BRAZIL - INFO FOR SECRETARY MINETA ON UPCOMING WHTI

1. Per reftel request, we are sending the following
information regarding the upcoming Western Hemisphere
Transportation Initiative (WHTI) ministerial-level
conference that will be held in Guaruja, Brazil, August 25-


26. (Contrary to the information in the cable, the
conference will not be held in Brasilia.) We confirmed that
the Brazilian Minister of Transportation, Alfredo Pereira do
Nascimento, will participate in the conference. We also
want to convey that the GOB Ministry of Transportation
considers Secretary Mineta's participation to be "extremely
important."



2. In terms of a bilateral meeting, Minster Nascimento has
already received a number of requests for bilateral meetings
from other ministers who will be in attendance. Minister
Nascimento has not yet decided if he will stay for bilateral
meetings on August 25 (after presiding over the opening of
the conference) or return for the bilateral meetings on
August 26 (before he presides over the conclusion of the
conference). U.S. Embassy Brasilia offers its assistance in
scheduling such a meeting.



3. There are a number of important bilateral issues that
Secretary Mineta could address in a meeting with Minister

SIPDIS
Nascimento. A brief outline follows:

-- Maritime Transport Agreement: After several years of
negotiations, we have finalized the text for a Maritime
Transport Agreement. The Agreement is essentially only
pending scheduling the signing. We had previously agreed
with DOT/Marad and the GOB to hold the signing in
Washington; however, if Secretary Mineta comes to Brazil,
this may be an opportune time to sign the Agreement in
Brazil (whether in Guaruja or during an additional leg to
Brasilia).

-- Maritime Security: Several maritime security initiatives
are underway, including the DHS Container Security
Initiative (CSI), a Department of Energy Megaports
Initiative (for screening against nuclear/radioactive
material), and the U.S. Coast Guard inspections of ports.

-- Varig crisis: Varig (Brazil's flagship civair carrier)
filed for bankruptcy protection in June because of its
enormous debt and inability to pay its airplane lessors. At
this time it is unclear that Varig will be able to
restructure its debt and/or attract the investments
necessary to survive.

-- Aviation Security: After some tense negotiations, Brazil
agreed to share Passenger Name Record (PNR) data with DHS in
April. Transportation Security Administration (TSA) has had
some trouble getting Brazil to nail down dates for a round
of airport inspections, but it looks as though they may
begin in August.

-- Infrastructure Investment: Brazil is developing Public
Private Partnership (PPP) regulations to encourage
investments into public infrastructure, primarily in the
land transportation sector and port infrastructure. U.S.
Federal Highway Administration officials will be visiting
Brazil July 24-27, and are scheduled to meet with Brazil's
WHTI director among other engagements.



4. Please direct future inquires and information regarding
Secretary Mineta's or other DOT officials' participation in

SIPDIS
the WHTI conference to Brasilia Econ Officer Jared Banks,
banksj@state.gov, (55 61) 3312-7154, and Matt Bowlby in Sao
Paulo, bowlbymc@state.gov, (55 11) 5186-7218.

MANGANIELLO