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Viewing cable 04BRASILIA2249, PRESIDENT CHISSANO VISITS BRAZIL

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Reference ID Created Released Classification Origin
04BRASILIA2249 2004-09-03 20:31 2011-07-11 00:00 CONFIDENTIAL Embassy Brasilia
This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 BRASILIA 002249 
 
SIPDIS 
 
ABIDJAN FOR USED/AFDB; PARIS FOR PARIS CLUB 
 
E.O. 12958: DECL: 09/03/2009 
TAGS: PREL EFIN BR
SUBJECT: PRESIDENT CHISSANO VISITS BRAZIL 
 
REF: A. BRASILIA 796 
     B. BRASILIA 1975 
 
Classified By: DepPolCouns Lawrence Cohen, reasons 1.4 (b & d) 
 
1. ()  Summary:  Mozambique President Chissano visited Brazil 
on August 31 and was rewarded with over USD 315 million in 
debt forgiveness for his country, the most relief Brazil has 
given during President Lula's administration.  Chissano is 
well regarded in Brazil, and his decision to step down has 
generated some angst here.  President Lula, meanwhile, is 
showing that his Africa-oriented foreign policy is no fluke. 
End Summary 
 
Worth the Trip to Brazil.... 
---------------------------- 
 
2. (U)  During Mozambique President Joaquim Chissano's August 
31 visit to Brasilia, the Brazilian Government (GOB) 
announced it would write off 95% of Mozambique's official 
debt (USD 315.1 million) with the balance (USD 16.6 million) 
to be converted into investment or equity funds.  The accord 
was signed by Brazilian Finance Minister Antonio Palocci and 
President Chissano.  The GOB also confirmed it would finance 
the installation in Mozambique of a pharmaceutical plant for 
manufacture of anti-retrovirus medicine.  In forgiving 
Mozambique's debt, President Lula stated that Brazil was 
setting an example for other countries.  Minister Palocci 
emphasized that Brazil's initiative followed guidelines set 
by the Paris Club to assist Mozambique and would not have any 
impact on Brazil's own financial situation.  (Note: The Chief 
of the Foreign Ministry's Africa II Division told poloff that 
Mozambique has been current on its debt obligations to 
Brazil. End Note) 
 
3. (SBU) Debt relief for Mozambique follows closely President 
Lula's announcements regarding Bolivia (where during a July 
visit he announced debt relief of USD 48.7 million of 
Bolivia's USD 52 million debt), Gabon (USD 36 million of debt 
to be renegotiated), and Cape Verde (promised debt 
forgiveness of USD 2.7 million).  According to press reports, 
the GOB is also analyzing possible debt relief for El 
Salvador. 
 
Polemics Aside... 
----------------- 
 
4.  (SBU) In public remarks referring to visiting President 
Chissano, who has ruled Mozambique for 18 years, Lula 
expressed regret that Chissano had decided not to run for 
reelection in December. The Brazilian President went on to 
praise President Chissano: "You have learned to appreciate, 
as few have, the symbolism and real value of the exercise of 
democracy." (Comment: Chissano is very popular in Brazil and 
enjoys close friendships with senior Brazilian officials such 
as former President Jose Sarney.  End Comment) 
 
5.  (U) Chissano spoke to diplomats and new Brazilian foreign 
service officers at the prestigious Rio Branco Institute (the 
GOB equivalent of the Foreign Service Institute) about 
conflict resolution in Africa.  He elaborated on two key 
themes: Africans must stop blaming their colonial past for 
the continent's present problems, and Africans must utilize 
African solutions to resolve conflict and not depend on the 
United Nations or others.  Moreover, he said each conflict 
had its own roots and unique characteristics which must be 
addressed. His most pointed comments in response to a 
question dealt with Zimbabwe.  While not praising President 
Mugabe, Chissano made clear that, given the history, Mugabe 
and Zimbabwe were essentially the same and could not be 
separated, and constant dialogue among all the parties was 
the only way to relieve the country's internal pressures. 
 
Comment 
------- 
6.  (C) During the last few months, President Lula has been 
putting some substance into what initially appeared a hollow 
Africa policy.  At the upcoming September heads of state 
meeting at the UN to discuss the creation of a world fund to 
combat poverty, Lula will likely refer 
to his government's efforts to help Africa, including some 
on-going and planned initiatives with India and South Africa. 
During Chissano's visit, President Lula vowed that he would 
go to Africa every year, and we sense he will meet this 
promise.  Foreign Ministry contacts tell us that west Africa, 
probably Nigeria and Guinea Bissau and possibly Ghana and 
Senegal, could expect Lula's next African foray. 
 
7.  (C) However, when looking across the Atlantic, President 
Lula ought to select his itinerary and message carefully. 
His July visit to Gabon, his ride there in an open Rolls 
Royce with Gabonese President Bongo, and a subsequent bad 
joke by Lula that he'd visited Gabon to learn how to stay in 
power 37 years earned the President some ridicule here (ref 
B). 
 
Danilovich