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### Viewing cable 08BRASILIA1405, BRAZILIANS HIGHLIGHT POSITIVE BILATERAL RELATIONS

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08BRASILIA1405 | 2008-10-24 20:08 | 2011-07-11 00:00 | CONFIDENTIAL | Embassy Brasilia

`

    VZCZCXRO5437
    PP RUEHAO RUEHCD RUEHGA RUEHGD RUEHHA RUEHHO RUEHMC RUEHMT RUEHNG
    RUEHNL RUEHQU RUEHRD RUEHRG RUEHRS RUEHTM RUEHVC
    DE RUEHBR #1405/01 2982008
    ZNY CCCCC ZZH
    P 242008Z OCT 08 ZDK
    FM AMEMBASSY BRASILIA
    TO RUEHC/SECSTATE WASHDC PRIORITY 2729
    INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
    RUEHRG/AMCONSUL RECIFE 8622
    RUEHRI/AMCONSUL RIO DE JANEIRO 6789
    RUEHSO/AMCONSUL SAO PAULO 2962
    RHMFISS/CDR USSOUTHCOM MIAMI FL//SCJ2-I/J5/HSE/DIA REP//
    RHEHNSC/NSC WASHDC
    RUEKJCS/SECDEF WASHDC
    RUCNDT/USMISSION USUN NEW YORK 0277

` `

    C O N F I D E N T I A L SECTION 01 OF 03 BRASILIA 001405

    SIPDIS

    NSC FOR FISK AND TOMASULO

    E.O. 12958: DECL: 10/24/2018
    TAGS: PREL ETRD ENRG BR
    SUBJECT: BRAZILIANS HIGHLIGHT POSITIVE BILATERAL RELATIONS
    FOR UNDER SECRETARY BURNS

    REF: A. BRASILIA 1301
         ¶B. USUN NEW YORK 0928

    BRASILIA 00001405  001.2 OF 003

    Classified By: Ambassador Clifford M. Sobel, Reasons 1.4 (b) and (d)

    ¶1. (C) During his October 17 visit to Brazil, Under Secretary
    Bill Burns was told repeatedly by GOB officials and others
    that relations between the United States and Brazil are
    excellent and that they hope a new U.S. administration will
    make an early effort to build on them.  GOB officials focused
    on their efforts to manage difficult relations with their
    neighbors and to increase political and economic integration
    in the region.  In particular, they encouraged the USG to
    respond positively to the first Latin America/Caribbean
    Summit (all Western Hemisphere countries, including Cuba,
    except the United States and Canada) that Brazil will host in
    December.  Foreign Ministry officials highlighted their
    interest in cooperating on Haiti, UN Security Council reform,
    the Middle East, the financial crisis, and the Doha trade
    round.  End summary.

    -- Defense Minister Jobim Offers His Insights --

    ¶2. (C) In Brasilia, Minister of Defense Nelson Jobim provided
    U/S Burns an overview of Brazil's relations with neighboring
    countries, noting Brazil's ongoing issues with Bolivia (gas,
    and the political crisis), Ecuador (Odebrecht), Paraguay
    (Itaipu), and Argentina (gas and economic concerns).  Without
    specifying, he described many of the leftist leaders in South
    America as "primitive."  Jobim stressed that, although
    relations between the United
    States and Brazil are excellent, it would not do for our
    countries to appear too close, as it might scare Venezuelan
    President Chavez, who is already looking to use external
    threats to divert attention from his internal problems.
    Jobim suggested that the new U.S. administration should look
    at changing U.S. policy toward Cuba.  He added that there is
    no better analyst of the region than President Lula's foreign
    policy advisor, Marco Aurelio Garcia, and recommended that
    advisors to the new U.S. president meet with Garcia early on
    to get his perspective.

    ¶3. (C) In discussing possible sale to Brazil of F-18s, Jobim
    raised Brazilian concerns with technology transfer,
    explaining that it is a critical element in Brazil's
    decision.

    ¶4. (C) At the same meeting, Chairman of the Senate Defense
    and Foreign Affairs Committee Heraclito Fortes said relations
    between our two governments have never been better, including
    with the Brazilian congress, as a result of increased USG
    efforts.  Jobim agreed, saying that SouthCom's recent efforts
    have improved relations with the Brazilian military.  Fortes
    said the new U.S. administration needs to continue and
    enhance engagement of this nature with Brazil, citing
    peacekeeping in Haiti as a positive, concrete example of how
    our countries can work together.

    ¶5. (C) Fortes expressed concern with growing Iranian and
    Russian influence as a result of Venezuela's ties, and
    suggested that the United States should give more support to
    Mercosul as an organization aimed at preserving democracy.
    At the same time, Fortes voiced his opinion that Ecuador's
    President Correa presents a greater long-term threat to
    stability in the region than Venezuela's Chavez because
    Correa is educated and his moves are planned.  Fortes also
    raised his continuing frustration with the absence of the
    United States at the Inter-Parliamentary Union (IPU).

    -- Mexican Ambassador to Brazil Offers Thoughts on CALC --

    ¶6. (C) Mexican Ambassador to Brazil Andres Valencia Benavides
    provided his views of the December 17-18 conference of Latin
    American and Caribbean heads of state (CALC) in Bahia (Reftel
    A).  Benavides lamented that, with the demise of negotiations
    for a Free Trade Area of the Americas, the Summit of the
    Americas process had lost the hemisphere-wide unifying theme
    that drove it.  He suggested that the new U.S. administration
    should seek to provide such a theme.

    -- Finance Ministry Chief of Staff Discusses Region, Energy,
    and Economy --

    BRASILIA 00001405  002.2 OF 003

    ¶7. (C) In a separate meeting, Finance Ministry Chief of Staff
    Luiz Melin said that the CALC meeting represents another way
    for Brazil to manage Chavez, and suggested that the USG
    should find ways to broaden dialogue with the region across
    sectors, including through acknowledgement of and respect for
    the role of the various regional and sub-regional mechanisms
    that have been put in place.  He emphasized that these
    mechanisms do not represent a barrier to cooperation with the
    United States.  "You need to give them legitimacy and welcome
    them," he said.  Melin sees the region as being at a tipping
    point,
    and stressed that Brazil must sell regional mechanisms as
    "fair and useful" as it works to bring countries like
    Venezuela on board with a more constructive approach.  Andean
    Development Bank (CAF) Brazil Representative Moira
    Paz-Estenssoro, a Bolivian, agreed with Melin, urging the
    U.S. "to build partnerships with respect, acknowledging good
    actions."

    ¶8. (C) Melin also discussed Brazil's response to the global
    financial crisis.  Noting that Brazil had learned its lesson
    from its previous economic crises, the GOB slashed investment
    in an effort to control government spending, which resulted
    in Brazilian infrastructure suffering severely.  This time,
    the GOB intends to maintain its commitment to spending under
    the Program to Accelerate Growth (PAC) aimed at increasing
    investment in infrastructure, so as to lay a foundation for
    future growth as it manages the crisis.  Mines and Energy
    Ministry official Francisco Wojcicki described the Brazilian
    energy matrix, emphasizing that Brazil welcomes foreign
    investment as it develops its pre-salt reserves and expands
    and maintains its electricity infrastructure.

    -- Itamaraty Luncheon: Brazilian Perspective on Global and
    Regional Issues --

    ¶9. (C) The Brazilian Ministry of External Relations (MRE, or
    Itamaraty) hosted a two-hour working lunch that covered a
    wide range of bilateral and global topics.  U/S for Political
    Affairs Everton Vargas toasted the deepening bilateral
    relationship and said a purpose for the talks was to see
    where our convergences lie.  The bilateral relationship is
    characterized by positive dialogue and cooperation.  It is
    important to build on it.  U/S for Energy and Technology
    Andre Amado stressed the importance of continuing biofuel
    cooperation in third countries despite the orchestrated
    effort by some to &demolish8 progress.

    ¶10. (C) In discussing the financial crisis, U/S Vargas
    suggested that, as the G-7 had been created to address the
    oil crisis in the 1970s, so the international community needs
    to consider creation of new mechanisms to address the current
    crisis.  This is why President Lula had proposed an ECOSOC
    meeting to help develop a response.  However, he added, "we
    have no illusions about a magic solution."  Vargas noted that
    the Ibero-American Summit would be held in El Salvador at the
    end of the month, saying that, although the theme is
    officially energy, former Inter-American Development Bank
    President and now Ibero-American Summit Executive Director
    Enrique Iglesias is encouraging discussion of the financial
    crisis, as both crises go hand in hand.  U/S for Economic
    Affairs Luiz Carneiro de Mendonca said that timing will be a
    key question for the future Doha trade round, affected by
    election cycles in the United States and India.

    ¶11. (C) U/S Vargas raised reform of the UN Security Council,
    saying that the international community must keep reform at
    the center of our collective thinking (Reftel B).

    ¶12. (C) U/S Vargas encouraged holding a donor conference on
    Haiti before the beginning of 2009.  Prior to holding it, it
    will be important to agree on the criteria for success.
    Vargas stressed the importance of linking and coordinating
    GOH priorities, and of setting a timetable for disbursements.
     Minister Carlos Duarte, head of the International
    Organizations Department, noted that the most recent MINUSTAH
    report had benchmarks
    that would provide a useful basis for donors.  Vargas
    suggested that the USG and GOB should hold bilateral
    discussions on Haiti.

    BRASILIA 00001405  003.2 OF 003

    ¶13. (C) Turning to the Middle East, Vargas said Brazil views
    USG efforts very positively.  As a participant in the
    Annapolis meeting, FM Amorim believes Brazil should help keep
    the process moving, especially as it is the key to resolving
    many other issues around the world.  Ambassador Regina
    Dunlop, representing the under secretary for Asia, Africa,
    and the Middle East, said that Brazil is particularly pleased
    that regional actors are at the center
    of efforts toward a region-wide solution.  U/S Vargas
    commented that Brazil does not want to see more states,
    including Iran, with nuclear weapons and fully supported UNSC
    sanctions.

    ¶14. (C) Minister Joao Luiz Pereira Pinto, representing the
    under secretary for Latin America and the Caribbean,
    discussed the CALC, explaining that South American nations
    never had meetings only among themselves to discuss regional
    issues.  As UNASUL provided a forum for dialogue among South
    American governments, so CALC would provide a forum for the
    region.  The most likely focus of the summit will be the
    financial crisis, he said, although energy had been the
    original focus.  Resolving energy issues is a principal
    concern in the region, Vargas said, critical to getting South
    America on its feet.  Discussing the very different realities
    for South American countries, Vargas stressed the need for
    greater cooperation and integration on energy matter, and on
    infrastructure more broadly.

    ¶15. (C) When asked what the new U.S. Administration should
    know about Brazil and the region, Vargas said "Bear in mind
    that people here have sensitivities".  He said that Brazil
    hopes the dialogue that has been established with the current
    administration will continue under the new one.

    -- Sao Paulo Meetings with Economic and Foreign Policy
    Observers --

    ¶16. (SBU) Chairman of the Senate Economic Affairs Committee
    Senator Aloizio Mercadante (Labor Party), former Development
    Minister Luiz Fernando Furlan, and FIESP international
    negotiations director Mario Marconini urged that the next
    administration seek pre-inaugural contacts with major
    countries in the region to send the clearest message about
    Brazil,s and Latin America,s importance to the United
    States.  Brazil,s strong economy, the country,s moderating
    effect on the region,s politics, and the prospect for
    strategic partnership in areas such as energy (especially
    biofuels) make it imperative for the new U.S. administration
    to signal its interest in bilateral cooperation.  Important
    possibilities exist for either a Republican or a Democratic
    administration, they said.

    ¶17. (SBU) Former Foreign Minister Celso Lafer and former
    Brazilian ambassador to London and Paris Sergio Amaral argued
    that Brazil needs to show greater resolve with its
    sometimes-difficult neighbors (e.g., Bolivia and Paraguay)
    and not indulge them every time they make demands.  They also
    stressed that the region is looking to the United States for
    leadership in a time of global financial uncertainty, much as
    the United States provided in the wake of World Wars I and
    II.  Ambassador Amaral suggested that a United States that is
    "less strong8 is not all bad for bilateral relations and
    that Brazil could prove a positive partner for Washington in
    a number of areas.  Amaral offered that Cuba and ethanol
    (most notably the U.S. tariff) were areas where a strong,
    positive signal from Washington would be well-received in
    Brazil.

    ¶18. (U) U/S Burns cleared this cable.
    SOBEL

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