MercoPress. South Atlantic News Agency

News from Punta Arenas

Headlines:
Maedi visna in Magallanes; Juvenile delinquency; Navy ceases search; Punta Arenas in recession;
Tourism training programs; How robust is Chile?; Beware with alcohol; TPA prospects for Magallanes

Maedi visna in Magallanes

Chilean sanitary authorities have reported the discovery of a case of Maedi visna in a flock in Magallanes Region. The disease affects the reproductive capability of sheep and was believed to have been eradicated from the Region. Carlos Rowland head of the Animal Health Office in Punta Arenas said that an only case was detected in a farm in the heart of Magallanes, and the area has been quarantined until the origin of the pathology can be traced. "We're closely monitoring the situation and there's not much that can be said for the time being. However we must determine the degree of contagion, if any, plus the fact that we had another outbreak not so long ago", said Mr. Rowland. Because the local laboratory is not sufficiently equipped blood and other samples have been flown to Santiago, "but it's a process that will take between 2 and 4 months", indicated Mr. Rowland. "Now we have to concentrate in checking there are no metabolic residues in lamb and mutton exports. We must guarantee the European Union and United States markets that antibiotics, anabolic and other banned chemicals can't be traced in the meat", stressed Mr. Rowland. Finally Mr. Rowland said that a fully equipped laboratory in Punta Arenas could be running early 2003, if the necessary funds (270,000 US dollars) are forthcoming. "The idea is to finance the new lab with money from the Magallanes Development Fund and other resources. It's vital for the development of a healthy meat industry in our Region".

Juvenile delinquency

A recent stabbing of an 18 year old by other juveniles in broad light in downtown Punta Arenas, and an outbreak of burglaries involving under twenties has disclosed a serious crime record in the city and prompted local authorities and the media to appeal to parents to have closer communications with their children. In a dramatic broadcast this week the father of the victim said "Those who commit these actions don't have an idea how we parents suffer, how much it hurts. Where are the parents that can't control their children, what is happening to the younger generations?". His son, Carlos, was walking along one of Punta Arenas main street when another student, whom he barely knew began provoking him. Carlos didn't have time to react when he was stabbed in the stomach with a big pen knife. As he tried to get hold of his attacker he was kicked to the ground, beaten and cut by other juveniles who accompanied the aggressor. Carlos is recovering in hospital but his parents are desperate. As a result of the media coverage of the aggression, other recent juvenile incidents began cropping up in the supposedly peaceful Punta Arenas. Catholic school girls that attack other girls in school dances after having drank too much. Acts of hooliganism in football matches; vandalism on Friday and Saturday evenings; drug related burglaries and Carabineros statistics indicating that in Chile well over half of serious crimes are committed by under twenties. Local Councils in Punta Arenas are now trying to set up youth "spaces" in their local organizations and have requested Carabineros to a more active but preventive involvement in the city's different neighbourhoods. City authorities, Church officials and other civil organizations are asking parents to have a more direct communication with their children. Other initiatives include the promotion of more sport activities, plus recreation and entertainment locations. "When the family fails, there's the neighbourhood. A demanding challenge that not only involves local authorities but also youth, church and educational organizations", wrote La Prensa Austral in its main editorial of last Sunday. At national level the Chilean government this week sent to Congress a bill that lowers minors' responsibility age for certain crimes to 14.

Navy ceases search

Chilean Navy officially ceased the search for three fishermen who disappeared after their coastal vessel was rammed and sunk by a Navy tug during night exercises close to Ultima Esperanza province. Chief of Staff of the Third Naval Zone seated in Punta Arenas, Captain Juan Pablo Brito said that the search extended for three weeks when the law, "in these cases only requires seven days". The collision involving the fishing vessel "Sandy" and the "Leucotón" Navy tug occurred in the early dawn of July 19th., and only one fisherman survived. A request from the fishermen families for an independent investigator onto the circumstances of the accident was rejected by local judicial officials who accepted that the area was naval jurisdiction. However, a civil and penal demand against the Chilean Navy was presented last week in Puerto Natales Courts.

Punta Arenas in recession

According to official statistics Economic Activity in Magallanes Region during the first quarter of 2002 dropped an impressive 6,4% compared to a year ago. If methanol production is not included the slide falls to ? 8,9%. Bernardo Troncoso, head of the Regional Economic Office said that it was to early too jump to conclusions and recalled that it's usually the slowest economic activity quarter for Magallanes. "There are fluctuations that must be taken into account. For example in the fourth quarter of last year economic activity increased 7,9%, helping the overall annual production of goods and services to reach 3,2%", indicated Mr. Troncoso. "I believe the second quarter will show a positive economic activity and will help compensate the first quarter short fall, as has happened in previous years. We know that sometimes it's better to sell our local production, meat, wool, methanol, fisheries and forestry towards December". The three areas with the greatest drop were: building, both private and public works; forestry and livestock and oil production.

Tourism training programs

Chile's National Tourist Service said they were most satisfied with the interest shown by Punta Arenas public and private sectors in the tourism training programs that on this occasion attracted over 200 people. "We must underline local participation in the tourism courses, that this year represented an 80,000 US dollars investment for the National Tourist Service", said Ms. María Angélica Olguín, head of the regional office. "This type of initiative helps create a greater communication between the local tourist sector and the community, and reinforces the relevance that tourism and tourists have for us in Punta Arenas". The different events took place in the Cabo de Hornos Hotel and included 120 participants from Punta Arenas and 95 from Puerto Natales. "Professionals, businessmen, students, people from tourism related activities, all attended the courses regularly and this can only be described as a wonderful achievement for the whole of Magallanes region", underlined Ms. Olguín.

How robust is Chile?

The question was asked by an economist, Jose Vera Giusti, a regular contributor to the "Your Letters" section of Punta Arenas main daily Prensa Austral. Mr. Vera relates the Chilean situation to the recent Argentine, Brazilian and Uruguayan experiences, particularly the last two countries that have received massive overseas financial support, so they can keep honouring their foreign debts. Mr. Vera recalls a similar crisis situation in Chile in 1982 when the country's GDP and foreign debt both were equivalent to 20 billion US dollars and 6 billion US dollars were needed to avoid the Chilean private banking system from going down. Finally the 6 billion US dollars became public debt to be paid by all Chileans. Mr. Vera then goes on to warn that just ten years ago Chile's foreign debt was 15 billion US dollars, equivalent to a third of the country's GDP, and public debt was double private debt. However in 2001, Chile's foreign debt has reached 50% of GDP, (38 billion US dollars) with private debt being six times government debt. With this scenario and given the international volatility of capital markets, Mr. Vera asks if Chile is really "so robust" and immune to similar situations undergone by neighbouring countries. Who do international debtors in moments of turbulence trust most, sovereign debts or private sector debts, particularly in small economies highly vulnerable to financial markets volatility?

Beware with alcohol

Strict new regulations regarding alcoholic beverage have been implemented in Punta Arenas and in the two first weeks 62 people have been formally charged and fined. According to the local press Carabineros can now detain people in the street or in public places, who seem to be under the influence of alcohol. This first detention can cost a fine equivalent to 30 US dollars. If the suspect accepts his responsibility he immediately pays 25% of the fine and is driven home. If not, he will be informed his case will be presented in Court. In this second case Carbineros can keep the person in custody at the Police station until he "recovers control of his acts", but no more than six hours. Otherwise, and if health risks are involved, he will be taken to hospital. Besides fining, Judges can send the guilty to rehabilitation programs.

TPA prospects for Magallanes

The recent signing by US President George Bush of the Trade Promotion Authority, TPA, and its trade and tourism impact for Magallanes Region was underlined by the regional Finance official Alfredo Fuentes. "We're the only country in the region that has a trade agreement with Europe and is discussing a similar one with United States", said Mr. Fuentes adding that the TPA signing opens the possibility for speeding up free trade negotiations at multilateral, regional and bilateral level between Chile and the US. Mr. Fuentes pointed out that in spite of a difficult world scenario, and even worse at regional level, recovery symptoms are palpable and Chile is in a privileged situation to take advantage of the upturn, because "the soundness of our economy has enabled us to survive the storm". "Magallanes annual exports sum 488 million US dollars of which 25% or 122 million are shipped to the US, (methanol 100 million, fisheries 11 million, furniture 1,5 million and king crab and similar products 5,5 million US dollars)", indicated Mr. Fuentes, adding that "in all these areas we have potential to expand". However Mr. Fuentes said the greatest impact could be in tourism enabling to surpass the number of 30,000 Americans that every year comes to Magallanes Region, second most important influx after the Argentines. "Once the TPA is implemented, Chile will be seen as a "stable country", meaning a trusted place, and this will attract more Americans to our area". "We already have a "positive image" advantage over the rest of the area, since we signed the trade agreement with the European Union. The message loud and clear for Europe is that Chile is politically, economically and socially stable", emphasized Mr. Fuentes.