BRAZIL: AMBASSADOR'S SECOND MEETING WITH

C O N F I D E N T I A L SECTION 01 OF 02 BRASILIA 002412

SIPDIS

SIPDIS

E.O. 12958: DECL: 05/25/2016
TAGS: PREL BR
SUBJECT: BRAZIL: AMBASSADOR'S SECOND MEETING WITH
PRESIDENTIAL CHIEF OF STAFF

Classified By: ACTING DEPUTY CHIEF OF MISSION DENNIS HEARNE. REASONS: 1
.4 (B)(D).


1. (C) Summary. Ambassador and A/DCM met on 13 November with
Gilberto Carvalho, President Lula da Silva's chief of
personal staff. It was their second substantive meeting in
the space of a week, and the hour-long discussion focused
primarily on a agenda topics and modalities for a possible
visit by Lula to the United States for a meeting with
President Bush (at his invitation),bilateral relations and
Venezuela. Carvalho also indicated plans are not yet
finalized for Lula's re-inauguration on 1 January 2007, but
that thought is being given to a small-scale event, with
foreign governments represented by ambassadors, not
international delegates. End summary.

Presidential Meeting


2. (C) Carvalho said Lula is eager for the meeting with
President Bush, and would welcome an informal, non-Washington
venue befitting the warm relationship between the presidents.
Carvalho and Ambassador then discussed possible agenda items
for a Lula-Bush meeting. Focus points could be: (1)
bio-fuels; (2) debt relief in developing countries (IDB
President Moreno mentioned this to Ambassador recently and it
is an area of interest for Lula; (2) Brazil-US
security/intelligence exchange; (3) Cuba - U.S.-Brazil
cooperation to facilitate a post-Fidel "soft landing;" (4)
trade - moving toward a practical/effective dialogue in
Lula's second term; (4) climate. Ambassador and Carvalho
agreed that these would be preliminary ideas, and that the
agenda could be adjusted and developed. Carvalho seemed
enthused about the agenda items and indicated he would share
them with Lula at once, giving us feedback asap.

Bilateral Relations


3. (C) Carvalho again made it clear he wants to serve as a
direct channel for the Ambassador to Lula, and indicated he
would facilitate face-to-face meetings when there is a need.
Carvalho did ask the Ambassador to assure he also remains
attentive to his formal relationship with the foreign
ministry (MRE),"which can be jealous of its equities."
Ambassador assured Carvalho of his sensitivity on this point,
and explained he would be flying to Rio later in the week
especially to meet with Foreign Minister Amorim for further
discussion of the presidents' meeting plans (septel to
follow). Carvalho also underscored again that the second
Lula mandate will see a closer approximation to the U.S.,
including on the trade front. Carvalho -- who has been
Lula's confidante and advisor for more than 30 years --
explained that Lula's first term had been a balancing act
between maintaining credibility with the conservative market
and keeping the far left of Lula's base content by assuring
them Lula, as president, was not surrendering their
traditional banners. In the second term, Lula is better
positioned to take issues on pragmatically, including trade,
Carvalho said. Ambassador noted Lula may be practical but
there remain people in the GOB who seem ideologically driven,
and who make statements that can confuse Washington about
Brazil's policy direction. Ambassador did not name names,
but his comments clearly were directed at MRE Secretary
General Pinheiro Guimaraes, a famous anti-U.S. ideologue, who
at a conference a few days ago said publicly it is not
impossible that Brazil might someday leave the Nuclear
Non-proliferation Treaty. Carvalho was openly dismissive of
Guimaraes' remarks and reiterated that the GOB is focused on
working with us.

Venezuela


4. (C) Ambassador noted Lula's travel to Venezuela on 14
November, and reviewed Chavez's irresponsible rhetoric, his
arms acquisitions, and other provocations. Ambassador

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stressed that the USG sees Brazil as a crucial counterbalance
in the region to Chavez's unpredictable and troubling
behavior. Carvalho said the GOB also has "difficult"
relations with Chavez and Bolivia's Evo Morales, but has
attempted to maintain a balanced approach in which Brazil can
ameliorate their behaviors through dialogue. Ambassador
reiterated that the USG hopes more engagement by Brazil will
serve to counterbalance Chavez' pernicious influence.

Inauguration


5. (C) Carvalho confided that planning for Lula's January
inaugural remains fluid, but that it appears Lula will have
to take office on 1 January, because of constitutional
issues. Hence the GOB is considering a low-key event, with
foreign governments represented by their ambassadors instead
of international delegations. He undertook to keep
Ambassador posted on the developing planning.



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