VZCZCXYZ0020
OO RUEHWEB

DE RUEHSO #0146 0752012
ZNR UUUU ZZH
O 162012Z MAR 09
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9017
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 0167
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 9063

UNCLAS SAO PAULO 000146 
 
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 XM XR XF BR
SUBJECT: Media Reaction Sao Paulo; March 14- 2009 
 
Global Economy:  Financial market crisis; Sao Paulo 
March 14, 2009 
 
Title-"Thinking on the unthinkable" 
 
Op-ed in liberal Folha de S. Paulo (3-14) by Clovis Rossi states: 
"...estimates show that two thirds of the roughly US$2 trillion of 
China's reserves are in U.S. assets, especially Treasuries.  It is 
natural, therefore, that they [China] are worried.... Since the 
aggravation of the global crisis, in the last quarter of last year, 
the word default began to be seen, initially timidly, in association 
to the U.S.....the fact is that [China's prime minister] Wen Jiabao 
said that China's first priority is to defend its own interests, 
even if the other eye is on international financial stability, 
things that are 'interrelated'.  Is this a gesture in the sense that 
China may stop financing the U.S.?  If this is the case, everyone 
will lose." 
 
Title- "Troubled government" 
 
Editorial in center-right O Estado de S. Paulo (3-14) says: "The 
summer comes to an end....and the government is still troubled, 
without knowing how to face a crisis much bigger than the one 
President Luiz Inacio Lula da Silva wanted to acknowledge until 
shortly ago....There is no way to deny the extension of the crisis. 
The [Brazilian] economy contracted in the fourth 
quarter.....President Lula does not know how to face Brazil's 
problems but has many ideas of how to fix the U.S. economy and how 
to put international finance back in order again.....Brazil's 
situation will be better, of course, if the global economy bounces 
back, but there is no sense in waiting for this change.  The global 
crisis is the biggest challenge, but it does not excuse the 
Brazilian government's lack of action." 
WHITE