Identifier
Created
Classification
Origin
08BRASILIA703
2008-05-20 18:05:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Brasilia
Cable title:
DEMARCHE DELIVERED: PARTICIPATION IN INT'L COMPACT WITH
how-toVZCZCXRO8942 OO RUEHRG DE RUEHBR #0703 1411805 ZNR UUUUU ZZH O 201805Z MAY 08 FM AMEMBASSY BRASILIA TO RUEHC/SECSTATE WASHDC IMMEDIATE 1737 INFO RHEHNSC/NSC WASHDC IMMEDIATE RUEATRS/DEPT OF TREASURY WASHINGTON DC IMMEDIATE RUEHRI/AMCONSUL RIO DE JANEIRO 6180 RUEHSO/AMCONSUL SAO PAULO 2113 RUEHRG/AMCONSUL RECIFE 8064
UNCLAS BRASILIA 000703
STATE FOR NEA/I-KTAECKER
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGSS: EAID, ECON, EFIN, EINV, PGOV, PREL, BR, IZ
SUBJECT: DEMARCHE DELIVERED: PARTICIPATION IN INT'L COMPACT WITH
IRAQ MINISTERIAL
REFS: A. 08 STATE 43799
B. 08 Brasilia 36
UNCLAS BRASILIA 000703
STATE FOR NEA/I-KTAECKER
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGSS: EAID, ECON, EFIN, EINV, PGOV, PREL, BR, IZ
SUBJECT: DEMARCHE DELIVERED: PARTICIPATION IN INT'L COMPACT WITH
IRAQ MINISTERIAL
REFS: A. 08 STATE 43799
B. 08 Brasilia 36
1. (U) Post delivered reftel points to the Brazilian Ministry of
Foreign Affairs Office (MRE) on May 2 and to the Ministry of Finance
on May 8. At MRE, Minister Luis Antonio Balduino Carneiro,
Coordinator-General of the Finance Affairs Office, joined by
representatives of the Middle East and United Nations offices, said
they would consider the issue carefully, but expressed concerns
about legal, bureaucratic, and political complications that would
make a debt relief agreement difficult.
2. (U) Ministry of Finance Deputy of Secretary for International
Affairs Alvaro Vereda was receptive to Brazil attending the reftel
conference, and confirmed Brazil's general commitment to Iraqi
refugees, medical exchange programs and the host of other social
programs outlined in reftel. Conversely, when the discussion
switched to debt relief, the reluctance to commit the GOB was again
apparent (see ref B).
3. (SBU) Vereda confirmed Brazil would like to participate in the
conference, pending receipt of further logistical details. However,
he cautioned that there were still unresolved commercial issues
between Iraq and Brazil that made Brazilian government and private
sector reticent to pursue new commercial opportunities in Iraq.
Prior to the 2004 invasion of Iraq, a Brazilian construction company
led by "Mendes Jr." had acquired public funds from Banco do Brasil
(BB),to facilitate engineering projects in Iraq. Following the
regime change in Iraq, Mendez's local Iraqi subcontractor company
defaulted on payments to Mendez, which in turn defaulted on its BB
loan. This situation continues to be a legal issue for the GOB, as
they seek to resolve the funds in default before exploring
additional Iraqi development partnerships. The Ministry of Finance
has taken a proactive approach to rectify this financial impasse
between the commercial sector and the GOB, with hopes of reaching a
bilateral agreement before the end of 2008.
4. (U) Vereda concluded that he and the GOB looks forward to
receiving more details on the ICI, as they plan to be in attendance.
CHICOLA
STATE FOR NEA/I-KTAECKER
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGSS: EAID, ECON, EFIN, EINV, PGOV, PREL, BR, IZ
SUBJECT: DEMARCHE DELIVERED: PARTICIPATION IN INT'L COMPACT WITH
IRAQ MINISTERIAL
REFS: A. 08 STATE 43799
B. 08 Brasilia 36
1. (U) Post delivered reftel points to the Brazilian Ministry of
Foreign Affairs Office (MRE) on May 2 and to the Ministry of Finance
on May 8. At MRE, Minister Luis Antonio Balduino Carneiro,
Coordinator-General of the Finance Affairs Office, joined by
representatives of the Middle East and United Nations offices, said
they would consider the issue carefully, but expressed concerns
about legal, bureaucratic, and political complications that would
make a debt relief agreement difficult.
2. (U) Ministry of Finance Deputy of Secretary for International
Affairs Alvaro Vereda was receptive to Brazil attending the reftel
conference, and confirmed Brazil's general commitment to Iraqi
refugees, medical exchange programs and the host of other social
programs outlined in reftel. Conversely, when the discussion
switched to debt relief, the reluctance to commit the GOB was again
apparent (see ref B).
3. (SBU) Vereda confirmed Brazil would like to participate in the
conference, pending receipt of further logistical details. However,
he cautioned that there were still unresolved commercial issues
between Iraq and Brazil that made Brazilian government and private
sector reticent to pursue new commercial opportunities in Iraq.
Prior to the 2004 invasion of Iraq, a Brazilian construction company
led by "Mendes Jr." had acquired public funds from Banco do Brasil
(BB),to facilitate engineering projects in Iraq. Following the
regime change in Iraq, Mendez's local Iraqi subcontractor company
defaulted on payments to Mendez, which in turn defaulted on its BB
loan. This situation continues to be a legal issue for the GOB, as
they seek to resolve the funds in default before exploring
additional Iraqi development partnerships. The Ministry of Finance
has taken a proactive approach to rectify this financial impasse
between the commercial sector and the GOB, with hopes of reaching a
bilateral agreement before the end of 2008.
4. (U) Vereda concluded that he and the GOB looks forward to
receiving more details on the ICI, as they plan to be in attendance.
CHICOLA