VZCZCXYZ0008
OO RUEHWEB

DE RUEHBU #0011/01 0042050
ZNR UUUUU ZZH
O 042050Z JAN 07
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6904
INFO RHMFISS/CDR USSOCOM MACDILL AFB FL//SCJ2//
RULGPUA/USCOMSOLANT

UNCLAS BUENOS AIRES 000011 
 
SIPDIS 
 
STATE FOR INR/R/MR, I/GWHA, WHA, WHA/PDA, WHA/BSC, 
WHA/EPSC 
CDR USSOCOM FOR J-2 IAD/LAMA 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: KPAO OPRC KMDR PREL MEDIA REACTION
SUBJECT: DEMOCRATS RETAKING CONTROL OF US CONGRESS; LULA'S 
RE-ELECTION; 01/04/07 
 
 
¶1. SUMMARY STATEMENT 
 
Today's leading international stories include Democrats retaking 
control of US Congress and announcing a rapprochement with Latin 
America; and expectations about Lula's second term in office. 
 
¶2. OPINION PIECES 
 
- "The new US Congress will take office today" 
 
Leonardo Mindez, on special assignment in Washington for leading 
"Clarin," writes (01/04) "... Democrats will take control of US 
Congress. They have committed themselves to promoting a change of 
direction during their first 100 hours of work, i.e. two-and-a-half 
weeks of work. According to Nancy Pelosi, the first woman to chair 
the Lower House, they want to use this time to demonstrate that they 
have started to 'dry out the Republican swamp.' 
 
"The first  bill that Democrats expect to approve this week will be 
a sign of internal housecleaning after the corruption scandals of 
recent years. The new legislation will seek firmer control of 
lobbying on Capitol Hill and a stricter code of ethics that will ban 
legislators from receiving expensive paid travel and gifts. 
 
"Next week, Democrats will seek to obtain the support of their 
low-income voters by approving an increase in the minimum wage paid 
by the USG... 
 
"Democrats received a nod from Republicans and George W. Bush 
himself for those bills. The rest of the initiatives promoted by 
Democrats will face some trouble. Many of them will involve powerful 
allies of the White House or go against depart from the main 
guidelines set forth by the official party in recent years. 
 
"Those bills include reduced subsidies for oil companies and a 
transfer of those funds to research on alternative  sources of 
energy. 
 
"Perhaps, nothing will clash more with the White House and the US 
Republican Congress' conservatism than the Democrats' idea of 
allocating federal funds to stem cell research." 
 
- "Democrats promise a rapprochement with Latin America" 
 
Daily-of-record "La Nacion" reports (01/04) "For the first time in 
twelve years, the US Democratic opposition will formally take 
control of both chambers of the US Congress with the promise of 
greater rapprochement with Latin America together with an inherited 
agenda ruled by  the increasingly unpopular war in Iraq. 
 
"Therefore, during the last two years of his second term in office, 
US President George W. Bush will have to live with an opposition 
Congress... 
 
"One day before taking control of Capitol Hill, several of the most 
important Democratic legislators charged the Bush administration 
with having overlooked Latin America and said they will seek 
rapprochement with the region. However, they avoided giving details 
about whether they will pass delayed immigration reforms... or on 
free trade agreements with the countries of the region that are 
pending US Congress' ratification. 
 
"Harry Reid, Democratic majority leader at the US Senate, said 
'Latin America has been disregarded for too long by the 
government.'" 
 
¶3. EDITORIALS 
 
- "Lula's second term in office" 
 
Daily-of-record "La Nacion" editorializes (01/04) "After Lula's 
sliding victory in the second round of Brazilian elections..., he 
has started his second term in office as the president of Brazil. 
 
"... The Brazilian president's pragmatism prompts speculation that 
there will not be major changes related in fiscal and monetary 
policies,  foreign indebtedness, primary surplus, relative economic 
opening, hemispheric integration and trade agreements with countries 
outside  the region. However, we should assume that he will 
strengthen social assistance programs... and speed up investment in 
infrastructure and public works in order to improve the 
competitiveness of Brazil's economy and create job opportunities. 
 
"As to his foreign policy, the big question is how Lula will manage 
to recover the hemispheric leadership Brazil is asking from him. 
Lula's leadership has recently been clouded by Hugo Chavez's radical 
proposals and attitudes, which the prudent Brazilian president has 
 
not backed. 
 
"Additionally, Lula has to solve the sensitive issue of Bolivian gas 
supply for the Brazilian market and find   fair compensation for the 
Brazil's substantial investment in the energy sector, which has 
recently been nationalized. 
 
"In the international relations field, there are no signs of any 
substantial change in the US-Brazilian relationship, which is now 
certainly less confrontational and more compromising than that of 
some other leaders of the region... Regarding harmful agricultural 
protectionism by developed countries, Brazil will have to keep on 
trying to stop it... Presumably, the change in the US political 
scenario will not help him, bearing in mind that Democrats are less 
inclined than the current administration to dismantle trade 
protectionism." 
 
To see more Buenos Aires reporting, visit our 
classified website at: 
http://www.state.sqov.gov/p/wha/buenosaires 
 
WAYNE