VZCZCXYZ0002
OO RUEHWEB

DE RUEHSO #0804 2071209
ZNR UUUUU ZZH
O 261209Z JUL 06
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5466
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 6542
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 7309
RUCPDOC/USDOC WASHDC 2518

UNCLAS SAO PAULO 000804 
 
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: MIDDLE EAST: LEBANON; GLOBAL ECONOMY: 
SUSPENSION OF THE DOHA ROUND TALKS; WESTERN HEMISPHERE: CHAVEZ'S 
REGIONAL AND INTERNATIONAL INFLUENCE; SAO PAULO 
 
 
¶1. "Lebanon's Drama" 
 
Center-right O Estado de S. Paulo (7/26) editorialized: "Israel will 
maintain a buffer zone in the South of Lebanon to prohibit the area 
to Hezbollah until international troops can replace its army. This 
is the only feasible solution for the conflict. Secretary of State 
Condoleezza Rice is working for that purpose but without any hurry, 
because the US wants to give time for Israel to cause as much damage 
as possible to Hezbollah.... In Rome, Hezbollah wants to impose so 
many preconditions that it will hardly agree with the terms of a 
peace agreement.  Therefore, if international troops are assigned to 
the South of Lebanon, they must be prepared for an extremely 
difficult mission." 
 
¶2. "The Dangerous Post-Doha World" 
 
An editorial in center-right O Estado de S. Paulo remarked (7/26): 
"The fiasco in the Doha Round negotiations may cost very dearly, 
according to predictions of analysts and negotiators around the 
world.... Without the prospect of a new stage of trade liberation, 
the conditions for more protectionism, more conflicts and more 
confusion in global markets are created, and this will cause losses 
to everyone, but especially to developing nations.... Both Europe 
and the US maintain a powerful arsenal of fiscal and financial 
subsidies linked to effective defensive systems protecting all types 
of products.... The multilateral trade system is at stake.  The 
multiplication of bilateral, regional and inter-regional agreements 
will probably make it even weaker and complicate trade rules.... 
Surrounded by nations that decided to negotiate with the US, 
Mercosul has not signed any agreement with more developed partners. 
Now it will have to take into consideration in every negotiation the 
political interests of the Venezuelan government.  Caught in that 
trap, Brazil is one of the emerging economies least prepared to 
achieve advantageous trade partnerships.  The Doha Round fiasco is 
one of the greatest failures of the current Brazilian 
administration." 
 
¶3. "Rich Nations Oppose Free Trade in Doha" 
 
Business-oriented Valor Economico commented (7/26): "Only a miracle 
would have prevented the Doha Round's failure, but miracles rarely 
occur.... Without the prospect of a general agreement on trade 
liberalization, the trends paralleling Doha will return to the 
scenario perhaps with more intensity - the proliferation of 
bilateral and regional agreements and conflicts between the WTO 
members. The developed nations, which hail free trade as the 
solution for all problems, were the main ones responsible for the 
WTO's shipwreck. For almost five years of negotiations, the emphasis 
alternated between the EU's intransigence to open its markets and 
cut its tariffs, and the US's tough resistance in reducing its 
generous domestic subsidies.... The priority given by the Brazilian 
diplomacy to the Doha Round negotiations was absolutely right. 
Higher and wider trade gains could result from a joint removal of 
hurdles hampering free trade. And if such a policy is defeated, it 
is not only Brazil that will lose, but the world." 
 
¶4. "Visit Pushes Dispute Between Bush And Chvez" 
 
Political commentator Newton Carlos opined in liberal, largest 
national circulation daily Folha de S. Paulo (7/26): "The dispute 
between the Bush administration and Hugo Chvez has gained another 
emphasis with the Venezuelan president's tour looking for support to 
choose Caracas a rotating member of the UN Security Council. 
Preventing that from happening has become a high priority of the 
US's Latin American policy.... The State Department is fully engaged 
in the task of preventing Chvez from obtaining the necessary votes, 
including with Condoleezza Rice's direct interference.... Washington 
believes that Venezuela's opposition to sanctions against Iran might 
become another factor of tensions in addition to Caracas' 'divisive 
and irresponsible behavior.'" 
McMullen