VZCZCXYZ0003
OO RUEHWEB

DE RUEHSO #1013 2631051
ZNR UUUUU ZZH
O 201051Z SEP 06
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5789
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 6846
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 7444
RUCPDOC/USDOC WASHDC 2573

UNCLAS SAO PAULO 001013 
 
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: EUROPE: POPULAR UNREST IN BUDAPEST; UNITED NATIONS: KOFI 
ANNAN; SAO PAULO 
¶1. "Announced Crisis Reflects Increasing Dissatisfaction With Entry 
in the EU" Leading national circulation daily liberal Folha de S. 
Paulo's Budapest correspondent reports (9/20): "The tape showing the 
 
confirmation that Hungary's Prime Minister Ferenc Gyurcsany lied 
about the budget during four years is just the iceberg tip of 
problems that Hungarian citizens are expected to face from now on. 
With the leak of the tape, what the economic analyst have suspected 
was confirmed: economic figures in Hungary have been manipulated for 
a long time, especially because of EU's pressures so that the nation 
quickly normalize its economy by reducing the public deficit to be 
able to use resources in structural reforms.... The European 
Commission's pressure are expected to increase even more, thereby 
complicating the life of the government as well as of the citizens, 
who will be affected by further tax increases in coming months.... 
Monday's protests reflect not only a current situation of intense 
political instability in Hungary, but mainly the Hungarians' 
dissatisfaction with their nation's role in the EU." 
¶2. "Secretary Tries To Rehabilitate The UN" 
Political columnist Newton Carlos commented (9/10) in leading 
national circulation daily liberal Folha de S. Paulo: "The boldness 
with which UN Secretary General Kofi Annan, who is concluding his 
term, have acted, especially in opposition to the US, predicts 
perhaps more affirmative days for the organization.... The UN was 
knocked out with the invasion of Iraq without the Security Council's 
authorization.  The Bush administration put in practice its 
'preventive attack' doctrine.... With the worsening of the situation 
in Iraq, Annan gradually raised the tone of his 'observations.'  Now 
he said before Condoleezza Rice what Bush does not want to hear - 
that Iraq is on the threshold of a civil war and destabilizes the 
region. He visited ten nations, including Syria and Iran, in an 
effort to implement a Security Council's resolution aimed at a 
ceasefire in Lebanon. He's trying to affirm the UN's universal 
nature.... The election of a new secretary general will be decided 
by negotiations among the five permanent members, which have right 
to veto any resolution. The idea of 'parliamentarizig' the UN, 
giving more powers to the General Assembly, has been revived. 
However, the UN continues submitted to a system of powerful nations. 
But its survival and Annan's freer eloquence are considered 
advances." 
 
McMullen