UNCLAS SAO PAULO 000447
STATE INR/R/MR; IIP/R/MR; WHA/PD
DEPT PASS USTR
E.O. 12958: N/A
TAGS: KMDR OPRC OIIP XM XR XF BR
SUBJECT: MEDIA REACTION - WESTERN HEMISPHERE: HONDURAS, COUP;
CHAVEZ'S POLICIES; GLOBAL ECONOMY: FINANCIAL MARKET CRISIS; CLIMATE
CHANGE AND ENVIRONMENT; SAO PAULO
July 27, 2009
"Chavez is the problem"
Op-ed in liberal Folha de S.Paulo (7-27) by Folha journalist Igor
Gielow states: "The Honduran crisis.....rewards an era of mistaken
regional diplomacy in Brazil...the unanimity as regards to Zelaya's
legitimacy seems not to include the majority of Honduran
society..... Zelaya's cooptation by Chavez and the consequent
campaign for the destruction of the Constitution were rejected by an
expressive part of Honduras. That's the reason for the current
impasse. Brazil has opted to not enter into direct confrontation
with Chavism over the past years. Under Lula, [Brazil] has
supported it ideologically...and saw [the Brazilian] interests being
hit and its regional influence questioned."
"Climate change and trade with the U.S."
Op-Ed in business oriented Valor Econtmico (7-27) by Diego Bonomo,
Executive Director of the Brazil Industries Coalition (BIC)
comments: "Two aspects [of the American Clean Energy and Security
Act (Aces)] deserve immediate attention from Brazilian businessmen:
the subsidies for U.S. industries with intensive use of energy and
exposed to trade; and the requirements placed on imported
products....This system....to grant subsidies and to potentially
create barriers to imports presents two risks to the Brazilian
private sector. The first and more immediate is on exports to the
U.S. market and third countries....the second risk is.....the
potential conflict in the relationship between multilateral rules in
the areas of trade and environment.....The Brazilian private sector
should engage in the U.S. legislative process to try to avoid risk
[included in the Act]....."
"Brazil's Central Bank alters the management of its reserves without
leaving Treasuries aside"
Editorial in business oriented Valor Econtmico (7-27) states:
"....The changes in the composition of [Brazil's] international
reserves [Brazil sold last week US$24.3 billion in
Treasuries]....reflect only normal decisions of portfolio management
[and] therefore do not have relationship with an eventual flight
away from the dollar....The indications given by Brazil's Central
Bank (BCB) are that it does not intend to stop financing the U.S.
government. Brazil is the fourth largest holder of U.S. Treasuries,
behind China, Japan and the United Kingdom.....As far as one can
see, the dollar will remain the main international reserve.
Nonetheless, from now on, the BCB must manage more carefully its
reserve investment portfolio to face a much more volatile