Media Reaction Sao Paulo February 12 2009

UNCLAS SAO PAULO 000093 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 12 2009 Media Reaction: Mideast: Israeli elections; Global Economy: Financial market crisis; protectionism; Sao Paulo Title- Obama and Protectionism Editorial in center-right O Estado de S. Paulo (2-12) says: "....the virus of protectionism has been spreading rapidly all around the world since the aggravation of the financial and economic crisis 6 months ago.... The risk will be lower if President Barack understands the seriousness of the problem and the responsibility of the one that runs the largest economy of the world. If he vetoes the protectionist clause of the fiscal package, he might be criticized internally but no authority outside the U.S. will be able to ignore his message. If he accepts protectionism, he might compromise the possibilities of success in the next G20 meeting scheduled for April in London." Title- How to wrap and sell the fish Op-Ed in Folha de S.Paulo (2-12) by Eliane Cantanhede states: "...Up to now, the GOB's view is that [President Barack Obama's] package, in addition to having reactionary symbolism, has more propaganda [value] than appropriate practical measures...everything stays the same, but with enough dabs of color to let Obama receive occasional glories and keep him on stage, [because that is] what he likes....the important [thing] is not to make and innovate, [the important thing] is to wrap the fish very well and sell it even better." Title- Israel at the Right Editorial in liberal in Folha de S.Paulo (2-12) says: "....Regardless of the [Israeli election] result, the political scenario after the election seems to have been determined before [votes were cast]. It reveals a fragmented Parliament and a political consensus that is hardening itself with its relations with Palestinians. No force chosen to lead the new government will offer a cheerful perspective to the peace agenda." Title- The tough formation of a government to run Israel Editorial in business oriented Valor Economico (2-12) states: "Breaking down the election results indicates that Israel will probably not take on any relevant initiatives towards peace, unless it is forced to do so by external circumstances. [And those] are already taking place with [President] Barack Obama in the White House. Obama received yesterday an encouraging sign from Iran's President Mahmoud Ahmadinejad, who said he was ready for 'a dialogue in a climate of equality and mutual respect.'....The U.S. will try to take the Palestinian Authority out of the isolation in which the myopic Israeli policy placed it and although the U.S. preserves Israel as a strategic ally in the region, it will stop doing everything to please them [Israel]. The effect of pressures for a short run negotiation in Israel is unforeseeable. But it would be better received by Kadima than an alliance of Netanyahu's Likud with Avigdor Lieberman." WHITE