VZCZCXYZ0021
OO RUEHWEB

DE RUEHSO #0458 2101634
ZNR UUUUU ZZH
O 291634Z JUL 09
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9464
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 0602
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 9215 UNCLAS SAO PAULO 000458 
 
SIPDIS 
 
STATE INR/R/MR; IIP/R/MR; WHA/PD 
 
DEPT PASS USTR 
 
USDOC 4322/MAC/OLAC/JAFEE 
E.O. 12958: N/A 
TAGS:              
SUBJECT: MEDIA REACTION: GLOBAL ECONOMY:  CHINA AND GLOBAL ECONOMY; 
SCO PAULO 
 
July 26, 2009 
 
Title- Chinese deadlock 
 
Editorial in liberal Folha de S. Paulo (7-26) notes: ".....The 
Chinese economic model lives today passing through an impasse....The 
U.S. economy will no longer have the conditions to sustain the same 
pace of purchases of Chinese products that it used to.....The 
solution to this gridlock will directly affect the Brazilian 
economy.  In the mid run, in a possible scenario of domestic 
consumption growth in China, Brazil's exports will be forced to 
adapt themselves to the new profile of Chinese market demand." 
 
Title- An end to the convergence 
 
Op-ed in liberal Folha de S. Paulo (7-26) by Eliane Catanhede 
states: "The military coup in Honduras mobilized....[all of the] 
international community in support of elected President Manuel 
Zelaya and condemned Roberto Micheletti's regime...Nonetheless, 
Zelaya's return to power does not solve the internal crisis.  On the 
contrary....All the convergence that Zelaya received with the coup 
tends to foster divergence after the coup......because Zelaya's 
impulse will be for the radicalization and for the strengthening of 
Bolivarianism in Honduras, with a review of the constitution, a 
plebiscite to keep himself in power and nationalize of the 
economy......This way he will tend to go more and more in the 
direction of Venezuela, Cuba, Bolivia and Nicaragua.....and less [in 
the direction] of the old partner and even tutor, the U.S......" 
POPP