VZCZCXRO5477
RR RUEHRG
DE RUEHBR #1934 2831105
ZNR UUUUU ZZH
R 101105Z OCT 07
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 0149
INFO RUEHSO/AMCONSUL SAO PAULO 0931
RUEHRI/AMCONSUL RIO DE JANEIRO 5213
RUEHRG/AMCONSUL RECIFE 7203
RUCNDT/USMISSION USUN NEW YORK 0219
RUEHBS/USEU BRUSSELS

UNCLAS BRASILIA 001934 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
DEPT FOR L/OES, OES/EGC, OES/SAT, OES/STC, IO/EDA 
 
E.O. 12958: N/A 
TAGS: SENV EAIR KSCA BR
SUBJECT: BRAZIL ON EU'S ETS AVIATION EMISSIONS PROPOSAL AND REVIVING 
THE FRAMEWORK SPACE COOPERATION AGREEMENT 
 
 
¶1.  (U) THIS CABLE IS SENSITIVE BUT UNCLASSIFIED AND NOT FOR 
INTERNET DISTRIBUTION. 
 
¶2.  (SBU) On the margins of the September 3-4 Ministerial Meeting on 
Environment and Sustainable Development (SEPTEL), in Rio de Janeiro, 
State Department Assistant Secretary for Oceans, International 
Environmental, and Scientific Affairs (OES) A/S Claudia McMurray met 
with Brazilian Ministry of Exterior Relations (MRE) Director General 
for the Department of Environment, Luis Figueiredo Machado to 
discuss bilateral issues.  Director General Figueiredo Machado was 
joined by his subordinate, Raphael Azeredo, the MRE Director of the 
Sustainable Development and Multilateral Affairs Division. A/S 
McMurray was accompanied by the rest of the USG delegation: 
International Organizations Bureau Deputy Assistant Secretary Gerry 
Anderson, OES/ENV Division Chief John Matuszak, L/OES Attorney Mark 
Simonoff, and Embassy Brasilia's EST Counselor Richard Driscoll. 
 
ICAO, THE EU AND BRAZIL 
 
¶3.  (SBU) A/S McMurray raised the issue of the European Union's (EU) 
proposal to unilaterally include aviation emissions generated by 
non-EU airlines in the European Emissions Trading Scheme (ETS) even 
without the consent of the concerned foreign governments.  She 
emphasized that the USG has been reaching out to the Europeans and 
stressing that there had to be "mutual consent" as required by the 
Convention on International Civil Aviation (the Chicago Convention) 
before including a foreign airline in the ETS.  The pressure needs 
to be kept up at ICAO, she added.  A/S McMurray asked that the 
Government of Brazil (GOB) speak out to the Europeans about this 
issue. 
 
¶4.  (SBU) Director General Figueiredo Machado declared that the GOB 
"has been against this" and that "we are not amused" by the EU's 
proposal.  He said that he would look into this matter and see how 
Brazil can work against this.  He presented the argument that to 
take this step the EU would be in violation of the Kyoto Protocol 
and the UN Framework Convention on Climate Change.  It isn't fair or 
warranted to have countries included against their will in a 
regional scheme, he said.  This is "a matter of principle" for us, 
he added.  Director Azeredo commented that the MRE's experts said 
the EU's action would be a direct violation of the Chicago 
Convention. 
 
BILATERAL SPACE COOPERATION 
 
¶5.  (SBU) Director General Figueiredo Machado brought up the 
question of space cooperation.  He said the MRE saw the expiration 
of the bilateral Framework Space Cooperation Agreement in July could 
create a "political problem".  The expiration of the Framework 
agreement, following on the heels of the suspension of the 
International Space Station cooperation agreement, could cause 
problems.  L/OES attorney Simonoff outlined the underlying legal 
issue concerning waiver of liability, which would need to be 
resolved before a new Framework agreement could be concluded. 
Director General Figueiredo Machado said that he knew the issue and 
asked the USG to work with the GOB to try to find a solution. 
 
¶6.  (SBU) An extension of the recently expired Framework agreement 
was needed while a long-term solution to the outstanding legal 
issues could be found, Director General Figueiredo Machado said. 
A/S McMurray asked whether he was referring to a brief extension of 
about three months.  He replied, no, what he was asking for was an 
extension of up to one year.  A/S McMurray agreed to look at the 
matter closely on her return to Washington. 
 
SOBEL