Politics, Business & Culture in the Americas

Monday Memo: Brazil Military Drills — Mexico High-Speed Rail — Colombia FARC Trials — AT&T Expands — Mexico Protests



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This week’s likely top stories: Brazil’s military launches training operation in Amazon; Mexico cancels high-speed rail contract to Chinese-led consortium; Indigenous court in Colombia convicts seven FARC members; AT&T purchases Iusacell; Mexico erupts in protests over reported discovery of remains of the 43 missing students.

Brazilian Military Trains in the Amazon: According to the chief of Brazil’s Amazon Military Command, Gen. Guilherme Cals Theophilo Gaspar de Oliveira, today Brazil will launch Operation Machifaro, a five-day training exercise simulating a foreign invasion of the Amazon by a superior force, in an attempt to “consolidate a doctrine of jungle combat.” The exercise consists of 550 troops who will conduct drills in Manaus, the Amazon’s largest city, and other regional outposts. Despite the peaceful relations that Brazil maintains with its smaller neighbors and the unlikelihood of a foreign invasion, the defense of the Amazon and protection of its resources has been a top concern of Brazilian national security historically. 

Mexico Cancels High-Speed Rail Contract with China:  Only three days after awarding a $4.3 billion contract for Mexico’s first high-speed rail project to a consortium led by China Railway Construction Corp., Mexico rescinded the contract last Thursday and will re-open the auction to new bids for six months. Given Mexican President Enrique Peña Nieto’s diplomatic mission to Beijing this week, the cancellation comes as a surprise, but Peña Nieto’s administration said the move represents an attempt to increase government transparency. The China Railway group—which plans to bid again in the new round—was the only consortium to submit a proposal for the project in the first round.  After the original decision had been announced, the opposition Partido Acción Nacional (National Action Party—PAN) had accused the government of favoritism, arguing that the sole bid was too expensive. On Sunday, the website Aristegui Noticias revealed that the president’s private home was built by a subsidiary of Grupo Higa, one of the companies belonging to the China Railway-led consortium.

Colombian Indigenous Community Convicts FARC: Members of the Nasa tribe in Colombia’s southwestern Cauca department have convicted seven FARC guerrillas for the murder of two members of the Nasa’s unarmed Indigenous Guard, which patrols and protects tribal territory. Manuel Antonio Tumiñá Jenbuel, 42, and Daniel Coicué Julicue, 63, who had asked the guerrillas to leave their land, were shot and killed by members of the FARC on November 5 after they started to take down signs that the FARC had posted in their community. Thousands of people participated in a tribal assembly in Toribio to sentence the rebels, deliberating for hours before sentencing five of the defendants to between 40 and 60 years in prison and destroying the guerrilla’s weapons. Two teenagers received a lighter sentence of 20 lashes each.  Colombian Indigenous authorities have jurisdiction over their own territories under Colombian law. The FARC’s Iván Márquez addressed the community on Sunday, tweeting “we regret what happened with the Nasa community of Toribio.”

AT&T Buys Mobile Carrier Iusacell from Grupo Salinas: This weekend, U.S. mobile phone carrier AT&T Inc. purchased Iusacell SA, the third-largest Mexican mobile phone carrier, from billionaire Ricardo Salinas for $2.5 billion. AT&T will absorb Iusacell’s 8.6 million subscribers onto its regional 3G network as well as the company’s $800 million of outstanding debt. The acquisition of Iusacell enters AT&T in tough competition against Carlos Slim’s mobile carrier, América Móvil SAB. Remarking on President Peña Nieto’s business friendly policies that paved the way for this deal, Randall Stephenson, CEO of AT&T, said that the “acquisition of Iusacell is a direct result of the reforms put in place … to encourage more competition and more investment in Mexico.” In light of its purchase of DirecTV for $48.5 billion earlier this year, AT&T has solidified its expansion into the Latin American telecommunications market.

Mexico Outraged By Massacre of 43 Missing Students: Mexico erupted in protests this weekend after Mexican Attorney General Jesús Murillo said on Friday that 43 students who disappeared six weeks ago in the town of Iguala, Guerrero, were massacred and their remains incinerated shortly after a protest on September 26. Murillo said that corrupt police in Iguala arrested the students on orders from the town’s former mayor, and handed them over to the Guerreros Unidos drug gang, which carried out the killings. Members of the gang have confirmed that they participated in the murders, but relatives of the missing students have said they will not allow the government to close the case until there is concrete proof of the students’ fate. More than 70 people, including the former mayor of Iguala and his wife, have been arrested in connection with the murders. Protesters took to the streets and to social media this weekend, using the hashtag “YaMeCanse” to decry violence, corruption, and the federal government’s failure to stop the murders.

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