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To: Giraffe who wrote (25738)	1/10/1999 12:28:00 PM
From: Alex	Read Replies (3) \| Respond to of 116762

Brazil's Minas Gerais warns may not pay Eurobonds By Vanessa Viola BELO HORIZONTE, Brazil, Jan 9 (Reuters) - The rogue governor of Brazil's Minas Gerais state, Itamar Franco, warned on Saturday he would only pay upcoming Eurobond obligations if the region's local financial needs could first be met. ''If we have money after paying for state workers' salaries and paying for our prisoners' food, then no problem,'' Franco said. Minas Gerais rocked global financial markets last week by suspending payments on $15 billion in debt to the federal government in open defiance of the president and his fiscal austerity drive. Franco has further worried international investors by refusing to clarify his position on the state's outstanding Eurobonds, $108 million of which are set to mature next month. ''Eurobonds, I will begin to study that on Monday,'' Franco told reporters assembled at the governor's mansion. He added that Brazil's Finance Minister Pedro Malan was in no position to guarantee payment on the state's Eurobonds, as he did last week by pledging to seize $78.3 million in Minas Gerais funds held in a federal bank account. ''This is a deal between Minas and a private bank,'' Franco said. ''So, there is no room here, constitutionally, for interference by the Finance Ministry.'' The political feud comes at delicate moment for President Fernando Henrique Cardoso, who is struggling to maintain enough momentum in Congress to pass painful budget cuts needed to qualify Brazil for a $41.5 billion international rescue package. Cardoso issued a stern warning to Minas Gerais on Friday in an attempt to shore up flagging investor confidence in the world's eight-largest economy, which lost $1 billion in a hemorrhage of dollar outflows last week. ''I will not allow the law to be ignored. The most senior authority in this country is the president,'' Cardoso said. But Franco, who was president between 1992-1994, refused to comment on Cardoso's threats and made a joke about the damage his debt moratorium inflicted on Brazilian shares and emerging markets across the globe. ''I am very worried because my stocks in Tokyo fell...My stocks in Hong Kong fell and in New York they fell,'' Franco said. ''Since I have so many stocks in Hong Kong, Tokyo, and New York...I am therefore worried.'' Franco appointed Cardoso as his finance minister when he was president, but has become increasingly critical of his former aid. He accused Cardoso of neglecting Brazil's social ills and taking all of the credit for a popular anti-inflation plan announced by the finance ministry during Franco's term. biz.yahoo.com

To: Giraffe who wrote (25738)	1/10/1999 6:27:00 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 116762

As despicable as Saddam is, its worth remembering that he is largely a creation of the American military/industry/media. Giraffe, I was going to respond to this comment via PM, but I just felt that these sorts of "Blame Uncle Sam" comments are just altogether too common and unwarranted. I'm not into that kind of self-flagellation. You assert that the US "created" Saddam. Well, I have to ask you why Iraq's military consists of largely Russian and French equipment, with a smattering of South African 155 howitzers.. Now I could see you claiming that Saudi Arabia or Iran under the Shah were largely supported by the US given the amount of equipment we sold to them. Let's have a little balance on your side as well and realize that quite a few countries have an interest in staking out political claims in the Mid-East. And let's not forget the Russia's current Prime Minister is a former head of the KGB with extensive experience and dealings with Iraq. There's enough blame to go around without making the US the scapegoat for every two-bit dictatorship. Besides, I don't see a lot of people looking to imigrate to Russia, China, N. Korea or Iraq. Quite to the contrary, I do see quite a few of them trying to make it over here. We must not be so bad after all. (not perfect, but not so bad) Regards, Ron