US embassy cable - 05BRASILIA3185

UNCLAS SECTION 01 OF 02 BRASILIA 003185 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV, PREL, ECON, BR, FTAA, ETRO, Bilateral Relations with the US 
SUBJECT: CODEL HYDE DISCUSSES FTAA, CORRUPTION SCANDAL WITH 
BRAZILIAN CONGRESSIONAL REPRESENTATIVES 
 
1.  Summary.  Brazilian Congressional representatives told 
CODEL Hyde December 2 that they would like to see an increase 
in dialogue between the U.S. and Brazilian legislatures on 
important topics like the Free Trade Area of the Americas 
(FTAA).  One representative said Brazil's recent corruption 
scandal had affected the GOB's economic policy and bore some 
of the blame for weak GDP numbers in the third quarter.  Both 
American and Brazilian Congressional representatives agreed 
to increase dialogue on key issues.  End Summary. 
 
2.  On December 2, CODEL Hyde met with Brazilian 
Congressional Representatives Vilmar Rocha (PFL) and Maria 
Jose Maninha (PSOL) in Brasilia, Federal District. 
 
FTAA 
----- 
3.  Representative Maria Jose Maninha told CODEL participants 
that the Brazilian Congress seeks an FTAA agreement that is 
symmetrical, serves Brazil's best interests, and reasonably 
addresses the agricultural sector's needs.  She explained 
that the Brazilian Congress is working to develop within the 
lower house parameters for trade negotiations that would 
affect all major trade development initiatives, including the 
FTAA, Mercosul, and the WTO.  Vilmar Rocha requested the 
establishment of a stronger exchange of information and an 
increase in dialogue between American and Brazilian 
Congressional representatives on the FTAA and other important 
issues, such as the environment and immigration. 
 
Corruption Scandal 
------------------ 
4.  Maninha believed that the current political crisis is the 
"most profound political crisis to date."  The corruption 
scandal has "tainted Lula and his administration," weakened 
Brazil's political party structures, and affected the GOB's 
economic policy, she said.  The recent decrease in Brazil's 
GDP during the third quarter of 2005 and overall slowing 
economic growth rate projections are evidence of the 
scandal's affect on the economy, she explained. 
 
5.  According to Rocha, substantive changes in GOB policy 
will likely not take place before the October 2006 local and 
national elections.  Congress will develop a more substantive 
agenda after the results of next year's elections, Rocha 
stated. 
 
 
Income Distribution and Other Social Issues 
------------------------------------------- 
6.  Rocha noted that Brazil's high crime rate largely results 
from urban population increases due to rural relocation to 
urban areas.  Brazilian security institutions are 
ill-equipped to address recent population increases and as a 
result, are unable to quell violence, Rocha explained.  The 
representatives blamed high crime rates on the influx of 
rural poor to the cities and said strong economic growth was 
needed to address the problem.  Maninha said she believes 
that the creation of social and economic policies to create 
economic growth and increase employment can alleviate 
Brazil's social problems.  She added that the GOB's "Zero 
Fome" (Zero Hunger) program has provided assistance to ten 
million Brazilian families, and the GOB's Social Security 
program has provided monetary assistance to the elderly and 
the poor. 
 
GOB/USG Congressional Relations 
------------------------------- 
7.  Rocha explained to the delegation that up until recently, 
foreign affairs and other international issues were addressed 
solely by the Executive Branch of the Brazilian Ministry of 
External Relations.  Interest in international affairs has 
increased among Brazilian Congressional representatives 
recently and the development of strong relations between 
American and Brazilian Congressional representatives is a 
priority.  Chairman Hyde and Representative Watson agreed, 
and added that discussions between Brazilian and American 
Congressional representatives should occur more regularly. 
 
PARTICIPANTS 
------------ 
8.   U.S. 
Rep. Henry Hyde 
Rep. Thomas Lantos 
Rep. Eni Faleomaveaga 
Rep. Mel Watt 
Rep. Diane Watson 
Rep. Luis Fortuno 
Assistant Administrator Adolfo Franco, USAID 
Embassy Charge Patrick Linehan 
 
Brazil 
Representative Vilmar Rocha (PFL-GO) 
Representative Maria Jose Maninha (PSOL-DF) 
 
9.  This cable was not cleared by CODEL Hyde prior to 
transmission. 
 
LINEHAN