US embassy cable - 04BRASILIA3047

UNCLAS SECTION 01 OF 02 BRASILIA 003047 
 
SIPDIS 
 
SENSITIVE 
 
STATE PLEASE PASS TO USTR 
NSC FOR MIKE DEMPSEY 
DEPT OF TREASURY FOR FPARODI 
USDOC FOR 3134/USFCS/OIO/WH/EOLSON 
USDOC FOR 4332/ITA/MAC/WH/OLAC/MWARD 
 
E.O. 12958: N/A 
TAGS: PGOV, ETRD, ETTC, MNUC, SENV, BR, FTAA, Trade 
SUBJECT:  AMBASSADOR DISCUSSES FTAA AND OTHER ISSUES WITH 
BRAZILIAN LEGISLATORS 
 
1.  (U) SUMMARY AND INTRODUCTION, ON DECEMBER 9 AMBASSADOR 
MET WITH MEMBERS OF THE BRAZILIAN CHAMBER OF DEPUTIES 
FOREIGN AFFAIRS AND DEFENSE COMMITTEE TO REVIEW OUTSTANDING 
ISSUES IN THE USG-GOB BILATERAL RELATIONSHIP.  ALTHOUGH THE 
MEETING AGENDA INCLUDED POTENTIAL TOPICS SPANNING A VARIETY 
OF DISCIPLINES, IN REALITY THE LION'S SHARE OF THE 
DISCUSSION CENTERED ON FTAA ISSUES.  OUR CONGRESSIONAL 
INTERLOCUTORS STRESSED A NUMBER OF THEMES, INTER ALIA:  THE 
IMPORTANCE OF FREQUENT PARLIAMENTARY EXCHANGES BETWEEN U.S. 
AND BRAZILIAN LEGISLATORS, THE DESIRABILITY FOR THE GOB TO 
CONSULT WITH THE BRAZILIAN CONGRESS AS THE COUNTRY MOVES 
FORWARD ON THE FTAA AND OTHER TRADE INITIATIVES, AND THE 
NEED FOR U.S. POLICYMAKERS TO UNDERSTAND HOW BRAZIL'S UNIQUE 
CULTURAL HERITAGE COMPLICATES GOB DECISION-MAKING ON TRADE 
MATTERS.  END SUMMARY AND INTRODUCTION. 
 
2.  (U)  AS PART OF THE EMBASSY'S CONTINUING OUTREACH 
EFFORTS, ON DECEMBER 9 AMBASSADOR VISITED THE CHAMBER OF 
DEPUTIES TO MEET (INFORMALLY) WITH MEMBERS OF THAT BODY'S 
FOREIGN AFFAIRS AND DEFENSE COMMITTEE.  PRESENT AT THE 
MEETING WERE COMMITTEE CHAIR CARLOS MELLES (PFL), DEP. LUIZ 
CARLOS HAULY (PSDB), DEP. FERNANDO GABEIRA (SOCIALIST 
PARTY), DEP. LEONARDO MONTEIRO (PT), DEP. IVAN CESAR 
RANZOLIN (PP), DEP. ZARATTINI (PT), DEP. FEU ROSA (PP), 
FORMER AMBASSADOR TO THE U.S. PAULO TARSO FLECHA DE LIMA 
(DESCRIBED BY MELLO AS A "CONSULTANT" TO THE COMMITTEE), AND 
MFA NORTH AMERICAN DESK OFFICER PAULO ALVARENGA. 
ACCOMPANYING THE AMBASSADOR FROM THE U.S. SIDE WERE EMBASSY 
POLCOUNS, ECONCOUNS, CONSUL, PRESS OFFICER, AND FO SPECIAL 
ASS'T. 
 
3.  (U)  IN HIS OPENING REMARKS, COMMITTEE CHAIR MELLES 
NOTED THE IMPORTANCE OF THE U.S.-BRAZIL BILATERAL 
RELATIONSHIP AND STRESSED THE NEED FOR CONTINUED 
PARLIAMENTARY EXCHANGES BETWEEN THE U.S. CONGRESS AND THE 
CHAMBER OF DEPUTIES.  MELLES NOTED THAT COMMITTEE MEMBERS 
HAD RECENTLY TRAVELED TO THE U.S. PURSUANT TO A PAS- 
SPONSORED PROGRAM AND THAT THIS TRIP HAD PROVED TO BE 
EXTREMELY WORTHWHILE.  MELLES URGED THE EMBASSY TO PROMOTE 
FURTHER SUCH ENGAGEMENT, EITHER UNDER OAS AUSPICES OR 
PURSUANT TO AD HOC CODELS.  HE SUGGESTED BOTH SIDES SEEK TO 
CREATE A FORMAL EXCHANGE BETWEEN THE TWO CONGRESSES.  ON 
SUBSTANTIVE ISSUES, MELLES QUERIED THE AMBASSADOR ABOUT U.S. 
POLICY WITH RESPECT TO NUCLEAR ACTIVITIES BY ROGUE NATIONS 
SUCH AS NORTH KOREA AND IRAN, ADDING THAT BRAZIL WANTS PEACE 
AND THAT THE U.S. HAS A SOMEWHAT RIGID POINT OF VIEW. 
 
4. (U)  AMBASSADOR SAID THAT NUCLEAR PROLIFERATION AND 
CONTROLS GO HAND IN HAND, AND THAT TOO MANY "BAD GUYS" HAVE 
WEAPONS.  REGARDING NORTH KOREA, THE USG BELIEVES THAT THE 
BEST APPROACH TO ADDRESSING ITS NUCLEAR WEAPONS IS VIA THE 
SIX PARTY TALKS.  HE EMPHASIZED THAT THIS IS NOT A 
UNILATERAL PROCESS, BUT RATHER A MULTILATERAL APPROACH.  HE 
CONTINUED SAYING THAT THE SITUATION WITH IRAN IS MORE 
COMPLICATED, AS IT IS LESS CLEAR, LESS KNOWN, AND MORE 
SUSPECT.  HE ADDED THAT THE U.S. HAS A DISARMAMENT PROGRAM, 
AND THAT WE COULD LEAD SUCH AN EFFORT, BUT THAT THIS CANNOT 
BE UNILATERAL.  HE SAID THAT BRAZIL HAS COMMUNICATED ITS 
RELUCTANCE TO HAVE THE ISSUE GO TO THE U.N., AND ASKED WHY 
HAS BRAZIL TAKEN SUCH A POSITION?  WOULDN'T IT BE BETTER, HE 
ASKED, FOR MORE COUNTRIES TO KNOW AND ADDRESS THE SITUATION? 
 
5. (U)  AMBASSADOR THEN SPOKE REGARDING THE CURRENT STATE OF 
U.S.-BRAZIL RELATIONS, FOCUSING ON THE CHALLENGES THE 
PRESIDENT FACED IN HIS UPCOMING SECOND TERM.  ON THE TRADE 
FRONT, THE AMBASSADOR NOTED, THE U.S. AND BRAZIL WOULD NEED 
TO WORK TOGETHER IN BOTH THE WTO DOHA ROUND AND THE FTAA TO 
ENSURE THAT THESE EFFORTS PROVED TO BE SUCCESSFUL. 
AMBASSADOR OBSERVED THAT BRAZIL NEEDED TO AVOID THE MIND-SET 
THAT IT WAS THE USG THAT WAS NEGOTIATING THE FTAA, WHEN IN 
REALITY BOTH THE GOB AND THE U.S. WERE CO-CHAIRS AND NEARLY 
ALL THE COUNTRIES IN THE HEMISPHERE HAD A STRONG STAKE IN 
THE OUTCOME.  HE SAID THAT THE USG POSITION IS CLEAR: FREE 
TRADE WILL BRING ABOUT ECONOMIC AND SOCIAL MEANS OF 
BETTERMENT, BOTH FOR AMERICAN AND BRAZILIAN BUSINESSES AND 
CONSUMERS.  RESPONDING TO MELLE'S COMMENT THAT BRAZILIANS 
ARE ESPECIALLY SENSITIVE WHEN THE U.S. CRITICIZES BRAZIL, 
THE AMBASSADOR SAID THAT WE RECOGNIZE BRAZIL'S SENSITIVITY, 
BUT THAT WE ALSO NEED TO RECOGNIZE THE FRUSTRATION OF NOT 
DOING ENOUGH TO MOVE FORWARD THE NEGOTIATIONS. 
 
6. (U)  AFTER A BIT OF PROMPTING FROM COMMITTEE CHAIR 
MELLES, DEP. GABEIRA PROVIDED HIS INPUT ON BOTH TRADE AND 
ENVIRONMENTAL QUESTIONS.  SPECIFICALLY, GABEIRA NOTED THAT 
THE BILATERAL RELATIONSHIP WITH THE U.S. COVERED MORE THAN 
JUST THE FTAA, ALTHOUGH TRADE NEGOTIATIONS OFTEN GARNERED A 
DISPROPORTIONATE SHARE OF COVERAGE BY THE PRESS.  WHAT WAS 
NEEDED, HE CONTINUED, WAS NEGOTIATION OF AN AGREEMENT THAT 
WOULD SERVE BOTH SIDES' INTERESTS.  THE USG, HE STATED, 
NEEDED TO KEEP IN MIND AT ALL TIMES BRAZIL'S UNIQUE 
CULTURAL/CATHOLIC HERITAGE AS IT DEALT WITH THE GOB.  (SEE 
PARA. 8 BELOW FOR MORE ON THIS POINT).  GABEIRA ALSO 
INQUIRED ABOUT THE USG'S POSITION ON THE KYOTO PROTOCOL, 
INQUIRING AS TO WHETHER AN ALTERNATIVE WOULD BE PROPOSED. 
THE AMBASSADOR RESPONDED THAT NOTWITHSTANDING THE OBJECTIONS 
THE USG HAD TO THE TREATY, AN ALTERNATIVE MAY BE 
FORTHCOMING, AND BOTH FEDERAL AND STATE GOVERNMENTS IN THE 
U.S. WERE MOVING FORWARD ON CLIMATE CHANGE ISSUES. HE ADDED 
THAT SOME STATES HAVE INCORPORATED THEIR OWN PROTOCOL, MORE 
RIGOROUS THAT KYOTO, SUCH AS IN HIS HOME STATE OF 
CALIFORNIA. 
 
7.  (U)  AMB. FLECHA DE LIMA (NOW RETIRED FROM THE MFA) 
PROVIDED HIS PERSPECTIVE ON THE GENESIS OF THE FTAA.  HE 
NOTED THAT WHILE BRAZIL WAS A HEMISPHERIC GIANT, ITS ECONOMY 
WAS NO RIVAL TO THAT OF THE U.S.  THE INHERENT ASSYMETRIC 
NATURE OF THE RELATIONSHIP, HE SAID, REQUIRED BRAZIL TO SEEK 
SAFEGUARDS TO PROTECT ITS VULNERABLE INDUSTRIES.  THIS VIEW, 
HE CONTINUED, WAS AS MUCH THE CASE TODAY AS WHEN HE WAS IN 
THE FOREIGN MINISTRY. 
 
8.  (U)  DEPUTADOS MONTEIRO, ROSA, AND ZARATTINI THEN SPOKE 
ABOUT THEIR VIEWS REGARDING THE PROPER ROLE OF CONGRESS IN 
THE FTAA NEGOTIATIONS.  IN ESSENCE, THEY MADE THE POINT THAT 
THE GOB NEEDS TO CONSULT THE RELEVANT CHAMBER/SENATE 
OFFICIALS EARLY AND OFTEN, AS WAS THE CASE IN UNITED STATES. 
FOREIGN TRADE RELATIONS, THEY FELT, WAS AN ISSUE TOO 
IMPORTANT TO BE LEFT TO DIPLOMATS AT ITAMARATY (I.E., THE 
FOREIGN MINISTRY).  ONLY INPUT FROM ELECTED OFFICIALS COULD 
ENSURE THAT THE TRADE POLICY THAT ITAMARATY ADOPTED TRULY 
REFLECTED BRAZILIAN NATIONAL INTERESTS AND WOULD BE 
REPRESENTATIVE OF THE DEMOCRATIC PROCESS.  COMMITTEE CHAIR 
MELLO POINTED OUT THAT AT TIMES BRAZIL'S CATHOLIC HERITAGE 
(SEE PARAGRAPH 6 ABOVE) LED POLICYMAKERS INTO THINKING THAT 
MAKING A PROFIT WAS A SIN.  THIS BIAS NEEDED TO BE 
CORRECTED, HE ADDED, SINCE IT DID NOTHING TO ADVANCE TRADE 
RELATIONS WITH KEY PARTNERS SUCH AS THE U.S.  IN CLOSING, 
DEPUTADO HAULY, WHO IS ALSO COORDINATOR FOR THE U.S-BRAZIL 
LEGISLATIVE CAUCUS, PROPOSED THAT THE TWO COUNTRIES PREPARE 
A WORK-PLAN FOR PROMOTING INCREASED PUBLIC INFRA-STRUCTURE 
INVESTMENT IN BRAZIL. 
 
9. (SBU)  COMMENT.  ALTHOUGH IN THEIR COMMENTS OUR 
INTERLOCUTORS WERE GENERALLY SUPPORTIVE OF EXPANDED U.S.- 
BRAZIL TRADE INTEGRATION, BASED UPON PAST EXPERIENCE WE KNOW 
THAT SOME OF THEM HOLD CRITICAL VIEWS OF THE FTAA PROCESS. 
WHILE IT WILL BE DIFFICULT TO CHANGE DEEPLY-INGRAINED 
ATTITUDES, OUR HOPE IS THAT INCREASED DIALOGUE - 
PARTICULARLY WITH U.S. PARLIAMENTARY COUNTERPARTS - WILL 
LEAD SOME TO REEXAMINE THEIR OPPOSITION.  EMBASSY WILL 
CONTINUE WITH ITS OUTREACH TO KEY LEGISLATORS NOT ONLY ON 
FTAA ISSUES BUT ON THE FULL RANGE OF OUR BILATERAL CONCERNS. 
 
DANILOVICH