VZCZCXRO0354
RR RUEHRG
DE RUEHBR #0555/01 0891413
ZNR UUUUU ZZH
R 301413Z MAR 07
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 8522
INFO RUEHAC/AMEMBASSY ASUNCION 6017
RUEHBU/AMEMBASSY BUENOS AIRES 4675
RUEHMN/AMEMBASSY MONTEVIDEO 6813
RUEHSG/AMEMBASSY SANTIAGO 6157
RUEHRG/AMCONSUL RECIFE 6427
RUEHRI/AMCONSUL RIO DE JANEIRO 4101
RUEHSO/AMCONSUL SAO PAULO 9501
RUEAIIA/CIA WASHDC
RHEHNSC/NSC WASHDC

UNCLAS SECTION 01 OF 02 BRASILIA 000555 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV BR
SUBJECT: FIVE NEW MINISTERS SWORN IN; CABINET SHUFFLE 
APPEARS FINISHED 
 
REF: A. BRASILIA 457 
     ¶B. BRASILIA 501 
 
¶1.  (U)  With the March 29 swearing-in of four new ministers 
and the reassignment of one, President Luiz Inacio Lula da 
Silva seems to have completed the overhaul of the cabinet 
that is to serve him in his second term.  Lula created a new 
cabinet post for the new government spokesman and director of 
government communications.  The appointee for the new 
ministry, Franklin Martins, participated in the 1969 
kidnapping of Charles Elbrick, the U.S. Ambassador to Brazil. 
 A last minute surprise was the transfer of the Labor 
Minister to the Social Security Ministry, reportedly in order 
to ensure changes that could not be entrusted to someone from 
outside the president's Workers Party (PT). 
 
¶2.  (U) Franklin Martins is the new minister for press and 
communications (not be confused with the Minister of 
Communications, Helio Costa.)  His official title is 
"Minister-chief of the Secretariat of Social Communication of 
the Presidency of the Republic."  The ministerial level job 
is a new one, and Martins replaces presidential spokesman 
Andre Singer.  Martins is a nationally known veteran 
journalist and commentator.  He was a member of the M-8 
leftist underground group that organized and carried out the 
kidnapping of Ambassador Charles Elbrick in 1969.  Martins 
has no party affiliation. 
 
¶3.  (U) Miguel Jorge, a businessman formerly with the 
Santander Group, is the new Minister for Development, 
Industry and Foreign Trade.  He has no party affiliation. 
 
¶4.  (U) Luiz Marinho was transferred from his position as 
Labor Minister to become the new Minister for Social 
Security.  He is a member of the PT. 
 
¶5.  (U) Carlos Lupi, president of the Democratic Labor Party 
(PDT) is the new Labor Minister.  Earlier press reports had 
him pegged for the Social Security Ministry, but March 30 
reporting says Lula decided to put Marinho in Social Security 
because a minister from outside the PT might not carry out 
the reforms Lula wants. 
 
¶6.  (U) Senator Alfredo Nascimento, from Amazonas, is the new 
Transportation Minister.  He belongs to the Party of the 
Republic (PR).  He was previously Transportation Minister 
from March 2004 to March 2006.  As he takes leave from the 
Senate he is replaced by his alternate, Joao Pedro Goncalves 
da Costa, of the PT. 
 
¶7.  (SBU) In spite of persistent expectations that Defense 
Minister Waldir Pires would be replaced by former Chamber of 
Deputies President Aldo Rebelo, it appears the cabinet 
shuffle has halted, at least for a time. 
 
¶8.  (SBU) Lula will next make changes at the top of 
pari-statals and other state entities, rewarding and coopting 
members of parties that make up his coalition.  Political 
columnist Denise Rothenburg reported on March 30 that the 
Presidential Palace has warned the Brazilian Democratic 
Movement Party (PMDB) leadership that Lula will be watching 
the PMDB voting record in Congress as he selects the next 
batch of directors for organizations such as Eletronorte, 
Eletrobras, Petrobras, and the Caixa Economica Federal (a 
state-owned savings bank). 
 
¶9.  (U) A complete listing of the new cabinet follows below. 
 
Agrarian Development: Guilherme Cassel (PT, incumbent) 
Agriculture: Federal Deputy Reinhold Stephanes (PMDB, new, 
vice Luiz Guedes Pinto). Sworn in on March 23. 
Central Bank President: Henrique Meirelles (no party 
affiliation, incumbent) 
Cities: Marcio Fortes (PP, incumbent) 
Civil Household: Dilma Rousseff (PT, incumbent) 
Communications: Senator Helio Costa (PMDB, incumbent) 
Comptroller-General: Jorge Hage (PT, incumbent) 
Culture: Gilberto Gil (Green Party - PV, incumbent) 
Defense: Waldir Pires (PT, incumbent) 
Development, Industry and Trade: Miguel Jorge (no party 
affiliation, new, vice Luiz Fernando Furlan).  Sworn in on 
March 29. 
 
BRASILIA 00000555  002 OF 002 
 
 
Education: Fernando Haddad (PT, incumbent) 
Environment: Marina Silva (PT, incumbent) 
Finance: Guido Mantega (PT, incumbent) 
Fisheries: Altemir Gregolin (PT, incumbent) 
Foreign Relations:  Ambassador Celso Amorim (no party 
affiliation, incumbent) 
Health: Jose Gomes Temporao (PMDB, new, vice Agenor Alvares). 
Sworn in on March 16. 
Institutional Relations: Walfrido dos Mares Guia (PTB, 
reassigned from Minister of Tourism, vice Tarso Genro.) 
Sworn in on March 23. 
Institutional Security: General Jorge Armando Felix (no party 
affiliation, incumbent) 
Justice: Tarso Genro (PT, reassigned from Minister for 
Institutional Relations, vice Marcio Thomaz Bastos)  Sworn in 
on March 16. 
Labor: Carlos Lupi (PDT, new, vice Luiz Marinho).  Sworn on 
on March 29. 
Mines and Energy: Silas Rondeau (PMDB, incumbent) 
National Integration: Federal Deputy Geddel Vieira Lima 
(PMDB, new, vice Pedro Brito)  Sworn in on March 16. 
Planning, Budget and Management: Paulo Bernardo (PT, 
incumbent) 
Racial Equality: Matilde Ribeiro (PT, incumbent) 
Science and Technology: Sergio Rezende (Brazilian Socialist 
Party - PSB, incumbent) 
Secretary-General of the Presidency: Luiz Dulci (PT, 
 
SIPDIS 
incumbent) 
Social Communication: Franklin Martins (new, no party 
affiliation, vice Andre Singer).  Sworn in on March 29. 
Social Development: Patrus Ananias (PT, incumbent) 
Social Security: Luiz Marinho (PT, reassigned from Minister 
of Labor, vice Nelson Machado).  Sworn in on March 29. 
Solicitor-General of the Union:  Jose Antonio Dias Toffoli 
(PT, new, vice Alvaro Ribeiro Costa)  Sworn in on March 12. 
Sports: Orlando Silva Junior (Communist Party of Brazil - 
PCdoB, incumbent) 
Tourism: Marta Suplicy (PT, new, vice Walfrido dos Mares 
Guia).  Sworn in on March 23. 
Transportation: Alfredo Nascimento (PR, new, vice Paulo 
Sergio Passos).  Sworn in on March 29. 
Women's Policy: Nilcea Freire (PT, incumbent) 
 
Chicola