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### Viewing cable 08SANJOSE970, COSTA RICA: BACHELET VISIT DEMONSTRATED CLOSE,

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08SANJOSE970 | 2008-12-12 02:33 | 2011-03-14 18:00 | CONFIDENTIAL | Embassy San Jose

Appears in these articles:
http://www.nacion.com/2011-03-12/Investigacion/NotasDestacadas/Investigacion2711772.aspx
http://www.nacion.com/2011-03-10/Investigacion/NotasDestacadas/Investigacion2707705.aspx
http://www.nacion.com/2011-03-10/Investigacion/NotasSecundarias/Investigacion2707712.aspx
http://www.nacion.com/2011-03-10/Investigacion/NotasSecundarias/Investigacion2707716.aspx

`

    VZCZCXYZ0000
    RR RUEHWEB

    DE RUEHSJ #0970/01 3470233
    ZNY CCCCC ZZH
    R 120233Z DEC 08
    FM AMEMBASSY SAN JOSE
    TO RUEHC/SECSTATE WASHDC 0350
    INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
    RUEHBJ/AMEMBASSY BEIJING 0157
    RUEHSG/AMEMBASSY SANTIAGO 0456
    RUEATRS/DEPT OF TREASURY WASHINGTON DC

` `

    C O N F I D E N T I A L SAN JOSE 000970

    SIPDIS

    DEPARTMENT FOR WHA/CEN AND WHA/BSC; TREASURY FOR OTA

    E.O. 12958: DECL: 12/11/2018
    TAGS: PREL PGOV PARM ECON ETRD APECO CI CS
    SUBJECT: COSTA RICA: BACHELET VISIT DEMONSTRATED CLOSE,
    LIKE-MINDED BILATERAL RELATIONSHIP

    Classified By: DCM Peter M. Brennan for reason 1.4(d).

    ¶1. (C) SUMMARY: Chilean President Michelle Bachelet's
    first-ever state visit to Costa Rica October 28-29 produced
    one new accord and a joint presidential declaration that
    clearly manifested a close bilateral relationship based on
    shared
    political, social and economic values.  The GOCR accepted
    Chile's offer to advise and train negotiators in anticipation
    of Costa Rica's upcoming FTA negotiations with China
    (septel).  Beyond the official documents, Arias'
    public and press statements demonstrated his almost fervent,
    devoted admiration of the "female Chilean champion of free
    markets, human rights and social development," and of the
    Chilean model for Latin America.  Bachelet's stop, en route
    to the Ibero-American Summit in El Salvador, reciprocated
    Arias' visit to Santiago in October 2006, one of his first
    during his administration.  The visit showed Arias' and
    Bachelet's vision and support for hemispheric economic
    development through free-market economies with strong social
    institutions, in contrast to the Bolivarian "alternatives" in
    the region.  END SUMMARY.

    ¶2. (C) The MFA's Foreign Policy Director Christian Guillermet
    told us earlier this year that the GOCR had learned from
    CAFTA-DR and EU trade negotiations and was planning to
    incorporate more "political" aspects into the Chilean and
    future FTAs.  According to his deputy, Alejandro Solano, the
    Association Accord ("Acuerdo de Asociacion") signed with
    Chile on October 28 did just that, by committing to build
    upon the relationship that the two countries had enjoyed
    since the Chilean-Costa Rican FTA took effect in 2002.

    ¶3. (SBU) The Costa Rica-Chile Accord establishes an
    "Association Council," (a binational commission) which will
    meet biennially.  (The first meeting actually took place
    before Bachelet's visit, at the senior working level, to
    sketch out the 20 cooperative projects on the two countries'
    agenda.) The Accord also pledges to increase political
    dialogue, mutual assistance and educational/cultural
    exchanges, social development, and commercial cooperation.
    The presidential declaration highlighted those themes and
    others, including mutual support of an international arms
    trade treaty (ATT, an Arias Administration priority), Chile's
    Observer status in SICA, the two countries' commitment to
    UNSC reform, Chile's support of Costa Rican APEC membership
    (another Arias priority), and environmental cooperation.  The
    full text of the accords is available in the "News" section
    of the MFA's website, www.rree.go.cr.

    ¶4. (SBU) Though not part of the formal accords, Chile offered
    to help Costa Rica with its upcoming FTA negotiations with
    the Chinese.  The MFA's Solano told us that Chile would
    provide technical assistance, such as training and advice, as
    Chile has done during the GOCR's negotiations with the EU.

    ¶5. (U) Domestically, Arias used Bachelet's visit and Chile's
    success with more than 50 FTAs to promote passage of the
    remaining CAFTA-DR implementation bill in the National
    Assembly, which was finally approved on November 11 and
    enacted into law on November 26.  Citing the Chilean example,
    Arias described FTAs as major tools to promote development.
    For her part, Bachelet publicly urged Costa Rica to construct
    an "array" of FTAs that benefit various economic sectors.
    Thus far, however, the Chilean-Costa Rican FTA has run in
    Chile's favor, according to Solano.  In 2007, for example,
    Costa Rica imported USD 184 million in goods from Chile and
    exported USD 26 million.  Costa Rican exports are on the
    rise, though; 2007 exports to Chile showed an increase of 78
    percent over 2006.

    ¶6. (U) Arias and Bachelet also spoke at the opening of a new
    wing (funded by Norway) of the Inter-American Court of Human
    Rights.  In his remarks, Arias called Bachelet the "epitome
    of those who raise their voices against oppression and human
    rights violations" and the "dream woman" for which Costa Rica
    had "shouted and cried" in Chile's name when Chile was muted
    by dictatorship.  In an October 31 op-ed, Arias referred to
    Bachelet as the leader of the "most advanced nation in Latin
    America," and called on Chile and Costa Rica to continue
    working for "development, peace,
    democracy and liberty."  Arias also hinted that Costa Rica,
    like Chile, should elect a female president, a veiled
    reference to one of his party's 2010 presidential candidates,
    Laura Chinchilla, who stepped down from her dual posts of
    Vice President and Minister of Justice in October to begin
    her campaign.

    ¶7. (C) COMMENT:  In contrast to the Bolivarian world view,
    Arias and Bachelet's visit pointed to the "other" Latin
    America that shares a vision of progressive and
    forward-looking growth founded in free trade and democratic
    ideals.  His hyperbole aside, Arias' and Costa Rica's
    admiration for Chile could yield tangible, positive benefits
    if both countries follow through on the commitments in their
    latest accord.  This is a partnership that could be good for
    the region and U.S. objectives as well as for both countries.
     One idea we are considering, working with Treasury's OTA
    team here, would be to tap the U.S.-Chile Infrastructure
    Finance Experts Corps (IFEC) to offer the GOCR technical
    advice to improve and streamline the concessions process.
    This is crucial for Costa Rica to attract the private
    investment needed to help modernize its ailing national
    infrastructure.
    CIANCHETTE

`