Identifier
Created
Classification
Origin
06LISBON2002
2006-09-15 16:03:00
CONFIDENTIAL
Embassy Lisbon
Cable title:  

SOCRATES' BRAZIL TRIP WINS FRIENDS, INFLUENCES NO

Tags:  ETRD PREL SMIG PO 
pdf how-to read a cable
VZCZCXYZ0029
RR RUEHWEB

DE RUEHLI #2002/01 2581603
ZNY CCCCC ZZH
R 151603Z SEP 06
FM AMEMBASSY LISBON
TO RUEHC/SECSTATE WASHDC 5157
INFO RUCNMEM/EU MEMBER STATES
RUEHBR/AMEMBASSY BRASILIA 0311
RUEHCV/AMEMBASSY CARACAS 0055
RUEHLP/AMEMBASSY LA PAZ SEP BUENOS AIRES 0023
RUEHSG/AMEMBASSY SANTIAGO 0099
RUEHMN/AMEMBASSY MONTEVIDEO 0032
RUEHAC/AMEMBASSY ASUNCION 0017
C O N F I D E N T I A L LISBON 002002 

SIPDIS

SIPDIS

E.O. 12958: DECL: 09/15/2016
TAGS: ETRD PREL SMIG PO
SUBJECT: SOCRATES' BRAZIL TRIP WINS FRIENDS, INFLUENCES NO
ONE

REF: LISBON 1921

Classified By: Dana M. Brown, Pol/Econ Officer, Embassy Lisbon
Reason 1.4 (b) and (d)

C O N F I D E N T I A L LISBON 002002

SIPDIS

SIPDIS

E.O. 12958: DECL: 09/15/2016
TAGS: ETRD PREL SMIG PO
SUBJECT: SOCRATES' BRAZIL TRIP WINS FRIENDS, INFLUENCES NO
ONE

REF: LISBON 1921

Classified By: Dana M. Brown, Pol/Econ Officer, Embassy Lisbon
Reason 1.4 (b) and (d)


1. (U) Summary: Portuguese Prime Minister Jose Socrates
visited Brasilia, Sao Paolo and Rio from August 9 to 11 on
his first official visit to Brazil. The trip received wide
press coverage and aimed to establish closer economic links
to Brazil as well as generate additional Brazilian investment
in Portugal. Although business was the main focus of the
visit, Socrates also discussed regional security concerns
with Brazilian President Lula da Silva including Brazil's
relationship with Bolivia and Venezuela. The three day trip
was amicable but did not receive any public response from
Brazilian business. End summary.

--------------
Improving the Portugal-Brazil Relationship
--------------


2. (U) PM Socrates visited Brazil on a three-city round in
early August and Diplomatic Advisor to the Prime Minister's
Office Jose Federico Ludovice subsequently offered us a
readout and the GOP's impressions of the trip. Prime
Minister Socrates began his visit by meeting with Brazilian
government officials in Brasilia on August 9. Ludovice said
Portugal is enjoying warm relations with the GOB especially
since illegal Brazilian migration, a problem which clouded
Lula's 2005 visit, had been addressed. (Note: On August 9,
the Portuguese Council of Ministers released a new migration
provision to streamline residency requirements, toughen
measures against smuggling and trafficking, and address the
significant illegal population in Portugal, most notably from
Brazil. End note.) Ludovice also remarked that the GOP
hoped to work with Brazil to enhance EU-Mercosul relations
and discussed strategies to achieve trade barrier reduction
between the markets.


3. (C) While in Brasilia, Socrates raised Latin America
regional security concerns with Lula, specifically Brazil's
efforts to engage Bolivia and Venezuela. In a subsequent
meeting with Ambassador Hoffman in Lisbon on September 8,
Portuguese Foreign Minister Amado stressed that Portugal
believes Brazil can play a major role in engaging Venezuela.
Amado urged the United States to work closely with Brazil as
a moderating force when dealing with Venezuela. Amado added
that he believes both Lula and Venezuelan President Hugo
Chavez will be reelected. Both Amado and Ludovice commented
that, assuming Lula wins the election this fall, Portugal
plans to work more closely with Brazil in Lula's second term.

-------------- ---
Select Portugal: GOP Pitch to Brazilian Business
-------------- ---


4. (U) On August 10 and 11, in both Sao Paolo and Rio de
Janeiro, GOP officials focused on business groups and trade
federations to encourage trade and business cooperation.
Ludovice reported that the GOP targeted aviation (Embraer)
for the construction of executive jets Phenom 100 and Phenom
300 in Portugal, petrochemicals (Petrobras),and highway
companies (CCR) as the most likely potential investors for
the Portuguese market. He said the Portuguese delegation met
with representatives from the three companies to urge joint
ventures with OGMA, GALP, and Brisa respectively or for
direct investment in Portugal, especially since Portuguese
investment in Brazil far outpaces Brazilian investment in
Portugal.


5. (U) Ludovice outlined the visit's cultural and Portuguese
citizen outreach components. Socrates met with almost 4,000
Portuguese citizens in Rio de Janiero alone and also met the
smaller community of Portuguese citizens in Sao Paolo. The
GOP showcased the Lusophone cultural links with several
literature events including Portuguese authors. At the
conclusion of the visit, Portugal and Brazil signed an
agreement allowing citizens to streamline the process of
receiving retirement benefits.

--------------
Comment: High Hopes, Little Return
--------------


6. (C) The GOP aimed for a tangible commercial payoff on this
trip but achieved only a minor bilateral agreement. Ludovice
concluded that Brazil seemed more focused on its own
neighboring problems and Mercosul partners than on Portugal
or Europe writ large. Portugal plans to use future
encounters such as the Iberian-American Summit in Uruguay and
UNGA to maintain the dialogue with Brazil to attempt to
attract future investment, but Socrates' initial overture
fell flat somewhat, even by Ludovice's own recount. End
comment.
O'Neal