Identifier
Created
Classification
Origin
06SAOPAULO1037
2006-09-27 10:16:00
UNCLASSIFIED
Consulate Sao Paulo
Cable title:  

WESTERN HEMISPHERE: VENEZUELA, CHAVEZ REGIONAL AND

Tags:  KMDR OPRC OIIP ETRD BR 
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VZCZCXYZ0013
OO RUEHWEB

DE RUEHSO #1037 2701016
ZNR UUUUU ZZH
O 271016Z SEP 06
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5818
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 6876
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 7456
RUCPDOC/USDOC WASHDC 2577
UNCLAS SAO PAULO 001037 

SIPDIS

SIPDIS

STATE INR/R/MR; IIP/R/MR; WHA/PD

DEPT PASS USTR

USDOC 4322/MAC/OLAC/JAFEE

E.O. 12958: N/A
TAGS: KMDR OPRC OIIP ETRD BR
SUBJECT: WESTERN HEMISPHERE: VENEZUELA, CHAVEZ REGIONAL AND
INTERNATIONAL INFLUENCE; BRAZIL AND THE SGP; SAO PAULO
UNCLAS SAO PAULO 001037

SIPDIS

SIPDIS

STATE INR/R/MR; IIP/R/MR; WHA/PD

DEPT PASS USTR

USDOC 4322/MAC/OLAC/JAFEE

E.O. 12958: N/A
TAGS: KMDR OPRC OIIP ETRD BR
SUBJECT: WESTERN HEMISPHERE: VENEZUELA, CHAVEZ REGIONAL AND
INTERNATIONAL INFLUENCE; BRAZIL AND THE SGP; SAO PAULO

1. "Oil Threatens Chvez"
Center-right O Estado de S. Paulo (9/25) editorialized: "President
Hugo Chvez does not use the richness provided by its nation's oil

reserves to prepare Venezuela's infrastructure for the day oil will
be over, but to finance a flogging campaign against the US and to
weaken democratic institutions. All this has the purpose of
perpetuating himself in power.... Now the speculation wave seems to
be ending and oil prices are ending up near USD 50 per barrel. If
this is confirmed, Chvez will soon be deprived of money to support
his ideological extravagances and ambition for power. After all,
it's only because he has so far enjoyed large resources resulting
from the daily sale of oil by more than USD 70 per barrel that he
has been able to send to Cuba an annual aid estimated in USD 4
billion in the hope of becoming Fidel Castro's legitimate
successor.... During 40 days in July and August, Chvez visited ten
nations not only to obtain support for Venezuela's claim for a seat
at the UN Security Council, but also to present himself as the
leader of an opposition axis against the US.... Chvez's foreign
policy goal is to create a front of nations that are hostile not
only to the US, but also to capitalist democracies. He wants to
revive the North-South antagonism.... To protect Venezuela from
non-existent threats, he is buying weapons in large quantities - a
fact that may cause an arms race in the region. Domestically, his
goal is to become dictator for life.... As long as oil receipts
permit, such assaults on democracy and regional stability will
continue to be carried out near Brazilian borders. And the Lula
administration, which flirts with Chvez, does not see that the
storm being formed in the Caribbean may affect Brazil."

2. "GSP - Brazil-US Partnership"
The president of the state of Sao Paulo Industrial Federation
(FIESP),Paulo Skaf, wrote in center-right O Estado de S. Paulo
(9/23): "The GSP is one of the economic and commercial pillars of
the partnership between Brazil and the US. Incidentally, it is only
one that remains for us. Removing Brazil from the GSP is,
therefore, to contradict the goal established by Presidents Lula da
Silva and George W. Bush in November 2005 of doubling the bilateral
trade by 2010. To focus on trade expansion and commercial
negotiations is the Brazilian industrial sector's proposal.... There
are in the US Congress two bills to renew the GSP for two more years
to benefit Brazil. FIESP will make every effort to support their
approval."

McMullen