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### Viewing cable 08BRASILIA13, BRAZIL: SEN. BILL NELSON'S MEETING WITH MINISTRY OF

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08BRASILIA13 | 2008-01-03 19:33 | 2011-07-11 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Brasilia

`

    VZCZCXRO4161
    RR RUEHRG
    DE RUEHBR #0013/01 0031933
    ZNR UUUUU ZZH
    R 031933Z JAN 08
    FM AMEMBASSY BRASILIA
    TO RUEHC/SECSTATE WASHDC 0770
    INFO RUEHSO/AMCONSUL SAO PAULO 1409
    RUEHRI/AMCONSUL RIO DE JANEIRO 5638
    RUEHRG/AMCONSUL RECIFE 7557
    RUEHCV/AMEMBASSY CARACAS 3920
    RUEHPU/AMEMBASSY PORT AU PRINCE 0206
    RUCNDT/USMISSION USUN NEW YORK 0244

` `

    UNCLAS SECTION 01 OF 03 BRASILIA 000013

    SIPDIS

    SENSITIVE

    SIPDIS

    DEPT FOR OES/EGC, WHA/BSC, H

    E.O. 12958: N/A
    TAGS: OVIP SENV KGHG KPKO EAGR TRGY PREL HA VE BR
    SUBJECT: BRAZIL: SEN. BILL NELSON'S MEETING WITH MINISTRY OF
    EXTERIOR RELATIONS U/S EVERTON VARGAS

    ¶1.  (U) THIS CABLE IS SENSITIVE BUT UNCLASSIFIED AND NOT FOR
    INTERNET DISTRIBUTION.

    ¶2.  (SBU) SUMMARY.  During a November 27 conversation with Senator
    Bill Nelson (Florida), the Ministry of Exterior Relations' (MRE)
    Under Secretary for Policy, Ambassador Everton Vieira Vargas,
    discussed relations with the United States, regional security and
    defense issues, and the environment.  He described relations with
    the United States as very good and expected this to continue during
    the next U.S. administration.  Still, Vargas complained about the
    U.S. excessive focus on Cuba and its agriculture subsidies.  He
    noted also that Brazil considers it critical to have democratic
    neighbors that are stable and that it believed that dialogue, not
    confrontation nor isolation, is the best way to deal with President
    Hugo Chavez of Venezuela.

    ¶3.  (SBU) SUMMARY CONTINUED.  Brazil is proud to lead the UN
    peacekeeping operations in Haiti.  There, the key challenge is how
    to create jobs.  On the environment, Brazil has domestic programs to
    monitor and control deforestation, which are already showing
    results.  The rate of deforestation has declined by over 50 percent
    in the last two years, and he expected another 30 percent decline in
    ¶2007.  Brazil wants to take measures regarding climate change - such
    as reducing the deforestation rate and promoting the use of biofuels
    - because Brazil will be affected first and foremost by climate
    change.  He stated that climate change threatens to turn the Amazon
    forest into a savannah-like environment over the next 50 years.  END
    SUMMARY.

    ¶4.  (SBU) On November 27, Senator Bill Nelson (Florida) and the
    Ministry of Exterior Relations' (MRE) Under Secretary for Policy,
    Ambassador Everton Vieira Vargas, discussed a wide range of issues,
    from national security to climate change.  Vargas is responsible
    for, among other things, multilateral issues, including the United
    Nations Stabilization Mission in Haiti (MINUSTAH), and the
    environment.  Vargas was joined by the MRE's Director for North
    American Affairs, Counselor Joao Tabajara de Oliveira Junior.
    Senator Nelson was accompanied by his staff; the Embassy
    Environment, Science and Technology Counselor and the Deputy
    Political Counselor.

    GENERLLY VERY GOOD RELATIONSHIP WITH UNITED STATES

    ¶5.  (SBU) In response to Senator Nelson's question, Vargas
    characterized Brazil's relationship with the United States as very
    good.  There is very good dialogue between both sides and in those
    cases were we may differ, he said, we can do it sitting down without
    rancor.  Vargas stated that of the 500 largest U.S. companies, 400
    are in Brazil.  Further, many Brazilian firms are investing in the
    United States.  We can and we should have a closer relationship, he
    declared.  We have new opportunities to work together.  He said, "we
    can continue working closely with the next administration in
    Washington, whether Republican or Democrat."

    ¶6.  (SBU) One area Vargas stressed was technical cooperation.  He
    said, our two countries are unique, two large countries in the
    Western Hemisphere.  He added, we should try to stimulate technical
    cooperation between our two countries in order to generate goods and
    services that can contribute to economic growth.  When asked about
    U.S. policy in the region, Vargas stated that any new U.S. policy
    toward Latin America shouldn't be based on assistance, though
    clearly it will be necessary in some special cases.  It would be a
    major breakthrough if there were more cooperation between private
    firms on technical cooperation.

    ¶7.  (SBU) Vargas highlighted the ongoing technical cooperation on
    biofuels pursuant to a Memorandum of Understanding (MOU), which was
    signed in March 2007.  In that area, he opined, we can do a lot.  He
    saw progress with all three aspects of the MOU:  helping third
    countries develop biofuels; establishing international standards;
    and research and development cooperation.

    ¶8.  (SBU) The relationship was not without some contentious areas,
    Vargas admitted.  Specifically, he complained about U.S. agriculture
    subsidies.  Until resolved, he said, cooperation won't be as bright
    as it could be.  He clarified that he wasn't speaking just on the
    tax on imported ethanol, he was referring to agriculture subsidies
    in general  He described U.S. subsidies as a major obstacle in
    dealing with the United States on trade issues.

    ¶9.  (SBU) Another troubling issue for Brazil was the way the U.S.
    relationship with Cuba overshadowed everything else in the region,

    BRASILIA 00000013  002 OF 003

    he stated.  It appeared that all U.S. policy in the region goes
    through the filter of Cuba.  This might have been understandable
    during the Cold War, but not anymore.  Now, Latin America is
    different.  Cuba isn't all of Latin America and the United States
    should deal with the various countries in the region accordingly.

    LATIN AMERICA AND NATIONAL SECURITY

    ¶10.  (SBU) Turning to Latin America, Vargas said, it is critical to
    have democracy in the region and also stability.  Brazil prefers the
    path of dialogue over confrontation, he added, because confrontation
    will push countries like Venezuela down undemocratic paths.  He
    recalled how Brazilian President Luiz Ignacio Lula da Silva and the
    MRE were criticized over how they had dealt with Bolivian President
    Evo Morales when he nationalized the gas operations of the Brazilian
    national oil and gas company Petrobras.  "We said then that dialogue
    is the only way, and now we can see the positive results of this
    approach with Bolivia inviting Petrobras back in to the country to
    invest in oil and gas," he stated.  He also noted that U.S.
    investors hold 40 percent of the equity in Petrobras.  Through
    dialogue, Brazil was letting Bolivia know it needed to protect and
    respect foreign investment.  Vargas added that Brazil's longest
    border is with Bolivia, over 11,000 kilometers, and so "we want
    stability in Bolivia, as well as in Venezuela and Ecuador."  It is
    critical, he said, "this is why we are trying to include Venezuela
    in Mercosul and to build a Union of South American countries."

    ¶11.  (SBU) Senator Nelson highlighted concerns in the United States
    regarding Venezuelan President Hugo Chavez, especially with regards
    to his wave of arms purchases.  Vargas replied that the MRE doesn't
    see this as putting Brazil's security at risk.  He stated, "we don't
    comment on internal policies of others, such as the decision to buy
    arms.  Brazil enjoys a very close and hospitable relationship with
    Venezuela.  Our companies are active there," noting that a Brazilian
    company is building the subway in Caracas and Petrobras is working
    together with the Venezuelan national oil company PDVSA.  Moreover,
    President Lula can talk with President Chavez.  He said, "we think
    the best way to deal with Chavez is through dialogue.  It isn't good
    to confront or isolate him. We need to talk with Chavez, the same
    way we talk with others.  We are strongly convinced that Chavez is
    trying to do his best for his country," Vargas concluded.

    ¶12.  (SBU) With regard to Haiti, Vargas attributed great importance
    to MINUSTAH, which Brazil leads.  He described the challenge there
    as more than a security matter, it was at heart an economic one.  He
    noted that President Lula had said that it is vital that Haiti
    receive social, economic and humanitarian assistance.  Most
    important, he stressed, was the need to create jobs in Haiti.  Also,
    he added, the international community should help establish a strong
    police force and conduct "robust institution" building.

    ¶13.  (SBU) Vargas explained that Brazil was developing a National
    Defense Strategy, and that Minister Robert Mangabeira Unger, the
    cabinet-level Secretary for Long Term Planning, was leading the
    effort in coordination with the Minister of Defense, Nelson Jobim.
    He said the subject of national security was vital; mentioning that
    his father had fought in World War II with the Brazilian contingent
    that went to Italy.  When asked about the recent discovery offshore
    of the Tupi oil field, Vargas replied that "our concerns aren't just
    limited to oil, they are with the Amazon.  The Amazon is a very
    sensitive matter.  The GoB is always concerned with the presence of
    other armed forces on its borders.  That is why it tries to have
    close cooperation with our neighbors on borders."  He noted that the
    GoB was concerned about FARC entry into Brazil.  More than once we
    had to expel them when they entered the Amazon, he noted, but said
    this had not occurred recently.  Accordingly, the Brazilian military
    is deployed along the Amazon border.  There it needs different types
    of military equipment, such as river boats, rather than blue water
    naval vessels.

    ¶14.  (SBU) Concerning arms and equipment, Vargas lamented the sorry
    state of affairs.  He said, "we are concerned with our own
    equipment, much of which is obsolete."  As an example, he cited that
    the Chief of Staff of the Navy had told him directly of a very
    critical shortage of naval equipment.  He noted, however, that
    President Lula is determined to modernize the Brazilian armed forces
    and that the administration seeks to revive the Brazilian military
    industrial base with more production taking place in-country.
    Brazil was open to joint ventures on the production of military
    equipment and, if need be, to buying abroad.

    THE AMAZON FOREST, CLIMATE CHANGE, AND BIOPIRACY

    BRASILIA 00000013  003 OF 003

    ¶15.  (SBU) Senator Nelson explained that he had long been interested
    in the issue of deforestation, especially with regard to the Amazon.
     He inquired about the GoB's views on managing the Amazon forest.
    Vargas responded that the GoB needed to keep an eye on the Amazon.
    He said Brazil viewed it as its main national asset, a strategic
    area not only for its forest, but also for water management,
    biodiversity and as the home for some 25 million people.  The GoB
    has ambitious plans to fight deforestation through the use of
    enhanced command and control procedures, he added.  By so doing, it
    seeks to prevent illegal logging and expansion of agriculture into
    the Amazon.  He explained that Brazil has a sophisticated monitoring
    system, which uses remote satellite sensing through a partnership
    with the Chinese called CBERS.  Similarly, using the SIVAM
    ground-based radar network, for which Raytheon is the prime
    contractor, the GoB is monitoring the Amazon airspace for illicit
    aircraft incursions, he noted.

    ¶16.  (SBU) Vargas continued, pointing out that Brazil has
    sophisticated environmental legislation and an environmental
    criminal code.  Moreover, it has established protected areas that
    now encompass an area larger than half of Western Europe.  He
    announced that Brazil was already seeing good results from its
    efforts.  There had been a 50% reduction in the rate of
    deforestation over the last two years, from 2.75 million hectares
    deforested in 2003-2004 to 1.4 million hectares in 2005-2006,and
    expected a further reduction in the rate of about 30% this year.

    ¶17.  (SBU) Managing the Amazon isn't just about protecting trees,
    Vargas commented.  Brazil needs sustainable development and so the
    fundamental challenge is an economic one:  How can Brazil produce
    goods from the Amazon in a sustainable manner?  How can it better
    use the rich biodiversity in the Amazon?  Part of the solution is to
    obtain more market access for Brazilian goods, he said, as well as
    establishing a strong research and development policy.  Also, he
    added, Brazil needs investment in the region.

    ¶18.  (SBU) On climate change, Vargas said, if there is no change in
    patterns of production - especially in developed countries - in
    fifty years we will have the "savannahization" of the Amazon.
    Brazil isn't trying to protect the Amazon because of global
    concerns, but it is doing so because climate change will affect
    Brazilians first and foremost, he asserted, adding that "we are
    committed to strong deforestation efforts."  Deforestation accounts
    for only nine percent of the greenhouse gas emissions and the
    majority of emissions are caused by using fossil fuels.  "That is
    why we are promoting biofuels," he explained.  At the same time,
    President Lula has already decided to stop sugar cane production in
    the Amazon.  We are looking at certification for biofuels.  In sum,
    Vargas declared, "I am convinced that the government has done a lot
    to combat deforestation."

    ¶19.  (SBU) Vargas identified another major issue for Brazil:
    biopiracy, or the unauthorized taking of plant or animals or
    tradition knowledge.  We need to have a major clampdown, he said.
    The police are working on this, and Brazil is doing a lot and trying
    to do more.

    ¶20.  (U) Noting his long-time interest in environmental issues, and
    his leadership of efforts to save the Everglades, Senator Nelson
    informed Ambassador Vargas that he would attend the environmental
    summit the following week in Bali, where many issues of concern to
    the U.S. and Brazil would be discussed.  Vargas noted that he would
    be part of the GOB delegation in Bali and that he looked forward to
    seeing the Senator there.

    CHICOLA

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