UNTIMELY CHAVEZ-LULA VISIT

UNCLAS BRASILIA 002153

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: PREL PGOV BR
SUBJECT: UNTIMELY CHAVEZ-LULA VISIT


1. (U) On August 11 Venezuelan president Hugo Chavez made a
stop-off in Brasilia during a quick tour of South American
countries, and called on President Lula da Silva. Over
dinner, official releases from the presidency indicate they
discussed bilateral relations, focusing on a joint venture
between the two country's parastatal petroleum companies,
Brazil's Petrobras and Venezuela's PDVSA. Although the
presidency affirmed the focus of the meeting was the
&strategic alliance8 forged between the two in February,
many political analysts here questioned the timing of
Chavez's sudden visit (announced only yesterday) in light of
the corruption scandals that have rocked the GOB. Some
analysts posit that the house call was really a disguised
political huddle between South America's most prominent
left-of-center leaders.


2. (U) Both opposition figures and some media criticized the
visit as inappropriate in light of the current political
crisis in Brazil. Chavez was uncharacteristically evasive
with the press, although he did apparently leave one sound
bite behind in which he claimed Lula's woes were the result
of a rightist conspiracy. Lula has reportedly bristled at
recent critical comparisons of his appeals to lower class
voters for support amidst the crisis with populist tactics of
the Venezuelan leader. In that sense his meeting with Chavez
at this juncture seems jarringly ill-timed.


3. (SBU) We are seeking additional information on the meeting
with presidency officials at the earliest opportunity.

LINEHAN