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Cablegate: Rio Radar - November 4, 2009

VZCZCXRO0049
RR RUEHRG
DE RUEHRI #0364/01 3091525
ZNR UUUUU ZZH
R 051525Z NOV 09
FM AMCONSUL RIO DE JANEIRO
TO RUEHC/SECSTATE WASHDC 0003
INFO RUEHBR/AMEMBASSY BRASILIA 0002
RUEHRG/AMCONSUL RECIFE 0001
RUEHRI/AMCONSUL RIO DE JANEIRO
RUEHSO/AMCONSUL SAO PAULO

UNCLAS SECTION 01 OF 02 RIO DE JANEIRO 000364

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EMIN KNNP SOCI PTER EAIR TSPL CO BR
SUBJECT: Rio Radar - November 4, 2009

REF: RIO DE JANEIRO 346

1. (U) Rio Radar is a regular compilation of key economic,
political, commercial, and other developments in the states of Rio
de Janeiro, Bahia, Minas Gerais, Espirito Santo, and Sergipe. This
week's subjects:

FARC ARMS TRAFFICKING PIPELINE TO RIO DE JANEIRO?

2. (SBU) On October 22, Federal Highway Police Officers in Mato
Grosso seized seven weapons, including five high caliber rifles
(7.62mm), the same type police suspect brought down a military
police helicopter in Rio de Janeiro on October 17 (reftel). Press
reports allege the weapons originated from the Revolutionary Armed
Forces of Colombia (FARC) and were destined for Rio de Janeiro,
stating the weapons seized are widely used among FARC guerrillas
and citing connections between imprisoned Rio de Janeiro drug
kingpin Fernandinho Beira-Mar and the FARC. Rubem Cesar Fernandes,
the executive director of an NGO (Viva Rio) that implements small
arms control programs in Rio de Janeiro told us on October 26 he
doubted an arms trafficking connection between the FARC and
Rio-based drug gangs, however. "The FARC is more interested in
selling drugs to Rio," he said.

HIGH LEVEL NONPROLIFERATION EVENTS IN RIO DE JANEIRO

3. (U) On October 29 and 30, the Brazilian Center for International
Relations (CEBRI) and the NPSGlobal Foundation co-hosted an
international seminar in Rio de Janeiro on "Non-Proliferation and
Nuclear Disarmament: The Future of the NPT." During the forum,
diplomats, NGO representatives, academics, and officials from the
International Atomic Energy Agency (IAEA) discussed ways to
strengthen the Non-Proliferation Treaty (NPT), ahead of the May
2010 NPT Review meeting in New York. The U.S. Embassy, with
Consulate Rio support, helped sponsor the event. Ambassador Susan
Burk, President Obama's Special Representative for Nuclear
Non-Proliferation, provided the closing keynote address.

4. (U) The Missile Technology Control Regime's (MTCR) Plenary will
take place in Rio de Janeiro from November 11 - 13. Acting
Assistant Secretary for International Security and Nonproliferation
Vann Van Diepen is leading the U.S. delegation, which also includes
officials from the Department of Defense, Department of Energy,
Department of Homeland Security, and the U.S. Navy.

BRAZIL RETAINS FAA SAFETY CATEGORY 1 STATUS

5. (U) Following consultations with Brazilian civil aviation
regulator ANAC on October 27 in Rio de Janeiro, an FAA Assessment
Team determined Brazil would retain its International Aviation
Safety Assessment (IASA) Category 1 status.

VALE CONTINUES EFFORTS TO OBTAIN EX-IM FINANCING FOR I.T.

6. (SBU) On October 26, U.S. Export Import Bank (Ex-Im) officials
and Rio FCS Officer met with Vale's CFO Gulherme Cavalcante and CIO
Marco Antonio Franca, as part of ongoing efforts between Vale and
Ex-Im Bank to conclude a substantial long-term line of credit.
Vale is specifically interested in obtaining 2 billion USD in Ex-Im
financing for Information Technology (IT) service contracts, which
could allow Vale to avoid MARAD obligations requiring foreign
purchasers to use U.S. cargo carriers to ship exports exceeding 20
million USD. Following a meeting with Ex-Im project and finance
officials in Washington on October 20, Vale developed a proposal to
contract 1 billion USD in services from HP and 1 billion USD from
another service provider to be determined this week. (Note: out of

RIO DE JAN 00000364 002 OF 002


three bidders, two are reportedly American companies.) Ex-Im
officials noted the bank traditionally funds capital goods, rather
than services, and would have to evaluate Vale's proposal further.
Ex-Im Bank also expressed concerns whether it could legally finance
the monthly payment scheme Vale is proposing for its IT service
contracts. Vale agreed to adjust its request for financing and
follow up with Ex-Im IT Managers in Washington.

THE SECRETARY'S SCIENCE AND TECHNOLOGY ADVISOR VISITS RIO

7. (U) On October 28-29, Dr. Nina Fedoroff, the Secretary of
State's Science and Technology Advisor visited Rio de Janeiro to
meet with the city's most respected scientific bodies and leaders;
she earlier visited Sao Paulo and Brasilia. (SEPTEL reports on her
trip to Brazil). Dr. Fedoroff met with representatives from the
Oswaldo Cruz Foundation (FIOCRUZ), the Brazilian National Nuclear
Energy Commission (CNEN), Rio de Janeiro Catholic University (PUC),
the Brazilian Academy of Science, the Brazilian Foundation for
Sustainable Development (FBDS), Brazil's National Institute of
Metrology (INMETRO), the Institute for Standardization and
Industrial Quality (INMETRO), the Brazilian Innovation Agency
(FINEP), and the Advanced Technology Center of Rio de Janeiro
Federal University (COPPE/UFRJ). In her meetings, Dr. Fedoroff
discussed how to minimize the regulatory barriers for scientific
research collaboration, possible U.S.-Brazil cooperation in
bringing modern agriculture and other science to other developing
countries, and fostering innovation in Brazil.

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