Monday, April 26, 2010

DTN News: Government Prefers French Rafale Buy, Tech Transfer Says Brazil Defense Minister Nelson Jobim

DTN News: Government Prefers French Rafale Buy, Tech Transfer Says Brazil Defense Minister Nelson Jobim Source: DTN News / WSJ (NSI News Source Info) BRASILIA, Brazil - April 26, 2010: Brazil's government is leaning strongly toward the purchase of French Rafale fighter jets as part of a long-studied procurement due to advantageous technology transfers promised with the offer, Brazilian Defense Minister Nelson Jobim said Wednesday. Speaking at a hearing in Brazil's congress, Jobim said the French offer was the only one among three finalists in the bidding process that could guarantee full technology transfer sought by the government. "This is a political option for the government," Jobim said. Jobim said the Defense Ministry would submit a final technical report to Brazilian President Luiz Inacio Lula da Silva within the next 15 days with its recommendations related to the purchase. Brazil's government has been studying the purchase of 36 fighter jets to renew its aging air force fleet. The purchase is expected to cost the government up to $4 billion or more. Among the finalists alongside France's Dassault Aviation (AM.FR) Rafale fighters are Sweden's SAAB's (SAAB-B.SK) Gripen jets and the American Boeing Co.'s (BA) F-18 Super Hornet fighters. The indication of the Brazilian government's preference for the French fighters is not entirely a surprise, however. President Lula hinted Brazil would likely buy the Dassault fighters during a state visit by French President Nicholas Sarkozy in September. Government authorities from both Sweden and U.S. have nonetheless recently paid visits to Brazil in an effort to try to help sell fighters from their countries while final technical recommendations are being prepared. The Brazilian Air Force, in an earlier technical report, had indicated a preference for the Swedish fighters because of cost considerations and long-term technical advantages related to fleet renewal. The Dassault Rafale bid has been given special consideration, however, as it comes alongside a recent strategic package offered by France to also sell Brazil 50 military helicopters and five submarines, one of which will be nuclear-powered.

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