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P 121722Z AUG 08
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UNCLAS SECTION 01 OF 03 SAO PAULO 000437 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/FO, WHA/BSC, WHA/PDA, AND H 
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 
SOUTHCOM ALSO FOR POLAD 
USAID FOR LAC/AA 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECIN KCRM KMDR BR
 
SUBJECT:  SOUTHERN BRAZIL:  AMBASSADOR'S VISIT STRENGTHENS TIES 
 
SENSITIVE BUT UNCLASSIFIED- PLEASE PROTECT ACCORDINGLY 
 
 
SUMMARY 
 
¶1.  (U) Ambassador Clifford Sobel traveled to the city of Curitiba, 
capital of the State of Parana, Brazil August 3-4, 2008.  During his 
visit to Curitiba, Ambassador Sobel visited the American Chamber of 
Commerce (AmCham), met with the Governor of Parana, Roberto Requico, 
was a featured speaker at the Seventh Annual International 
Association of Chiefs of Police Conference, met with Rodrigo da 
Rocha Loures, President of FIEP (Federation of Industries of 
Parana), and finished with a meeting with the Mayor of Curitiba, 
Carlos Alberto (Beto) Richa.  Ambassador Sobel's visit to Curitiba 
helped Mission Brazil strengthen contacts with important business, 
law enforcement and political figures in the State of Parana.  End 
Summary. 
 
AMERICAN BRAZILIAN CHAMBER OF COMMERCE- CURITIBA 
 
¶2.  (U) Ambassador Sobel started his visit with a business breakfast 
at AmCham Curitiba. With the AmCham in full attendance -- including 
representatives of Kraft Foods Brazil, Price Waterhouse, Philip 
Morris and the leading Curitiba newspaper Gazeta do Povo -- Amb 
Sobel made a brief presentation.  He said that it was an exciting 
time to live in Brazil, with increasing opportunities for engagement 
with the U.S., including, educational opportunities, and 
private/public partnerships, such as the CEO Forum and Corporate 
Social Responsibility (CSR) programs.  Amb. Sobel noted that 
President Lula's and President Bush's direct, personal engagement in 
all of these areas has markedly strengthening U.S.-Brazil relations. 
 
 
¶3.  In his remarks, Amb. Sobel cited various measures of the 
accelerating bilateral economic relationship between the U.S. and 
Brazil: 
 
--Bilateral trade is up 10 percent; 
 
--Brazilians are buying 15 percent of the American Depositary 
Receipts (ADRs-shares of foreign companies purchased without 
undertaking cross-border transactions) offered in the US; 
 
--There is significant interest in signing both an investment and 
tax treaty between the two nations (for the first time in over forty 
years), and a signed bilateral aviation agreement that potentially 
could benefit Curitiba as it was identified as one of the five 
cities to possibly benefit from expanded flights to the US. 
 
¶4.  The Ambassador also highlighted the Brazil-US CEO Forum for much 
of the movement in these areas, and highlighted activities of 
Mission Brazil's Corporate Social Responsibility (CSR) program by 
encouraging Curitiba area AmCham members to reach out more to the 
community.  He also pointed out the upcoming visit of USAID 
Administrator Henrietta Fore to Sao Paulo as part of our CSR 
publicity efforts in Brazil. 
 
PARANA GOVERNOR ROBERTO REQUIAO 
 
¶5.  (SBU) Ambassador Sobel next visited the Governor of the State of 
Parana, Roberto Requiao.  Their conversation centered on the 
successes of the Parana economy in comparison to the rest of Brazil. 
 Governor Requiao said that the State of Parana tax policies 
encouraged growth by moving micro and small businesses into the 
 
SAO PAULO 00000437  002 OF 003 
 
 
formal economy more quickly.  In addition, Curitiba and Parana have 
always benefitted from long term planning by the state.  Results 
have been impressive and business failures are half of what they are 
in Brazil overall- according to Requiao.  Ambassador Sobel 
encouraged Requiao to reach out to the Council of the Americas (COA) 
and consider inviting COA President Susan Siegel  for a visit to 
Curitiba and Parana.  (Note:  The conversation briefly touched on 
the Tri-border area.  The Governor dismissed claims of terrorist 
presence or terrorists fund-raising in the area.  He insisted that 
resident business persons of Middle Eastern origin were not involved 
in illegal activities and were simply sending money to families back 
home in the Middle East.  End Note.) 
 
¶6.  (SBU) Remarking on the Ambassador's presentation at the Chiefs 
of Police Conference, the Governor stated that Parana has benefitted 
from community policing.  The addition of mobile units, direct 
contact with citizens, and home visits has created a good 
relationship between law enforcement officials and the community. 
One of the Governor's greatest concerns was policing in squatter 
settlements where it is difficult to develop a lasting police 
relationship with the area's inhabitants.  Requiao further commented 
that crack cocaine has now replaced cheap alcohol as the drug of 
choice for young people in Parana, creating considerable law 
enforcement problems.  Upon meeting LEGAT David Brassanini, the 
Governor offered to support US law enforcement efforts in Parana in 
combating illegal activities such as narcotics and IPR abuses. 
 
ASSOCIATION OF CHIEFS OF POLICE CONFERENCE (IACP) 
 
¶7.  (U) Ambassador Sobel was a featured speaker at the Seventh 
Annual IACP convention, an international gathering of over 300 
police chiefs.  The Ambassador began by announcing that the US 
Department of State and Brazil had signed bilateral counter 
narcotics agreement to help increase drug enforcement training and 
education in Brazil.  This landmark agreement will help Brazilian 
Federal Police elements in their efforts to combat illegal drugs. 
The Ambassador then outlined US Government support for Brazil's 
efforts to improve narcotics enforcement and enhance international 
cooperation in this area.  The Ambassador emphasized that regional 
efforts, expanded training, improved use of better equipment and 
high technology, and continued exchanges of law enforcement officers 
between the US and Brazil would help both countries counter the 
scourge of illegal narcotics. 
 
RODRIGO DA ROCHA LOURES, PRESIDENT OF FIEP 
 
¶8.  (SBU) Ambassador Sobel met with Rodrigo da Rocha Loures, 
President of the State of Parana Council of Industries.  Ambassador 
Sobel began the meeting by remarking that everybody talks about the 
success of Parana and Curitiba.  He asked why the area was so 
economically successfully in comparison to other areas of Brazil. 
Rocha said that Parana's strength results from several factors: the 
region's successful agribusinesses, its large automobile 
manufacturing base, its ability to attract entrepreneurs to the 
region, and the strategic vision of the local business class and 
their capacity for innovation.  Rocha also noted that FIEP and 
Parana are focusing their future on energy production 
(bioelectricity), an improved health care system, agribusiness and 
tourism (Foz do Iguacu).  FIEP has strategic partners for their 
innovation program with MIT, Case Western and Cornell University. 
Ambassador Sobel encouraged FIEP to reach out to two organizations: 
the Council of the Americas and the Jorge Gerdau Johanpetter-led NBC 
group in Brazil.  Rocha is interested in connecting FIEP's "Nova 
Parana" program with outside sources so he can improve innovation in 
 
SAO PAULO 00000437  003 OF 003 
 
 
the State of Parana.  According to Rocha, Curitiba is in the running 
to host a major innovation congress in October 2008.  Ambassador 
Sobel offered Mission Brazil's assistance in finding speakers for 
future innovation projects and offered to help FIEP make contact 
with U.S. universities.  (Note:  Brazilian PMDB Federal Deputy 
Rodrigo Rocha Loures, son of FIEP President Rocha Loures, was also 
present.  Ambassador Sobel inquired about the state of tax offsets 
and how the offsets are going to be resolved noting that many US 
companies have billions of dollars of promised offsets with the 
Brazilian States.  Deputy Rocha answered that "fifty percent of the 
offsets will be returned and the other half will disappear."  End 
Note.) 
 
MAYOR OF CURITIBA - CARLOS ALBERTO (BETO) RICHA 
 
¶9.  (SBU) During his visit to FIEP, Ambassador Sobel met Curituba 
Mayor Carlos Alberto Richa.  Richa commented that he had recently 
traveled to San Francisco for a climate change conference sponsored 
by the Clinton Foundation.  He said that Curitiba was interested in 
building a technological park and that thirty Brazilian companies 
had already expressed interest in the project.  Ambassador Sobel 
encouraged Richa to speak with Michele Levy of Microsoft and, as 
well, with Motorola and Dell.  Ambassador Sobel invited Mayor Richa 
to visit him in Brasilia after the October municipal elections. 
 
MEDIA COVERAGE 
 
¶10.  (U) During Ambassador Sobel's visit to Curitiba, he was 
interviewed by CBN and Gazeta do Povo at the AmCham and by 
Folha-Curitiba, O Estado-Curitiba and CBN during the IACP 
conference.  CBN and Gazeta do Povo had positive articles on the 
Ambassador's visit to the AmCham.  They highlighted the Ambassador's 
statements that the US is still interested in seeking a diplomatic 
solution to Doha and that Curitiba is one of five cities being 
considered for direct air routes to the United States.  Agencia 
Estado erroneously reported that Ambassador Sobel was meeting with 
Minister of the Environment Carlos Minc to discuss the recent 
release of the Amazon Fund, when in fact he was asking Minc about a 
possible meeting between Minc and USAID Fore.  Folha-On Line 
correctly reported that Ambassador Sobel needed more time to review 
the Amazon Fund proposal before commenting.  Electronic journal 
Tribuna News gave favorable coverage to the Ambassador's visit to 
Governor Requiao and emphasized US efforts in support of Parana law 
enforcement efforts. 
 
COMMENT 
 
¶11.  (SBU) Ambassador Sobel's visit to Curitiba was highly 
productive.  He met with the highest political and commercial 
contacts in the State of Parana.  The Ambassador also described some 
of the positive benefits of working with US law enforcement before 
one of the largest law enforcement gatherings in South America.  He 
won the likely political support of both the Mayor of Curitiba and 
the Governor of Parana for future academic and law enforcement 
exchanges.  End Comment. 
 
¶12.  (U) This cable was coordinated with the Embassy in Brasilia and 
cleared by Ambassador Sobel. 
 
WHITE