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*From:* Felipe Rocheleau
*Sent:* Monday, January 24, 2011 11:46 AM
*To:* Rob Walker
*Cc:* Jeff Mains
*Subject:* RE: Brazilian Fighter

Hi Rob,


I've just read an article at magazine "Veja" in Brazil stating that Dilma
has halted the purchase of the fighters in Brazil this year. The article
reads: "The French fighter Rafale, the favorite by the Brazilian Government
to equip the Brazilian Air Force, has been put at the end of the line.
Sarcozy knows why".


More on the article:


"Dilma Rousseff announced that Brazil will not purchase the fighter jets
this year, taking the last hope from the French. The French had their hands
on the trophy, on an order of $36 Billion.


Last year everything was set for the signature and for the purchase of the
36 French fighters Rafale, but some Iranian sand got into the deal. The
French leader Nicolas Sarkozy encouraged the Brazilian Diplomacy to continue
its negotiation attempt of an agreement about the Iranian Nuclear Program.


However, Sarkozy denied publicly his support to the Brazilian initiative,
and France even voted in favor of the sanctions to Iran at ONU, leaving
Brazil with the brush in the hand.


The Brazilian Government felt betrayed, and in retaliation, ordered the
revision of the whole acquisition process, placing the French model at the
end of the line."


I've also just spoken with our contacts in Brasilia, and they told me that
Dilma will be meeting with Obama in March. The idea is to open the
acquisition process to new bidders and to reevaluate all players.


Patriota, the International Relations Minister of Brazil, who lived in the
US for many years, has articulated this meeting with Obama, and this will be
a great opportunity to discuss the sale of the 5th generation fighter jets
by Boeing to the government of Brazil. What's important here to win this
business is the package that will come with the sale, in other words, best
technology, technology transfer to Brazilian companies, manufacture of parts
in Brazil, purchase of planes from EMBRAER, etc...


On January 10th, Sen. John McCain and John Barrasso sat down with Dilma and
declared the following:


"We discussed the sale of the fighter jets. They are worried about
technology transfer, and I guarantee that the position of the President of
the United States and of the American Congress is very clear: we agree with
a complete technology transfer, in case the government of Brazil decides to
purchase our aircraft.


Barrasco also raised a point that goes in line with what the Brazilian
government is looking for. He said that he comes from a state known for its
energy capacity, and that both him and McCain are defenders of the
utilization of biofuels. For him, the idea of American subsidy to local
products, that utilize corn to produce fuel, will soon be analyzed by the
World Commerce Organization. He said that both him and Senator McCain
disapprrove the american government politics in regards to this subject."


Also important is the fact that Brazil holds the largest reserves of
Niobium, mineral used for the manufacture of components that need to support
high temperature and pressure, such as in the jet turbines. The biggest
reserves are in the state of Goiás, near Brasilia.


Whoever builds the most partnerships in Brasil around the purchase of these
jets will win the contract.


Our strengh here are the connections within the government in Brazil,
including the following:


1) Ability to articulate with senators and members of the congress in
Brasilia;

2) Ability to establish partnerships with technology and manufacturing
players in Brazil, such as Politec, EMBRAER and ATECH;

3) Direct contact with the President of BNDES, Brazil's Eximbank, the most
important executive within the Dilma government, who will be a key player in
financing this and other deals;


I will be discussing more this afternoon and tonight. If you'd like, we can
also set up a conference call. Do you have a skype account?


Best,


Felipe


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*From:* Rob Walker [mailto:rwalker@rosemontseneca.com]
*Sent:* Friday, January 21, 2011 12:50 PM
*To:* Felipe Rocheleau
*Cc:* Jeff Mains
*Subject:* Brazilian Fighter

Felipe – What do you know about this Brazilian fighter contract? I just
want a little more information and clarity before I start sending emails?
You have someone you could reach out to and maybe influence this a bit?
How would we play this? Through atech maybe?


Rob Walker

Rosemont Seneca Partners, LLC

1010 Wisconsin Ave., NW

Suite 705

Washington, DC 20007

(202) 333-188