Brazil to announce winner of huge jet fighter deal

Bolivia opts for Chinese military gear
La Paz, Bolivia (UPI) Mar 31, 2009 - Military suppliers hoping to take part in Bolivia's military regeneration program have been beaten to the game by the Chinese, who are supplying the Latin American country with military vehicles and possibly more. Military and security industries, often backed by governments, have been pursuing Latin American markets to expand their customer base on the continent. Both France and Russia sent high-powered delegations to South America in 2009 to pitch for lucrative arms sales on preferential credit terms. Russia signed deals with Venezuela and France initialed agreements in Brazil worth tens of billions of dollars. Brazil insists on transfer of technology and deals that will enable it to develop its own defense manufacturing industries. The smaller countries, however, lack both financial and human resources to take on technology-transfer arrangements and prefer instead a straightforward import of manufactured defense items.

The China-Bolivia agreement is one such deal, in which the Chinese have begun supplying Bolivia with military vehicles and spare parts and more, possibly on easy repayment terms, analysts said. Bolivian President Evo Morales said China would also help Bolivia launch a low-orbit satellite to fight drug cartels. Bolivia has been struggling with outmoded defense equipment but its deal with China sparked speculation that military modernization signaled border problems with neighboring Paraguay. Bolivia and Paraguay went to war in the 1930s over rumors of oil deposits in the bordering Gran Chaco region, a find never confirmed with a discovery. In the fighting, the bloodiest in South America in the 20th century, Paraguay captured some Bolivian land, which it continues to hold. The loss of land to Paraguay is a sore point with Bolivians who officially mourn each year the loss to Chile of their access to the sea in the 1883 War of the Pacific. Despite a return to peacetime conditions, any military armament triggers tension between the two countries, which Morales was keen to defuse in comments this week.

He denied that Bolivia's military purchases from China were a provocation to Paraguay, and condemned critics for trying to stir up trouble between the neighbors. He called for peaceful coexistence to deliver more effective economic programs to the people of the two countries. Paraguay media reported Bolivia has eight bases and 9,000 troops near the Paraguayan border. Morales said Bolivia needs to strengthen its border security against drug smuggling and armed militants usually working with drug smugglers. In provincial polls scheduled for Sunday, Morales expects to consolidate power in elections to governors' posts, provincial assemblies and other local posts. About 5 million Bolivian registered voters will elect provincial governors, members of regional legislative assemblies, mayors, councilors and local indigenous authorities. This will be the first time that voters will be able to elect autonomous provincial governments in Bolivia under its new constitution. The government says it wants to restore normal security conditions, eradicate crime and drug smuggling with the cooperation of all citizens.

by Staff Writers
Sao Paulo (AFP) April 02, 2010
Brazil plans to announce in early April the winner of a multi-billion-dollar competition for modern fighter jets meant to cement its new role as Latin America's preeminent military power.

The tender, though, has been marked by infighting between Brazil's air force and government, and fierce rivalry between the three nations vying to score the deal.

The finalists now comprise France's Rafale made by Dassault, Sweden's Gripen NG by Saab, and the F/A-18 Super Hornet by US giant Boeing.

President Luiz Inacio Lula da Silva's stated preference for the ultra-sophisticated, semi-stealth Rafale jet annoyed the air force, which preferred the much cheaper and easier-to-maintain Gripen.

The Super Hornet, in contrast, has languished in the race -- less because of performance comparisons than Brazil's hard-learned lessons that US companies are more reluctant to give full access to their military technology.

Throughout the competition, Lula and his defense minister, Nelson Jobim, have underscored technology transfer as their top priority so that Brazil could not only build its own next-generation fighters but also export them.

That ambition derives from Brazil's growing global clout, and the expectation that Latin America's biggest economy now deserves a seat at the top table alongside UN Security Council permanent members Britain, China, France, Russia and the United States.

France's jet bid was bolstered by the fact that Brazil's strategic pact with Paris that has already seen it sign a 12-billion-dollar deal in early 2009 to buy 50 helicopters and five submarines from France. One of the submarines will be built to run on nuclear power.

The value of the jet fighter contract has not been revealed, but it is estimated at between four billion and 10 billion dollars, depending on the final choice, maintenance costs and armaments.

The initial purchase will be for 36 aircraft to patrol Brazil's vast airspace over the next 30 years, with an option to add nearly 100 more.

Faced with such a juicy opportunity and eyeing other open tenders in India and Kuwait, the competing companies have gone all out to land the Brazilian tender.

French President Nicolas Sarkozy lent his negotiating skills to the endeavor, and he and President Lula issued a joint statement last September saying Brazil had entered into exclusive negotiations to buy the Rafales.

But when the two sidelined contenders cried foul and Brazil's air force showed its displeasure through leaks to the media, Lula had to backtrack and say the competition was still wide open.

The United States used the opening to send top envoys, including national security adviser Jim Jones, to try to convince Brazil the US government was ready to transfer "necessary" technology to win the deal.

Not be outdone, Dassault reportedly cut two billion dollars off its asking price, according to the Folha de Sao Paulo daily. The French company did not confirm the discount, saying only it was "confidently" awaiting Brazil's decision.

Then in late February, the USS Carl Vinson aircraft carrier was morphed into a floating showroom when it was sent to Brazil with its contingent of F/A-18s on display. Boeing representatives were handily available on land to answer questions.

US Secretary of State Hillary Clinton followed up with a visit in early March during which she also lobbied for the US jet.

Sweden's Saab, which has emphasized that Brazil could be a partner in the Gripen NG's development right from the prototype stage, has sought to have the last word.

Swedish King Carl XVI Gustaf and Queen Silvia made visit to Brazil this week, during which Swedish business leaders -- including Saab CEO Aake Svensson -- talked up the business opportunities from a Gripen win.

Under such formidable pressure -- both domestic and international -- Brazil's government has repeatedly pushed back its decision date.

The head of the air force, General Juniti Saito, had said the winner would be announced by the end of March.

But Jobim, the defense minister, said Thursday that the victor would now not be declared before April 5, after Brazil's Easter break.

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