This record is a partial extract of the original cable. The full text of the original cable is not available.
141306Z Oct 05
UNCLAS BRASILIA 002745
SIPDIS
OFFICIAL-INFORMAL FOR TREASURY D/S KIMMITT, U/S ADAMS AND
DAS NANCY LEE
E.O. 12958: N/A
TAGS: ECON AMGT
SUBJECT: OFFICIAL-INFORMAL
REF: BRASILIA 1993
1. In Reftel, post made the case for maintaining a Treasury
Attache presence in South America, observing that the
current incumbent of the position, posted in Buenos Aires,
helps provide vital coverage of macro-economic and
international financial developments in Brazil. Events
since then have only underscored the importance of this.
Local financial markets have oscillated dramatically as
investor attitudes have swung between pessimism and
enthusiasm. Given the strength of the real and high returns
on local bonds, Brazil has assumed an even higher profile
among the emerging markets. As Secretary Snow's successful
August 1 to 3 trip to Brazil demonstrated, now is not the
time for Treasury to retreat from Latin America.
2. Indeed, we would urge Treasury to consider not only
maintaining the Attache position on the books, but moving it
to Sao Paulo - the financial center of South America. In
Sao Paulo, the Attache would be able to easily tap the
expertise of the city's extensive community of private
sector market analysts, while, given the excellent
international air connections the city offers, would be a
short plane ride from the region's other capitals.
3. As Treasury WashDC's thinking on these issues develops,
we would appreciate the opportunity to further weigh in on
this debate.
DANILOVICH