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C O N F I D E N T I A L SECTION 01 OF 02 STATE 142845 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 10/10/2017 
TAGS: BL BR EC PA UNGA
SUBJECT: WHA A/S SHANNON,S SEPTEMBER 27, 2007 MEETING WITH 
BRAZILIAN U/S FOR SOUTH AMERICA JORGE D'ESCRAGOLLE TAUNAY 
 
 
Classified By: WHA Assistant Secretary of State 
Thomas A. Shannon, 
Department of State, Reason 1.4 (b) and (d) 
 
¶1.  (U) September 27, 2007, 5:00 p.m., New York 
 
¶2.  (U) Participants: 
 
United States 
A/S Thomas A. Shannon 
Scott Miller, WHA Notetaker 
 
Brazil 
U/S for South America Jorge D'Escragolle Taunay 
Christian Sigueiroa, second secretary, Brazilian Mission to 
the U.N. 
Wilson Dockhorn, second secretary and assistant to the U/S 
 
 
¶3. (C) SUMMARY. A/S Shannon and Brazilian U/S Taunay 
discussed developments in Bolivia, impressions of the Correa 
administration in Ecuador, and the presidential elections in 
Paraguay in a short meeting on the margins of the UNGA. END 
SUMMARY. 
 
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Bolivia 
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¶4. (C) Shannon said that the United States has been quite 
active and mostly successful in South America, but noted that 
the United States' relationship with Bolivia is becoming more 
problematic.  Shannon cited several small incidents as well 
as the comments by Bolivian officials to DAS MacMullen that 
Bolivia has made a decision to distance itself from the 
United States.  He also expressed disappointment that Brazil 
and the United States have offered Bolivia the ability to 
enhance productive capacity and access to markets, only to 
see Bolivia turn to Cuba and Venezuela. 
 
¶5. (C) Taunay encouraged the United States to be mindful that 
Bolivia has been in a crisis since the beginning of the 
Morales administration and that by several criteria the 
country is experiencing a revolution. 
 
¶6. (C) Taunay added that everything is "very political" at 
the moment in Bolivia; relationships can be largely shaped by 
the interlocutor and often change from day to day.  Taunay 
attributed the mixed signals emanating from Bolivia in part 
to lack of coordination and said he "would not worry too 
much."  He added that Pablo Salon, who chairs South American 
integration meetings, is a moderate with whom the Brazilians 
have found they can talk. 
 
¶7. (C) As for the constituent assembly in Bolivia, Taunay 
pointed out that it reflects the deep divisions within 
Bolivia and pointed out that the "media luna" will only 
accept so much radicalization.  Shannon noted that the "media 
luna" has leaders who are prepared to fight and agreed with 
Taunay that an outbreak of violence would be awful. 
 
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Ecuador 
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¶8. (C) A/S Shannon noted that Correa may face a more daunting 
challenge than Morales, given his lack of congressional 
representatives.  He indicated that the United States is 
working to keep Ecuador close, but that this will be 
complicated by Correa's decision not to renew the Manta 
airbase lease. 
 
¶9. (C) Taunay acknowledged that he has a better impression of 
Correa than most and finds him to be a good economist one can 
reason with.  Taunay added that while Correa is 
nationalistic, he is not a radical, but closer to a moderate. 
 
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Paraguay 
------- 
 
¶10. (C) Taunay said the 2008 presidential elections in 
Paraguay are difficult to predict, particularly with the 
involvement of former army chief Lino Oviedo. Ultimately, 
Taunay thought that with the Colorado party's strong base, 
President Duarte will be able to pave a path for his 
 
STATE 00142845  002 OF 002 
 
 
successor.  A/S Shannon cautioned that Duarte is playing a 
dangerous game with Oviedo and said he noted ambition but 
lack of concrete proposals in his meeting with candidate 
Fernando Lugo. 
RICE