respect for the environment and are a
    matriarchical society. Many are well-educated with strong
    ties to similar indigenous or ethnic groups, including in
    Europe. There is developing a significant divide between
    young, more radical Mapuche, and older leaders who have
    demands but will accept accommodation within the Chilean
    state. The younger leadership seeks a separate Mapuche
    entity.

    ¶5. (C) Viera-Gallo, who clearly evidenced sympathy for the
    Mapuche, said they had not been integrated "at all" into
    Chilean society. Chileans, especially the upper class which
    identifies with Chile's European pretensions, have to accept
    that the Mapuche, and other smaller indigenous groups, are
    also a part of Chile's make-up. The Mapuche have have made
    some inroads in this respect, reaching out successfully to
    younger non-Mapuche Chileans sympathetic to their cause. The
    Catholic Church is also increasingly involved with indigenous
    concerns.

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

    An Energy Deficit
    -----------------

    ¶6. (SBU) Viera-Gallo didn't hesitate when asked by the
    Ambassador to enumerate the administration's challenges:
    "Energy is our biggest problem." Domestic production and
    supply from outside sources, such as Argentina, have not kept
    pace with surging economic growth. Chile will face "serious
    restrictions" in the upcoming winter months. Construction of
    dams (hydro) is critical but faces obstacles from indigenous
    and environmental groups. The potential for developing
    geothermal power in Chile's north ("we are talking to the
    Italians") is also hostage to indigenous groups in that
    region, who are concerned about associated water rights and
    shortages. Viera-Gallo said prospects would improve in 2009,
    when LNG plant facilities would come on line. The Ambassador
    noted that President Bachelet had asked him, at presentation
    of credentials, to find ways to enhance U.S.-Chile
    cooperation on energy. He had met across a wide range of
    private and public energy experts and policymakers during his
    first six weeks in country and would return to Washington in
    February to work on next steps.

    ------------------------------
    The Challenge of Modernization
    ------------------------------

    ¶7. (SBU) Turning to other challenges facing Chile, a
    reflective Viera-Gallo worried about disaffected youth
    disengaged from politics, "fatigued" with parliament and
    political parties, although he stressed this was not yet a
    crisis. Still, Chileans generally were dealing with the
    cultural dislocations attendant on modernization, including
    rampant consumerism ("the mall culture") and a sense that
    life was overly complicated. Yet all Chileans felt they they
    had to adapt and keep up, he continued, noting that in his
    visits to rural areas, he was struck by the modern appliances
    found even in the most humble homes. Educational levels were
    on the increase with more college students, but job prospects
    for those with university degrees poor ("PhD's driving
    taxis"). Women are also facing change; as they are
    increasingly educated they are leaving rural areas behind,
    seeking jobs in urban areas. Chile is also welcoming foreign
    labor for the first time in its history, with large numbers
    of Peruvians entering the agricultural labor force. These
    changes are fearful for many in Chilean society. The
    Ambassador noted that U.S. society continues to face many of
    the same challenges Viera-Gallo had outlined.

    ---------------------------
    HDTV, IPR, Loss of Majority
    ---------------------------

    ¶8. (SBU) The Ambassador noted pending intellectual property
    legislation in the Chilean Senate, adding that the Embassy
    continued to work closely with the GOC and USTR to find ways
    to address our concerns with the proposed law. He also made
    a pitch for ATSC, the U.S.-backed digital television
    standard, noting the lower cost for Chilean consumers.
    Viera-Gallo agreed it was important for the GOC to make the
    right choice on digital TV. Asked whether the loss of the
    governing coalition's working majority in both houses of
    parliament would affect the administration's ability to
    pursue its agenda, Viera-Gallo shrugged: "It's not really a
    problem; Concertacion has rarely had a majority but still
    worked solutions."

    ¶9. (U) Bio Note: Viera-Gallo said he had two daughters
    living in Brooklyn. The first, thirty years old, is an
    artist, married to an architect. She has a studio and has
    exhibited in New York, Los Angeles, and Chile. The second,
    younger, is a writer, recently divorced from a well known
    Chilean artist (Ivan Navarro) who, Viera-Gallo lamented
    jokingly, is "making it big" after the divorce.

    -------
    Comment
    -------

    ¶10. (C) That much of the meeting was devoted to the Mapuche
    issue is evidence that Chile, which has long ignored its
    indigenous population, cannot escape dealing with yet another
    offshoot of globalization, in this case the rising awareness
    of the Mapuche that their concerns are similar to those of
    other indigenous or ethnic minority groups, are at least as
    legitimate, and need be addressed by the government. The
    danger lies in radicalization of the issue, potential ties to
    extremist or even terrorist groups, and the use of violence
    to push an agenda. Post will be following this issue closely
    in the near term, including proposing how the USG might be of

    assistance to the GOC both through intelligence sharing but
    also promoting dialogue and finding solutions. End comment.
    SIMONS

`