VZCZCXRO6660
RR RUEHRG
DE RUEHRI #0171 1821902
ZNR UUUUU ZZH
R 301902Z JUN 08
FM AMCONSUL RIO DE JANEIRO
TO RUEHC/SECSTATE WASHDC 4533
INFO RUEHBR/AMEMBASSY BRASILIA 0874
RUEHSO/AMCONSUL SAO PAULO 5165
RUEHRG/AMCONSUL RECIFE 3437
UNCLAS RIO DE JANEIRO 000171
SIPDIS
E.O. 12958: N/A
TAGS: ENRG EPET EIND PARM CASC PGOV BR
SUBJECT: Rio de Janeiro Pol/Econ Round-Up, June 2008
Summary
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1. The following are highlights of Political/Economic activity in Rio de Janeiro's reporting district during the month
of June 2008. - Three Brazilian Youth Murdered by Rival Drug Dealers After Corrupt Soldiers Turn Them Over - Dual
citizen killed by a military policeman in Rio - Salvador: Return to Legacy Politics? - Brazil Plans to Enrich Own
Uranium by 2014
Three Brazilian Youth Murdered by Rival Drug Dealers After Corrupt Soldiers Turn Them Over
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2. On June 18, the bodies of three young men were discovered after they had been tortured and murdered by rival drug
dealers in Rio de Janeiro. The boys had been abducted by Army soldiers deployed in Morro da Providncia favela (shanty
town) in the central part of the city and "sold" to drug dealers in another favela. The Army had been deployed to Morro
da Providncia to provide security protection for a social project "Cimento Social" sponsored by one of Rio's Mayoral
candidates (and current member of the Senate), Marcelo Crivella.
Dual Citizen Killed By Military Policeman in Rio
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3. Rio's State Attorney Marfan Vieira has promised to thoroughly investigate the murder of student Daniel Duque, 18,
outside an Ipanema night club in the early hours of June 28. Duque was shot by an on-duty military policeman working
security detail for the son of a district attorney. The policeman claims he acted in self defense. The family of Daniel
Duque, however, says he was shot in the back, point-blank. Daniel's father, an American citizen, still resides in the
United States. Although Daniel lived almost his life in Brazil, he was a dual citizen, and the family has requested
support from the U.S. Consulate in Rio to follow the criminal investigation.
Salvador: Return to Legacy Politics?
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4. Salvador's mayoral race marks the likely return of legacy politics to Bahia. The current front-runners are Antonio
Carlos Magalhces Neto (Federal Deputy, also known as "ACM Neto") and Antonio Imbassahy (former Mayor of Salvador). Both
candidates have strong ties to the deceased three-time Governor of Bahia Antonio Carlos Magalhces or "ACM," who long
dominated Bahia politics. ACM Neto is ACM's grandson and Imbassahy was an allied mayor during ACM's tenure. Current
Salvador Mayor Joco Henrique Carneiro was elected as a departure from ACM-politics, and is running for reelection.
However, his administration's low approval ratings suggest that Salvador will vote for a candidate with ties to the ACM
dynasty.
Plans for Private Ethanol Pipeline Challenge Petrobras Monopoly
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6. Cosan SA Industria e Comercio, the world's biggest sugar-cane processor, Cosan and exporting cooperatives Copersucar
and Crystalsev will spend 1.6 billion reais (US $990 million) to build an ethanol pipeline, which will link the city of
Ribeirao Preto to the port of Santos in Sao Paulo state. Currently, Rio-based energy company Petrobras has a monopoly on
ethanol pipeline in Brazil. Cosan predicts that it will become one of Brazil's 10 biggest energy suppliers in four
years, with the capacity to produce 1,300 megawatts of electricity from bagasse, sugar cane's cellulose-rich waste. The
pipeline will transport 14 billion liters (3.7 billion gallons) of ethanol a year, and is expected to cut the price of
its ethanol transport by 35-40 percent, the company announced.
Brazil Plans to Enrich Own Uranium by 2014
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5. At the Annual Symposium of the Latin American Section of the American Nuclear Society held in Rio de Janeiro June
16-20, the Ministry of Energy's Secretary for Planning and Energy Development Altino Ventura predicted that Brazil will
be able to process all of its own uranium for use at its two nuclear power plants, Angra 1 and 2, by 2014. Brazil
currently sends its uranium abroad for industrial-scale processing. MARTINEZ