VZCZCXRO2440
PP RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHLI #2690 3090927
ZNR UUUUU ZZH
P 040927Z NOV 08
FM AMEMBASSY LISBON
TO RUEHC/SECSTATE WASHDC PRIORITY 7135
INFO RUCNMEM/EU MEMBER STATES PRIORITY
RUEHBR/AMEMBASSY BRASILIA PRIORITY 0373
RUEHSO/AMCONSUL SAO PAULO PRIORITY 0058

UNCLAS LISBON 002690 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD ECON PGOV BR PO
SUBJECT: PORTUGAL'S TAKE-AWAYS FROM THE LUSO-BRAZILIAN 
SUMMIT 
 
¶1. (U) SUMMARY.  On October 28, Brazil hosted the Ninth 
Luso-Brazilian Summit in Salvador, Brazil.  The summit is 
held biennially to discuss common bilateral agendas, and this 
year included discussions on the financial crisis, the status 
of the Doha Round and the signing of ten bilateral commercial 
agreements.  Portuguese PM Socrates and Brazilian President 
Lula da Silva affirmed support for each other's UNSC 
aspirations, as well as for making Portuguese as an official 
UN language.  END SUMMARY. 
 
¶2. (U) At the Ninth Luso-Brazilian Summit, held this year in 
Brazil on October 28, both Portuguese PM Jose Socrates and 
Brazilian President Lula da Silva praised growth in bilateral 
trade and pledged to seek additional areas for cooperation. 
From 2005 to 2007, two-way trade between Portugal and Brazil 
grew by 72 percent to total 1.5 billion euros.  Foreign 
direct investment also increased: Portuguese investment in 
Brazil is estimated at 6.7 billion euros and Brazilian 
investment in Portugal is about 790 million euros. 
 
¶3. (U) The two leaders also signed ten bilateral commercial 
agreements in the areas of energy (MOUs on biofuels and other 
alternative sources), road construction, wine production, and 
telecom cooperation.  Both Socrates and Lula reinforced their 
support for UN Security Council reform leading to a permanent 
Brazilian seat and support for Portugal's candidacy for a 
2011-2012 rotating seat.  They also committed to promote 
Portuguese as an official language at the UN and other 
institutions. 
 
¶4. (SBU) COMMENT.  Relations with the Lusophone world are a 
key pillar of Portuguese diplomacy, so the summits with 
Brazil matter here.  They matter because the Lusophone 
community is an area where Portugal, a small player on the EU 
stage, can show some leadership.  That the symbolism and 
press play were the most important take-aways for Lisbon is 
demonstrated by PM Socrates leading a high-level delegation 
for what amounts to a handful of useful, but small, 
commercial deals.  While Brazil's economy is eight times 
larger and far more diverse than Portugal's, Lisbon sees 
itself as a key partner for Brazil and all Portuguese 
speaking countries, as well as those countries' interface 
with the EU. END COMMENT. 
STEPHENSON