VZCZCXRO8199
PP RUEHRG
DE RUEHSO #1004/01 3551707
ZNR UUUUU ZZH
P 211707Z DEC 07
FM AMCONSUL SAO PAULO
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RUEHRI/AMCONSUL RIO DE JANEIRO 8507
RUEHRG/AMCONSUL RECIFE 3937
RHEHNSC/NSC WASHDC
RHMFISS/CDR USSOUTHCOM MIAMI FL
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC 2990
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RUEAIIA/CIA WASHDC

UNCLAS SECTION 01 OF 02 SAO PAULO 001004 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/BSC, DRL/ILCSR, INR/IAA, INR/R/AA 
STATE PASS USTR FOR KATE DUCKWORTH 
NSC FOR TOMASULO 
TREASURY FOR JHOEK 
USDOC FOR 4332/ITA/MAC/WH/OLAC 
USDOC ALSO FOR 3134/USFCS/OIO 
DOL FOR ILAB 
SOUTHCOM ALSO FOR POLAD 
USAID FOR LAC/AA 
 
E.O. 12958: N/A 
TAGS: PINR PGOV KDEM BR
SUBJECT: DESPITE CORRUPTION SCANDALS, MAJORITY CAMP WINS IN WORKERS' 
PARTY ELECTIONS 
 
REF: SAO PAULO 961 
 
Summary 
------- 
 
¶1.  (SBU) Federal Deputy Ricardo Berzoini won the second round of 
internal voting in President Lula's Workers' Party (PT) presidential 
elections on December 16.  The results maintain the distribution of 
political power within the PT's national directorate and 
consolidates President Lula's faction, the "Majority Camp," as the 
decisive force going into the 2008 municipal and 2010 national 
Brazilian elections.  Sao Paulo results also forecast the likely 
return of former Sao Paulo Mayor and current Tourism Minister Marta 
Suplicy as the PT candidate for mayor in Sao Paulo's 2008 city-wide 
elections.  Berzoini's election indicates that Lula's faction has 
survived all recent corruption scandals and that the PT is unlikely 
to change its public policy goals in the short term.  End Summary. 
 
PT Internal Elections: The Winners 
---------------------------------- 
 
¶2. (SBU) Approximately 200,000 PT members cast their ballots 
throughout Brazil in internal party elections on December 16. 
Federal Deputy Berzoini's win with 61 percent of the vote was widely 
expected based on his first round victory in November with 43.8 
percent.  Federal Deputy Tatto, Berzoini's main opponent, garnered 
38.6 percent.  A candidate of a local PT faction, Tatto finished in 
second place during the November voting with 23 percent.  (Note: 
Although in the lead-up to PT elections Berzoini suggested an 
alliance with Tatto that could avoid a second round election, Tatto 
rejected the offer.  End Note.)  During the first round of PT voting 
in November, Federal Deputy Jose Eduardo Cardozo, who was the 
candidate of Justice Minister Tarso Genro's "Message to the Party" 
faction, ended up in the third position with 17 percent.  Cardozo's 
performance not only frustrated Genro's group's hope of changing the 
party internal structure but also facilitated Berzoini's second 
round victory: after Cardozo's loss, the majority of his supporters 
shifted their backing to Berzoini's candidacy.  The December 16 
voting also led to Sao Paulo City Councilman Jose Americo's election 
as president of the City of Sao Paulo branch of the PT and 
Araraquara Mayor Edinho Silva's election as president of the State 
of Sao Paulo PT. 
 
¶3.  (SBU) Incumbent PT President Berzoini represents the so-called 
"Majority Camp," a faction that has controlled the PT since 1995, 
and includes former Ministers Jose Dirceu, Antonio Palocci and other 
PT leaders accused of being involvedt in the "mensalao" vote-buying 
scandal such as Federal Deputies Jose Genoino and Joao Paulo Cunha. 
During the campaign leading up to the PT's second round of voting, 
President Lula himself defended Berzoini's candidacy.  The "Majority 
Camp," which recently relabeled itself the "Building a New Brazil" 
faction, will control the process for municipal elections in 2008 
and, more importantly, will determine the party's candidate for 
Brazil's presidency in 2010.  (Note: President Lula has stated that 
he will not run for re-election in 2010 although opponents and 
supporters alike have not yet discounted a Lula change of heart and 
ultimate candidacy for re-election.  Should Lula decide to run for 
president again, Congress would first have to amend the 
Constitution.  End Note.) 
 
The Losers 
---------- 
 
¶4. (SBU) Heading into the first round of party elections, Genro's 
faction called for internal PT changes and ethical reform.  Owing to 
 
SAO PAULO 00001004  002 OF 002 
 
 
support from intellectuals and artists unsatisfied with the PT's 
involvement in several corruption scandals, the "Message to the 
Party" faction expected at least to make it to the second round of 
party voting.  Had it managed to do so, faction members believed 
they could count on additional leftist group votes to beat back 
Berzoini's "Majority Camp." 
 
¶5. (SBU) Federal Deputy Tatto represented a group whose most visible 
figure is former Sao Paulo Mayor and current Tourism Minister 
Suplicy  (Note: Tatto, Suplicy, and their followers used o belong 
to the "Majority Camp."  End Note.)  Sulicy's own faction, 
nicknamed the "New Course" goup, has strong influence over the 
local party mchinery in the city of Sao Paulo.  Despite the "New 
Course's" loss in the PT elections, it was able o solidify its 
position and has now increased it influence within the PT as well 
as strengthenedSuplicy's candidacy for Sao Paulo mayor in 2008. 
Comment 
------- 
 
¶6.  (SBU) With Berzoini's vicory, the PT elections have solidified 
President Lula's dominance over the party and support for a 
continuation of his national policies.  President Lula and the 
"Majority Camp" or "Building a New Brazil" faction will continue to 
dictate the PT's path for the next few years despite the fact that 
only a year ago a series of corruption scandals seemed to spell 
serious trouble for the party.  While the scandals soiled the 
reputations of many "Majority Camp" leaders - including Berzoini 
himself, who was accused of involvement in a 2006 conspiracy that 
used a fake dossier to smear Jose Serra, then running his eventually 
successful campaign for Sao Paulo governor, - Berzoini's victory 
demonstrated that the "Majority Camp" still controls the party and 
Brazil's future.  End Comment. 
 
¶7.  (U) This cable was cleared by Embassy Brasilia. 
 
WHITE