VZCZCXRO1695
OO RUEHRG
DE RUEHBR #0953/01 2122130
ZNY SSSSS ZZH
O 312130Z JUL 09
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4793
INFO RUEHAC/AMEMBASSY ASUNCION 7613
RUEHBO/AMEMBASSY BOGOTA 4966
RUEHBU/AMEMBASSY BUENOS AIRES 6313
RUEHCV/AMEMBASSY CARACAS 4423
RUEHLP/AMEMBASSY LA PAZ 6946
RUEHPE/AMEMBASSY LIMA 4298
RUEHMN/AMEMBASSY MONTEVIDEO 7812
RUEHQT/AMEMBASSY QUITO 2757
RUEHSG/AMEMBASSY SANTIAGO 1011
RUEHRG/AMCONSUL RECIFE 9790
RUEHRI/AMCONSUL RIO DE JANEIRO 8047
RUEHSO/AMCONSUL SAO PAULO 4374
RHEHNSC/NSC WASHDC

S E C R E T SECTION 01 OF 02 BRASILIA 000953 
 
NOFORN 
SIPDIS 
 
STATE FOR D, P, AND WHA; NSC FOR GENERAL JONES 
 
E.O. 12958: DECL: 07/31/2019 
TAGS: PREL MASS BR US
SUBJECT: BRAZIL'S LULA GETS INTENSE RE: U.S.-BRAZIL 
RELATIONS IN AMBASSADOR'S FAREWELL CALL 
 
Classified By: Ambassador Clifford Sobel. Reasons: 1.4 (B and D). 
 
¶1.  (S/NF) In a July 27 farewell call on Brazilian President 
Luiz Inacio Lula da Silva, bookended by warm personal 
discussions with Barbara and me, Lula reflected at length and 
with great intensity on Brazil's role in the region and its 
implications for U.S.-Brazil relations.  He believes the 
United States still has significant problems with its image 
and relationship in the hemisphere, but that President Obama 
might be able to overcome these problems.  Just back from a 
MERCOSUL Summit in Paraguay, Lula mused that, even though 
there are problems in the region--he mentioned Bolivia's Evo 
Morales, in particular--it is a "peaceful region," and 
"Brazil is a peaceful country."  Although government 
bureaucracy often makes relations difficult, he said, he has 
ensured that Brazil maintains a strong preference for 
accommodating its neighbors; the recent agreement with 
Paraguay on selling Itaipu electricity is an example of this. 
 (Comment: We understand that presidential foreign policy 
advisor Marco Aurelio Garcia overruled objections to the deal 
by the Ministry of External Relations, a dynamic we have 
often seen at play with regard to regional relations.  End 
Comment.) 
 
¶2.  (S/NF) Lula told me that his vision is for Brazil to be 
the fifth largest economy within a decade.  France's 
President Sarkozy understands this, he said, and has offered 
to build their fighter in Brazil.  He contrasted this 
attitude with that of the United States, which refused to 
allow Brazil to sell Super Tucanos to Venezuela, opening the 
door to outside--Russian and Chinese--influence there. 
Brazil needs the tools to deal with its neighbors, Lula said. 
If Bolivia wants Super Tucanos, Lula needs to be able to 
sell them.  Brazil can't afford the type of embarrassment 
caused by not being able to sell Super Tucanos to Venezuela. 
Lula said he understood the importance of the FX-2 fighter 
sale to the United States, and if the meetings between NSA 
General Jones and his counterparts in Brazil go well, Lula 
will look to re-engage President Obama on the matter. 
However, he offered no assurances regarding the sale. 
 
¶3.  (S/NF) Lula said that, although he and President Bush had 
an excellent relationship, Bush "could never bring the State 
Department along in the relationship" and this continues to 
be a problem even now between our bureaucracies.  Stressing 
that much had already been accomplished to strengthen our 
bilateral relationship, he focused on the need to build 
trust, saying he hopes that the United States will continue 
to work with Brazil and will become an even better friend and 
ally of Brazil. 
 
¶4.  (S/NF) Comment:  This farewell call provided singular 
insight into the complexity and tension in Lula,s thinking 
on foreign relations.  Warm, personable, and engaging at the 
beginning and end of the meeting, he carried on an intense, 
almost harsh monologue in the middle.  Unusually, he insisted 
that only his own interpreter, Barbara, and I participate, 
and I believe the fact that he granted the meeting*not 
standard for departing ambassadors*reflects the importance 
he attaches to the relationship with the United States, 
particularly at this moment.  At the same time, his focus on 
leaders*Morales, Sarkozy, Obama*and his negative view of 
bureaucracy provided a clear demonstration of the importance 
Lula attaches to personal relationships in the conduct of 
foreign policy. 
 
¶5.  (SBU) Comment, continued: With our meeting coming on the 
heels of a difficult MERCOSUL summit--a contact present at 
the gathering characterized it as a &dialogue of the deaf,8 
signaling MERCOSUL had reached its limit as an integration 
mechanism--the tension was palpable, as a clearly troubled 
Lula reflected on his role as a guarantor of stability in 
South America, his desire to have a closer relationship with 
President Obama and the new U.S. Administration, and his 
ultimate goal of having Brazil recognized as a major world 
power. 
 
BRASILIA 00000953  002 OF 002 
 
 
SOBEL