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Viewing cable 06BRASILIA512, LULA NEGATES MINISTER'S NUCLEAR ENERGY PROCLOMATION

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Reference ID Created Released Classification Origin
06BRASILIA512 2006-03-15 14:21 2011-07-11 00:00 UNCLASSIFIED Embassy Brasilia
VZCZCXRO9573
PP RUEHRG
DE RUEHBR #0512 0741421
ZNR UUUUU ZZH
P 151421Z MAR 06
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC PRIORITY 4803
INFO RUEHRI/AMCONSUL RIO DE JANEIRO 1704
RUEHSO/AMCONSUL SAO PAULO 6557
RUEHRG/AMCONSUL RECIFE 4471
UNCLAS BRASILIA 000512 
 
SIPDIS 
 
SIPDIS 
 
STATE PLEASE PASS TO NP/NE ALEX BURKHART AND CHRISTINE MARTIN, 
OES/STC GEORGE DRAGNICH, OES/SAT RALPH BRAIBANTI 
 
E.O. 12958: N/A 
TAGS: TRGY TNGD EMIN KSCA BR
SUBJECT: LULA NEGATES MINISTER'S NUCLEAR ENERGY PROCLOMATION 
 
REF: 05 BRASILIA 0992 
 
1. Summary: Last week in an interview with the BBC, Brazil's 
Minister of Science and Technology, Sergio Rezende, claimed that the 
GoB wants to and is ready to approve a new plan to build 7 new 
nuclear reactors over the next 15 years.  His statements are the 
continuation of a debate surrounding the future of Brazil's nuclear 
program. (reftel)  However, Brazil's Minister of Treasury, Antonio 
Palocci, and President Lula would later discredit Rezende's remarks. 
 Lula noted that while nuclear energy was one of many options being 
considered, the GoB had not yet made any decisions. End Summary 
 
2. In his comments to the BBC, Rezende purported that Brazil's 
nuclear timeline would commence with renewed construction and 
completion of Brazil's long dormant Angra III reactor.  Thereafter, 
the GoB would build a new reactor every two to three years.  Many of 
the reactors, according to Rezende, will be situated in Brazil's 
Northeast.  He affirmed that the plan/strategy is complete and has 
passed through rigorous examination by Brazil's nuclear energy 
commission.  The next step would be approval by the National Council 
of Energy Politics (comprised of various ministries and members of 
Congress).  Rezende's comments culminated with the assertion that 
the plan should be approved in July. 
 
3. Shortly after Rezende's interview, Finance Minister Palocci 
categorically rebuked the comments noting, "there is absolutely no 
firm plan on this issue."  President Lula reiterated these 
sentiments the following day, denying that the GoB has any definite 
plan concerning nuclear reactors.  While admitting that the 
government is concerned with ways to address future energy 
consumption, he noted that the GoB is discussing various 
alternatives to energy generation.  Lula also stated that 
constructing a nuclear reactor is, "not a priority for the 
government at this moment."  Both Lula and Palocci added that the 
GoB's current priorities emphasize expanded hydroelectric and 
biomass energy generation. 
 
4. Comment: Rezende's comments and the Presidents subsequent rebuke 
appear to highlight a rift in the GoB over Brazil's nuclear-future. 
It seems unlikely that Rezende would make such a bold statement 
without some sort of previous posturing by the administration in 
favor of these views.  However, it is also clear that Lula is not 
ready to commit to the plan.  One can intuit that powerful factions, 
including the Ministry of the Environment and Lula's Chief of Staff, 
Dilma Rousseff, remain opposed to the plan.  Post will update as 
more developments unfold.  End Comment 
 
CHICOLA