VZCZCXYZ0008
OO RUEHWEB

DE RUEHSO #0490 2631158
ZNR UUUUU ZZH
O 191158Z SEP 08
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8528
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 9660
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 8853
RUCPDOC/USDOC WASHDC 3175

UNCLAS SAO PAULO 000490 
 
SIPDIS 
 
STATE INR/R/MR; IIP/R/MR; WHA/PD 
 
DEPT PASS USTR 
 
USDOC 4322/MAC/OLAC/JAFEE 
E.O. 12958: N/A 
TAGS: KMDR OPRC OIIP ETRD XM XR BR
SUBJECT: GLOBAL ECONOMY; BOLIVIA 
 
¶1. Superpowers 
 
Editorial in liberal Folha de S. Paulo (09/19) says: "Due to a lack 
of a fiscal device to deal with the crisis, the Bush administration 
decides, without criteria, on the life and death of the companies. 
In times of war, the Chief of State use to have a special mandate, 
which temporarily increases the limits of his power. Something 
similar happens now with U.S. economic authorities, because a 
violent crisis devastates the country.  The Treasury and FED's 
actions break down borders without resistance.... The power of 
deciding between the life and death of the giant financial 
institutions - without explicit criteria, in long and obscures 
meetings in New York and Washington - brings together more 
instability to the scenario... Implicit in this uncertainty that 
surrounds the Bush administration is the lack of a systematic 
solution for the crisis - which certainly contributes to the 
weakening of the Republican administration, unpopular and at the end 
of a mandate...bringing inconvenience to John McCain's candidacy, 
already suffering because of the crisis." 
 
¶2. Imprudent Remark 
 
Editorial in liberal Folha de S. Paulo (09/19) comments: "The 
Bolivian crisis gives signs of weakening while fragile negotiations 
between Evo Morales and opposing governors advance.  President Lula, 
however, made a mistake when commenting on the expulsion of the U.S. 
Ambassador from Bolivia, accused of conspiracy with the opposition. 
Although Lula's support of Morales' position was conditional - "in 
the case of the Ambassador [US] he has interfered in the country's 
issues," - it was an imprudent remark, not in accordance with the 
neutrality Brazil pursues. In diplomacy, words matter - and the 
Brazilian authorities should measure very well all their words 
before referring to the Bolivian crisis.  The issue of the U.S. 
Ambassador's expulsion matters only to Bolivia and the U.S." 
White