Development: On 27 November the head of the Carabineros police anti-drugs unit (0-7), Colonel Carlos Hidalgo, was demoted. Significance: Hidalgo, who will now head up the Carabineros’ missing vehicles and persons unit, lost his post over a recent drugs scandal in which four 0-7 agents – including a regional anti-drugs chief - were arrested in the city of Arica accused of trafficking 1.1 tonnes of marihuana from Bolivia. The scandal, which has also claimed another top official, is a rare one for Chile, which is known for the professionalism of its security and justice institutions. Key points: The Carabineros' general…

Development: On 27 November after a four-hour meeting in Madrid, the board of Spanish oil firm Repsol accepted in principle an offer of compensation from the Argentine government for last year’s expropriation of its majority stake in Argentina’s national oil company, Yacimientos Petrolíferos Fiscales (YPF). Significance: This landmark agreement has major implications for both sides. For Repsol it minimises the losses on its unhappy Argentine adventure, and marks the rising influence of Pemex, the Mexican state oil company that is a minority shareholder in the Spanish group. Critically for Argentina, the deal will help unlock much-needed new foreign investment in…