Brazil's Lula repeats 'blue eyes' crisis comment

BRASILIA (Reuters) - Brazilian President Luiz Inacio Lula da Silva on Wednesday again blamed blue-eyed people for the global economic crisis, only weeks after he was widely criticized for the same remark.

He made the remark with racist undertones when he announced a social housing project in Rio de Janeiro that would have a swimming pool.

"They will be treated like the people with blue eyes, who are responsible for the financial crisis," Lula told Globo Radio, referring to the future tenants.

During a joint news conference with British Prime Minister Gordon Brown last month in the capital Brasilia, Lula said "this crisis was caused by the irrational behaviour of white people with blue eyes."

"I don't know any black or indigenous bankers," he said at the time.

The former union leader, who has frequently made controversial comments, said he had wanted to say the crisis was hitting the poor more than the rich.

The comment was widely criticized in international media and became the focus of heated debates in diplomatic circles.

Many analysts said it was directed towards a domestic audience and was not intended to offend whites.

Wednesday's comment is likely to fuel debate on whether Lula has become over-confident as a result of Brazil's growing international clout in trade and finance forums. Critics say he is desperate to blame a sharply slowing economy on foreigners to boost the chances of his party in next year's general elections.

(Reporting by Raymond Colitt; editing by Mohammad Zargham)