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Cablegate: Portugal's Take-Aways From the Luso-Brazilian

VZCZCXRO2440
PP RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHLI #2690 3090927
ZNR UUUUU ZZH
P 040927Z NOV 08
FM AMEMBASSY LISBON
TO RUEHC/SECSTATE WASHDC PRIORITY 7135
INFO RUCNMEM/EU MEMBER STATES PRIORITY
RUEHBR/AMEMBASSY BRASILIA PRIORITY 0373
RUEHSO/AMCONSUL SAO PAULO PRIORITY 0058

UNCLAS LISBON 002690

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ETRD ECON PGOV BR PO
SUBJECT: PORTUGAL'S TAKE-AWAYS FROM THE LUSO-BRAZILIAN
SUMMIT

1. (U) SUMMARY. On October 28, Brazil hosted the Ninth
Luso-Brazilian Summit in Salvador, Brazil. The summit is
held biennially to discuss common bilateral agendas, and this
year included discussions on the financial crisis, the status
of the Doha Round and the signing of ten bilateral commercial
agreements. Portuguese PM Socrates and Brazilian President
Lula da Silva affirmed support for each other's UNSC
aspirations, as well as for making Portuguese as an official
UN language. END SUMMARY.

2. (U) At the Ninth Luso-Brazilian Summit, held this year in
Brazil on October 28, both Portuguese PM Jose Socrates and
Brazilian President Lula da Silva praised growth in bilateral
trade and pledged to seek additional areas for cooperation.
From 2005 to 2007, two-way trade between Portugal and Brazil
grew by 72 percent to total 1.5 billion euros. Foreign
direct investment also increased: Portuguese investment in
Brazil is estimated at 6.7 billion euros and Brazilian
investment in Portugal is about 790 million euros.

3. (U) The two leaders also signed ten bilateral commercial
agreements in the areas of energy (MOUs on biofuels and other
alternative sources), road construction, wine production, and
telecom cooperation. Both Socrates and Lula reinforced their
support for UN Security Council reform leading to a permanent
Brazilian seat and support for Portugal's candidacy for a
2011-2012 rotating seat. They also committed to promote
Portuguese as an official language at the UN and other
institutions.

4. (SBU) COMMENT. Relations with the Lusophone world are a
key pillar of Portuguese diplomacy, so the summits with
Brazil matter here. They matter because the Lusophone
community is an area where Portugal, a small player on the EU
stage, can show some leadership. That the symbolism and
press play were the most important take-aways for Lisbon is
demonstrated by PM Socrates leading a high-level delegation
for what amounts to a handful of useful, but small,
commercial deals. While Brazil's economy is eight times
larger and far more diverse than Portugal's, Lisbon sees
itself as a key partner for Brazil and all Portuguese
speaking countries, as well as those countries' interface
with the EU. END COMMENT.
STEPHENSON

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