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Brazil jet contenders pass final test

Russian visit a boon to embattled Kirchner
Buenos Aires (UPI) Mar 19, 2009 - Argentine President Cristina Fernandez de Kirchner will host Russian President Dmitry Medvedev next month amid rising discontent over her style of government, disputes with farmer groups, financial industry and other economic groups. Emboldened unions of farmers and workers have created momentum in a campaign clearly aimed at discrediting the president and her husband, former president Nestor Kirchner. Critics of the couple have targeted their lifestyle, aloofness and involvement in financial deals. This week the government faced renewed verbal assaults from former President Eduardo Duhalde, who plans to run in the presidential election next year, and critics of the government's handling of a row with the Central Bank over the use of reserves to pay back debts.

He said the government had proven its incapacity for governance and had been unable to resolve ongoing crises in its relationship with two key powers, the Roman Catholic Church and the farmers' community. Key farmer groups have been on strike on and off the last two years and have challenged the government on many issues, from taxation to lack of attention toward infrastructural funding. Calling the president a "historic mistake," Duhalde warned Argentinians could be in for bigger problems and end up having to pay a heavy price for the government's mistakes. Argentine agricultural imports have suffered and part of the trade has been picked up by competing countries, including the United States, due to the ongoing dispute. Duhalde accused the president of being indecisive and being too immersed in speech-making and not doing enough to administer the country's finances.

"The government is handling money as if it was all theirs but the truth is that the money they are managing belongs to the (country)," he said. Analysts and the media were baffled by an opinion poll indicating the presidential couple's popularity had grown in recent months. The claim was refuted by the government's critics, who said they felt let down by the president's actions and policies on key issues. Despite the reported disenchantment, the government is carrying on and hopes to capitalize on Medvedev's April 14-15 visit, the first official tour of Argentina by a Russian head of state in 125 years of bilateral relations. Kirchner visited Russia in 2008. The Argentine Foreign Ministry said the visit would strengthen economic and political collaboration between the countries. "There is much interest in going further to strengthen coordination in political and economic issues at the international level," Foreign Minister Jorge Taiana said after talks in Buenos Aires with Russian Deputy Foreign Minister Sergei Riabkov. "We also want to work in investment and trade, building partnerships in various areas," Taiana said, citing nuclear energy, space, industry, science and technology sectors.
by Staff Writers
Brasilia, Brazil (UPI) Mar 19, 2009
The Brazilian air force has given its technical nod of approval to all three fighter jets competing in the country's ambitious, multibillion-dollar contest for a fresh batch of fighter jets.

The foreign aerospace giants competing for the Brazilian sale of 36 combat aircraft are France's Dassault with its Rafale fighter, Sweden's Saab with the Gripen NG aircraft, and U.S. company Boeing with the F/A-18 Super Hornet.

By some accounts, the contract for the initial 36 planes could rise to more than 120.

The aircraft are expected to renew Brazil aging fleet of combat aircraft. It has long been suggested that France's pride, the Rafale fighter, stands as the preferred pick of the Latin American country.

Earlier this month, Brazil's defense ministry said it would release final details of the estimated $6 billion procurement deal during the week of April 5.

All the contenders have met technical specifications and relevant reports have been delivered to the defense ministry, O Estado de Sao Paulo reported.

Still, the paper and politicians added, the final decision will rest with the country's political leaders, mainly that of President Luiz Inacio Lula da Silva who has insisted that his pick would be based on "political and strategic" reasons -- not just the price tag.

Officials details concerning the bids have been scarce but local media have long reported that the Dassault bid remains the most expensive at about $10 billion, including maintenance costs.

The Boeing package is valued at $7.6 billion and the Saab offer at $6 billion, Folha da S. Paolo reported.

What makes the French bid attractive, experts say, is France's sweetener of transferring all technology related to the supersonic Rafale so that Brazil, bent on becoming the lead military power in South America, could assemble most of the jets itself and sell them regionally.

Brazil has already signed a deal with the French for the construction of five submarines in Brazil. The deal also includes building a nuclear-powered vessel.

French President Nicolas Sarkozy has personal prestige knotted into the deal. In September 2009, Sarkozy and his Brazilian counterpart looked locked in a deal, issuing a statement that negotiations for the purchase had begun when the tender process had not been concluded.

Sarkozy has rallied to the support of Dassault's export prospects.

"The sale of combat planes is a political act," Dassault Chief Executive Officer Charles Edelstenne said from the company's headquarters outside Paris. "The Elysee is doing a superb job," he said, referring to the French presidential palace.

The aerospace company has taken orders for 180 Rafales, but all of those are destined for the French air force.

Should the deal succeed with Brazil, it will mark Rafale's first export order.



earlier related report
Eurocopter unit Helibras breaks ground for Brazil plant
Rio De Janeiro (AFP) March 19, 2010 - Helibras, the Brazilian unit of EADS's Eurocopter, broke ground Friday on a new 400-million-dollar facility in Brazil that will play a larger role in manufacturing and design.

Eurocopter president and chief executive Lutz Bertling said the expansion "increases the engineering capacity of Helibras so that it can completely make helicopters in Brazil."

The new facility would contribute to a government strategy to become more self-reliant in the defense sector, Brazilian Defense Minister Nelson Jobim said.

"This is a starting point so that 10 years from now, the country will have the largest production of helicopters that is totally Brazilian," he said.

The number of jobs at the facility will double to 700 as Helibras gears up to produce the EC-725, the most recent version of the Cougar helicopter -- a contract worth some three billion dollars.

The first of these will be built by Eurocopter in France and delivered to Brazil later this year, the company said.



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MILPLEX
US may extend tanker deadline to allow EADS bid
Washington (AFP) March 18, 2010
The Pentagon said Thursday it might extend a deadline for bids on a new aerial refueling tanker after Airbus parent EADS signalled it could return to the competition. Having been informed by EADS of its possible interest in the contract, the Defense Department "would consider a reasonable extension to the RFP (Request for Proposals) deadline," press secretary Geoff Morrell told AFP. The ... read more







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