MercoPress. South Atlantic News Agency

Chile: Breaking News.

Headlines:
Chilean Navy incorporates Dutch frigates; Son of President Lagos Magallanes Senator candidate; Similar 2004 winter gas shortage forecasted; Business association concerned with unemployment; Business association concerned with unemployment; Successful Antarctic cruise season.

Chilean Navy incorporates Dutch frigates

Chilean Navy Commander in Chief Admiral Miguel Vergara Villalobos is currently visiting Holland to check on the development of the "Puente II" program which involves the incorporation of four Dutch frigates to the Chilean Navy. The program to be completed by 2010 includes two Class L frigates Type "Jacob Van Heemskerck" and two M frigates, Karel Doorman. Following meetings with the Netherlands's Navy Commander and the Admiral of the Dutch Fleet, Admiral Vergara will be travelling to Den Helder naval base to inspect two of the refurbished frigates to be soon incorporated to the Chilean Navy "Almirante Blanco Encalada" and "Almirante Latorre". He will also meet with the Chilean officers and crews preparing for the transfer operations. Almirante Vergara is scheduled to be briefed on the development of the "Puente II" program and visit the Works Technical Inspection team. The Chilean Navy commander is expected to be back in Santiago Friday April 8.

Son of President Lagos Magallanes Senator candidate

A junior member of the ruling Chilean coalition, Party for Democracy", PPD, is considering taking Socialist President Ricardo Lagos eldest son, solicitor Ricardo Lagos Weber as candidate to the Senate for Magallanes Region, according to a Sunday report published in El Mercurio. The good standing of PPD in Magallanes and the strong following of the Lagos name are among the reasons for the offering. However the proposal must still take into consideration the strategy of the Socialist Party which is the senior partner in the Chilean ruling coalition. Besides there are two more hopefuls in the race for the Magallanes Senator seat, current Socialist Deputy Pedro Muñoz, and Isabel Allende, the famous writer and niece of former Socialist president Salvador Allende who was ousted in 1973 by a military coup led by General Pinochet. Actually Mr. Allende began his political career in 1945 representing Magallanes Region.

Similar 2004 winter gas shortage forecasted

Magallanes region will face a natural gas shortage similar to that experienced in the winter of 2004, anticipated Danilo Martic Exploration and Production Manager for ENAP Magallanes, the Chilean government oil company. "2005 is not going to be better, we are seeing it in the centre of Chile where cuts have began and industries in Santiago are suffering significantly with considerable lower natural gas supplies. Our main regional industry Methanex (methanol production) will be exposed to that situation", said Mr. Martic. Whatever happens in the north or centre of the country will eventually arrive in Magallanes, added Mr. Martic who confirmed the rising costs for industry: "changing from gas to diesel costs six or seven times more". However Magallanes could be lucky if the "Argentine San Martin gas pipeline from Tierra del Fuego to Buenos Aires is fully operational, any surplus would then be exported to Chile". If gas production in the south of Argentina is sufficient or above the pipeline capacity, "there should be no reason for the Argentine Energy Secretariat to order operators to privilege domestic demand in Buenos Aires and they could then divert gas to Magallanes", explained Mr. Martic. As to residential supply in Punta Arenas Mr. Martic anticipated that supply is virtually confirmed with Sipetrol (Enap's overseas branch), "but Methanex will have problems since they operate with 60% gas imported from Argentina".

Business association concerned with unemployment

Magallanes Production and Commerce Confederation, CPC, described the December-February mobile quarter unemployment situation, 6,3% (0,7 above a year ago) as dramatic and one of the worst in years. CPC underlines its concern because the situation occurs when Chile is undergoing a strong expansion process and the region its traditional activity surge of summer months. According to CPC the latest unemployment index shows a significant increase in the number of people looking for their first job as well as those who lost their jobs. "Almost 4,200 people are in this last deplorable situation, most of them 94% men". Even worse argues CPC, the index doesn't register the 5,100 people who were active (80% men) and who have given up looking for jobs given poor employment prospects. "In this context regional unemployment registers a figure which is not extremely high, but can be described as deceitful since it reflects contained unemployment not because of greater productivity, but rather a sum of plus and minus active people who have retired from the working force because of the lack of job expectations". Of the nine different sector activities contemplated in the quarterly index, six have lost jobs which represent 70% and mostly concentrated in social services, transport and construction.

Successful Antarctic cruise season

Antarctica XXI, a pioneer Chilean company promoting Antarctic and south Chile tourism anticipates further business expansion for the 2005/06 season. Jaime Vazquez one of the local owners of the company said that this past season they organized three full Antarctic cruises including the air link option to King George island, "which was a complete success". "This last season we had 120 passengers; we expect anywhere from 200 to 360 next season", said Mr. Vázquez who revealed most foreign visitors were from the US and France. Actually a Spanish company has booked two of the cruises. "Next week we're planning a road show in Germany, Italy and Holland where we will be present at the launching of refurbished "Alexis Maryshev", twin sister of "Grigory Mikheed". Both vessels belong to the St. Petersburg's Hydrographical Institute. "Alexis Maryshev" is scheduled to complete four months of cruising in the Artic before heading for the south to begin operations in Antarctica November/December 2005.