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RUEKJCS/SECDEF WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUMIAAA/USCINCSO MIAMI FL PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 BRASILIA 002412 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 05/25/2016 
TAGS: PREL BR
SUBJECT: BRAZIL: AMBASSADOR'S SECOND MEETING WITH 
PRESIDENTIAL CHIEF OF STAFF 
 
Classified By: ACTING DEPUTY CHIEF OF MISSION DENNIS HEARNE. REASONS: 1 .4 (B)(D). 

¶1. (C) Summary. Ambassador and A/DCM met on 13 November with Gilberto Carvalho, President Lula da Silva's chief of personal staff. It was their second substantive meeting in the space of a week, and the hour-long discussion focused primarily on a agenda topics and modalities for a possible visit by Lula to the United States for a meeting with President Bush (at his invitation), bilateral relations and Venezuela. Carvalho also indicated plans are not yet finalized for Lula's re-inauguration on 1 January 2007, but that thought is being given to a small-scale event, with foreign governments represented by ambassadors, not international delegates. End summary. Presidential Meeting 

¶2. (C) Carvalho said Lula is eager for the meeting with President Bush, and would welcome an informal, non-Washington venue befitting the warm relationship between the presidents. Carvalho and Ambassador then discussed possible agenda items for a Lula-Bush meeting. Focus points could be: 

(1) bio-fuels; (2) debt relief in developing countries (IDB President Moreno mentioned this to Ambassador recently and it is an area of interest for Lula; (2) Brazil-US security/intelligence exchange; 

(3) Cuba - U.S.-Brazil cooperation to facilitate a post-Fidel "soft landing;" 

(4) trade - moving toward a practical/effective dialogue in Lula's second term; 

(4) climate. Ambassador and Carvalho agreed that these would be preliminary ideas, and that the agenda could be adjusted and developed. Carvalho seemed enthused about the agenda items and indicated he would share them with Lula at once, giving us feedback asap. 

Bilateral Relations 

¶3. (C) Carvalho again made it clear he wants to serve as a direct channel for the Ambassador to Lula, and indicated he would facilitate face-to-face meetings when there is a need. Carvalho did ask the Ambassador to assure he also remains attentive to his formal relationship with the foreign ministry (MRE), "which can be jealous of its equities." Ambassador assured Carvalho of his sensitivity on this point, and explained he would be flying to Rio later in the week especially to meet with Foreign Minister Amorim for further discussion of the presidents' meeting plans (septel to follow). Carvalho also underscored again that the second Lula mandate will see a closer approximation to the U.S., including on the trade front. Carvalho -- who has been Lula's confidante and advisor for more than 30 years -- explained that Lula's first term had been a balancing act between maintaining credibility with the conservative market and keeping the far left of Lula's base content by assuring them Lula, as president, was not surrendering their traditional banners. In the second term, Lula is better positioned to take issues on pragmatically, including trade, Carvalho said. Ambassador noted Lula may be practical but there remain people in the GOB who seem ideologically driven, and who make statements that can confuse Washington about Brazil's policy direction. Ambassador did not name names, but his comments clearly were directed at MRE Secretary General Pinheiro Guimaraes, a famous anti-U.S. ideologue, who at a conference a few days ago said publicly it is not impossible that Brazil might someday leave the Nuclear Non-proliferation Treaty. Carvalho was openly dismissive of Guimaraes' remarks and reiterated that the GOB is focused on working with us. Venezuela 

¶4. (C) Ambassador noted Lula's travel to Venezuela on 14 November, and reviewed Chavez's irresponsible rhetoric, his arms acquisitions, and other provocations. Ambassador 

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stressed that the USG sees Brazil as a crucial counterbalance in the region to Chavez's unpredictable and troubling behavior. Carvalho said the GOB also has "difficult" relations with Chavez and Bolivia's Evo Morales, but has attempted to maintain a balanced approach in which Brazil can ameliorate their behaviors through dialogue. Ambassador reiterated that the USG hopes more engagement by Brazil will serve to counterbalance Chavez' pernicious influence. Inauguration 

¶5. (C) Carvalho confided that planning for Lula's January inaugural remains fluid, but that it appears Lula will have to take office on 1 January, because of constitutional issues. Hence the GOB is considering a low-key event, with foreign governments represented by their ambassadors instead of international delegations. He undertook to keep Ambassador posted on the developing planning. 

Sobel