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Cablegate: Global Economy; Bolivia

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OO RUEHWEB

DE RUEHSO #0490 2631158
ZNR UUUUU ZZH
O 191158Z SEP 08
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8528
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 9660
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 8853
RUCPDOC/USDOC WASHDC 3175

UNCLAS SAO PAULO 000490

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 XM XR BR
SUBJECT: GLOBAL ECONOMY; BOLIVIA

1. Superpowers

Editorial in liberal Folha de S. Paulo (09/19) says: "Due to a lack
of a fiscal device to deal with the crisis, the Bush administration
decides, without criteria, on the life and death of the companies.
In times of war, the Chief of State use to have a special mandate,
which temporarily increases the limits of his power. Something
similar happens now with U.S. economic authorities, because a
violent crisis devastates the country. The Treasury and FED's
actions break down borders without resistance.... The power of
deciding between the life and death of the giant financial
institutions - without explicit criteria, in long and obscures
meetings in New York and Washington - brings together more
instability to the scenario... Implicit in this uncertainty that
surrounds the Bush administration is the lack of a systematic
solution for the crisis - which certainly contributes to the
weakening of the Republican administration, unpopular and at the end
of a mandate...bringing inconvenience to John McCain's candidacy,
already suffering because of the crisis."

2. Imprudent Remark

Editorial in liberal Folha de S. Paulo (09/19) comments: "The
Bolivian crisis gives signs of weakening while fragile negotiations
between Evo Morales and opposing governors advance. President Lula,
however, made a mistake when commenting on the expulsion of the U.S.
Ambassador from Bolivia, accused of conspiracy with the opposition.
Although Lula's support of Morales' position was conditional - "in
the case of the Ambassador [US] he has interfered in the country's
issues," - it was an imprudent remark, not in accordance with the
neutrality Brazil pursues. In diplomacy, words matter - and the
Brazilian authorities should measure very well all their words
before referring to the Bolivian crisis. The issue of the U.S.
Ambassador's expulsion matters only to Bolivia and the U.S."
White

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