VZCZCXRO0650
RR RUEHRG
DE RUEHBR #0564/01 0891823
ZNR UUUUU ZZH
R 301823Z MAR 07
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 8537
INFO RUEHAC/AMEMBASSY ASUNCION 6019
RUEHBU/AMEMBASSY BUENOS AIRES 4680
RUEHMN/AMEMBASSY MONTEVIDEO 6818
RUEHSG/AMEMBASSY SANTIAGO 6159
RUEHRG/AMCONSUL RECIFE 6437
RUEHRI/AMCONSUL RIO DE JANEIRO 4114
RUEHSO/AMCONSUL SAO PAULO 9515
RHEHNSC/NSC WASHDC
RUEAIIA/CIA WASHDC

UNCLAS SECTION 01 OF 02 BRASILIA 000564 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV EAIR BR
SUBJECT: BRAZIL: POLITICAL ROUNDUP 
 
REF: A. BRASILIA 457 
     ¶B. BRASILIA 501 
     ¶C. BRASILIA 555 
     ¶D. BRASILIA 485 
 
------------------------------- 
Cabinet Shuffle Appears Complete 
-------------------------------- 
 
¶1.  (SBU)  President Lula has apparently wound up his cabinet 
shuffle after four rounds of swearing-ins, on March 12, 16, 
23 and 29 (refs a, b and c).  The new cabinet aims to satisfy 
all parties in his coalition, although the Brazilian 
Socialist Party was left with, in its view, inadequate 
representation.  Lula may create a Secretariat of Ports, to 
be headed by the former Transportation Minister, Pedro Pritto 
(PSB).  The new head of presidential communications is a 
former underground guerrilla fighter who participated in the 
1969 kidnapping of the U.S. Ambassador to Brazil, Charles 
Elbrick.  The Defense Minister, widely expected to be on his 
way out because of a persistent commercial air traffic 
crisis, stays, at least for now.  Further cabinet shuffle 
details are reported septel and reftels. 
 
¶2.  (SBU)  The coalition faithful are mainly satisfied with 
the results.  Federal Deputy Wilson Santiago (PMDB, Paraiba) 
the immediate past leader of the PMDB in the Chamber, is 
typical.  He told poloff on March 27 that he approved of the 
cabinet shuffle, "Above all for of its 'political 
accommodation.'"  He also said the shuffle brought competency 
in the health and justice ministries.  But opposition Federal 
Deputy Fernando Coruja, the Chamber leader of the Socialist 
People's Party (PPS), from Santa Catarina, told poloff on 
March 27 that the new cabinet is "weak, and Lula will be weak 
throughout his second term."  Senator Jarbas Vasconcelos 
(PMDB, Pernambuco) went further.  Speaking from a prepared 
text on March 29 in the Senate plenary, Jarbas said "the 
ministerial reform seems to have turned into only a means to 
meet the voracity of the coalition to the detriment of a 
technical profile more in tune with the country's needs."  He 
also criticized the appointment of Tarso Genro as Justice 
Minister, noting that the appointment of a PT leader to 
oversee the Federal Police now makes all Federal Police 
actions politically suspect. 
 
--------------------------------------------- ---------------- 
Electoral Court Rules Against Party Switching After Elections 
--------------------------------------------- ---------------- 
 
¶3.  (SBU)  The Superior Electoral Court ruled on March 27 
that elective offices belong to the parties, not the 
individual.  With this ruling it is expected that the seats 
of politicians who switch after taking office may be declared 
vacant and assigned to the alternate ("suplente").  Suplente 
are usually of the same party as the party of the principal 
("titular") holder of the seat at the time of the election. 
Large parties are celebrating the decision, especially the 
Liberal Front Party (PFL), which filed a case before the TSE 
that brought the decision.  Poloff spoke this week with a 
number of federal deputies from large parties, including the 
Brazilian Democratic Movement Party (PMDB), the PFL and the 
PSDB, and they welcomed the decision. 
 
¶4.  (SBU)  The party that stands to lose from the decision is 
the mid-sized, non-ideological Party of the Republic (PR). 
The PR has been raiding other parties in the Chamber of 
Deputies and has wooed 15 deputies (from 25 to 40) into its 
ranks since Congress took office in February 1. 
 
¶5.  (SBU)  The losing parties have mainly been in the 
opposition camp: the Socialist People's party (PPS) elected 
22 deputies last October, had 17 by February 1, and now has 
only 14.  The PFL and Brazilian Social Democracy Party (PSDB) 
elected 65 and 66 deputies respectively but now each have 
only 58.  Party switching had an impact in the Senate as 
well, where the PMDB surpassed the PFL to become the largest 
party between election day and now. 
 
¶6.  (SBU)  Federal Deputy Carlos Cadoca (PMDB-Pernambuco) and 
Federal Deputy Alceni Guerra (PFL, Parana) told poloff in 
separate conversations on March 28 and 29 that they 
understood the decision to be an interpretation of existing 
law, rather than a new ruling, and therefore can be applied 
 
BRASILIA 00000564  002 OF 002 
 
 
retroactively.  Guerra added that it was rare for the Supreme 
Court to overturn a decision of the Superior Electoral Court. 
 
----------------------- 
PFL Becomes "Democrats" 
----------------------- 
 
¶7.  (SBU)  The Liberal Front Party (PFL) jettisoned its name 
and took on a new identity as the Democrats ("DEM" in 
Brazilian political shorthand).  In a national convention in 
Brasilia on March 28, party members elected Federal Deputy 
Rodrigo Maia, age 36, as the new president.  He is the son of 
Cesar Maia, the mayor of Rio de Janeiro.  Federal Deputy Jose 
Carlos Aleluia (DEM-Bahia), told poloff over lunch on March 
20 that the party wanted to project a new image, with young 
leaders and a deliberate identification with the U.S. 
Democratic Party, although there is no official connection 
and many in the PFL had always maintained contacts with the 
U.S. Republican Party.  He said the party needed to move away 
from association with the military dictatorship and its aging 
leaders, such as outgoing PFL president Jorge Bornhausen, age 
69, Senator Antonio Carlos Magalhaes, age 79, and Senator 
Marco Maciel, age 66.  (Note: The connection with the 
military regime comes from the PFL's origins in factions of 
other, now defunct, parties that supported the military 
regime.  End note.)  Aleluia said his party still has a 
serious problem because it has a dearth of good candidates, 
and he has always believed that parties need, above all, good 
candidates. 
 
--------------------------------------------- ----------------- 
Supreme Court Gives Green Light for Air Traffic Crisis Inquiry 
--------------------------------------------- ----------------- 
 
¶8.  (SBU)  A Supreme Court judge ruled that the Congress may 
go ahead with a committee of inquiry ("CPI") into the air 
traffic crisis (ref d).  In a decision that was interpreted 
differently by government and opposition politicians, Judge 
Celso de Mello ruled in favor of opposition forces who want a 
court intervention to override the Chamber plenary's decision 
last week not to establish an inquiry.  Still, the Surpreme 
Court plenary must consider Mello's opinion, and could 
disagree.  For now, the opposition is celebrating, while the 
government side says they await the Court's final decision. 
Even before Mello's ruling, though, Federal Deputy Fernando 
Coruja (PPS-Santa Catarina), told poloff on March 27 that he 
had no doubt the CPI would be established one way or another, 
whether in the Chamber after a Court ruling, or in the 
Senate, or even as a joint committee of inquiry.  He said the 
CPI will reveal improper loans for campaign financing, and 
irregularities in Infraero, the state entity that runs 
airports.  Deputy Nilson Mourao (PT, Acre) told poloff on 
March 27 that "CPIs are not what they appear to be; once 
established, they expand their scope."  He said the 
government's objection to the CPI is that all CPIs become 
political fishing expeditions.  For this reason, he said, any 
investigation into the air traffic crisis must be conducted 
differently. 
 
Chicola