BRAZIL: GOB REQUESTS RENEWAL OF 1997 ENERGY COOPERATION

UNCLAS BRASILIA 002241 SIPDIS SENSITIVE SIPDIS STATE PASS TO L/T, OES/SCT, WHA/BSC, EEB/ESC ENERGY PASS TO HQ OFFICE OF AMERICAN AFFAIRS FOR GARY WARD AND COURTNEY GILLESPIE ENERGY PASS TO NATIONAL ENERGY TECHNOLOGY LABORATORY FOR MARIA REIDPATH E.O. 12958: N/A TAGS: ENRG SENV TRGY KSCA BR SUBJECT: BRAZIL: GOB REQUESTS RENEWAL OF 1997 ENERGY COOPERATION IMPLEMENTING ARRANGEMENT ¶1. (U) THIS CABLE IS SENSITIVE BUT UNCLASSIFIED AND NOT FOR INTERNET DISTRIBUTION. ¶2. (SBU) On December 7, 2007, the Brazilian Ministry of Exterior Relations (MRE) Division for Non-Renewable Energy Resources (DREN) contacted the Embassy to request that the USG and the Government of Brazil (GoB) renew the "Implementing Arrangement for Cooperation in the Area of Energy Technology, with Annexes." This Implementing Arrangement was signed on October 14, 1997, and was automatically renewed one-time for an additional five years on October 14, 2002. The Implementing Arrangement did not provide for further additional renewals. The GoB views it as having expired on October 14, 2007. ¶3. (SBU) Earlier, EST Counselor and ECON Officer met on November 1 on this matter with the DREN Division Chief, Counselor Vivian Loss San Martin, and DREN First Secretary Daniel Lins, as well as with Mr. Irineu Capeletti, a Special Advisor in the Ministry of Mines and Energy's Secretariat for Geology, Mining and Mineral Transformation. These GoB officials emphasized that Brazilians are working with the U.S. Energy Department's National Energy Technology Laboratory (NETL) regarding coal technologies and they believed that renewal of the Implementing Arrangement would help this cooperation. Annex I to the Implementing Arrangement specifically relates to coal technology. Thus, the GoB did not see a need to amend or create a new Annex for the coal cooperation they were interested in. ¶4. (SBU) On December 7, NETL International Team officials Scott Smouse and Maria Reidpath described for EST Counselor and ECON Officer the ongoing and possible future cooperation with Brazil in the area of coal technology. NETL has already established two cooperative relationships in Brazil, one with the Catholic University in the State of Rio Grande do Sul and the other with the Brazilian Coal Association. NETL is working on a third arrangement with the national oil company Petrobras. (Comment. It appears the GoB officials believe that renewing the Implementing Arrangement will be beneficial to this cooperation, possibly through increasing the prospects for obtaining government funding and support. End Comment.) ¶5. (SBU) Embassy seeks guidance from Washington on how to respond to the GoB's request to renew the 1997 Implementing Arrangement. If Washington supports renewal, Embassy suggests considering amending the Implementing Arrangement to include an automatic renewal clause every five-years. CHICOLA