Cable Viewer

Currently released so far... 19595 / 251,287

### Articles

Brazil Sri Lanka United Kingdom Sweden 00. Editorial United States Latin America Egypt Jordan Yemen Thailand

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03 2011/04 2011/05 2011/06 2011/07
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11 2011/03/13 2011/03/14 2011/03/15 2011/03/16 2011/03/17 2011/03/18 2011/03/19 2011/03/20 2011/03/21 2011/03/22 2011/03/23 2011/03/24 2011/03/25 2011/03/26 2011/03/27 2011/03/28 2011/03/29 2011/03/30 2011/03/31
2011/04/01 2011/04/02 2011/04/03 2011/04/04 2011/04/05 2011/04/06 2011/04/07 2011/04/08 2011/04/09 2011/04/10 2011/04/11 2011/04/12 2011/04/13 2011/04/14 2011/04/15 2011/04/16 2011/04/17 2011/04/18 2011/04/19 2011/04/20 2011/04/21 2011/04/22 2011/04/23 2011/04/24 2011/04/25 2011/04/26 2011/04/27 2011/04/28 2011/04/29 2011/04/30
2011/05/01 2011/05/02 2011/05/03 2011/05/04 2011/05/05 2011/05/06 2011/05/07 2011/05/08 2011/05/09 2011/05/10 2011/05/11 2011/05/12 2011/05/13 2011/05/14 2011/05/15 2011/05/16 2011/05/17 2011/05/18 2011/05/19 2011/05/20 2011/05/21 2011/05/22 2011/05/23 2011/05/24 2011/05/25 2011/05/26 2011/05/27 2011/05/28 2011/05/29 2011/05/30 2011/05/31
2011/06/01 2011/06/02 2011/06/03 2011/06/04 2011/06/05 2011/06/06 2011/06/07 2011/06/08 2011/06/09 2011/06/10 2011/06/11 2011/06/12 2011/06/13 2011/06/14 2011/06/15 2011/06/16 2011/06/17 2011/06/18 2011/06/19 2011/06/20 2011/06/21 2011/06/22 2011/06/23 2011/06/24 2011/06/25 2011/06/26 2011/06/27 2011/06/28 2011/06/29 2011/06/30
2011/07/01 2011/07/02 2011/07/04 2011/07/05 2011/07/06 2011/07/07 2011/07/08 2011/07/10 2011/07/11 2011/07/12 2011/07/13 2011/07/14 2011/07/15 2011/07/16 2011/07/17 2011/07/18 2011/07/19 2011/07/20 2011/07/21 2011/07/22 2011/07/23 2011/07/25

### Browse by creation date

66 72 73 75 79 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1985/03 1985/05 1985/06
1986/05 1986/08 1986/12
1987/06
1988/01 1988/03 1988/04 1988/07 1988/08 1988/12
1989/12
1990/01 1990/07 1990/08 1990/10
1991/05 1991/07 1991/11
1992/01 1992/03 1992/06 1992/09 1992/12
1993/01 1993/02 1993/10
1994/11 1994/12
1995/01 1995/04 1995/06 1995/11
1996/07 1996/09 1996/11
1997/02 1997/03 1997/05 1997/06 1997/08 1997/10 1997/12
1998/05 1998/12
1999/01 1999/09
2000/05 2000/06 2000/09 2000/11
2001/02 2001/03 2001/04 2001/05 2001/06 2001/07 2001/09 2001/10 2001/11 2001/12
2002/01 2002/02 2002/03 2002/04 2002/06 2002/07 2002/08 2002/09 2002/11 2002/12
2003/01 2003/02 2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Apia Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Auckland Consulate Amsterdam Consulate Adana American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belmopan Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Belfast Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Ciudad Juarez Consulate Chiang Mai Consulate Chennai Consulate Casablanca Consulate Cape Town Consulate Calgary
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dili Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai Consulate Dhahran
Embassy Freetown Consulate Fukuoka
Embassy Guatemala Embassy Gaborone Consulate Guayaquil Consulate Guangzhou Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Hong Kong Consulate Ho Chi Minh City Consulate Hermosillo Consulate Hamilton Consulate Hamburg Consulate Halifax
Iran RPO Dubai Embassy Islamabad Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kingston Embassy Kigali Embassy Khartoum Embassy Kathmandu Embassy Kampala Embassy Kabul Consulate Kolkata Consulate Karachi
Embassy Luxembourg Embassy Luanda Embassy London Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy Libreville Embassy La Paz Consulate Lahore Consulate Lagos
Mission USOSCE Mission USNATO Mission UNESCO Mission Geneva Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maseru Embassy Maputo Embassy Manila Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Mumbai Consulate Montreal Consulate Monterrey Consulate Milan Consulate Melbourne Consulate Matamoros
Embassy Nicosia Embassy Niamey Embassy New Delhi Embassy Ndjamena Embassy Nassau Embassy Nairobi Consulate Nuevo Laredo Consulate Naples Consulate Naha Consulate Nagoya
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Of Spain Embassy Port Louis Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito Consulate Quebec
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Suva Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate St Petersburg Consulate Shenyang Consulate Shanghai Consulate Sapporo Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn Consulate Toronto Consulate Tijuana Consulate Thessaloniki
USUN New York USEU Brussels US Office Almaty US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE UN Rome Embassy Ulaanbaatar
Embassy Vilnius Embassy Vientiane Embassy Vienna Embassy Vatican Embassy Valletta Consulate Vladivostok Consulate Vancouver
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ASEC AEMR AMGT AR APECO AU AORC AJ AF AFIN AS AM ABLD AFFAIRS AMB APER AA AG AE ATRN ADM ALOW ACOA AID AND ABUD ARF AY AMED ASPA AL APEC ADPM ADANA AFSI ARABL ADCO ANARCHISTS AZ ANET AMEDCASCKFLO AADP AO AGRICULTURE AGAO ASEAN APRC AFSN AFSA AORG ACABQ AINF AINR AODE APCS AROC ARCH ADB AX AMEX ASUP ARM AQ ATFN AMBASSADOR ARAS ACBAQ AC AOPR AREP ASIG ASEX AER AVERY ASCH AFU AMG ATPDEA ASECKFRDCVISKIRFPHUMSMIGEG AORL AN AIT AGMT ACS AGR AMCHAMS AECL AUC AFGHANISTAN ACAO
BR BB BG BEXP BY BA BRUSSELS BU BD BK BL BM BE BO BTIO BH BAIO BRPA BUSH BILAT BF BX BC BOL BMGT BP BIDEN BBG BBSR BT BWC BEXPC BN BTIU
CPAS CA CASC CS CBW CIDA CO CODEL CI CROS CU CH CWC CMGT CVIS CDG CG CF CHIEF CJAN CBSA CE CY CB CW CM CDC CONS CHR CD CT CR CAMBODIA CN COUNTRY CONDOLEEZZA CZ CARICOM COM CICTE CYPRUS CBE CACS COE CIVS CFED CARSON COPUOS COUNTER CAPC CTR CV CITES CKGR CVR CLINTON COUNTERTERRORISM CITEL CLEARANCE CSW CIC CITT CARIB CAFTA CACM CDB CJUS CTM CAN CAJC CONSULAR CLMT CBC CIA CNARC CIS CEUDA CHINA CAC CL
DR DJ DB DHS DAO DCM DO DEFENSE DA DE DK DOMESTIC DISENGAGEMENT DOD DOT DPRK DEPT DEA DOE DTRA DS DEAX
ECON ETTC EFIS ETRD EC EMIN EAGR EAID EU EFIN EUN ECIN EG EWWT EINV ENRG ELAB EPET EN EAIR EUMEM ECPS ELTN EIND EZ EI ER ET EINT ECONOMIC ENIV EFTA ES ECONOMY ENV EAG EET ELECTIONS ESTH ETRO EPEC ECIP EXIM ENERG EREL EK EDEV ERNG EPA ENGY ETRAD ELTNSNAR ENGR ETRC ELAP EUREM EEB EETC ENVI EXTERNAL ELN ETRDEINVECINPGOVCS EAIDS ECOSOC EDU EPREL ECA EIDN EFINECONCS EINVEFIN EINVKSCA ETC ENVR EAP EINN EXBS ECONOMICS EIAR EINDETRD ECONEFIN EURN ETRDEINVTINTCS EFIM EINVETC ECONCS EDRC ENRD EBRD ETRA ESA EAIG EUR EUC ERD ETRN EINVECONSENVCSJA EEPET EUNCH ESENV ENNP ECINECONCS ETRDECONWTOCS ECUN
FI FR FOREIGN FTAA FARC FREEDOM FAS FAO FINANCE FBI FCS FAA FJ FTA FK FT FAC FDA FM FINR FOR FOI FO FMLN FISO
GM GERARD GT GA GG GR GTIP GE GY GH GLOBAL GB GEORGE GCC GV GC GAZA GL GOV GOI GF GTMO GANGS GAERC GZ GUILLERMO GASPAR
HR HA HYMPSK HO HK HUMAN HN HUD HU HURI HILLARY HI HUM HSTC HEBRON HUMOR
IZ IN IAEA IS IMO ILO IR IC IT ITU IV IMF IBRD IWC IPR IRAQI IDB ISRAELI ITALY IADB ITPGOV ITALIAN ID ICAO ICRC INR IFAD ICJ IO IRAQ INL INMARSAT INRA INTERNAL INTELSAT INDO ILC IRS IIP IQ IAHRC ITRA IEFIN ICTY ISCON IA INTERPOL IEA INRB ISRAEL IZPREL IRAJ IF ITPHUM IL IACI IDA ISLAMISTS IGAD ITF INRO IBET IDP ICTR IRC
JA JO JM JP JOHN JUS JAMES JOHNNIE JOSEPH JML JIMENEZ
KOMC KNNP KFLO KDEM KSUM KIPR KFLU KPAO KE KCRM KJUS KAWC KZ KSCA KDRG KCOR KGHG KPAL KTIP KMCA KCRS KPKO KOLY KRVC KVPR KG KWBG KMDR KTER KSPR KV KTFN KWMN KFRD KSTH KS KN KISL KGIC KSEP KFIN KTEX KTIA KUNR KCMR KMOC KCIP KTDB KBIO KU KSAF KHIV KSTC KIRF KIRC KMPI KIDE KSEO KSCS KNNNP KGLB KNUC KICC KCFE KIVP KTDD KPWR KNUP KO KHLS KR KCOM KESS KCSY KWN KRFD KREC KBCT KICCPUR KGIT KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KOCI KREL KMCC KPRV KPRP KVIR KPAOPREL KAUST KIRP KLAB KCRIM KPAONZ KCRCM KHDP KHSA KNAR KICA KGHA KTRD KTAO KPAOY KINR KJUST KWAC KNPP KNDP KSCI KMRS KTBT KHUM KBTS KNNPMNUC KACT KAWK KPIR KFSC KAID KERG KENV KMFO KVRP KTLA KPOA KX KRCM KCFC KNEI KCHG KPLS KFTFN KTFM KLIG KDEMAF KRAD KBTR KGCC KSEC KPIN KDEV KWWMN KOM KWNM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KRGY KIFR KSAC KWMNCS KPAK KOMS KFPC KRIM KDDG KCGC KPAI KID KMIG KNSD KWMM
LY LE LABOR LO LH LAB LI LTTE LU LA LVPR LT LG LOG
MARR MX MASS MOPS MNUC MCAP MTCRE MRCRE MTRE MASC MY MK MO MCC MCA MAS MZ MIL MU ML MTCR MEPP MG MI MINUSTAH MP MA MD MAPP MR MAR MOPPS MTS MLS MILI MEPN MEPI MEETINGS MERCOSUR MW MT MIK MN MAPS MV MILITARY MARAD MDC MACEDONIA MASSMNUC MUCN MEDIA MQADHAFI MPOS MPS MC
NZ NATO NI NO NU NG NL NPT NS NSF NA NP NATIONAL NASA NC NDP NIH NIPP NSSP NK NEGROPONTE NGO NE NAS NATOIRAQ NAR NR NZUS NARC NH NSG NAFTA NEW NRR NT NOVO NATOPREL NEA NSC NV NPA NSFO NW NORAD NPG NOAA
OTRA OECD OVIP OREP OPRC ODC OIIP OPDC OAS OSCE OPIC OMS OEXC OPCW OSCI OIE OPAD ODIP OM OFDP OFFICIALS OEXP OPEC OVIPPRELUNGANU ODPC OHUM OSHA OSIC OTR OMIG OSAC OBSP OFDA OVP ON OCII OES OCS OIC
PGOV PREL PARM PINR PHUM PM PREF PTER PK PINS PBIO PHSA PE PBTS PL POL PAK POV POLITICS POLICY PA PNAT PCI PALESTINIAN PAS PO PH PROV PRELBR PERM PETR PROP PJUS POLITICAL PREZ PAO PRELPK PAIGH PROG PMAR PU PG PDOV PTE PGOVSOCI PGOR PY PMIL PBTSRU PPA PRAM PREO PINO PARMS PERL PTERE PSI PGOF PRGOV PORG PP PS PKFK PSOE PEPR PDEM PINT PRELP PREFA PNG PTBS PFOR PUNE PGOVLO PHUMBA POLINT PGOVE PHALANAGE PARTY PECON PLN PHUH PEDRO PF PHUS PETER PARTIES PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PHUMPREL POGOV PEL PINL PBT PINF PRL PSEPC POSTS PAHO PHUMPGOV PGOC PNR
QA
RS RP RU RW RFE RCMP RIGHTSPOLMIL RO ROBERT RM RICE REGION ROOD RELAM RSP RF RELATIONS RIGHTS RUPREL REMON RPEL REACTION REPORT RSO
SZ SENV SOCI SNAR SY SO SP SU SI SMIG SYR SA SCUL SW SR SYRIA SNARM SPECIALIST SG SENS SF SENVQGR SEN SENVEAGREAIDTBIOECONSOCIXR SN SC SNA SK SL SMIL SCRM SENVSXE SAARC SNARIZ STEINBERG SARS SWE SCRS SAN ST SIPDIS SSA SPCVIS SOFA SENVKGHG SANC SHI SEVN SHUM SH SNARCS SPCE SNARN SIPRS
TRGY TBIO TSPA TU TPHY TI TX TH TIP TSPL TNGD TS TW TRSY TZ TP TN TINT TC TR TIO TF TK TRAD TT TD TWI TERRORISM TL TV TO TURKEY TSPAM TREL TRT TFIN TAGS THPY TBID
UK UNSC UNGA UN US UZ USEU UG UP UNAUS UNMIK USTR UY UNRCR UNESCO UNHRC UNICEF USPS UNSCR UNHCR UNFICYP UNCSD UNEP USOAS USAID UNDP UV UNTAC USUN USDA UNMIC UNCHR UNCTAD UR USGS USNC UA UE UNVIE UAE UNO UNODC UNCHS UNDESCO UNC UNPUOS UNDC UNCHC UNFCYP UNIDROIT UNCND
VE VM VT VZ VEPREL VN VTEG VTIZ VTPREL VISIT VENZ VAT VC VI
WHTI WIPO WTRO WTO WHO WFP WS WA WZ WI WMD WBG WWARD WHA WITH WTRQ WEU WMO WB
XA XW XX XK XL XM XS XF XY XR XG XT XC XH XD XE XV XB XU XZ XQ XI XTAG
YI YM YE YL YMCS
ZU ZI ZOELLICK ZP ZR ZO ZK ZF ZL ZB ZN ZH ZT ZJ ZEALAND ZA ZANU

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 08BRASILIA1299, Brazil Responds to U.S. Financial Crisis

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #08BRASILIA1299.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08BRASILIA1299 | 2008-10-01 11:00 | 2011-07-11 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Brasilia

`

    VZCZCXRO5935
    RR RUEHRG
    DE RUEHBR #1299/01 2751100
    ZNR UUUUU ZZH
    R 011100Z OCT 08
    FM AMEMBASSY BRASILIA
    TO RUEHC/SECSTATE WASHDC 2553
    INFO RUEHRI/AMCONSUL RIO DE JANEIRO 6680
    RUEHSO/AMCONSUL SAO PAULO 2830
    RUEHRG/AMCONSUL RECIFE 8519

` `

    UNCLAS SECTION 01 OF 02 BRASILIA 001299

    SIPDIS
    SENSITIVE

    STATE FOR WHA/BSC, WHA/EPSC, EEB/CIP, EEB/IFD
    STATE ALSO FOR E:HASTINGS, WHA:KELLY, WHA:MCMULLEN
    STATE PASS USTR FOR KDUCKWORTH
    STATE PASS EXIMBANK
    STATE PASS OPIC FOR DMORONSE, NRIVERA, CMERVENNE
    DEPT OF TREASURY FOR JHOEK, BONEILL

    E.O. 12958: N/A
    TAGS: ECON EFIN EINV ETRD BR
    SUBJECT: Brazil Responds to U.S. Financial Crisis

    REF: SAO PAULO 486

    ¶1.   (SBU)   Summary:  In response to the U.S. financial crisis,
    Brazil's Central Bank (CB) has partially reversed its hawkish
    anti-inflationary policies by adding 13.2 billion reais to the
    financial system in hopes of freeing up credit and has indicated
    that future interest rate hikes are unlikely given the diminishing
    threat of inflation due to a global slowdown and falling commodity
    prices.  Brazil's Foreign Minster continues to assert that Brazil is
    well positioned to weather the crisis, while he and a key Central
    Bank contact also confirm moves to try to mitigate the effect of the
    crisis. President Lula continues to criticize the United States for
    a lack of financial regulation, claiming that a global regulatory
    body is needed to address the situation. Lula has admitted, for the
    first time, that the Brazilian economy may be adversely impacted by
    the crisis, drawing widespread criticism for not having a real grasp
    on the potential of the crisis.  Brazilian market reactions are
    being reported by ConGen Sao Paulo SEPTEL. END SUMMARY

    CENTRAL BANK ACTIONS AND INTROSPECTIONS
    ---------------------------------------

    ¶2.  (SBU)   The CB announced, on September 24th, a suspension in the
    implementation of new, higher reserve rate levels required for
    commercial banks.  The new levels were to have been implemented in
    November, but the CB decided to delay this implementation by two
    more months.  The CB also raised the threshold on commercial banks'
    exemptions for cash, time and savings deposits, which was previously
    at 100 million reais (approximately 200 million USD) to 300 million
    reais (approximately 600 million USD).  The measure will return 13.2
    billion reais( USD7.16 billion) to the financial system in what is a
    reversal  to the original policy of removing 40 billion reais from
    the credit markets in an effort by the CB to slow lending growth
    that was fueling inflationary pressures.  Responding to the U.S.
    financial crisis, the CB announced that this was a preventative
    measure meant to ensure sufficient availability of liquidity in the
    Brazilian financial markets.  In their recently released quarterly
    inflation report, the CB diminished the role of inflationary
    pressures, claiming that the global economic slowdown and falling
    commodity prices will offset a devaluation of the Brazilian real and
    keep inflation in check.  In fact, many economists have steadily
    lowered the year end inflation rate from 6.45 to 6.17 and many view
    the CB's most recent inflationary report as an indication that the
    CB will temporarily abandon their hawkish inflation stance and
    deviate from their recent rounds of rate hikes that saw an increase
    from 13 to 13.75 at their most recent meeting on September 9th.
    ¶3.  (SBU) Central Bank of Brazil Senior Advisor Alexandre Pundek
    told Econ FSN, the main possible fallout from the Congressional
    rejection of the bailout package would be a reduction of credit
    lines to finance Brazilian foreign trade. Pundek also worries that
    if the crisis leads risk-averse Americans to shy away from investing
    abroad, countries such as Brazil could experience a reduction in
    foreign direct investment.  On the Brazilian monetary/credit policy
    side, Pundek reports that in addition to the measures reported
    above, the Central Bank has decided to postpone plans to subject
    lease lending (long term purchase installment plans)to phased-in
    application of new reserve requirements.  The Central Bank will now
    apply the new requirements at a rate of 15 percent in March 2009 and
    25 percent in June 2009.  On the exchange rate policy side, Pundek
    says that the Central Bank recently sold two lots of 80 day forward
    purchase agreements at USD 500 million each in order to contain
    volatility. Finally, Pundek noted that inflation will likely fall
    depending both on international commodity prices, as well as the
    continued relative strength of the Real.  Pundek observed that there
    is still a great deal of uncertainty and as a result, economic
    policymakers will refrain from forecasting.
    ¶4.  (SBU) Alvaro Vereda, Deputy Secretary of International Affairs
    of the Finance Ministry confirmed for Econ FSN public statements by
    Finance Minister Mantega that the Ministry believes that the USD 700
    billion White House package will be approved on a second round in
    the House of Representatives, and that as soon as it is approved,
    the credit situation will stabilize.  After meeting with President
    Lula, Development Minister Jorge, Agriculture Minister Stephanes and
    Central Banker Meirelles, Finance Minister Mantega assessed that the
    Brazilian economy is functioning normally, although the CB (see
    previous paragraph) has recently conducted USD auctions to increase
    dollar liquidity.  He also said that the Brazilian agricultural
    sector has sufficient resources, and that the GOB can tackle any
    problems ahead.  Mantega asserted that Brazil has been suffering
    from the crisis, through the reduction of credit by private banks,
    but reinforced that the GOB is ready to act whenever necessary.
    According to the Minister, "the market is fine, the companies are
    solid, the banks are solid and the government is ready to respond to
    any problems put to them." Mantega noted that there should be a

    BRASILIA 00001299  002 OF 002

    distinction between advanced economies, the core of the crisis with
    financial institutions in trouble, and emerging and developing
    countries, whose economies are solid, domestic markets are robust,
    financial accounts are balanced and are growing more.  The Minister
    mentioned that the Brazilian fiscal surplus in line with and above
    previous years' and that inflation is under control, within the
    ceiling limit of the target band (note: the limit is 6.5), which in
    turn enables the country to deal with the global situation on stable
    footing.

    WHAT THE PRESIDENT SAYS
    ------------------------
    ¶5.  (SBU) President Lula meanwhile continued his public criticism of
    the U.S. financial crisis, commenting in interviews with Folha de
    Sao Paulo and Estado de Sao Paulo today (September 30)that the
    situation is the result of "casino-type" deregulatory practices and
    that the ultimate victims will be the poor. President Lula, at the
    UN General Assembly, called for a global solution to the financial
    crisis while proposing that the global financial crisis can only be
    resolved through multi lateral forums. Lula added that the crisis
    has proven market fundamentalists wrong and demonstrated the need
    for state interventions.  Lula asserted at the U.N. that only
    decisive action by governments, especially those at the heart of the
    crisis, can correct the disorder that has spread throughout the
    global financial markets.  In commenting yesterday on the proposal's
    failure to gain house passage, Lula implored the U.S. Congress to
    stop politicizing the bailout package and put national interest
    first. Lula has recently adjusted his position on what impact the
    crisis will have on the Brazilian economy, declaring initially that
    Brazil would be immune to the problems while admitting today that
    the crisis could do harm due to the enormity of the U.S. economy and
    the inevitable ripple effects.  In today's editorial in Folha de Sao
    Paulo, Lula was criticized for not correctly predicting the crisis'
    impact on the economy; deriding him for his change in position and
    accusing him of not have the capacity to understand the gravity of
    the crisis.  The editorial also depicted the CB president Henrique
    Meirelles as a curious, confused and powerless spectator.
    ¶6.  Comment:  Brazilians are very cognoscente of the country's past
    economic turmoil caused by global downturns (most recently the Asian
    crisis in 1997) and are quick to point out the advances in economic
    growth that the country has achieved, potentially partially
    insulating Brazil from the current crisis.  Despite the efforts of
    both President Lula and well respected commentators in easing the
    anxiety surrounding the U.S. crisis' potential impact, no one seems
    to know exactly how this will affect Brazil.  The CB's attempt to
    maintain capital flows by partially reversing their monetary policy
    indicates that there is some recognition of the potential of the
    crisis' impact despite the rosy scenarios given officially (reftel).
     Whether that will be enough to mitigate a crisis of yet
    undetermined magnitude remains to be seen.  The issue will likely be
    a topic of great interest during the planned visit of Under
    Secretary for Economic, Energy and Agricultural Affairs, Reuben
    Jeffery, to Brasilia on October 3rd when several interlocutors will
    likely look to the Undersecretary for insights into the unfolding
    developments surrounding the crisis.  End Comment.

    KUBISKE

`