VZCZCXYZ0014
OO RUEHWEB

DE RUEHSO #0640 2111933
ZNR UUUUU ZZH
O 301933Z JUL 07
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7288
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 8393
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 8226
RUCPDOC/USDOC WASHDC 2861

UNCLAS SAO PAULO 000640 
 
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: WESTERN HEMISPHERE: US-CUBA DIALOGUE; 
VENEZUELA, CHAVEZ'S POLICY; SAO PAULO 
 
¶1. "From Havana To Washington" 
 
Foreign affairs analyst Newton Carlos commented in liberal, largest 
national circulation daily Folha de S. Paulo (7/28): "The idea of a 
possible dialogue between Cuba and the United States seems to be in 
Ral Castro's mind with who knows, maybe a slight ray of hope. There 
have already been three proposals based perhaps on an important 
development - the recent visit of ten US congressmen to Cuba. 
Republicans and Democrats joined the initiative, and some of them 
decided to break the silence by showing themselves favorable to a 
'softening' of sanctions imposed on Cuba in the early 60's. The most 
recent proposal for dialogue brings a difference. It was not 
addressed to the Bush administration, but to the one that will 
replace it. An inter American relations expert says that the current 
White House and DOS tenants 'do not understand anything of what is 
going on in Latin America, and the lack of understanding causes 
disinterest'.... The expectation is that the future American 
president, especially if it is a Democrat, will behave in a 'more 
understanding, more negotiating' way." 
 
¶2. "Effects Of Chvez's Socialism" 
 
Center-right national circulation daily O Estado de S. Paulo (7/29) 
editorialized: "Venezuela is marching towards socialism, but its 
private sector is moving to other nations.... In the past three 
years, four major oil companies either left Venezuela or are 
dismounting their business in that nation because they will not 
accept the conditions Chvez has imposed.... Oil production in 
Venezuela has declined for two years.... It is with state owned 
PDVSA's resources that Chvez conducts social projects in Venezuela 
and finances overseas his plans to become the world leader of 
anti-globalization and anti-American movements.... As long as the 
price of oil remains high, the caudillo will always be able to use 
PDVSA's resources to finance his project of power.... The Bolivarian 
policies have already destroyed 50% of the national industry, 
according to business associations.... In order to eliminate free 
enterprise, Chvez will lead Venezuela to bankruptcy. What remains 
to be seen is what the political effect will be." 
Helling