CHILE The Chilean press has been working normally and without any special restrictions. The following are the main events concerning the exercise of press freedom: -The former editor of the newspaper La Tercera, Fernando Paulsen, and a journalist of the same paper, Jose Ale, were put on trial in 1998 for allegedly libeling Servando Jordan L6pez, the former Chief Justice of the Supreme Court, who still sits on the court. The judge hearing the case summarily acquitted the defendants, and the verdict was upheld on September 8, 1999 by the Santiago Appeals Court. -A group of delegates of various political inclinations presented a bill to reform the State Security Law that sanctions journalists for criticizing public figures. The government, which is also interested in modifying this law, sent the National Congress a substitute, which the Committee on the Constitution, Legislation and Justice of the Chamber of Deputies is studying. This law, dating from 1937, has been used indiscriminately by some high officials. The law has been applied to 15 journalists and eight politicians since 1990. -On September 30, journalist Alejandra Matus was granted political asylum in the United States. Her arrest was ordered in Chile after publication of the "Black Book of Chilean Justice," which was seized before being distributed for violating the State Security Law. -The Santiago Appeals Court rejected Servando Jordan's demand that El Mercurio publish on its editOrial page his response to an article that referred to him. Jordan appealed the verdict to the Supreme Court. On July 29 the high court's Criminal Division rejected his appeal and confirmed the decision of the Appeals Court. Metro S.A., the government agency that administers the Santiago subway, announced at the end of July that it will distribute a free newspaper published by the Swedish company Modern Times Group (MTG) in its stations. The Industrial Development Association, a trade group that many newspapers belong to, filed a complaint against Metro S.A. holding that it was violating various constitutional provisions, in particular the one that prohibits any state enterprise from intruding in other areas unless it is authorized to do so by a law approved by a qualified quorum. It is important to mention that Metro S.A. prohibits the sale of newspapers and magazines inside its stations.