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### Viewing cable 06BRASILIA773, BILATERAL COOPERATION WITH BRAZIL ON BIOFUELS

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06BRASILIA773 | 2006-04-20 17:05 | 2011-01-12 00:12 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Brasilia

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    VZCZCXRO9722
    RR RUEHRG
    DE RUEHBR #0773 1101744
    ZNR UUUUU ZZH
    R 201744Z APR 06
    FM AMEMBASSY BRASILIA
    TO RUEHC/SECSTATE WASHDC 5167
    RHEBAAA/USDOE WASHDC
    RUCPDO/USDOC WASHDC
    RUEHRC/USDA WASHDC
    RHEHNSC/NSC WASHDC
    RUEATRS/DEPT OF TREASURY WASHDC
    INFO RUEHSO/AMCONSUL SAO PAULO 6791
    RUEHRI/AMCONSUL RIO DE JANEIRO 1913
    RUEHRG/AMCONSUL RECIFE 4633

` `

    UNCLAS BRASILIA 000773

    SIPDIS

    STATE PASS USTR:MSULLIVAN
    DOE FOR GWARD/SLADISLAW
    NSC FOR CRONIN
    USDOC FOR 3134/USFCS/OIO/WH/EOLSON
    USDOC FOR 4332/ITA/MAC/WH/OLAC/MWARD
    USDA FOR FAS/ITP AND FAS/FAA/WH
    STATE PASS OPIC FOR MORONESE, RIVERA, MERVENNE
    STATE PASS EXIM FOR NATALIE WEISS, COCONNER STATE PASS USTDA FOR AMCKINNEY
    TREASURY FOR OASIA:FPARODI AID/W FOR LAC/AA SENSITIVE SIPDIS
    E.O. 12958: N/A
    TAGS: ENRG KSCA EAGR TRGY EINV ETRD BR
    SUBJECT: BILATERAL COOPERATION WITH BRAZIL ON BIOFUELS

    ¶1. (SBU) Summary and Action Request. In view of the President's State of the Union address calling for expanded U.S. use of ethanol and Brazil's desire for closer ties to the United States in this area, Mission would like to stage a bilateral conference with Brazilian government and industry on ethanol/biodiesel issues. Prior to moving forward, however, we need guidance from the interagency community on what approach we should pursue regarding biofuel cooperation with Brazil. In addition, we welcome Washington's input on the topics that might be most effectively addressed in such an event. To cull the views of the various concerned agencies (State, DOE, AID, USTR, USDA, Commerce, Treasury, NSC, etc.), post suggests that a Sub-PCC level meeting be called to expeditiously discuss the matter. End Summary and Action Request.

    ¶2. (SBU) While Brazil and the USG are at odds on a number of high-profile issues (FTAA, WTO, UNSC expansion, among others), given increasing sentiment in the United States in favor of renewable fuels and the GOB's oft-stated desire to intensify ethanol cooperation with the United States, post believes that we should seek to transform this topic into a positive item on our bilateral agenda. As the world's largest producer of ethanol, Brazil has sought to reach out to the world's second largest producer - the U.S. President Bush's State of the Union address outlining new biofuel friendly energy policies received significant media coverage in Brazil. In recent months in Brazil, the President's Office (Planalto), the Ministry of Mines and Energy, the Ministry of Development, Industry, and Commerce, the Ministry of Agriculture, the Ministry of External Relations, and the Ministry of Science and Technology have all raised ethanol issues in their meetings with USG officials. Conversely, a host of congressional visitors (Codel Coleman, Codel Hyde, Codel McConnell, Codel Specter, Codel Grassley, and Nodel Dayton) have evinced interest in ensuring that the United States learns from the Brazil experience. State of Florida and State of California officials have voiced similar sentiments as well.

    ¶3. (SBU) Similar to the various GOB ministries involved in biofuels, ethanol is a topic that also cuts across USG interagency lines. Inter alia, State, Commerce, Energy, Treasury, USTR, USAID, and Agriculture all deal with it in one form or the other, whether it be from the development, trade, investment, research, environmental, or standards angle. Accordingly, to ensure that our approach is consistent with emerging USG policies, we request that a Sub-PCC meeting be convened to define the substance of our message and the approach (most likely a conference) to best move our agenda forward. The Department of Energy has already expressed interest in such a conference.

    ¶4. (SBU) Post welcomes guidance from Washington.

    Chicola

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