Identifier
Created
Classification
Origin
06SAOPAULO316
2006-03-22 17:36:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Sao Paulo
Cable title:  

GERALDO ALCKMIN: TWO ADVISORS TALK ABOUT HOW HE BEAT SERRA,

Tags:  PGOV PREL PINR ECON ETRD BR 
pdf how-to read a cable
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OO RUEHRG
DE RUEHSO #0316/01 0811736
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TO RUEHC/SECSTATE WASHDC IMMEDIATE 4740
INFO RUEHBR/AMEMBASSY BRASILIA 5893
RUEHBU/AMEMBASSY BUENOS AIRES 2113
RUEHAC/AMEMBASSY ASUNCION 2461
RUEHCV/AMEMBASSY CARACAS 0219
RUEHMN/AMEMBASSY MONTEVIDEO 1876
RUEHLP/AMEMBASSY LA PAZ 2663
RUEHSG/AMEMBASSY SANTIAGO 1623
RUEHRI/AMCONSUL RIO DE JANEIRO 6927
RUEHRG/AMCONSUL RECIFE 2789
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RHMFISS/CDR USSOUTHCOM MIAMI FL
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UNCLAS SECTION 01 OF 05 SAO PAULO 000316 

SIPDIS

SENSITIVE
SIPDIS

NSC FOR CRONIN
STATE PASS USTR FOR SULLIVAN/LEZNY
DEPT OF TREASURY FOR FPARODI
USDOC FOR 332/ITA/MAC/WH/OLAC/JANDERSEN/ADRISCOLL/MWARD
USDOC ALSO FOR 3134/USFCS/OIO/EOLSON/DDEVITO/DANDERSON
STATE PASS EXIMBANK
STATE PASS OPIC FOR DMORONESE, NRIVERA, CMERVENNE
DOL FOR ILAB MMITTELHAUSER

E.O. 12958: N/A
TAGS: PGOV PREL PINR ECON ETRD BR
SUBJECT: GERALDO ALCKMIN: TWO ADVISORS TALK ABOUT HOW HE BEAT SERRA,
HOW HE WILL CAMPAIGN AGAINST LULA

REF: (A) SAO PAULO 278; (B) SAO PAULO 206; (C) SAO PAULO 73

SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY.

-------
SUMMARY
-------

UNCLAS SECTION 01 OF 05 SAO PAULO 000316

SIPDIS

SENSITIVE
SIPDIS

NSC FOR CRONIN
STATE PASS USTR FOR SULLIVAN/LEZNY
DEPT OF TREASURY FOR FPARODI
USDOC FOR 332/ITA/MAC/WH/OLAC/JANDERSEN/ADRISCOLL/MWARD
USDOC ALSO FOR 3134/USFCS/OIO/EOLSON/DDEVITO/DANDERSON
STATE PASS EXIMBANK
STATE PASS OPIC FOR DMORONESE, NRIVERA, CMERVENNE
DOL FOR ILAB MMITTELHAUSER

E.O. 12958: N/A
TAGS: PGOV PREL PINR ECON ETRD BR
SUBJECT: GERALDO ALCKMIN: TWO ADVISORS TALK ABOUT HOW HE BEAT SERRA,
HOW HE WILL CAMPAIGN AGAINST LULA

REF: (A) SAO PAULO 278; (B) SAO PAULO 206; (C) SAO PAULO 73

SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY.

--------------
SUMMARY
--------------


1. (SBU) The March 14 announcement by the leadership of the
opposition Brazilian Social Democracy Party (PSDB) of the nomination
of Sao Paulo Governor Geraldo Alckmin for President (ref A)
represented the culmination of a two-month blitzkrieg by Alckmin's
forces that apparently took party chieftains and supporters of Sao
Paulo Mayor Jose Serra by surprise. Everyone, it seems, knew
Alckmin was an able politician and administrator, but few imagined
he had the tenacity to prevail in the face of tepid poll numbers, a
better-known opponent, and the perceived opposition of the party
leadership's, especially former president Fernando Henrique Cardoso
(FHC). Post spoke with two of Alckmin's intimates about how Alckmin
won the battle for the nomination and what his strategy is for
defeating President Lula da Silva in the October election. People
who know him emphasize that Alckmin is a highly disciplined and
focused individual who values competence, pragmatism, and
efficiency. Beneath the bland exterior there is fiery
determination. If Serra and his supporters underestimated him, Lula
and his Workers' Party (PT) are not likely to make the same mistake.
End Summary.

--------------
THE CAMPAIGN MANAGER
--------------


2. (SBU) CG and Poloffs met March 20 with Joao Carlos de Souza
Meirelles, Sao Paulo State Secretary for Science, Technology, and
Economic Development. Meirelles, who served 1998-2002 as state
Secretary of Agriculture under both the late Governor Mario Covas

SIPDIS
and his successor Alckmin, managed Alckmin's 2002 re-election

campaign for Governor and is now planning to leave his job to devote
his full attention to the presidential campaign. He noted that
until March 31, the day of his resignation, Alckmin will remain
focused on state government, getting projects and initiatives ready
to turn over to his successor, Lieutenant Governor Claudio Governor
of the Liberal Front Party (PFL). On Sunday, Alckmin inaugurated
another phase of the sanitation/flood control project for the Tiete
River, which runs through the city of Sao Paulo and is prone to
flooding during heavy rains; on Monday, he cut the ribbon at the
restoration of the historic Luz train station and opening of the
Museum of the Portuguese Language in downtown Sao Paulo. On March
31 he plans to inaugurate work on a new subway line on Avenida
Paulista in the business district.

--------------
ALLIANCES
--------------


3. (SBU) April and May, Meirelles continued, will be devoted to
developing terms of reference for large national themes. Each theme
will have a working group. Advisors will also identify the specific
problems of each state as well as regional problems. Then there is
much work to be done on alliances. The priority is to talk to Rio
de Janeiro Mayor Cesar Maia, who has declared himself a
pre-candidate for President for the PFL, but who Meirelles thinks is
not really interested in running. According to press reports,
Alckmin hopes to persuade him to run instead for Governor of Rio de
Janeiro state. The PFL was allied electorally with the PSDB in
FHC's successful runs in 1994 and 1998, and the two parties are
allied in a number of states, including Sao Paulo. Meirelles said

SAO PAULO 00000316 002 OF 005


the PSDB and PFL need to find a common denominator that will enable
them not only to campaign together successfully, but to govern
together; in his view, a great weakness of the Lula government has
been its inability to hold its electoral coalition together to pass
legislation. Another possible ally is the Popular Socialist Party
(PPS); its president, Roberto Freire, is planning to run for
President, but not with any hope of winning, only to help some of
the party's candidates for Federal Deputy.

--------------
THE NORTHEAST
--------------


4. (SBU) CG asked how Alckmin would do against Lula in the
all-important northeastern region. Meirelles rejoined that Lula was
strong in the northeast - though the PT was not - because he was
born there and because he gave people money (i.e., government
handouts),but he didn't create jobs. There are people in their
seventh year of receiving payments from the "Bolsa Familia" program,
which was created by FHC but expanded by Lula. Bolsa Familia should
be a "port of entry" for the poor to a better life, not a dead-end
welfare program. The region needs massive investment in
infrastructure and human capital, and financial investment as well,
which Lula has not provided. Although Alckmin is not well known in
the northeast, Meirelles said, the PSDB has a presence there. Its
president, Senator Tasso Jereissati, is from Ceara, and the state's
Governor, Lucio Alcantara, is PSDB. The party also has a number of
federal and state deputies in that state. In Paraiba, there is
Governor Cassio Cunha Lima, a strong "alckmista." The PSDB is weak
in Pernambuco, Meirelles acknowledged, but it has an alliance with
Governor Jarbas Vasconcelos of the Brazilian Democratic Movement
Party (PMDB).


5. (SBU) Asked about the PMDB's likely impact on the campaign,
Meirelles opined that if Rio de Janeiro former Governor Anthony
Garotinho runs, he will take votes away from Lula because of his
populist positions. If not, and if Lula does not choose a running
mate from the PMDB, the party will ally with the PSDB in some
states, though probably not in Sao Paulo. (NOTE: The PMDB allied
with the PSDB in the 2002 presidential election but eventually
joined President Lula's governing coalition. The party remains
deeply divided between pro- and anti-Lula factions, and will not
decide until its convention in June whether or not to run a
candidate for President. Garotinho just won the party's "informal"
primary. In Sao Paulo state, there has been some speculation that
PMDB former Governor Orestes Quercia may prefer to run for a Senate
seat rather than for Governor, and that the PSDB may support him in
return for PMDB support in other races, but this possibility remains
hypothetical at this stage. END NOTE.)

--------------
FOREIGN POLICY AND TRADE
--------------


6. (SBU) CG asked about Alckmin's policy with respect to bilateral
relations with the United States and his approach to FTAA and
Mercosul. Meirelles said an Alckmin administration would want to
sit down and have a very special, specific dialogue with the United
States to develop, step-by-step, over the long-term, a pragmatic
bilateral partnership without undermining either FTAA or Mercosul.
Right now, everyone in the region wants to negotiate a bilateral
trade agreement with the United States, ignoring their neighbors,
hurting regional integration, he opined. Mercosul was
dysfunctional, as demonstrated by Argentina's problems with beef.
South America needs economic development and growth. Relations with
the EU "have been badly conducted by all of us." Brazil would also
like to have a better quality of discussions with the United States

SAO PAULO 00000316 003 OF 005


in the WTO. There are certain gestures the U.S. could make to
facilitate such discussions, but "the U.S. wants gestures from us
too." "The planet called China" is now everyone's central focus;
Brazil and the U.S. could work together on that as well, and on
helping Africa. Meirelles clearly envisioned a closer and more
collaborative bilateral relationship.

--------------
THE INSIDER
--------------


7. (SBU) Poloff and Pol Assistant met March 21 with State Deputy
Edson Aparecido dos Santos, an Alckmin insider who coordinated the
campaign for the nomination. Aparecido, who is the government's
leader in the state legislature, said he was planning to run for
Federal Deputy in this year's election. Obviously in high spirits,
he characterized Alckmin's nomination as a "great victory." Asked
how it came about, he said that he, along with Meirelles, Federal
Deputy Silvio Torres, and State Housing Secretary Emanuel Fernandes
had lobbied for Alckmin first among PSDB State and Federal Deputies,
and then among Governors and state party chairmen, gradually
building a strong base of support. They had pitched Alckmin as the
"natural" candidate, the political heir of party founder Mario
Covas, with six years as Covas's Lieutenant Governor and six years
as Governor with an impressive 69 percent job approval rating, low
negatives, and a solid record as an administrator. Lula's poor
showing in the polls in late 2005 had helped, showing he was
vulnerable. Ultimately, the party's leadership had no choice. From
Aparecido's perspective, their choice of Alckmin reflected the
electorate's clear call for something new: a Lula-Alckmin race was
the way of the future, whereas a Lula-Serra race - a repeat of 2002
- would have been like looking through the rear-view mirror. A
Lula-Serra race would have been bloody as well - extremely negative
all around - but the Lula-Alckmin race would not be, he thought.
After the nomination was announced, Lula was quick to praise Alckmin
and state that he should not be underestimated.


8. (SBU) A PSDB alliance with the PFL is already pretty much a done
deal, Aparecido said. Alckmin is going to persuade Cesar Maia to
run for Governor of Rio de Janeiro instead of for President. As an
added bonus, Maia's Vice Mayor, who would succeed him, is from the
PSDB. This would make a fair trade, if, as widely rumored, Jose
Serra resigns as Mayor to run for Governor of Sao Paulo, leaving the
Mayorship to PFL Vice-Mayor Gilberto Kassab. (NOTE: A "Datafolha"
poll published March 20 suggested Serra could win the Governor's
race in the first round, handily defeating possible PMDB candidate
Orestes Quercia and either PT candidate, Senator Aloisio Mercadante
or former Sao Paulo Mayor Marta Suplicy. If he doesn't run, neither
of the other likely PSDB candidates, City Councilman Jose Anibal and
former Education Minister Paulo Renato, appears likely to break out
of single digits. According to press reports, Alckmin wants to have
strong gubernatorial allies in the three key states of Sao Paulo,
Rio de Janeiro, and Minas Gerais, where Aecio Neves looks like a
shoo-in for re-election. END NOTE.) The PSDB, he went on, has also
had good conversations with the PPS, and an alliance is likely.
There have been preliminary conversations as well with the Green
Party (PV) and the Democratic Labor Party (PDT).

--------------
HOW TO TAKE ON LULA
--------------


9. (SBU) Political scandal, Aparecido said, had destroyed the
leadership of Lula's party, ousted his "Prime Minister," Jose
Dirceu, and was now damaging his Finance Minister, Antonio Palocci.
The only reason Lula himself had not been more badly damaged was
that, because of the scope of the "mensalao" (bribery scheme),

SAO PAULO 00000316 004 OF 005


Congress had lacked the moral authority to pursue impeachment, and
he had had time to recover. But Lula was not a political operator
or leader, but rather a symbol. Alckmin was not going to attack
that symbol, though inevitably he would raise the corruption issue.
Lula had lost the middle-class vote because of the scandal.
Aparecido was confident that voters would discover for themselves
how little Lula had done for the country by "playing Robin Hood in
reverse," funneling taxpayers' money to the already wealthy. He was
also scathing about Lula's social programs. "There was a program,
begun under Fernando Henrique, called 'Bolsa Escola.' Poor families
could receive stipends from the state, so long as the parents sent
their children to school and met other conditions. When Lula and
the PT came to power, they renamed the program 'Bolsa Familia' and
removed the conditions and requirements so more families could
qualify and they could get more political credit for it." Alckmin,
he said, was going to put to the voters a program showing how, in
his first weeks in office in January 2007, he would propose
legislation for labor reform, tax and budget reform, social security
reform, and political reform. With the right alliances, he could
pass them.


10. (SBU) Tasso Jereissati will be the campaign's national
coordinator, Aparecido said, and Joao Carlos Meirelles will prepare
the government program, as he did in the 2002 gubernatorial
campaign. Other leadership positions have not yet been determined.
Aparecido himself will help out in Sao Paulo to the extent possible
consistent with running his own campaign for Congress. The foreign
policy platform will be developed by FHC's old team, including
former Ambassador to the U.S. Rubens Barbosa, former Foreign
Minister Celso Lafer, and former Ambassador to France Sergio Amaral,
though they won't necessarily get their old jobs back. On the
economic side, Alckmin has been listening to proponents of all
schools of economic thought (e.g., government interventionist,
monetarist, developmentalist),but it is not yet clear who will
become the campaign's leading influences on economic issues.


11. (SBU) The internal competition for the nomination, Aparecido
concluded, had been good for the PSDB, and especially good for
Geraldo Alckmin, who had emerged much stronger. It had demonstrated
that a small coterie of party bosses could no longer work their will
absent solid support from the party's base. "Even Fernando Henrique
can't do it. The only one who could do it was Mario Covas. If a
situation like this ever arises again, we'll have a much more
inclusive, democratic process."

--------------
COMMENT
--------------


12. (SBU) The words used most often by both Meirelles and Aparecido
to describe Alckmin are "disciplined" and "focused." When the
Governor himself talks about government, he uses words like
"efficiency" and "competence." Much of the mainstream press is
already characterizing him as "the anti-Lula," and one leading daily
depicted the campaign as what happens "When the King of Talk Meets
the Notebook Man." We can attest to the fact that Alckmin is very
reserved in person; unlike many politicians, he is much more a
listener than a talker. He is also very much a policy wonk, having
been in government since the age of 19, when he was elected to the
City Council of his home town of Pindamonhangaba in the interior of
Sao Paulo state. To some, this makes him come across as boring:
some time ago, one clever political commentator gave him the
humorous, albeit virtually untranslatable, sobriquet of "picole de
chuchu" (bland green vegetable on a stick),and it has stuck, much
to cartoonists' delight. But mere blandness and industriousness
would not have defeated Serra; it is now evident that Alckmin also
has fire in his belly. As one Lula advisor reportedly commented,

SAO PAULO 00000316 005 OF 005


"he's a picole de chuchu with a peppery taste." (NOTE: A "picole"
is a popsicle. A "chuchu" is a chayote, also known as a vegetable
pear or a mango squash. END NOTE.) It looks like Lula will have
his hands full with him. End Comment.


13. (U) This cable was coordinated/cleared with Embassy Brasilia.

MCMULLEN