BRAZIL FOREIGN MINISTRY PREDICTS DEEPENED RELATIONS FROM

UNCLAS BRASILIA 001410

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PREL PGOV BR
SUBJECT: BRAZIL FOREIGN MINISTRY PREDICTS DEEPENED RELATIONS FROM
LULA-GARCIA MEETING

REF: LIMA 2427


1. Summary: The June 13 meeting between Brazilian President Lula
da Silva and Peruvian President-elect Alan Garcia will increase
physical integration, increase information sharing and strengthen
political ties between the two neighbors, according to the Brazilian
Foreign Ministry (MRE). Poloff was told during a July 10 readout of
the meeting that the two presidents also discussed the role that
Venezuelan President Hugo Chavez played during the Peruvian
presidential election and the subsequent chill in
Peruvian-Venezuelan relations. Our interlocutor predicted that
Garcia's presidency, coupled with Lula's expected reelection, would
result in a continuous and significant strengthening of relations
between the GoB and the GoP. End Summary


2. Poloff met with Lauro Beltrao of the MRE's Division for Meridian
America on July 10, to discuss the GoB's impressions of the June 13
meeting between President Lula and President-elect Alan Garcia, of
Peru. While Beltrao was not present at the meeting, he shared
information he had gleaned from the GoB's internal reports. Beltrao
noted that the meeting had been extremely positive and focused on
three issues: physical integration, information sharing and
strengthened political ties.


3. Beltrao opened by noting the excellent relationship shared by
Garcia and Lula, pointing out that President Garcia had been the
only world leader to call Lula after his failed Presidential bid in

1989. As social democrats, possessing similar values, Beltrao
believes that Garcia and Lula will remain very close, and possess
definitive ideological ties. Those ties, in turn, should lead to
stronger ties between Brazil and Peru. He also noted that he
believed Garcia would move to strengthen commitments with the United
States and Chile.


4. During the meeting Lula and Garcia discussed the three pillars
on which Brazil and Peru can develop their cooperation. The first
is via physical integration projects. The given example was the
intercontinental highway which will provide Brazil's first link to
the Pacific Ocean, while increasing sorely needed development in the
Southern reaches of Peru. Second, Peru and Brazil, by means of an
MOU signed in 2003 and implemented in the last few months, would
increase information sharing through the SIPAM/SIVAM system for
spacial mapping, cartography and prevention of illicit activities in
the Amazon regions of both countries. Lastly, the meeting previewed
deepening political relations between the countries, especially as
relations with Venezuela have soured following Chavez' interference
in the Peruvian elections.


5. The President's comments on Hugo Chavez emphasized the momentary
chill in relations between Venezuela and Peru, Beltrao said.
Beltrao believes that Garcia will/has become a target for Chavez and
that there may be further deterioration between the two countries.
Lula, in this scenario, may play the role of a negotiator and
peacekeeper.


6. Moving beyond the confines of the Lula-Garcia meeting, Beltrao
opined that that Lula's first term as president is a model for
Garcia. He sees Garcia promoting foreign investment, pro-market
reforms and other sound macroeconomic policies to foment the
Peruvian economy's continued growth. Lula's emphasis on social
programs may also be a beacon for Garcia, who desperately needs to
reach out to a country where 40% of the population lives in poverty.
During the meeting the two leaders spoke about implementing a
program in Peru similar to the Bolsa Familia. Beltrao ended the
meeting by noting that Lula has already committed to attending
Garcia's inauguration and that he is very optimistic for the future
of the Peru- Brazil relationship.

WILLIASON