VZCZCXYZ0003
OO RUEHWEB

DE RUEHSO #0187 0851809
ZNR UUUUU ZZH
O 261809Z MAR 09
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9062
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 0206
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 9081

UNCLAS SAO PAULO 000187 
 
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 - GLOBAL ECONOMY: UPCOMING G-20 SUMMIT; 
FINANCIAL MARKET CRISIS; STIMULUS PACKAGES; PROTECTIONISM; WESTERN 
HEMISPHERE: MEXICO, NARCO-RELATED VIOLENCE AND BORDER SECURITY; SAO 
PAULO 
 
"Cartels in Mexico" 
 
Editorial in liberal A Folha de S. Paulo (3-26) says: "....It is 
positive that U.S. Secretary of State, Hillary Clinton, who is 
visiting Mexico, acknowledged yesterday without excuses, the role of 
the American demand for drugs in feeding the traffic. The 
acknowledgement increases the chances of more promising anti-drugs 
cooperation in North America. So far, the trend was to attribute 
mainly to the Mexican government the responsibility to fight the 
problem." 
 
"Trade Wars" 
 
Op-ed in liberal A Folha de S. Paulo (3-26) by Kenneth Maxwell 
states:  "....U.S. Secretary of State, Hillary Clinton, will be in 
Mexico until today. President [Barack] Obama will meet President 
Felipe Calderon in mid-April, on his way to the Summit of the 
Americas, in Trinidad Tobago. The current [bilateral] situation 
requires an honest talk on trade, drugs and bilateral relations. The 
U.S. would do well if it listens to what Mexico has to say. The 
conversation will not be the same it used to be." 
 
"Recalibrated IMF" 
 
Main editorial in center-right l Estado de S. Paulo (3-26) by 
Kenneth Maxwell states:  "More money to the International Monetary 
Fund (IMF) to help economies affected by the crisis should be one of 
the main decisions - maybe the principal one - at the summit of the 
20 largest developed and emerging countries, to be held next 
Wednesday in London. The line is getting longer at IMF's door, thus, 
increasing the urgency for resources toward loans and the adoption 
of more agile and flexible policies. IMF directors have made 
progress in reforming policies and the institution appears to be 
prepared to act fast in order to help countries with problems. G20 
Heads of States will arrive to London with many speeches and 
proposals, of which some may be accepted. However, the most concrete 
agenda thus far has been prepared by [IMF Managing- Director] 
Strauss-Kahn and his colleagues." 
 
"Decreasing Trade, increasing protectionism" 
 
Op-ed in center-right l Estado de S. Paulo (3-26) by congressmen and 
former Finance Minister Antonio Palocci, who states:  "....As long 
as the financial crisis is not resolved it will be very difficult to 
have a sustainable rebound of international trade. The challenge, 
therefore, is to compensate these losses - even if partially - 
without moving towards protectionism, which starts to reappear as a 
defense mechanism in many countries....In order to deal with these 
new challenges, countries like Brazil (as well as China) have the 
advantage of having a large domestic market and a low corporate and 
household debt. Therefore, if the health of the financial system and 
fiscal area are preserved, there will be room for credit expansion 
and for the economy to be kept alive, without weakening external 
accounts, which is always the greatest risk to growth." 
WHITE