Media Reaction Sao Paulo February 09 2009

UNCLAS SAO PAULO 000082 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 Sao Paulo February 09 2009 Media Reaction - South and Central Asia: Iran; Global Economy: Financial market crisis; Sao Paulo Monday, February 9, 2009 Title- The Iranian Enigma Editorial in liberal Folha de S.Paulo (2-9) says: "A 'dtente' between the White House and the Ayatollah-lead regime, which accumulates more than 30 years of rupture and hostility, will be an event capable to disarming spirits throughout the so called greater Middle East....The easing of tensions between Iran and U.S. will also help to consolidate a political transition in Iraq, to a Shiite majority like Iran. The normalization of the relationship between Washington and Teheran depends above all on how the two parties tackle the Iranian nuclear program theme....but the realization of an ambitious re-approximation agenda with Iran will have to wait until June, when there will be presidential election in the Persian country." Title- The Serpent's Egg Article in liberal Folha de S.Paulo (2-9) by Senator Aloisio Mercadante (PT) states: "What surprises the most is not the strength and rapidity [of the crisis], but the lack of action from authorities during its elaboration. .....While the U.S. economy was growing and people made a lot of money, many looked the other way from this monumental financial egg that freed the serpent of the crisis that devastated the world when it broke. Nevertheless, there is another serpent egg in sight. It is about protectionism....The only way of facing the current crisis is through swift international cooperation and measures that go beyond old paradigms. And the best way to avoid new disasters is to build a new global order, more regulated, symmetric and firm placed in multilateralism." Title- America for Americans? Op-Ed in O Estado de S. Paulo (2-9) by FGV professor Eliana Cardoso states: "What would be the implications of a change in the global power for South America in the long run? It is possible to think of three scenarios. The first is: more of the same. Neglected by the three major powers (U.S., China and European Union) the continent would remain forgotten as a U.S. backyard. The tradition is so long that seems unchangeable.....There are signs that [President] Barack Obama wants to resuscitate economic nationalism. Even if globalization ends up suffering from that, the second scenario is a variation of the first, in which the difference would be the replacement of the U.S. power by the Chinese....The third scenario, more optimistic, depends on the economic integration of South American countries. United, the continent would have more strength. But.....South American Integration is far from being what one might wish." WHITE