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July 28, 2006
SouthAmerica: Quoting from a Reuters article published in January 2006: âEmbraer finds itself in an unwanted spotlight over the potential sale of surveillance planes to Venezuela. The Venezuelan government has expressed interest in buying Super Tucano patrol planes from Embraerâ¦..â
After the US government blocked the sell of over 30 airplanes from Embraer in January 2006 â a contract worth millions and millions of dollars for Embraer which would have created new jobs in Brazil and a nice profit for this Brazilian company â Instead Venezuelan President Hugo Chávez is giving this nice aircraft contract to Russian companies with the compliments of the United States.
Thanks a lot.
Now the US government is not only completely powerless in trying to stop this transaction with the Russians â but on top of that Hugo Chavez is going to acquire much more advanced military aircrafts which are a lot more dangerous than the ones he was buying from Brazil.
Brazil lost a substantial aircraft contract because of US interference and Hugo Chavez ended up with a much more powerful arsenal.
What a bunch of âFOOLSâ we have in Washington today.
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âBrazil Embraer suspends plans for Florida factoryâ
Reuters - Fri Jan 13, 2006
By Todd Benson
SAO PAULO, Brazil, Jan 13 (Reuters) - Brazilian jet maker Embraer said on Friday it had suspended plans to build a factory in Jacksonville, Florida, after the U.S. Army canceled a contract for a new spy-plane program.
Embraer, short for Empresa Brasileira de Aeronautica, was a key member of a consortium led by defense contractor Lockheed Martin Corp. that in August 2004 won an $879 million contract to develop the new spy plane, known as the Aerial Common Sensor.
But the program's future was thrown into question in September, when the army determined that the Embraer jet -- a modified version of its 50-seat commuter plane -- was too small to carry all the required technology.
To salvage the contract, Lockheed offered four alternative aircraft, including a larger regional jet made by Embraer that has yet to be tested by the military. But on Thursday the army terminated the contract, which was potentially worth $8 billion over several years.
The decision was a blow to Embraer's plans to break into the lucrative U.S. defense market. The company had planned to assemble the planes in Jacksonville, Florida, where it was preparing to turn a defunct military base into a factory.
MILITARY PLANS ON HOLD
Embraer said it would now put those plans on hold, at least until it obtains another Pentagon or Homeland Security contract in the United States.
"Embraer still considers the Cecil Commerce Center, in Jacksonville, Florida, as the chosen site for its defense initiatives in North America," the company said in a statement.
The cancellation of the Pentagon contract comes as Embraer finds itself in an unwanted spotlight over the potential sale of surveillance planes to Venezuela. The Venezuelan government has expressed interest in buying Super Tucano patrol planes from Embraer, the same model that the Colombian military recently agreed to purchase.
But Brazilian officials and Venezuela's President Hugo Chavez have said that the United States was trying to block the sale since the planes included U.S. technology. Chavez, a former paratrooper who staged a failed coup in 1992, has tense relations with the George W. Bush administration.
The United States also tried to stop Spain from selling military planes to Venezuela on similar grounds. But on Friday the Spanish government said it intended to go ahead with the deal without Washington's support and would sell 12 transport and maritime surveillance planes to Venezuela.
Chavez said this week he would wait to see if Brazil could solve the problem over the Embraer planes. If not, he suggested Venezuela could buy similar aircraft from China.
Embraer, the world's fourth-largest producer of commercial aircraft, has declined to comment on the potential deal with Venezuela.
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Note: Embraer is the third-largest producer of commercial aircraft in the world behind Europe's Airbus and Boeing.
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Chavez, Ex-USSR: A New Axis?
Investor's Business Daily - USA
July 25, 2006
Russian Challenge: Moscow's $1 billion sale of top-flight military aircraft to Venezuela's erratic dictator isn't just business. It's unfriendly to the U.S. and a sign of a revived Cold War.
There isn't any doubt Russia's $1 billion contract to sell Venezuela 30 Sukhoi jet aircraft and 33 helicopters will be trouble.
Hugo Chavez's malice toward the U.S. is growing. He's now loudly broadcasting it as he tours the world to drum up support for a seat on the U.N. Security Council, wooing potential allies by promising to counter the U.S.
His latest recruit was Belarus, where he signed an "anti-U.S. pact" Monday with this Russian satellite, praising Belarusian dictator Alexander Lukashenko, who admits to having a soft spot for Stalin. "Our countries must keep their hands at the ready on the sword," Chavez said.
Now he's signed a deal in Moscow for some of Russia's most advanced aircraft. The 30 Sukhoi Su-30MK2 fighters are comparable to U.S. F-15Es, not just in high-speed flight and performance, but in one area where the U.S. has consistently trumped the Russians â electronics and avionics. They are among the best in Russia's arsenal.
These aircraft can do a number of things that Venezuela has never had a need for, such as long-distance flights, land warfare and sea operations. They can fly long distances with a large array of bombs and missiles, and operate at night and in bad weather.
While these new aircraft don't have Russian-made missile warheads (yet), and still can be countered by U.S. stealth flight technology, they are likely to be used to menace Venezuela's U.S.-allied neighbors, like Colombia and the Netherlands Antilles, both of which are already familiar with Chavez's threats.
"Su-30s are intimidators," said Joe Katzman, editor in chief of Defense Industry Daily. "They are used for strikes and for establishing dominance. The military question is always whether you can follow that up."
Meanwhile, of the 33 new armored day-night helicopters for Chavez, 20 are Mi-17V-5 assault/transport choppers, and 10 are Mi-35M2 Pinana armored attack helicopters â the successors to the Russian Hinds used in Afghanistan. Three are MI-26Ts, supergiant transport copters.
All are perfect for internal repression against dissent and against "color revolutions" (read: the Orange, Denim, and probable future Venezuelan and Cuban colored-coded democratic revolutions), the very idea of which Chavez slammed in Belarus this week.
This Russian aircraft purchase represents a nasty new level in the continuing confrontation between Chavez and the U.S. Venezuela is just 1,400 miles from Miami. So Chavez's military aircraft menace us, threaten our allies, undercut emerging democracy movements, and, knowing what we know about the mind of Chavez, are more likely to escalate into something, than mellow out into a non-problem.
Why Russian President Vladimir Putin would do this to us, given all the considerations the G-8, the West, and the U.S. have shown to Russia in the wake of its transition from communism leaves us aghast, and ought to change our perceptions. But that is hard to do, given the difficulty of reading the mind of Putin.
On the one hand, it's likely to be all about money. Russia has little use for military aircraft right now, and for that reason needs foreign buyers to keep its assembly lines open. The $1 billion deal is no ordinary deal for Russia, and for that reason, is looked on as a lifesaver by Moscow.
But Putin also seeks to project Russia's power, and he resents the growing democracy movements on Russia's periphery â in U.S.-supported countries like Georgia, Ukraine and Belarus â just as Russia cracks down.
His move to sell advanced military aircraft to Venezuela on our periphery is a message to Washington to stop supporting democracy revolutions, or he'll retaliate, using dodgy actors like Chavez, whom Putin's spokesman yesterday called "a key partner." It's a dangerous trend.
"He's building a nuclear reactor for Iran," said Katzman. "Do you think he is going to stop at fighter planes for Venezuela?" We wonder the same thing.
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