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Cablegate: Rio de Janeiro Pol/Econ Round-Up, June 2008

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FM AMCONSUL RIO DE JANEIRO
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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

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