MEDIA REACTION: WESTERN HEMISPHERE: SOUTH AMERICA, BOLIVIA,

UNCLAS SAO PAULO 000484

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: MEDIA REACTION: WESTERN HEMISPHERE: SOUTH AMERICA, BOLIVIA,
URUGUAY, BRAZIL, MERCOSUL, A/S SHANNON; SAO PAULO



1. "Obsolescence of What Is Still Unfinished"

The lead editorial in center-right O Estado de S. Paulo remarked
(5/5): "What should have been dealt with yesterday in Puerto Iguazu
was the premature dismantling of the unfinished projects of [South
American] regional integration. The ruined building under
construction collapsed over current Brazilian foreign policy. Moved
by ample ambitions of personal leadership, President Lula risked
Brazil's political assets in the supremacist adventure called the
South American Community of Nations.... Supported by its delirium of
'exploring South America,' a euphemism for its hegemonic dreams,
Brazilian diplomacy has suffered a series of setbacks.... Mercosul
has begun to dissolve -- Uruguay is on the verge of leaving the
bloc. The Andean Community of Nations will have the same fate with
the announced departure of Venezuela, whose Castroist-Chavist agenda
is focused on the creation of the Bolivarian Alternative for the
Americas over the ruins of the FTAA, which was aborted by the
anti-Americanism of presidents Hugo Chavez and Nestor Kirchner."


2. "Uruguay To Break With Mercosul Ties"

Business-oriented Valor Economico (5/5) editorialized: "Mercosul is
once again threatened with implosion or being reduced to a mere
union of convenience between two rivals: Brazil and Argentina. There
are good reasons for one to believe in Uruguay's firm intention to
look for a trade agreement with the U.S. It is ironic that the first
leftist president in Uruguay's history is the one taking leding the
most serious intention in that direction."


3. "Time To Wake Up"

The lead editorial in liberal Folha de S. Paulo maintained (5/5):
"The regional project aimed at the creation of the South American
Community of Nations, the highlight of the Lula administration's
diplomacy for the continent, is in ruins.... Following the naove
stage of Brazilian 'natural leadership' in South America, Lula now
seems to be overshadowed by President Hugo Chavez.... Chavez divides
the Andean Community and promotes the Great Southern Oil Pipeline.
And Venezuela's role as supporter of Morales' nationalization
measures against Brazilian interests is an issue that must be
clarified.... The most populous and industrialized nation in South
America cannot ignore its regional priorities. Mercosul is in
ruins.... With a pragmatic attitude, Washington is now offering
trade advantages that are disengaging Uruguay and Paraguay from the
bloc.... It is time for Brazil to overcome ideological prejudices
against the FTAA and the agreement with the European Union and speed
up these two projects."


4. "Of Rights And Responses"

Liberal Folha de S. Paulo political columnist Clovis Rossi commented
(5/5): "Following some troglodytes who served as Assistant Secretary
of State for Western Hemispheric affairs, Thomas Shannon seems to
have a good understanding of what is going on in the former (or
still) U.S. backyard. Instead of seeing a 'leftist wave,' Shannon
says that it was the lack of response to the rights of the people
that is responsible for the 'emergence of a new populism, especially
in the Andean zone.' He also noted correctly that contrary to the
populism of the past, the new leaders 'carry with them a certain
level of social resentment, which is worrisome.' What Shannon is
saying is that it was the failure of the so-called neo-liberal
policies or those provided by Washington Consensus that is
responsible for the rise of all heterodox governments elected in
Latin America in recent years.... Therefore, it is not true that the
Latin American people have become communist, Marxist, socialist or
populist overnight. According to Shannon, what was missing was a
'response to the rights of the people.'"
McMullen