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Cablegate: Media Reaction: Mideast: Israel; Western Hemisphere:

VZCZCXYZ0007
OO RUEHWEB

DE RUEHSO #0368 1231431
ZNR UUUUU ZZH
O 031431Z MAY 07
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6859
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 7991
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 8025
RUCPDOC/USDOC WASHDC 2773

UNCLAS SAO PAULO 000368

SIPDIS

SIPDIS

STATE INR/R/MR; IIP/R/MR; WHA/PD

DEPT PASS USTR

USDOC 4322/MAC/OLAC/JAFEE
E.O. 12958: N/A
TAGS: KMDR OPRC OIIP ETRD BR
SUBJECT: MEDIA REACTION: MIDEAST: ISRAEL; WESTERN HEMISPHERE:
VENEZUELA, IMF; SAO PAULO


1. "Report Converts Israel Into 'Razed Land'"

Center-right national circulation daily O Estado de S. Paulo's Paris
correspondent Giles Lapouge commented (5/3): "Following the
preliminary conclusions of the Winograd Committee report on the war
between Israel and Lebanon last year, Prime Minister Ehud Olmert has
almost nothing left.... The episode is a turning point in Israel's
history.... The Israeli Army obtained a series of victories during
50 years and became a military power.... The Israeli defeat has had
devastating political effects: the Middle East's geo-strategic
landscape has been changing.... Lebanese Hezbollah may take
advantage of the current demoralizing situation Israel is facing to
attack once again."

2. "One Less Ally?"

IMF Executive Director [representing Brazil and eight other South
American and Caribbean nations] Paulo Nogueira Batista wrote in
liberal, largest national circulation daily Folha de S. Paulo (5/3):
"President Hugo Chvez announced that Venezuela will withdraw from
the IMF and the World Bank.... Chvez's decision has a component
that is understandable. Both the IMF and the World Bank are
institutions strongly controlled by the U.S. and other developed
nations. IMF-supported policies were frequently inadequate and
helped to worsen the economic and political situation of nations
that were obliged to resort to its loans.... However, President
Chvez's decision is deplorable, and I hope that it will not be
confirmed.... For Brazil and other South American nations,
Venezuela's withdrawal would be a major loss. It represents one less
ally in the current discussions on IMF reform.... Perhaps there is
still time for the GOB to exert a moderating role and help to
prevent a hasty decision that might isolate Venezuela and weaken its
South American allies."
McMullen

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