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ZNY CCCCC ZZH
R 031114Z JAN 08
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 0755
INFO RUEHAC/AMEMBASSY ASUNCION 6474
RUEHBU/AMEMBASSY BUENOS AIRES 5197
RUEHCV/AMEMBASSY CARACAS 3916
RUEHLP/AMEMBASSY LA PAZ 5844
RUEHMN/AMEMBASSY MONTEVIDEO 7150
RUEHRO/AMEMBASSY ROME 0338
RUEHSG/AMEMBASSY SANTIAGO 0062
RUEHROF/AMCONSUL FLORENCE 0002
RUEHMIL/AMCONSUL MILAN 0023
RUEHRON/AMCONSUL NAPLES 0003
RUEHRG/AMCONSUL RECIFE 7545
RUEHRI/AMCONSUL RIO DE JANEIRO 5626
RUEHSO/AMCONSUL SAO PAULO 1397
RHEHNSC/NSC WASHDC
RUEAIIA/CIA WASHDC

C O N F I D E N T I A L SECTION 01 OF 02 BRASILIA 000005 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 12/18/2017 
TAGS: PREL ETRD IT BR XM XR VE UNSC
SUBJECT: A/S SHANNON'S MEETING WITH ITALIAN AMBASSADOR TO 
BRAZIL 
 
Classified By: Charge d'Affaires Phillip Chicola, reasons 1.4 b and d. 
 
¶1.  (C) Summary.  Michele Varensise, Italian Ambassador to 
Brazil, told WHA A/S Thomas Shannon on December 13 that 
Brazil is the centerpiece of Italy's South American strategy. 
 Italy sees Brazil playing an increasingly larger role in 
maintaining stability, economic growth, and integration.  He 
praised President Lula's performance, calling him "a 
compromiser, not a maximizer."  He said Brazil's aspiration 
for a permanent seat on the UN Security Council is divisive 
within the region, and the G-4 line may be losing support. 
Varensise said the Senate's rejection the previous day of an 
extension of the tax on financial transactions was a "slap in 
the face of remarkable proportions" for President Lula, and 
compared the "normal, more mature" Brazilian reaction to the 
"completely different" Venezuelan reaction after losing the 
constitutional referendum.  He said he did not note much 
change in the last few years in outlook or receptivity to 
foreign overtures within Itamaraty, the Ministry of External 
Relations, saying they are good professionals and wait 
patiently.  While administrations come and go, Itamaraty 
remains.  End summary. 
 
Brazil is Italy's South American Centerpiece 
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¶2.  (C) Michele Varensise, Italian Ambassador to Brazil, told 
A/S Shannon, accompanied by EEB A/S Daniel Sullivan, 
Ambassador, and poloff (notetaker), that Italy has a 
"beautiful" relationship with Brazil, there are 30 million 
Brazilians of Italian origin, and the Italian government 
feels it can be frank with Brazilians.  While Chavez sees 
himself as the alternate regional leader, Varensise said, 
Brazil will emerge as the region's leader, and Italy looks to 
Brazil to play an increasing role in maintaining stability 
and fostering economic growth and integration.  Brazil is the 
centerpiece of Italy's South American strategy, along with 
Chile and Argentina, he said.  Varensise said bilateral trade 
between the two countries has increased, and Brazilian trade 
with Italy has grown more than with any other EU member. 
 
Brazilian UNSC Aspirations 
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¶3.  (C) According to Varensise, the GOI has told Brazil that 
it does not share Brazil's view on UNSC reform.  The chief 
problem with the Brazilian approach is that it does not 
propose changes in the overall structure or 
representativeness of the Council.  Italy is negotiating 
openly with Brazil in New York on reform, and the Italian 
concept is that it would be better to promote regional 
consciousness.  Brazil's proposal, its "self-nomination as 
one of 18," to represent Latin America is divisive, since 
countries such as Argentina and Mexico could arguably make a 
claim to represent the region, Varensise said.  While Brazil 
is undoubtedly an important part of the area, it creates many 
problems for itself, he noted.  Varensise concluded that 
there is a "creeping process of disaffection" in which the 
G-4 line is losing popularity. 
 
CPMF Defeat: Brazil Compared with Venezuela 
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¶4.  (C) Varensise said the Senate's rejection the previous 
day of an extension of the tax on financial transactions 
(CPMF) was a "slap in the face of remarkable proportions" and 
a "political earthquake" for President Lula.  He compared the 
"more mature" Brazilian reaction with the Venezuelan reaction 
after losing the constitutional referendum: even though the 
Brazilian government was beaten, Varensise said, the reaction 
here was "completely different," "more normal," as 
demonstrated by the government's immediate response that it 
would simply try again.  He praised President Lula's 
performance, calling him "a compromiser, not a maximizer." 
Lula has always sought balanced solutions, and that is a 
virtue in regional terms, he concluded. 
 
BRASILIA 00000005  002 OF 002 
 
 
 
Itamaraty's Patience 
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¶5.  (C) Asked whether he had noted any change in Itamaraty's 
receptivity or support for foreign overtures during his three 
years as ambassador in Brasilia, Varensise said he had not. 
He observed that Itamaraty gives the Presidential Palace a 
great deal of leeway in the conduct of policy within Latin 
America while it concerns itself with other areas, "so long 
as the nothing bad happens," and takes this approach out of a 
conviction that eventually the government, unlike Itamaraty, 
will change, allowing the diplomats to ensure continuity. 
 
Mercosul 
- - - - - 
 
¶6.  (C) Varensise noted that the discussion of accession to 
Mercosul has changed: whereas in the past people used to 
admire the EU's detailed accession rules and want the same 
for Mercosul, no one talks about strict accession criteria 
any more.  (Comment: This probably reflects the Lula 
government's view that it is more important to "anchor" 
Venezuela in Mercosul than to demand strict compliance with 
Mercosul accession conditions.  End comment.) 
 
Chicola