BRAZIL

   POLITICAL DEVELOPMENTS

   1)Over the weekend President Rousseff ordered Transport Minister Alfredo
   Nascimento to suspend several of his top aides following on the news
   magazine Veja claims the officials were charging a 5% kickback fee on
   projects coming through the ministry. A statement issued by Rousseff's
   office said she a**has confidencea** in Nascimento and that he was
   responsible for investigating the problems at the ministry. The president
   was scheduled to meet the minister this week to talk about the matter. The
   allegations and Rousseff's role in the suspensions could trigger more
   friction within the 10 parties that she relies on to pass legislation.
   Nascimento's Party of the Republic is small and shouldnA't cause her much
   trouble, however,  Rousseff's relations with bigger parties such as the
   PMDB have frayed due to disputes over budget cuts and appointments to
    government jobs.

   2)Rousseff expressed concern over situation of Brasiguayos during sideline
   meeting with Lugo. This is an issue that the Brazilian govt has been
   watching closely. Rousseff said that it is important that Brazil and
   Paraguay are on the same page on the fundamental problems of this issue.

    

   ECONOMY

   3)Brazil will continue to act to restrain the strength of its currency
   with intervention in the futures and derivatives markets among its
   possible options, said the country's finance minister on Tuesday."The
   government will continue to take measures to contain the overvaluation of
   exchange rate...We've taken measures on reserve requirements, we can take
   measures on derivative and futures. But these are not measures we will
   pre-announce," Guido Mantega told reporters in London.

   4)China will invest USD 4.5 billion in Brazil's technology sector this
   year, as Chinese investment in the Latin American country shifts from
   agriculture and mining. Chinese investment is expected to hit USD 9
   billion this year, with half of it going into high-tech industries,
   Alessandro Teixeira, deputy minister of Brazil's Ministry of Development,
   Industry and Foreign Trade, told China Daily.

   5)Brazilian poultry exports reached nearly USD 4 billion in the first
   half, an increase of 28.5% compared with the same period of last year.
   Approximately 2 million tons were shipped, a 6.8% increase using the same
   basis of comparison. The information was disclosed by the Brazilian
   Poultry Union (Ubabef, in the Portuguese acronym).

   6)Hyundai will invest USD 150 million to open factory in Rio, it will be
   HyundaiA's first factory outside of Asia.

   ENERGY

   7)Petrobras, said it has made two oil and natural gas discoveries off the
   coast of Espirito Santo state. The finds were located on the ocean floor,
   about 1,900 meters under water and 115 kilometers from the coast,
   Petrobras said in a press release. They were discovered as a consortium
   led by Petrobras was drilling at two wells known as Pe-de-moleque and
   Quindim. Petrobas expects oil production in the waters off Espirito Santo
   to roughly double by the end of this decade to around
   500,000 barrels per day, company officials have said.

   MILITARY

    

   8)Brazil gave USD 1.7 million to Paraguayan Army to be part of UN
   peacekeeping mission in Haiti, says US cable released by wikileaks. A
   Paraguayan official told the US embassy in Paraguay that this money was
   given when Paraguayan politicians started complaining about Mercosur and
   Itaipu in 2006. The US embassy also said that always when Paraguay starts
   complaining, Brazil gives Paraguay money to make them happy.

    

    

   Tuesday, July 5th 2011 - 06:08 UTC

   President Rousseff relations with 10 party coalition remain strained

   The six-month old administration of Brazilian President Dilma Rousseffa**s
   is again under strain following on her strong character reactions, thus
   casting doubts about the passing of her legislative agenda, which is
   already considerably delayed.

    

   Over the weekend President Rousseff ordered Transport Minister Alfredo
   Nascimento to suspend several of his top aides following on the news
   magazine Vejaclaims the officials were charging a 5% kickback fee on
   projects coming through the ministry.

   A statement issued by Rousseff's office said she a**has confidencea** in
   Nascimento and that he was responsible for investigating the problems at
   the ministry. The president was scheduled to meet the minister this week
   to talk about the matter.

   The allegations and Rousseff's role in the suspensions could trigger more
   friction within the 10 parties that she relies on to pass legislation.
   Nascimento's Party of the Republic is small, but Rousseff's relations with
   bigger parties such as the PMDB have frayed due to disputes over budget
   cuts and appointments to plum government jobs.

   The sour mood in Brasilia, highlighted by the resignation of Rousseff's
   chief of staff last month (Antonio Palloci) amid a separate scandal, has
   paralyzed key reforms such as an overhaul of the tax code, efforts to
   prepare Brazil to host the 2014 World Cup, the controversial forestry bill
   and disputes over the release of documents related to Brazila**s recent
   dictatorial past.

   Making things more complicated Defence Minister Nelson Jobim, a respected
   former magistrate and who held the same post with the administration of
   Lula da Silva lamented before a roomful of legislators last week that he
   has to tolerate an ever-greater number of a**idiots.a**

   Jobim, a PMDB leader, made the comments at an 80th birthday celebration
   for former President Fernando Henrique Cardoso, a figurehead of the main
   opposition party. Jobim served as Cardoso's justice minister in the 1990s.

   Jobim also lauded Cardoso for a**never raising his voice toward anyonea**
   and a**never creating tension among his advisersa**, which many observers
   interpreted as a direct criticism of Rousseff, who has a reputation for
   dressing down subordinates in a loud and public fashion.

   After a long meeting with Rousseff on Friday, Jobim said his comments were
   misinterpreted, and that the a**idiotsa** were journalists who disparaged
   Cardoso's legacy.

   Jobim who also opposes declassifying documents from the time of the
   military dictatorship is apparently wishing to retire from government but
   has opted to remain in the job in part because his resignation could
   provoke an even greater crisis between Rousseff and the PMDB, the largest
   party in the ruling coalition.
    Dilma expresA^3 su preocupaciA^3n por las invasiones a los brasiguayos,
   admiten
   5 de Julio de 2011 00:00
   - http://www.abc.com.py/nota/dilma-expreso-su-preocupacion-por-las-invasiones-a-los-brasiguayos-admiten/

   El ministro de Relaciones Exteriores, Jorge Lara Castro, admitiA^3 ayer la
   preocupaciA^3n del Gobierno del Brasil sobre la situaciA^3n de brasiguayos
   del Alto ParanA!, manifestada por la mandataria brasileA+-a Dilma Rousseff
   al presidente Fernando Lugo en la reuniA^3n del Mercosur.

   Lara Castro dijo que la preocupaciA^3n de los denominados brasiguayos es
   la falta de titularidad de la propiedad. SeA+-alA^3 que hay personas que
   habAan adquirido las tierras en el Alto ParanA! de buena fe, pero que los
   tAtulos no estA!n regularizados. a**Se estA! haciendo el esfuerzo
   simultA!neamente para zanjar esa situaciA^3na**, declarA^3 ayer a radio
   Primero de Marzo.

   Se le indicA^3 que se percibe que los invasores de propiedades de
   brasiguayos, denominados campesinos sin tierra, cuentan con la
   protecciA^3n del Gobierno, puesto que se les estarAa proveyendo de
   alimento, ropas, extensiA^3n elA(c)ctrica, entre otras cosas, asA como
   tambiA(c)n protecciA^3n polAtica de algunas autoridades. a**La idea del
   Gobierno no es proteger a los invasores, sino tratar precisamente  de ir
   resolviendo estos problemas que hemos heredadoa**, dijo.

   Preguntado sobre quA(c) harA! la CancillerAa al respecto, puesto que la
   presidenta del Brasil, Dilma Rousseff, manifestA^3 su preocupaciA^3n al
   presidente Fernando Lugo, en ocasiA^3n de una reuniA^3n bilateral que
   mantuvieron la semana pasada en medio de la XLI Cumbre del Mercosur. a**Lo
   que pasa a nivel de ambos gobiernos y ambas cancillerAas, en primer lugar,
   es ponerse de acuerdo si se coincide en puntos fundamentales, y en ese
   sentido hay todo un proceso que se iniciA^3 a los efectos de ir
   resolviendo estos problemasa**, respondiA^3.

   a**Estuve presentea**, dijo Lara Castro

   Preguntado sobre si se enterA^3 de la preocupaciA^3n de la presidenta
   Dilma Rousseff sobre el acoso e invasiones que sufren los brasiguayos en
   el Alto ParanA!, Lara Castro dijo que A(c)l estuvo presente en la
   reuniA^3n de Lugo y Dilma, el pasado miA(c)rcoles en uno de los salones
   del Centro de Convenciones de la Conmebol. a**Yo estuve presentea**,
   manifestA^3 Lara Castro.

   AgregA^3 que asA como las autoridades del Brasil tienen preocupaciones con
   Paraguay, tambiA(c)n nuestro paAs tiene preocupaciones sobre algunos temas
   con el Brasil. MencionA^3 el tema energA(c)tico.

   Seguidamente dijo que la CancillerAa y la Presidencia de la RepA-oblica
   tienen toda la voluntad polAtica para avanzar en la bA-osqueda de
   soluciA^3n a la situaciA^3n planteada. a**Cada quien define sus
   coincidencias a nivel de CancillerAa, a nivel de Presidencia y bueno, lo
   que hacen es sumar esfuerzos para trabajar y de convencer a otros sectores
   que muchas veces tienen otra posiciA^3na**, puntualizA^3.

   ProhAben cosechar la producciA^3n

   En la vAspera se informA^3 que en A*acunday, Alto ParanA!, supuestos
   campesinos sin tierra provenientes del departamento de San Pedro
   impusieron la prohibiciA^3n de iniciar las tareas de cosecha a los
   productores brasiguayos de la zona. Los colonos estA!n desesperados,
   porque temen perder la cosecha, lo que significa la imposibilidad de pagar
   deudas contraAdas con bancos y cooperativas para financiar el cultivo de
   soja. Los productores afectados por esa situaciA^3n solicitaron
   intervenciA^3n del Ministerio PA-oblico y la PolicAa Nacional, exigiendo
   protecciA^3n de sus propiedades y cultivos. Si no hay respuesta de parte
   de los citados organismos, comunicaron que en diez dAas se organizarA!n
   para recuperar sus propiedades invadidas.

   Brazil finmin says will continue to act to curb FX overvaluation

    

   http://www.reuters.com/article/2011/07/05/brazil-finmin-idUSL6E7I50DK20110705

    

   LONDON, July 5 | Tue Jul 5, 2011 7:31am EDT

   (Reuters) - Brazil will continue to act to restrain the strength of its
   currency with intervention in the futures and derivatives markets among
   its possible options, said the country's finance minister on Tuesday.

   "The government will continue to take measures to contain the
   overvaluation of exchange rate...We've taken measures on reserve
   requirements, we can take measures on derivative and futures. But these
   are not measures we will pre-announce," Guido Mantega told reporters in
   London, via a translator.

   Speaking at the sidelines of an investor conference, Mantega also said no
   credit and capital market bubbles were forming in Latin America's
   largesteconomy despite its robust expansion.

   "As far as inflation is concerned, the rate is decreasing. All indicators
   point to the deceleration of inflation. Next month, inflation will be
   lower because commodity (prices) are lower, fuel and gasoline prices are
   lower," he said.

   Brazil's real closed on Monday at its strongest level against the dollar
   in 12 years with inflows from Asia reportedly boosting the currency.

   "We have always taken measures to adjust growth to our potential...If
   necessary the central bank will keep raising interest rates but that's the
   decision of the central bank," Mantega added.

   The minister said the economy was on track for growth of 4.5 percent --
   higher than the 4.0 percent forecast by the central bank and analysts'
   forecast of 3.94 percent.

   Mantega also said that the country had achieved more than half of its
   primary surplus target this year and that the government's reform agenda
   included reducing investments taxes. (Reporting bySebastian Tong, editing
   by Natsuko Waki)

    

    

                 Chinese capital eyes Brazil's high-tech sector

         

        http://www.chinadaily.com.cn/china/2011-07/05/content_12833004.htm

        By Tuo Yannan (China Daily)
        Updated: 2011-07-05 07:10

         

   RIO DE JANEIRO - China will invest $4.5 billion in Brazil's technology
   sector this year, as Chinese investment in the Latin American country
   shifts from agriculture and mining.

   Chinese investment is expected to hit $9 billion this year, with half of
   it going into high-tech industries, Alessandro Teixeira, deputy minister
   of Brazil's Ministry of Development, Industry and Foreign Trade, told
   China Daily.

    

   China has been Brazil's biggest trading partner since 2009, a position
   previously held by the United States.

   Cumulative foreign direct investment (FDI) from China to Brazil reached
   $12.67 billion by the end of 2009, according to Banco Bradesco SA, one of
   Brazil's biggest banks, with agriculture and mining each receiving about
   20 percent.

   Brazil has been urging Chinese companies to invest in non-raw material
   sectors to help balance its economy.

   Teixeira said that Brazil has banned farming businesses established solely
   through foreign investment. The government in Brazil welcomes Chinese
   companies cooperating with Brazilian partners in producing agricultural
   products, such as soybean oil, he said.

   "That is the kind of partnership that China and Brazil are looking forward
   to."

   In 2008, Zhejiang Fudi Agriculture Group and the agricultural bureau of
   Heilongjiang province invested $158.4 million to form a joint venture with
   a Brazilian partner to grow soybean, according to the department of
   commerce in Zhejiang province. The company built two farms, in the north
   and south of Brazil, with a total area of 166.37 hectares.

   China and Brazil regard each other as key partners in their global
   strategy.

   Brazil accounts for 40 percent of Latin America's economy and Teixeira
   predicted that this will rise to 50 percent in the next 10 years.

   Trade between the two countries has increased dramatically during the last
   decade, surging 16-fold between 2001 to 2010.

   "Seventy percent of the trade between Brazil and China is basically
   commodities," Teixeira explained. "But we are keen to improve commercial
   relations in medium and high-end technology."

   China's investment in Brazil was less than $300 million in 2009, but
   skyrocketed to $17 billion in 2010, making China the largest foreign
   investor in Brazil.

   Teixeira said the Brazilian government has reached an agreement with China
   to foster FDI in the high-tech sector.

   "The trend is that China will invest more in the technology sector,"
   Marcos Almeida, a partner at Ernst & Young Terco, told China Daily.

   Chinese companies, such as telecom equipment makers ZTE and Huawei
   Technologies Co, have invested heavily in Brazil in recent years.

   ZTE has set up an industrial park in Hortolandia, close to Sao Paulo. The
   company recorded $600 million in sales revenue last year and is expected
   to reach $1 billion this year.

   "The Brazil market accounts for about 9 percent of ZTE's overseas revenue.
   The country is crucial for our company's development in Latin America,"
   Yuan Lie, president of ZTE South America Region, told China Daily.
   Products from the industrial park will be shipped to other Latin America
   countries, he said.

   Zhuhai Gree Electric Appliances Inc was one of the first Chinese companies
   to enter the Brazilian market in 1998 and now ranks fourth there. It
   invested $2 million to build a manufacturing plant in 1999, with an annual
   output of 300,000 units. Gree sold 400,000 air conditioners in Brazil last
   year and plans to double the number this year while competing with
   international brands such as LG Electronics Inc.

   Teixeira said both Brazil and China need to gain more experience in
   investing abroad.

   "We need to join together as strategic partners to enter new markets."

    04/07/2011 - 14:32

    Agribusiness

  Poultry exports reach US$ 4 billion

   http://www2.anba.com.br/noticia_agronegocios.kmf?cod=12076571

    

   Revenues from foreign sales grew by 28.5% in the first half. The volume
   shipped increased by 6.8%. The Middle East remained the leading market.

   From the Newsroom*

   SA-L-o Paulo a** Brazilian poultry exports reached nearly US$ 4 billion in
   the first half, an increase of 28.5% compared with the same period of last
   year. Approximately 2 million tonnes were shipped, a 6.8% increase using
   the same basis of comparison. The information was disclosed this
   Monday (4th) by the Brazilian Poultry Union (Ubabef, in the Portuguese
   acronym).

   According to a statement issued by the Ubabef, its CEO, Francisco Turra,
   claimed that the growth could have been greater, if it were not for the
   depreciation of the dollar against the real (Brazilian currency), which
   theoretically makes Brazilian products more expensive abroad.

   a**The truth of the matter is that we could have had even stronger growth,
   due to increased international market demand. However, we are losing
   competitiveness by the hour. Thus, we maintain our growth forecast of
   between 3% and 5% in shipments [in 2011],a** said the executive, according
   to the statement.

   The Middle East remained the leading target region for Brazilian exports.
   Revenues from sales to the region totalled US$ 1.36 billion, an increase
   of 31.7% over the first quarter of 2010. A total of 718,000 tonnes were
   shipped, growth of 8.6% using the same basis of comparison.

   Asia ranked second among the target markets for Brazilian products,
   followed by the European Union, Africa, the Americas and non-EU European
   countries.

   Hoje A s 09h46 - Atualizada hoje A s 09h48

      Hyundai instalarA! no Rio de Janeiro primeira fA!brica fora da A*sia

No empreendimento, que deve ficar pronto em 2012, serA-L-o investidos US$ 150
milhAues

    

   http://www.jb.com.br/rio/noticias/2011/07/05/hyundai-instalara-no-rio-de-janeiro-primeira-fabrica-fora-da-asia/

   A Hyundai Heavy Industries vai instalar em Itatiaia, no Sul Fluminense,
   sua primeira fA!brica fora da A*sia. QuestAues como o grande investimento
   em infraestrutura, logAstica favorA!vel e a visibilidade conferida pela
   Copa de 2014 e os Jogos OlAmpicos de 2016 favoreceram a escolha da empresa
   pelo Rio de Janeiro, que saiu A  frente de Minas Gerais e EspArito Santo.

   A unidade, instalada numa A!rea de 550 mil metros quadrados prA^3ximo ao
   quilA'metro 316 da Rodovia Presidente Dutra, produzirA!, por ano, atA(c)
   cinco milmA!quinas para construAS:A-L-o pesada e contarA! ainda com um
   centro de treinamento de mA-L-o-de-obra. A previsA-L-o A(c) que a fA!brica
   seja concluAda no fim de 2012 e gere 1.500 empregos diretos atA(c) 2015,
   quando atingirA! o pico de operaAS:A-L-o. 

   A Hyundai negocia a instalaAS:A-L-o de fornecedores coreanos na regiA-L-o.
   No empreendimento, que conta com o apoio da Companhia de Desenvolvimento
   Industrial do Estado do Rio de Janeiro (Codin) e terA! a Brasil MA!quinas
   como sA^3cia minoritA!ria, serA-L-o investidos US$ 150 milhAues. Com a
   parceria, a parcela brasileira na receita total do grupo saltarA! de 6%
   para 20%. Apesar de o Brasil representar o quarto mercado consumidor da
   Hyundai a** atrA!s de China, RA-ossia e Estados Unidos a** 40% do total da
   produAS:A-L-o serA-L-o exportados, principalmente para paAses das
   AmA(c)ricas Central, do Norte e do Sul.

   Segundo o vice-governador e secretA!rio de obras, Luiz Fernando PezA-L-o,
   que articulou a negociaAS:A-L-o, o alinhamento polAtico entre as trA-as
   esferas de governo possibilita a implementaAS:A-L-o de diversos projetos e
   investimentos, alA(c)m de melhorar a eficiA-ancia dagestA-L-o pA-oblica.

   "Nosso governo trabalha diuturnamente para promover negA^3cios e
   desenvolver a economia do Estado. Vivemos um momento histA^3rico, de
   transformaAS:A-L-o. Essa conjuntura A(c) reflexo da desburocratizaAS:A-L-o
   e do esforAS:o da administraAS:A-L-o estadual em dar mais eficA!cia e
   transparA-ancia A  gestA-L-o. Conseguimos racionalizar e diminuir o tempo
   para a abertura de empresas, alA(c)m de descentralizar o processo para o
   interior, aumentando significativamente o nA-omero de empresas abertas no
   Rio nos A-oltimos anos. A Hyundai A(c) uma delas", afirma PezA-L-o.

   Para Alexandre Germano, do Conselho de AdministraAS:A-L-o da Brasil
   MA!quinas, a localizaAS:A-L-o estratA(c)gica do Rio foi fundamental para a
   instalaAS:A-L-o da unidade no Estado. "Os empresA!rios estrangeiros tA-am
   uma visA-L-o muito positiva sobre o Rio de Janeiro e perceberam que o
   cenA!rio A(c) favorA!vel para grandes investimentos. A Hyundai jA! estA!
   presente no Estado na construAS:A-L-o de estaleiros no Porto do AAS:u, em
   parceria com Eike Batista, e tem grande interesse em expandir seus
   negA^3cios", afirma Germano.

   Today at 9:46 a.m. - Updated today at 9:48 a.m. 
   Hyundai will install in Rio de Janeiro first plant outside of Asia 
   In the enterprise, which should be ready in 2012, will invest U.S. $ 150
   million 

   Hyundai Heavy Industries will install in Itatiaia, Rio de Janeiro State in
   the South, its first plant outside of Asia. Issues such as the large
   investment in infrastructure, favorable logistics and visibility afforded
   by the 2014 World Cup and the Olympics in 2016 favored the selection of
   the company in Rio de Janeiro, which came ahead of Minas Gerais and
   Espirito Santo. 

   The unit, installed in an area of a**a**550 square meters near the 316 km
   from Presidente Dutra highway, will produce per year for up to five
   milmA!quinas heavy construction and will also include a center for
   manpower training. The factory is expected to be completed in late 2012
   and generate 1,500 direct jobs by 2015, when it will peak operation. 

   Hyundai is negotiating the installation of Korean suppliers in the
   region. In the enterprise, which has the support of the Industrial
   Development Company of the State of Rio de Janeiro (Codin) and Brazil have
   the machines as a minority partner, will invest U.S. $ 150 million. With
   the partnership, the Brazilian share in total revenue of the group jumped
   from 6% to 20%. Although Brazil is the fourth Hyundai consumer market -
   behind China, Russia and the United States - 40% of total production is
   exported, mainly to countries of Central, North and South 

   According to the deputy governor and secretary of works, Luiz Fernando
   Bigfoot, who supervised the negotiations, the political alignment between
   the three spheres of government enables the implementation of various
   projects and investments, and improve the efficiency Dagestan public. 

   "Our government daily work to promote business and develop the state's
   economy. We live a historical moment of transformation. This situation
   reflects the bureaucracy and the state government's effort to give more
   effective and transparent management. We were able to streamline and
   shorten the time to start a business, and to decentralize the process to
   the interior, significantly increasing the number of listed companies in
   Rio in recent years. Hyundai is one of them, "said Silva. 

   For Alexandre Germano, the Board of Directors of Brazil machines, the
   strategic location of Rio was instrumental in installing the unit in the
   state. "Foreign businessmen have a very positive view on the Rio de
   Janeiro and realized that the scenario is favorable for large investments.
   Hyundai is already present in the state in building shipyards at the Port
   of Acu, in partnership with Batista, and has great interest in expanding
   their businesses, "said Germano.

   Paulo Gregoire
   STRATFOR
   www.stratfor.com
   Paulo Gregoire
   STRATFOR
   www.stratfor.com

Brazil Petrobras Makes Two Oil Finds Off Espirito Santo Coast

   By Paul Kiernan

   Published July 04, 2011

   http://www.foxbusiness.com/industries/2011/07/04/brazil-petrobras-makes-two-oil-finds-off-espirito-santo-coast/

   AO PAULO -(Dow Jones)- Brazil's state-run oil firm Petroleo Brasileiro SA
   (PBR, PETR4.BR), or Petrobras, said Monday it has made two oil and
   natural gas discoveries off the coast of Espirito Santo state.The finds
   were located on the ocean floor, about 1,900 meters under water and 115
   kilometers from the coast, Petrobras said in a press release. They were
   discovered as a consortium led by Petrobras was drilling at two wells
   known as Pe-de-moleque and Quindim.

   |

   Petrobas expects oil production in the waters off Espirito Santo to
   roughly double by the end of this decade to around
   500,000 barrels per day, company officials have said.

   05/07/2011 - 08h02

   Brasil deu US$ 1,7 mi para militares paraguaios, diz telegrama

   http://www1.folha.uol.com.br/poder/938945-brasil-deu-us-17-mi-para-militares-paraguaios-diz-telegrama.shtml

   Em 2006, o governo brasileiro deu ao ExA(c)rcito do Paraguai uma ajuda de
   US$ 1,7 milhA-L-o para que integrasse a missA-L-o de paz no Haiti, segundo
   telegrama da Embaixada dos EUA em AssunAS:A-L-o.

   O dinheiro foi usado para o conserto de 40 veAculos blindados e a compra
   de equipamentos para 30 militares.

   WikiLeaks processarA! sites de pagamento para receber doaAS:Aues
   Veja especial sobre os telegramas divulgados pelo Wikileaks

   De acordo com documento vazado pelo site WikiLeaks e divulgado pela
   agA-ancia PA-oblica, um militar paraguaio contou aos americanos que o
   apoio surgiu apA^3s crAticas de polAticos do paAs vizinho em relaAS:A-L-o
   ao Mercosul e A  Usina de Itaipu.

   Para a embaixada, sempre que os paraguaios reclamam dessas questAues, o
   Brasil oferece algum dinheiro para "fazA-a-los felizes".

   No mesmo ano, os dois paAses fecharam um memorando de entendimento em Nova
   York para o envio de uma tropa paraguaia com 30 militares para o Haiti.

   Segundo o MinistA(c)rio da Defesa, o acordo existe e desde 2007 o BrasAl
   repassa R$ 120 mil por ano para custear os soldados paraguaios que
   estA-L-o no Haiti.

    

   Brazil gave $ 1.7 million for Paraguayan military said telegram
   In 2006, the Brazilian government gave the Army a Paraguay help of $ 1.7
   million to integrate the peacekeeping mission in Haiti,telegram from U.S.
   Embassy in Asuncion.
   The money was used for the repair of 40 armored vehicles and the purchase
   of military equipment to 30.
   WikiLeaks sites will process payment for donations
   See special about the cables released by Wikileaks
   According to a document leaked by Wikileaks site and published
   by Public Agency, a Paraguayan military told the Americans
   thatsupport came after criticism from politicians from the neighboring
   country in relation to Mercosur and the Itaipu Dam.
   For the embassy, where the Paraguayans claim these issues, Brazil
   offers some money to "make them happy."
   In the same year, the two countries inked a memorandum of understanding in
   New York to send a troop of 30 Paraguayantroops to Haiti.
   According to the Ministry of Defence, the agreement exists since
   2007 and Brazil passes $ 120 thousand per year to pay for theParaguayan
   troops who are in Haiti.

   Paulo Gregoire
   STRATFOR
   www.stratfor.com

   Paulo Gregoire
   STRATFOR
   www.stratfor.com