VZCZCXRO2840
RR RUEHRG
DE RUEHBR #0092/01 0221831
ZNR UUUUU ZZH
R 221831Z JAN 09
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 3394
INFO RUEHSO/AMCONSUL SAO PAULO 3430
RUEHRI/AMCONSUL RIO DE JANEIRO 7176
RUEHRG/AMCONSUL RECIFE 8993

UNCLAS SECTION 01 OF 02 BRASILIA 000092 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL ENRG SENV MARR KGHG EFIN BR
SUBJECT:  BRAZIL'S STRATEGIC PLANNING MINISTER ON BUILDING BLOCKS 
FOR AN ENHANCED RELATIONSHIP 
 
REF: 2008 BRASILIA 124 
 
THIS CABLE IS SENSITIVE BUT UNCLASSIFIED AND NOT INTENDED FOR 
INTERNET DISTRIBUTION. 
 
¶1.  (SBU) SUMMARY.  Following on his early January trip to 
Washington, Brazilian Strategic Planning Minister Roberto Mangabeira 
Unger laid out the elements for a broader, more robust bilateral 
relationship with the Obama Administration.  These include 
cooperation in the areas of defense security, biofuels and climate 
change, responding to the financial crisis in a more expansive 
manner, education, and supporting small and medium-size enterprises. 
 Overall, Unger voiced the view that the United States and Brazil 
are friends and should now look for ways to strengthen their 
relationship.  He has recommended to President Lula that the 
Government of Brazil (GOB) take the initiative in seeking to 
construct this new, stronger bilateral relationship as soon as 
possible.  END SUMMARY 
 
¶2.  (SBU) On January 21, Unger outlined for Ambassador Sobel his 
views on enhancing the bilateral relationship between the United 
States and Brazil.  Unger, who is also a Harvard law professor and 
was an instructor for President Obama when he studied there, 
stressed his view that the United States is a friend of Brazil and 
that there should be closer relations between the two countries.  He 
envisioned greater cooperation based on the following building 
blocks: 
 
-- Defense and Security Cooperation.  Unger saw good prospects for 
joint research and joint manufacturing in this field.  Further, he 
thought there was room for an exchange of people and ideas between 
the two governments.  He had discussed this theme with Admiral 
Stavridis of Southern Command and Richard Danzig.  (NOTE: Unger said 
that sale of the F-18 was raised in every meeting he held in 
Washington, but he publicly stated following his trip to Washington 
that he does not believe the aircraft purchase is the best way for 
Brazil to pursue a defense technology partnership with the United 
States.  END NOTE.) 
 
-- Biofuels and Climate Change.  The United States and Brazil are 
the two leading countries in the world in producing and consuming 
biofuels.  Unger suggested working together to make biofuels a world 
commodity.  For the longer term, he advocated increased joint 
research on the next generation of biofuels.  When asked about 
cooperation revolving around deforestation under the topic of 
climate change, Unger demurred.  He replied that he didn't see this 
as a focal point for enhanced cooperation.  (COMMENT: Unger has 
responsibility for overseeing the government's Sustainable Amazon 
Plan, which seeks to promote sustainable development for the 20 
million inhabitants of the Brazilian Amazon region.  Massive, 
ongoing deforestation accounts for the vast majority of Brazil's 
greenhouse gas emissions and puts Brazil in the ranks of the top ten 
emitters.  The GOB is extremely sensitive about its inability, up to 
now to stem deforestation and concerned that the United States 
might, along with other countries, use this as justification to 
interfere in Brazil's sovereign management of the Amazon.  Views 
within the GOB and broader Brazilian society vary enormously with 
regard to how best to address deforestation, which probably explains 
Unger's stance that it is not ripe for cooperation.  Nonetheless, 
possibilities for cooperation do exist.  In a conversation earlier 
the same day, Governor Eduardo Braga of Amazonas State, home to the 
largest swath of Brazil's Amazon rainforest, was eager to discuss 
ways he is already working in his state, with U.S. and other 
companies, and with foreign governments to protect the forest in 
Amazonas State.  He identified Unger as the lead federal official 
working on Amazon sustainable development matters.  END COMMENT.) 
 
-- Joint Response to the Financial Crisis.  Unger lamented the 
current "shallow" approach to the financial crisis, which he said 
focused on two traditional items:  (1) improving regulation of the 
financial markets; and (2) providing a Keynesian stimulus.  He felt 
that President Obama would be open to a broader, more robust 
approach, though he worried that many of Obama's economic advisers 
were too traditional in their approach.  He advocated broadening the 
response to the financial crisis by adding a focus in three areas: 
(1) addressing the international structural imbalance between 
savings and trade; (2) reshaping investment patterns so that more of 
savings goes toward long-term capital investments that will then 
contribute to growth rather than to short-term financial 
investments; and (3) linking the recovery efforts to a broader 
redistribution of wealth.  (NOTE: Unger prepared a lengthy paper in 
December, which President Lula authorized him to send to the 
President-elect, that outlined his ideas for resolving the crisis. 
Embassy passed a copy of the paper to WHA/BSC.  END NOTE.) 
 
-- Education.  Unger stated that both countries could work together 
on education, especially in the area of local management of national 
standards. (NOTE: He has repeatedly raised this idea with us.  See 
 
BRASILIA 00000092  002 OF 002 
 
 
REFTEL.  END NOTE.) 
 
-- Small and Medium-size Enterprises (SMEs).  He wanted to see 
collaboration on how to foster and support SMEs.  In light of the 
role these businesses will play in the economic recovery, helping 
these businesses is now even more critical. (NOTE: He has repeatedly 
raised this idea with us.  See REFTEL.  END NOTE.) 
 
¶3.  (SBU) Unger said attention needed to be paid to the process or 
mechanism that could bring all these disparate themes together.  He 
also suggested that cooperation in these areas could be extended 
beyond a bilateral relationship to one for the Western Hemisphere. 
Although Unger said he does not put much stock in multilateral 
meetings like the April Summit of the Americas, he agreed that it 
could be useful in endorsing agreements reached through other means. 
 Unger again mentioned the possibility of a trilateral presidential 
initiative with Mexico, and noted that he had just been in Colombia, 
where officials had agreed to a new effort to intensify cooperation 
along their common Amazon border. 
 
¶4.  (SBU) Unger said he had recommended to President Lula just last 
week that Brazil should take the initiative in engaging the new U.S. 
administration.  He wants to go to Washington as soon as possible, 
either alone or with other officials, to meet with a broad segment 
of USG officials.  In particular, he thought it important to have 
meetings well in advance of the Summit of Americas because he sees 
the possibility for new U.S.-Brazil initiatives to act as a 
"vanguard" for broader hemispheric projects. 
 
¶5.  (SBU) COMMENT.  Unger's interest in moving quickly to strengthen 
and deepen the bilateral relationship is one we are hearing from 
other senior officials and seem to reflect Lula's own views.  Unger 
has used his supposed ties to Obama transition team members to gain 
a prominent early role in shaping how the GOB approaches the new 
U.S. Administration.  In his favor, Unger has concrete ideas on 
where the relationship could expand.  However, he has stirred public 
controversy with many of his ministerial colleagues and has butted 
heads with the Foreign Minister and other senior GOB officials. 
Post will continue to discuss with Unger, as we are doing with other 
senior officials (SEPTEL), the possible substance and timing of 
early visits in both directions.   END COMMENT. 
 
SOBEL