Cablegate: Media Reaction - Fx-2 Bid; Draft Bill Waxman-Markey

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TO RUEHC/SECSTATE WASHDC IMMEDIATE 9582
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RUEHBR/AMEMBASSY BRASILIA PRIORITY 0719
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 9249

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TAGS: KMDR OPRC OIIP XM XR XF BR
SUBJECT: MEDIA REACTION - FX-2 BID; DRAFT BILL WAXMAN-MARKEY

"Theatrical Blow?"

Editorial in center-right O Estado de S. Paulo (9-11) says: "....The
more we know the circumstances that led to President Lula's
announcement to purchase the 36 fighter planes from France, the less
his decision making process can be taken seriously....The first
consequence of this type of move...is a loss of
confidence.....[Lula's international advisor Marco Aurelio Garcia]
will soon find out that there is no such a thing as unrestricted
technology transfer...."

"New risk to exports"

Op-ed in liberal Folha de S. Paulo (9-11) by Brazilian Minister of
Industry and Trade Miguel Jorge states: "The Waxman-Markey draft
bill (American Clean Energy and Security Act) may have a big impact
on Brazilian exports and therefore should get special attention from
the Brazilian government and from the private sector....it brings
two worrisome measures for our foreign trade: a program to grant
subsidies to U.S. industries....and a program that imposes the
requirement of purchasing licenses......Brazil is facing an
estimated threat....of one third of ours exports to the U.S.....The
Waxman-Markey draft bill may represent a significant change in the
world's industrial production paradigm....but this praise-worthy aim
cannot happen at the expense of developing countries' foreign trade
and in disregard of multilateral trade rules."
WHITE

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