Brazilian defense chief warns aircraft producer Embraer sale would dent development

RIO DE JANEIRO, Feb. 8 (Xinhua) -- Brazilian Minister of Defense Raul Jungmann on Thursday opposed the possible sale of Brazilian aircraft manufacturer Embraer to U.S. Boeing, saying his country will lose out in the area of technology and know-how.

If Boeing takes over Embraer's management, "the development of new military and technological capabilities would be subject to U.S. legislation, which might entail the loss of developing technology and knowledge in Brazil," Jungmann wrote in an article published in the regional daily "O Estado de Sao Paulo."

Such factors as intellectual property, the transfer of technology and regulations imposed by U.S. Congress make it difficult for both sides to benefit from a sale, and "not just in the case of Embraer," said the minister.

"No country in the world sells a strategic and leading technological company such as Embraer," Jungmann said.

The laws of the market should not apply to entities that are crucial to national defense and geopolitical strategy, he added.

"That is why we need to be pragmatic. It is important for the two sides ... to seek constructive ways to structure a favorable long-term relationship for all involved," he said.

Boeing announced a few weeks ago that it was interested in acquiring Embraer, which makes military, commercial and agricultural aircraft, as well as executive jets.

The Brazilian government, which holds a controlling stake in the world's third-largest aircraft manufacturer after Airbus and Boeing, initially rejected the offer.

Boeing then made a counteroffer to acquire between 80 and 90 percent of the conglomerate, allowing Embraer to maintain control of its defense division, a proposal the government is considering, according to Brazilian media.

[ Editor: meng ]
 

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