LA GUERRA: LA OPOSICION BRASILEÑA A LA GUERRA El Clarin Eleonora Gosman. SAN PABLO. CORRESPONSAL .

Estados Unidos transmitió, en público y por primera vez, su "desagrado" ante la posición de Brasil, contra la guerra en Irak. La embajadora Donna Hrinak llevó ese mensaje al Congreso brasileño, que la había invitado a una sesión especial sobre el conflicto en el golfo Pérsico. También estaba presente el representante de Gran Bretaña, Roger Bone. Hrinak, con quien el gobierno de Lula mantenía hasta ahora buenas relaciones, acudió al Senado donde estaba previsto que respondería a inquietudes de los legisladores. Se trata de entrevistas abiertas a la prensa, pero la diplomática exigió que se hiciera a puertas cerradas. Leyó su declaración. Pero cuando los senadores y diputados empezaron con las preguntas, alegó apuro y se retiró sin contestar. En la exposición que hizo ante los parlamentarios, Hrinak dijo que la postura del gobierno de Lula cayó mal en Washington. "Las últimas semanas tuve que explicar a mis jefes y al Congreso norteamericano por qué Brasil, que es nuestro socio esencial en el hemisferio, no está de nuestro lado". Cuando la embajadora dejaba la sala, el senador Eduardo Suplicy le enrostró: "Nos está faltando el respeto al dejarnos sin respuestas". Más flemático, el embajador británico dijo que "Gran Bretaña comparte con Brasil la opinión sobre la importancia de la ONU en la reconstrucción de Irak".

Reuters, 03.31.03, 5:19 PM ET SAO PAULO, Brazil, March 31 (Reuters) - Brazilian stocks fell on Monday, tracking losses on Wall Street prompted by investor fears of a protracted U.S.-led war in Iraq, but the currency firmed on expiration of futures contracts, traders said. The real strengthened to 3.355 per dollar from Friday's close of 3.361, capping the biggest monthly retreat by the U.S. currency on the local market since August despite concerns the Iraq war would slow a global recovery and a worsening inflation outlook at home. But the Sao Paulo Stock Exchange's benchmark Bovespa <.BVSP> did not resist the Wall Street drag and closed 1.1 percent weaker at 11,273.6, although it rallied 9.7 percent in March and now stands level with where it began the year. "Almost all the stocks are down on the concerns about the war and people think the (U.S.) strategy was poor and the coalition has stopped because of lack of supplies. It could last longer than expected," said John Carioba, an asset manager at Indusval brokerage. On the Bovespa, the losers outweighed gainers by 42 to 12. Empresa Brasileira de Aeronautica (Embraer) <EMBR4.SA> (nyse: ERJ - news - people), the world No. 4 civilian aircraft manufacturer, stood out with a 3.7 percent gain to 9.77 reais on hopes U.S. Airways Group Inc. <UAWGQ.OB> would emerge from bankruptcy and make an order for the Brazilian company's small and medium-sized jets. A spokesman for the airline said it planned to order 50 50-seat jets and 50 70-seat jets from Embraer or Canada's Bombardier <BBDd.TO>. The orders, which may be split between the manufacturers, would be very welcome news after a slump in the global aviation industry since the Sept. 11, 2001 attacks. Steelmaker Usiminas <USIM5.SA> also firmed 2 percent to 9.16 reais after impressing the market with strong cash flow in its annual results even though its overseas debt dragged its bottom line into the red for the year, traders said. The real was boosted early as bulls outpaced bears in the usual end-month tussle for expiration of futures contracts, traders said. The real has firmed 5.6 percent this year. Traders said the markets would be focusing this week on a Congressional vote to amend article 192 of the constitution that deals with Central Bank autonomy as a test of the center-left government's ability to make good on its pledges to push through reforms. "If it doesn't pass it shows that this government does not have the power they claim to have and won't be able to pass any of their proposed reforms," Carioba said. The optimism of investors, particularly large overseas banks and brokerages, that President Luiz Inacio Lula da Silva can push through reforms has helped buoy the Bovespa and real this month despite high inflation. The Central Bank increased its forecast for inflation in 2003 to 10.8 percent in its quarterly inflation report from 9.5 percent in the last report after strong consumer prices in the first couple of months of the year. Traders said the market had already priced in such a move.

Reuters, 03.31.03, 2:10 PM ET BRASILIA, Brazil, March 31 (Reuters) - Brazil's center-left government is set to raise the monthly minimum salary to 240 reais ($72) from 200 reais, trade unionists said on Monday after meeting with President Luiz Inacio Lula da Silva. "That is not an ideal value, but it is what was possible at this moment," said Paulo Pereira da Silva, head of the Forca Sindical union of industrial workers. "We are satisfied because we know that the government is committed to doubling the minimum salary in four years." The government has not yet announced how much it intends to raise the minimum salary, a process that normally takes place during April. Brazil's minimum wage is to a large extent symbolic in this country where millions of poor do not receive even the minimum wage. Its biggest impact tends to be on state workers and it also affects public coffers since many pensions are indexed to the minimum wage. Pereira and other unionists met with Lula on Monday to discuss the subject. As Lula's new government is the first in Brazil's history to be elected from a left-wing party, observers have speculated about the size of the annual hike this year. However, if the wage rises to 240 reais, a 20 percent increase, it would be above the inflation rate of 15.85 percent in the 12 months to February.

<a href=www.falkland-malvinas.com>Mercosur Monday, 31 March

Brazilian president Luiz Inacio Lula da Silva sent a letter to the three partners of Mercosur, Argentina, Paraguay and Uruguay, calling them to maintain unity, and convergence in trade negotiations. In exchange Brazil commits itself to eliminate trade barriers inside the block.

Prte. Lula da Silva Brazilian Deputy Foreign Affairs Minister Samuel Pinheiro Guimaraes delivered the letter to Argentine President Eduardo Duhalde, while Ambassadors in Asunción and Montevideo were instructed to hand deliver them to presidents Luis González Macchi and Jorge Batlle.

In the letter Mr. Lula da Silva stresses the importance that Mercosur retains “its unity in foreign relations” and “convergence” in the proposals presented in trade negotiations particularly regarding the US sponsored Free Trade of the Americas Association. He also commits Brazil to eliminate trade barriers within Mercosur and invites his counterparts to “an open national debate” about the creation of FTAA, with the participation of Congress, the private sector, trade unions and non government organizations.

President Lula’s letter follows recent criticism to Brazil for acquiring subsidized rice from outer region suppliers when there’s ample production in Mercosur and a sugar tariff dispute with Argentina.

Argentine Congress recently imposed a 20% tariff on Brazilian sugar arguing that the Pro-Alcohol program “grants exceptional production conditions to Brazilian farmers, unequal to those of Argentine farmers”.

Brazilian Congress is threatening with two retaliatory measures including ending a 10% additional tariff to non Mercosur wheat suppliers that favours Argentine exports.

However both Deputy Foreign Affaris Ministers, Martín Redrado from Argentina and Samuel Pinheiro Guimaraes argued that “we can’t build a project (Mercosur) of this importance through reprisals”, adding that Brazil was not thinking “for the moment” of presenting a claim before the World Trade Organization.

In the Brazilian Congress legislators are insisting in some kind of reprisal to this the first head on conflict with Argentina of the Lula da Silva administration.

“The Argentine Congress caved in to the Argentine sugar lobby, harming Mercosur and just when we need to unite and face Washington pressures regarding FTAA”, said Brazilian Deputy Antonio Mendes Thame co-sponsor of the reprisal bills.

“We ceased incentives to cane sugar for alcohol production in 1998; we only have a minimum alcohol transport compensation equation for the distribution to the 26,000 gasoline stations of the country. I recommend Argentina installs alcohol distilleries from sugar cane to mix with fuel, instead of playing with artificial tariffs”, underlined Mr. Mendes Thame.

But in spite of the squabbling and threats Argentina and Brazil decided the creation of the Mercosur Monetary Cooperation Institute to help converge and target a “homogeneous monetary policy” for the region.

“It’s the moment to advance monetary and exchange coordination. Differences in exchange rates only generate economic and trade problems between Mercosur members”, said Argentine delegate Martín Redrado.

BBC

Brazil's centre-left government has offered workers an inflation-busting 20% rise in the minimum wage beginning from Tuesday.

President Luiz Inacio Lula da Silva and his Workers' Party (PT) promised during last October's elections to double the minimum wage within four years.

The monthly minimum wage has been increased by more than the 15.9% inflation recorded for the 12 months to February to 240 reals (£45; $71).

But the increase will cause further inflationary pressures.

A recent review of the International Monetary Fund's $30bn loan to Brazil has set an inflation ceiling of 17.5% for the 12 months to September, up from a previous target of 9.5%

Inflation pressure

Last week, metalworkers in Sao Paulo state went on strike, marking the first large labour dispute to confront Mr da Silva since he took office on 1 January.

Forca Sindical, one of Brazil's two leading union confederations, which represents the metalworkers called for a 10% pay rise to compensate for inflation.

Brazil's central bank predicted on Monday that inflation would hit 10.8% in 2003 - up from the previous 9.5% estimate - and fall to 4.1% in 2004.

The bank has raised interest rates five consecutive times to 26.5% to reign in inflation, caused by last year's currency devaluation and high energy prices.

The high interest rate is blamed for rising unemployment, which in February rose by 0.4 points to 11.6%.

Unions satisfied

The minimum wage applies mainly to civil servants in Brazil and has a significant impact on state finances because pensions are also indexed to it.

"Everyone knows that the president would like to allow a greater increase, but budgetary restraints don't permit (it presently)," said presidential spokesman Andre Singer.

He added it would cost the government an extra 1bn reals a year.

"That is not an ideal value, but it is what was possible at this moment," said Paulo Pereira da Silva, head of the Forca Sindical union of industrial workers.

"We are satisfied because we know that the government is committed to doubling the minimum salary in four years."

The minimum wage is largely ignored by the private sector.

A third of Brazil's 176 million people live in poverty.