US embassy cable - 05BRASILIA2745

UNCLAS BRASILIA 002745 
 
SIPDIS 
 
OFFICIAL-INFORMAL FOR TREASURY D/S KIMMITT, U/S ADAMS AND 
DAS NANCY LEE 
 
E.O. 12958: N/A 
TAGS: ECON, AMGT 
SUBJECT: OFFICIAL-INFORMAL 
 
REF: BRASILIA 1993 
 
1. In Reftel, post made the case for maintaining a Treasury 
Attache presence in South America, observing that the 
current incumbent of the position, posted in Buenos Aires, 
helps provide vital coverage of macro-economic and 
international financial developments in Brazil.  Events 
since then have only underscored the importance of this. 
Local financial markets have oscillated dramatically as 
investor attitudes have swung between pessimism and 
enthusiasm.  Given the strength of the real and high returns 
on local bonds, Brazil has assumed an even higher profile 
among the emerging markets.  As Secretary Snow's successful 
August 1 to 3 trip to Brazil demonstrated, now is not the 
time for Treasury to retreat from Latin America. 
 
2. Indeed, we would urge Treasury to consider not only 
maintaining the Attache position on the books, but moving it 
to Sao Paulo - the financial center of South America.  In 
Sao Paulo, the Attache would be able to easily tap the 
expertise of the city's extensive community of private 
sector market analysts, while, given the excellent 
international air connections the city offers, would be a 
short plane ride from the region's other capitals. 
 
3. As Treasury WashDC's thinking on these issues develops, 
we would appreciate the opportunity to further weigh in on 
this debate. 
 
DANILOVICH