VZCZCXYZ0017
OO RUEHWEB

DE RUEHSO #0837 2141014
ZNR UUUUU ZZH
O 021014Z AUG 06
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5526
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 6597
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 7317
RUCPDOC/USDOC WASHDC 2523

UNCLAS SAO PAULO 000837 
 
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: ISRAELI BOMBINGS IN QANA; DOHA 
ROUND, USTR SCHWAB IN BRAZIL; SAO PAULO 
 
 
¶1. "The Tragedy Everyone Feared" 
 
The lead editorial in center-right O Estado de S. Paulo (8/1) 
maintained: "A single attack against a building in Qana, where local 
residents were looking for shelter, caused more casualties than all 
the rockets launched against Israel since the beginning of this new 
conflict between Israelis and Arabs. The weapons that killed 60 
Lebanese, among which 37 children, hidden in a cellar, created for 
Israel its third defeat in its attempt to eradicate Hizbollah from 
the South of Lebanon. The first defeat is military.... With its 
guerrilla tactics, Hizbollah has proven to be capable of resisting 
longer than Israeli strategists supposed.... The second defeat is 
political.  Israel has succeeded in uniting around Hizbollah the 
radical Shiite movement and all ethnic and religious factions in 
Lebanon.... Hizbollah has now been hailed in the Islamic world as 
the unquestionable champion of the Palestine cause.... Israel's 
third defeat is naturally moral. Its indifference vis-`-vis the 
Lebanese suffering destroyed the legitimacy that the Jewish state 
had invoked to retaliate Hizbollah in the condition of attacked 
nation. Not even the imperative of self defense justifies what many 
are considering a war crime. But the US image has been - once again 
- harmed even more than that of Israel. Washington's behavior has 
been simply pathetic.... There will be no 'sustainable' ceasefire as 
long as the world's superpower behaves exclusively as an 
unconditional Israeli ally." 
 
¶2. "Three Weeks Of Destruction, Panic And Death In Lebanon" 
 
Business-oriented Valor Economico (8/1) editorialized: "For three 
weeks Israel has spread panic, destruction and death in Lebanon, and 
there is no evidence of a ceasefire in sight.... To reach a 
'sustainable' peace agreement, Secretary of State Condoleezza Rice 
is pursuing through peaceful means what Israel looks for through 
military means. Chances of both initiatives to be successful are 
slight, if not nil.... The image in the Arab world that Israel 
obtained from the US a green light to attack Lebanon has been 
consolidated and, as result of this, the actions of the Shiite 
terrorist group gained a political and popular support it did not 
enjoy in the beginning of the crisis.... The tragedy in Qana, where 
more than 50 civilians died, undermined significantly the chances of 
further negotiations.  There is no chance for peace without an 
immediate ceasefire.... It has become obvious that Bush's goal of 
sweeping by militry means both Hamas and Hizbollah from the 
politcal and military map of the region is a blind alley in which 
defenseless civilian Lebanese are cornered. The Bush administration 
chose the unilateral way of confrontation without previous 
consultations or negotiation.... The US will hardly change its 
strategy now, but an immediate ceasefire is plausible and has become 
urgent due to humanitarian reasons." 
 
¶3. "Risks Of A World Without Doha" 
Center-right O Estado de S. Paulo commented (8/1) "Those who 
believe in the reactivation of the Dha Round do not have time to 
lose.... It will be ecessary to conclude the task before July 2007, 
hen the US President's negotiating mandate expires... If the 
opportunity is lost, no one can predict when the president will 
obtain another congressional authorization, or when the global 
discussion on trade can be resumed. USTR Susan Schwab met in Rio de 
Janeiro with Foreign Minister Celso Amorim and found, as it was 
expected, good will for another attempt.  The GOB has only one 
really important objective in its agenda: the success of global 
negotiations.... Brazil may try to convince India to agree with 
opening its larger market to agricultural imports.... Amorim and 
Schwab reaffirmed in Rio their commitment to work for an ambitious 
agreement." 
 
¶4. "To Gain Markets" 
 
Steel industry tycoon Benjamin Steinbruch remarked in liberal, 
largest national circulation daily Folha de S. Paulo (8/1): "The 
Doha Round negotiations failed exactly because the rich nations, 
especially those of the European Union and the US, resisted the idea 
of drastically reducing their subsidies.... It is deplorable that 
the negotiations have failed. World Bank studies estimate that the 
world economy could gain USD 260 billion annually as a result of 
cuts in subsidies and tariffs.... For Brazil, a global agreement 
would be a good solution, although there were significant risks 
involved. A cut in import tariffs as the Americans and Europeans 
wanted could cause an invasion of industrialized products, 
especially from China." 
McMullen