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Cablegate: Despite Challenges, Prc,S Interest and Influence

VZCZCXRO8151
PP RUEHCN RUEHGH RUEHRG
DE RUEHSO #0718/05 2341829
ZNY CCCCC ZZH
P 221829Z AUG 07
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC PRIORITY 7385
INFO RUEHAC/AMEMBASSY ASUNCION 3078
RUEHBJ/AMEMBASSY BEIJING 0463
RUEHBO/AMEMBASSY BOGOTA 1589
RUEHBR/AMEMBASSY BRASILIA 8494
RUEHBU/AMEMBASSY BUENOS AIRES 2832
RUEHCV/AMEMBASSY CARACAS 0538
RUEHLP/AMEMBASSY LA PAZ 3446
RUEHPE/AMEMBASSY LIMA 1178
RUEHME/AMEMBASSY MEXICO 0810
RUEHMN/AMEMBASSY MONTEVIDEO 2407
RUEHNE/AMEMBASSY NEW DELHI 0070
RUEHQT/AMEMBASSY QUITO 0549
RUEHSG/AMEMBASSY SANTIAGO 2109
RUEHCN/AMCONSUL CHENGDU 0005
RUEHGZ/AMCONSUL GUANGZHOU 0013
RUEHHK/AMCONSUL HONG KONG 0488
RUEHRG/AMCONSUL RECIFE 3733
RUEHRI/AMCONSUL RIO DE JANEIRO 8275
RUEHGH/AMCONSUL SHANGHAI 0007
RUEHSH/AMCONSUL SHENYANG 0006
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFISS/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RHEHNSC/NSC WASHDC

C O N F I D E N T I A L SECTION 05 OF 05 SAO PAULO 000718

SIPDIS

SIPDIS

STATE FOR WHA/FO, WHA/BSC, WHA/EPSC, OES (JEFF MIOTKE AND
ANN COVINGTON), EAP (JOY YAMAMOTO) AND EEB (TED SAEGER).
STATE PASS USTR FOR KATE DUCKWORTH
NSC FOR TOMASULA
TREASURY FOR OASIA JHOEK

E.O. 12958: DECL: 08/21/2017
TAGS: PREL SENV ETRD EINV ECON PGOV EMIN KNNP BR CH
SUBJECT: DESPITE CHALLENGES, PRC,S INTEREST AND INFLUENCE
IN BRAZIL AND SOUTH AMERICA CONTINUE TO GROW

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SAO PAULO 00000718 005 OF 005


Brazilian iron ore, minerals, and grains, and Brazil wants
better access to the Chinese market. Brazil is also seeking
foreign investment, especially for infrastructure
improvements, and Chinese companies have a desire to invest
in this area as well. While significant factors hinder an
immediate wave of major PRC investment and activity, the
Chinese tide appears to be coming.

15. (C) The GoB and Brazilian industry express ambivalence
about deepening economic relationships with China. One of
the factors in Brazil's reluctance to reduce the Swiss
co-efficient factor during the current Doha discussions is
what is perceived to be a threat to Brazilian industry from
lower-cost Chinese imports (ref B-C). Brazilian mining
industry executives have told EmbOffs they are concerned
about increasing Chinese influence over both natural
resources and the distribution/transportation infrastructure
needed to export these resources to distant markets. In the
future, they warned, the USG would need to pay greater
attention to where its raw materials would come from, as
China hopes to lock up both South America and Africa as its
suppliers (ref D).

16. (U) This cable was coordinated with Embassy Brasilia.

WHITE

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