MEDIA REACTION: IRANIAN ELECTION, SCO PAULO JUNE 25, 2009

UNCLAS SAO PAULO 000370 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 XM XR XF BR SUBJECT: MEDIA REACTION: IRANIAN ELECTION, SCO PAULO JUNE 25, 2009 Media Reaction: Iranian post election developments Sao Paulo June 25, 2009 Title- Ayatollah regime goes through its greatest impasse Editorial in business oriented Valor Economico (6-25) states: "....the chance of popular protests [in Iran] prospering and meeting their goals depends on a division among high-ranking officials of the government, in a dispute where religion actually gives room to the temporal power and clerics confront clerics. There are increasing signs that this is happening.....The election fraud created a crisis in the center of the Islamic regime and it will have to accommodate itself with a deal between factions - the more likely outcome - or by bloody repression, whose first signs appeared after the dreadful result at the ballot box." WHITE