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DE RUEHRG #0060/01 2671733
ZNR UUUUU ZZH
R 241733Z SEP 09
FM AMCONSUL RECIFE
TO RUEHC/SECSTATE WASHDC 0815
INFO RUEHBR/AMEMBASSY BRASILIA 0987
RUEHSO/AMCONSUL SAO PAULO 0416
RUEHRI/AMCONSUL RIO DE JANEIRO 0427
RUEHRG/AMCONSUL RECIFE 1053

UNCLAS SECTION 01 OF 02 RECIFE 000060 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: BR PGOV ECON EPET
SUBJECT: LULA TOUTS JOBS AND CAMPOS IN NORTHEAST 
 
¶1.  Summary  (SBU) During a visit to the Suape port on September 
11, President Lula heaped praise on Governor Eduardo Campos 
(PSB), in his fifth visit to Pernambuco this year, fueling 
speculation that PT will offer Campos a high profile role - 
possibly the vice-presidency - in the upcoming presidential 
campaign .  With Lula enjoying solid support in the Northeast, 
the event did not have any of the trappings of a campaign rally 
but felt more like a victory celebration.  During events aimed 
at highlighting new industrial investment and jobs in the 
region, Lula lauded the dynamic growth in the Northeast and the 
strength of the Brazilian economy more generally amid the world 
financial crisis. Even though the day in Suape was all about the 
economy, commentators noted that PT prospective presidential 
candidate Dilma Rousseff did not attend due to medical reasons 
and was hardly mentioned in the speeches.  Dilma's apparent 
failure to carry over Lula's high popularity levels in the 
Northeast has raised the value of electoral support from Campos, 
who has been courted heavily by PSDB leaders Jose Serra and 
Aecio Neves in recent months. End summary. 
¶2.  (U) President Lula inaugurated the fifth dock in the 
Northeast's largest port, and construction of the first Suezmax 
tanker at the Atlantico Sul shipyard, and also visited a new 
flour mill, all at the Port of Suape industrial zone; he then 
inaugurated two federal research labs at the UFPE campus.  The 
shipyard event featured speeches from Transpetro chairman Sergio 
Machado, Estaleiro Atlantico Sul president Angelo Bellelis, 
Petrobras CEO Sergio Gabrielli, Pernambuco Governor Eduardo 
Campos, capped by an emotional half-hour speech from President 
Lula.  Machado and Bellelis signed a contract for seven more 
tankers (for a total of 22) and Gabrielli announced an order for 
28 deep-sea drilling rigs, a $495m investment that should create 
8500 additional local jobs.  Lula, three of his federal 
ministers, Governor Campos, and various federal deputies, CEOs, 
trade unionists, and local officials were on stage and in the 
audience Lula also recognized officials from Venezuela's PdVSA 
and from South Korea's SungDong corporation. 
¶3.  (SBU) Minister Dilma Rousseff was originally scheduled to 
participate in the events, but was undergoing medical treatment 
and was only mentioned once, and not by Lula.  Her absence 
served as a reminder that she may not be sufficiently healthy 
for a vigorous campaign next year and also coincided with the 
release of new polls that showed probable PSDB candidate Jose 
Serra widening his lead over her - largely due to Dilma's 
inability to retain Lula's large advantage in the Northeast . 
With the announcement by Marina Silva that she will run with the 
Green Party and Ceara's Federal Deputy, former Governor, and 
former presidential candidate Ciro Gomes (PSB) publicly 
indicating his interest in a run, Dilma's vulnerability has 
prompted rumors Lula may turn to Campos to shore up the ticket. 
Campos is frequent visitor in Brasilia and traveled to the 
capital the week before and the week after the Suape event, 
publicly participating in negotiations on infrastructure 
investments under the accelerated growth program (PAC) and the 
pre-salt royalties revenue-sharing debate. 
Lula's Governor 
¶4.  (SBU) Lula praised Campos as a strong, new kind of leader 
for the Northeast and emphasized the importance of the project 
in creating jobs and decentralizing Brazil's economy beyond the 
Southeast.  Lula significantly referred to the Governor of his 
state of birth as an `achado de deus' - or gift from god - for 
Pernambuco, citing the fact that Campos puts the national and 
regional interest ahead of narrow state concerns, unlike 
previous Northeastern governors who bickered over federal funds. 
 Campos served in Lula's first-term cabinet as Minister of 
Science and Technology, and as a federal deputy before his 2006 
election as Governor.  He is the political heir of his 
grandfather, the three-time governor Miguel Arraes, who was a 
close political ally of Lula and who was imprisoned and exiled 
during the military regime.  The 44-year-old Campos is a gifted 
politician and strategic campaigner who knows how to employ a 
populist touch, while still maintaining his image as a competent 
administrator and economist attracting investment to the state. 
Investment and Jobs for Pernambuco 
¶5.  (U) At the Atlantico Sul event, Lula applauded Gabrielli's 
decision to opt for creating a new Brazilian shipyard over 
purchasing foreign-produced ships from Korea and congratulated 
the thousands of workers in the audience.  Petrobras opted to 
pay more for the tankers than the cost of buying from Korea as 
part of policy to revive domestic shipbuilding.  Echoing Campos' 
message touting the growth of the NE economy, he said that five 
years ago it would have been unimaginable for the sons of 
cane-cutters to hold industrial jobs.  Lula also used the 
campaign-rally-style address to criticize the Washington 
consensus and economic policies of previous governments and 
lament that fact that the 80s and 90s did not create enough 
engineering jobs for the Northeast.  He gave credit to 
low-income Brazilians' continued consumption for saving the 
country from the effects of the global crisis.  Lula's overall 
theme for the event was that "today is the day Brazilian's start 
 
RECIFE 00000060  002 OF 002 
 
 
believing in themselves." 
¶6.  (U) The Lula visit received extensive and positive 
television and press coverage in Recife with full-page cover 
stories and pages of articles and graphics celebrating the 9000 
jobs at the shipyard, and the projection of 2000 more with the 
signing of the contract for seven additional tankers, bringing 
the total Petrobras order to 22.  Lula's characterization of 
Eduardo Campos as a godsend and Pernambuco's 6% GDP growth 
beating China's (compared to 2% nationally) also garnered wide 
coverage, in addition to other expansion at Suape and the new 
research labs. 
Campos in 2010? 
¶7.  (SBU) Comment: A beaming Lula together again with Campos 
provided a picture of a successful up-and-coming governor from a 
state on the move economically.  While it is still perhaps a 
long shot that Campos will actually be chosen as vice president, 
given the strong alliance between PT and PMDB (and especially 
Chamber of Deputies President Michel Temer, most post contacts 
confirm that Campos is interested in higher office.  Some even 
see him as a potential dark horse presidential candidate, if 
Dilma stumbles or is unable to run and Ciro fails to gain 
traction with PT supporters.  Either as a dynamic and popular 
Northeasterner to balance a ticket led by Dilma, or as a viable 
back-up at the top of the ticket, Campos seems focused on more 
than just re-election in Pernambuco.  One post contact close to 
the governor sees the charismatic Campos as someone who could 
run an engaging campaign, holding his own against the PSDB's 
Serra one-on-one in the 2010 presidential race.  PSDB is aware 
of Campos' clout and potential and will also continue courting 
him aggressively.  End comment. 
DEL CORSO