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Reference ID	Created	Released	Classification	Origin
06SAOPAULO484	2006-05-05 17:03	2011-08-30 01:44	UNCLASSIFIED	Consulate Sao Paulo

VZCZCXYZ0015
OO RUEHWEB

DE RUEHSO #0484 1251703
ZNR UUUUU ZZH
O 051703Z MAY 06
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5001
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 6143
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 7064
RUCPDOC/USDOC WASHDC 2410

UNCLAS SAO PAULO 000484 
 
SIPDIS 
 
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 ETRD BR
SUBJECT: MEDIA REACTION: WESTERN HEMISPHERE: SOUTH AMERICA, BOLIVIA, 
URUGUAY, BRAZIL, MERCOSUL, A/S SHANNON; SAO PAULO 
 
 
¶1. "Obsolescence of What Is Still Unfinished" 
 
The lead editorial in center-right O Estado de S. Paulo remarked 
(5/5): "What should have been dealt with yesterday in Puerto Iguazu 
was the premature dismantling of the unfinished projects of [South 
American] regional integration. The ruined building under 
construction collapsed over current Brazilian foreign policy.  Moved 
by ample ambitions of personal leadership, President Lula risked 
Brazil's political assets in the supremacist adventure called the 
South American Community of Nations.... Supported by its delirium of 
'exploring South America,' a euphemism for its hegemonic dreams, 
Brazilian diplomacy has suffered a series of setbacks.... Mercosul 
has begun to dissolve -- Uruguay is on the verge of leaving the 
bloc. The Andean Community of Nations will have the same fate with 
the announced departure of Venezuela, whose Castroist-Chavist agenda 
is focused on the creation of the Bolivarian Alternative for the 
Americas over the ruins of the FTAA, which was aborted by the 
anti-Americanism of presidents Hugo Chavez and Nestor Kirchner." 
 
¶2. "Uruguay To Break With Mercosul Ties" 
 
Business-oriented Valor Economico (5/5) editorialized: "Mercosul is 
once again threatened with implosion or being reduced to a mere 
union of convenience between two rivals: Brazil and Argentina. There 
are good reasons for one to believe in Uruguay's firm intention to 
look for a trade agreement with the U.S. It is ironic that the first 
leftist president in Uruguay's history is the one taking leding the 
most serious intention in that direction." 
 
¶3. "Time To Wake Up" 
 
The lead editorial in liberal Folha de S. Paulo maintained (5/5): 
"The regional project aimed at the creation of the South American 
Community of Nations, the highlight of the Lula administration's 
diplomacy for the continent, is in ruins.... Following the naove 
stage of Brazilian 'natural leadership' in South America, Lula now 
seems to be overshadowed by President Hugo Chavez.... Chavez divides 
the Andean Community and promotes the Great Southern Oil Pipeline. 
And Venezuela's role as supporter of Morales' nationalization 
measures against Brazilian interests is an issue that must be 
clarified.... The most populous and industrialized nation in South 
America cannot ignore its regional priorities.  Mercosul is in 
ruins.... With a pragmatic attitude, Washington is now offering 
trade advantages that are disengaging Uruguay and Paraguay from the 
bloc.... It is time for Brazil to overcome ideological prejudices 
against the FTAA and the agreement with the European Union and speed 
up these two projects." 
 
¶4. "Of Rights And Responses" 
 
Liberal Folha de S. Paulo political columnist Clovis Rossi commented 
(5/5): "Following some troglodytes who served as Assistant Secretary 
of State for Western Hemispheric affairs, Thomas Shannon seems to 
have a good understanding of what is going on in the former (or 
still) U.S. backyard. Instead of seeing a 'leftist wave,' Shannon 
says that it was the lack of response to the rights of the people 
that is responsible for the 'emergence of a new populism, especially 
in the Andean zone.'  He also noted correctly that contrary to the 
populism of the past, the new leaders 'carry with them a certain 
level of social resentment, which is worrisome.'  What Shannon is 
saying is that it was the failure of the so-called neo-liberal 
policies or those provided by Washington Consensus that is 
responsible for the rise of all heterodox governments elected in 
Latin America in recent years.... Therefore, it is not true that the 
Latin American people have become communist, Marxist, socialist or 
populist overnight. According to Shannon, what was missing was a 
'response to the rights of the people.'" 
McMullen

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Viewing cable 06SAOPAULO484, MEDIA REACTION: WESTERN HEMISPHERE: SOUTH AMERICA, BOLIVIA,