UNDER SECRETARY BURNS' SPEECH IN SAO PAULO, FEBRUARY 6,

UNCLAS SECTION 01 OF 02 SAO PAULO 000167 SIPDIS SIPDIS STATE FOR WHA/FO, WHA/BSC, WHA/EPSC, WHA/PDA STATE ALSO FOR P, S/P, E, PA, IIP, ECA STATE PASS USTR FOR CRONIN STATE PASS EXIMBANK STATE PASS OPIC FOR DMORONESE, NRIVERA, CVERVENNE NSC FOR FEARS TREASURY FOR OASIA, DAS LEE AND JHOEK USDOC FOR 4332/ITA/MAC/WH/OLAC USDOC FOR 3134/ITA/USCS/OIO/WH/RD SOUTHCOM ALSO FOR POLAD USAID FOR LAC/AA E.O. 12958: N/A TAGS: OPRC OEXP KPAO PREL PGOV SCUL BR SUBJECT: UNDER SECRETARY BURNS' SPEECH IN SAO PAULO, FEBRUARY 6, 2007; MEDIA ACTIVITIES AND MEDIA REACTION REF: 06 SAO PAULO 1083 -------------- SUMMARY -------------- ¶1. (U) Summary: In a speech at the new American Studies Center at the Armando Alvares Penteado Foundation (FAAP) in Sao Paulo February 6, Under Secretary for Political Affairs R. Nicholas Burns highlighted common challenges and opportunities that Brazil and the U.S. face and called for strengthening our bilateral relations and common engagement in the hemisphere. Questions from the respectful and largely academic audience touched on bilateral cooperation on biofuels (including the U.S. ethanol tariff),the environment, and regional issues. On the margins of the FAAP event, U/S Burns also gave several media interviews that, as the speech itself, garnered ample and positive coverage. -------------- SPEECH AT FAAP -------------- ¶2. (U) Under Secretary Burns delivered a speech at the Armando Alvares Penteado Foundation (FAAP),a private university in Sao Paulo which is in the process of establishing an American Studies Program (reftel). The speech, sponsored jointly by FAAP, ConGen Sao Paulo, AmCham, and the Sao Paulo State Federation of Industries (FIESP),was attended by approximately 250 guests, including students and faculty, and broadcast to FAAP campuses in Sao Jose dos Campos and Ribeirao Preto. U/S Burns cited similarities between Brazil and the United States and the common challenges faced by the two countries in fighting organized crime and drug trafficking and other areas as well. He called for strengthening bilateral relations and for partnering to promote investment in research and development on biofuels. U/S Burns also discussed the "celebration of democracy" represented by the 13 elections held in the Western Hemisphere in 2006, and said the U.S was prepared to work with all democratically elected governments, including leftist governments. The text of U/S Burns's remarks can be found on the Department website at http://www.state.gov/p/us/rm as well as Embassy Brasilia's website at www.embaixadaamericana.org.br. ¶3. (U) Questions focused on bilateral cooperation on energy and environment, and on the prospects for the U.S. to open its market to ethanol imports. U/S Burns praised Brazil's leadership in ethanol production and flex-fuel engine automobiles. He noted that Congress imposed the 54-cent per gallon surcharge/tariff on imported ethanol and was not likely to remove it in the near future. The answer, he said, was to expand the global ethanol market. One participant cited polls showing that Latin Americans are dissatisfied with democracy because the economies of the region have neither grown adequately over the past twenty years nor ended severe economic inequality, and that there is growing anti-American sentiment in the region. U/S Burns agreed on the importance of economic growth and strengthening democracy, and acknowledged that sometimes U.S. policies and attitudes rub people the wrong way and contribute to anti-Americanism. A/S Shannon described USG engagement in the OAS to address democracy, development, poverty, inequality, and social exclusion. -------------- MEDIA COVERAGE -------------- SAO PAULO 00000167 002 OF 002 ¶5. (U) Under Secretary Burns participated in several media events, including an exclusive interview with TV Globo and an on-the-record media roundtable that included top editors and correspondents from 11 leading Brazilian and international print media such as AP, the Washington Post, Reuters and AFP. His speech at FAAP was also open to the press and received ample coverage. U/S Burns' remarks were the leading story on the front page of largest-circulation Brazilian daily "Folha de Sao Paulo," which titled its story, "The United States Wants a Strategic Partnership on Ethanol." "O Estado de Sao Paulo," business dailies Valor Economico and Gazeta Mercantil, and the wire services AP and AFP also featured Burns' remarks on biofuels and Venezuela. The TV Globo interview aired on the nationally broadcast late night news, Jornal do Brasil. The media also reported on his comments on USG views on Venezuela and Hugo Chavez. Radio Jovem Pan and the internet news portal Terra interviewed A/S Shannon; his comments on Venezuela were widely reported by the media. ¶6. (U) This cable was coordinated with Embassy Brasilia and cleared by U/S Burns's delegation and Ambassador Sobel. MCMULLEN