Identifier
Created
Classification
Origin
09BRASILIA1321
2009-11-16 14:28:00
CONFIDENTIAL//NOFORN
Embassy Brasilia
Cable title:  

SCENESETTER FOR THE U.S.-BRAZIL JOINT COMMISSION MEETING ON

Tags:  KSCA EAGR EAID SENV TBIO NSF BR 
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RUEHTRO
DE RUEHBR #1321/01 3201428
ZNR UUUUU ZZH
R 161428Z NOV 09 ZDK CTG#6223
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 5363
INFO RUEHSO/AMCONSUL SAO PAULO 0068
RUEHRG/AMCONSUL RECIFE 0099
RUEHRI/AMCONSUL RIO DE JANEIRO 0027
RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RHEHAAA/WHITE HOUSE WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
UNCLAS SECTION 01 OF 07 BRASILIA 001321 

SIPDIS

DEPT FOR OES, WHA, EEB, S/P
WHITE HOUSE FOR OSTP: HOLDREN, NSC: RESTREPO AND ROSSELLO
COMMERCE FOR ITA: BASTIAN AND DRISCOLL

E.O. 12958: N/A
TAGS: KSCA EAGR EAID SENV TBIO NSF BR
SUBJECT: SCENESETTER FOR THE U.S.-BRAZIL JOINT COMMISSION MEETING ON
SCIENCE AND TECHNOLOGY, WASHINGTON, NOVEMBER 19-20

REF: A) BRASILIA 1254, B) BRASILIA 1105

BRASILIA 00001321 001.4 OF 007


UNCLAS SECTION 01 OF 07 BRASILIA 001321

SIPDIS

DEPT FOR OES, WHA, EEB, S/P
WHITE HOUSE FOR OSTP: HOLDREN, NSC: RESTREPO AND ROSSELLO
COMMERCE FOR ITA: BASTIAN AND DRISCOLL

E.O. 12958: N/A
TAGS: KSCA EAGR EAID SENV TBIO NSF BR
SUBJECT: SCENESETTER FOR THE U.S.-BRAZIL JOINT COMMISSION MEETING ON
SCIENCE AND TECHNOLOGY, WASHINGTON, NOVEMBER 19-20

REF: A) BRASILIA 1254, B) BRASILIA 1105

BRASILIA 00001321 001.4 OF 007



1. SUMMARY: Brazil - the giant of South America - has stepped on
to the world stage as a major economic power and is a key player in
regional and multilateral matters. What has been less noticeable is
that Brazil has put itself on a track to eventually become a global
scientific and technological (S&T) powerhouse. For the ten year
period up through 2006, the number of Brazilians receiving master's
and doctoral degrees increased at an annual rate of 12 percent.
Similarly, the number of scientific articles published in
international journals shot up an average of 8.9 percent per year
from 1981 through 2006. And this trend has only accelerated in
recent years. Today, one of the biggest challenges facing the
Government of Brazil (GOB) is how to translate these substantial and
growing S&T resources into economic growth and development. This
concern undergirds their tremendous interest in how to promote
innovation.


2. Brazil's scientific community in many areas has, or will soon
have, the human, institutional and financial resources to be a full
partner to the U.S. scientific community. The bilateral S&T
relationship already is particularly advanced in the areas of
agriculture research, biomedical research, and biofuels, and other
areas of cooperative research have been growing significantly. S&T
cooperation is helped by the fact that thousands of Brazilians
scientists, engineers, and technicians have studied in the United
States. The U.S.-Brazil Joint Commission Meeting (JCM) on Science
and Technology that will take place in Washington, November 19-20
presents an opportunity for U.S. Government (USG) agencies to take a
close look at Brazil and see how they would like to collaborate with
this rapidly emerging S&T powerhouse. Further, there is interest in
the USG and the GOB in jointly engaging in "trilateral" S&T
activities with third countries in the developing world, especially

with food security and health. This JCM will include a special
focus on the areas of food security, climate change science, science
education, and innovation. END SUMMARY

POLITICAL OVERVIEW - AN IMPORTANT INTERNATIONAL PLAYER


3. With democracy re-established in 1988 after decades of military
dictatorship, Brazil's democratic institutions are generally strong
and stable. President Luiz Inacio Lula da Silva remains, seven
years into his presidency, highly popular -- one of the most popular
presidents in Brazil's history and indeed in the world today. This
sustained popularity is based on a combination of his personal
connection with the country's lower classes, disciplined economic
policies, and expanded social programs. However, the Brazilian
political elite and media are already focused on the October 2010
national elections for president, all 27 state governors, two-thirds
of the senate, and all federal deputies. Lula is constitutionally
barred from seeking a third term. He has designated Civil Household
(Prime) Minister Dilma Rousseff as his party's candidate to succeed
him. Sao Paulo Governor Jose Serra currently is the leading
contender for the Presidency, but with a year to go, the race
remains unpredictable. As the campaign season enters full swing in
spring 2010, there will be an exodus of senior officials and some
agencies may choose to wait for the next government before
undertaking new activities.


4. The United States and Brazil share the basic goals of fostering
hemispheric stability and integration, promoting democracy and human
rights, and preventing transnational illicit activity. The
attainment of a permanent seat on the UN Security Council has been
an important goal of Brazil's foreign policy under President Lula's
government. Brazil was just elected to a tenth two-year
non-permanent UN Security Council seat, a record matched only by
Japan. Lula has sought to expand ties in Africa and other
developing countries by opening new embassies and offering them
scientific and technical assistance. Brazil has taken the lead on
peacekeeping in Haiti. In South America, the GOB has maintained a
historic focus on stability, seeing good relations with all
neighbors as the best way to achieve this goal.

ECONOMIC OVERVIEW - NOW ONE OF THE TOP ECONOMIES


5. Brazil is the tenth largest economy in the world and received
investment grade status from Standard and Poor's and Fitch in 2008,
and from Moody's in 2009. Annual Gross Domestic Product (GDP) grew
5.1 percent in 2008, and inflation was 5.8 percent. The global
economic crisis eroded previous predictions for annual GDP growth
for 2009 from four per cent to essentially flat. Despite this
decline in immediate prospects, Brazil has thus so far weathered the

BRASILIA 00001321 002.4 OF 007


crisis better than most major economies and appears to be entering
into a solid recovery position, led by strong domestic demand.
Conservative macroeconomic policies in the years prior to the
crisis, and targeted responses during the crisis -- including credit
injections in the financial system, a reduction in interest rates,
and tax cuts on automobiles and consumer durables -- played a role
in lessening the impact of the global crisis on Brazil. Brazil is
projected to return to a 4 to 5 percent GDP growth rate in 2010.


6. Brazil is a major producer and exporter. Agriculture makes up
36 percent of exports, and the agribusiness sector accounts for 25
percent of Brazil's Gross Domestic Product (GDP). Brazil is a
leading exporter of soybeans, beef, sugar, coffee, and orange juice.
Brazil also distinguishes itself as a major exporter of civilian
aircraft, steel, and petrochemicals. The United States is Brazil's
top trading partner overall, and China as of March of this year
moved into first position as Brazil's primary export destination.
Prior to the current financial crisis, U.S.-Brazil trade experienced
significant annual growth surpassing USD 50 billion in 2008 --
Brazil typically experiences a slight positive balance in the trade
relationship.


7. Brazil's relatively successful management of the crisis has
encouraged the GOB to engage proactively and constructively in the
debate over how to handle the economic crisis including through the
G20 process. Brazil has called for increased regulation of the
global financial system, increased global access to trade finance,
and an expanded voice and vote for large emerging countries like
Brazil in the international financial institutions.


SCIENCE AND TECHNOLOGY - RISING RAPIDLY, BUT FROM A LOW BASE


8. Brazil has decided it wants to become a global S&T powerhouse
and has been putting resources into that effort. Currently, Brazil
invests about 1.2 percent of its GDP in research and development
(R&D) and the goal is to reach 1.5 percent in 2010 and 2.2 percent
(the OECD average) by 2015. For the period 2007-2010, the GOB has
embarked on a $41 billion Reais (about US$24 billion) program to
promote science, technology and innovation. This S&T program aims
to (1) increase substantially the number of Brazilians with advanced
degrees - with a specific focus on engineering; (2) promote R&D and
innovation by private firms; (3) support R&D in strategic areas -
biotechnology, nanotechnology, information and communication
technologies (ICT),biofuels and energy technologies, biodiversity
and climate change science, and nuclear; and (4) strengthen S&T
education in public schools and technology and vocational centers.
The Minister for Science and Technology, Dr. Sergio Rezende (MIT
Ph.D., Fulbright alumnus) would like to brief the U.S. delegation on
this four-year S&T program and future plans at the JCM. The
investment in S&T has already begun to show results. For the ten
year period through 2006, the number of Brazilians receiving
master's and doctoral degrees increased at an annual rate of 12
percent; with the number of doctoral degrees increasing from about
5,000 in 2000 to 10,000 in 2007. The goal is to reach 16,000 in

2010. The number of scientific articles published by Brazilians in
international journals shot up an average of 8.9 percent per year
from 1981 through 2006, and this trend continues. This growth in
scientists is also apparent in the staffing of GOB agencies. A good
example is the Brazilian Metrology Institute (INMETRO),which had
just 5 scientists with doctoral degrees in 2000 and will have 300
such scientists in 2010.


9. Brazil consciously looks to South Korea has a model, where a
substantial investment in S&T helped to promote rapid growth. Even
with increasing spending on S&T, however, the GOB confronts
fundamental challenges to this vision. The vast majority - 72
percent in 2005 - of researchers work for the government, either
directly or through a government university. In contrast during the
same year, over 75 percent of researchers in the United States and
South Korea worked in the private sector. There is great pressure
for researchers to publish in Brazil (about 2.2 percent of the
world's scientific articles),however, researchers rarely patent
their discoveries. In 2005, there were 2,439 patents granted in
Brazil compared with 53,300 in China and 74,500 in South Korea. Dr.
John Holdren, Science Adviser to the President and Director of the
Office of Science and Technology Policy, stressed in his
confirmation hearing that "investments in science and engineering
have driven most of the innovations that underpin our economy today.
A wide variety of studies conclude that between 50 and 85 percent of
the growth of the U.S. economy over the past half-century." Brazil
concurs with this analysis. The GOB is placing a major emphasis on

BRASILIA 00001321 003.4 OF 007


S&T and innovation as a driver of economic growth. The GOB
considers promoting innovation one of its highest priorities, and
this is expected to be reflected at the JCM.


10. Briefly, the GOB S&T community falls mainly under the mandate
of the Ministry of Science and Technology (MCT),which has two large
funding agencies: the National Research Council (CNPq) for
promoting individual research activities and capacity building, and
the Financing Agency for Studies and Projects (FINEP),which
supports S&T institution building. Minister Rezende and the
presidents of CNPq (Marco Antonio Zago) and of FINEP (Luis Manuel
Rabelo Fernandes) will participate in the JCM. MCT oversees a host
of technical agencies, including the Brazilian Space Agency (AEB),
the National Space Research Institute (INPE),and the Center for
Strategic Studies (CGEE),all of which will be represented at the
JCM by their head of agency. Other technical agencies fall under
different ministries, such as the Coordination for the Improvement
of Academic Personnel (CAPES),the agency charged with overseeing
graduate-level education in Brazil, which falls under the Education
Ministry; the Brazilian Agricultural Research Agency (EMBRAPA),
which falls under the Agriculture Ministry; and the Metrology
Institute (INMETRO),which falls under the Commerce and Development
Ministry. All of these will also be represented at the JCM. Apart
from these GOB agencies, the GOB plays a role in R&D through the
nationwide network of federal universities. There are also some
high quality state and private universities.

THE JOINT COMMISSION MEETING ON SCIENCE & TECHNOLOGY


11. The next Joint Commission Meeting (JCM) on Science and
Technology will take place in Washington, DC, November 19-20. This
will be only the second JCM (the first one was in 2006) and the
first one during the Obama Administration. The Brazilian delegation
will be headed by the Minister Rezende, who will be accompanied by
the Ministry of External Relations' Under Secretary for Energy and
High Technology, Ambassador Andre Amado. Dr. Holdren will lead the
U.S. delegation. The JCM will review the wide gamut of the
bilateral S&T relationship. This meeting will include a focus on
four key areas: food security; climate change science; science
education and innovation.


12. The JCM takes place in accordance with the 1984 Agreement on
Science and Technology between the United States and Brazil (the
"S&T Framework Agreement"). A wide variety of USG agencies have
used this Framework Agreement as the basis for an on-going and
robust cooperation with their Brazilian counterparts. Some of the
most active USG agencies in Brazil include the National Institutes
of Health, the National Science Foundation, the Smithsonian
Institution, the U.S. Geologic Survey, the U.S. Department of
Agriculture's Agricultural Research Service (USDA/ARS),the U.S.
Army Corps of Engineers, the National Aeronautical and Space
Administration (NASA),and the National Institute of Standards and
Technology. The activities undertaken by these agencies range from
climate science, to medical research and everything in between.

AGRICULTURE BIOTECHNOLOGY


13. Biotechnology and genetic resources are issues that have
divided the Brazilian ministries, with the Agriculture Ministry
vigorously supporting increased use of biotechnology and freer flow
of genetic resources, and until recently, the Environment Ministry
expressing skepticism and caution on the matter. The growing use of
agricultural biotechnology, including genetic engineering (GE),by
Brazilian farmers and the arrival of a more pragmatic Environment
Minister present an opportunity for the USG to encourage the GOB to
work more closely with the USG on these key issues. Brazil has come
a long way in making use of biotechnology. Post estimates that for
the upcoming 2009/2010 season GE seeds will account for 65 percent
of soybean plantings, 20 percent of corn plantings, and 10 percent
of cotton plantings. Earlier in October 2009, the Ministry of
Science and Technology together with the National Council for
Scientific and Technological Development (CNPq) announced an
initiative to promote biotechnology research with small grants of up
to 50,000 Reais (about US$25,000).


14. Brazil's Agricultural Research Service (EMBRAPA),an agency
similar to the USDA/ARS, is a leader in agricultural biotechnology
and research. In fact, EMBRAPA and USDA/ARS have a well-established
cooperation and exchange program called LABEX. Representatives from
both EMBRAPA and LABEX will be participating in the JCM.

CLIMATE CHANGE

BRASILIA 00001321 004.6 OF 007




15. After intensive lobbying from senior USG officials and pressure
from other countries and domestic constituencies, President Lula
announced a major shift in Brazil's position in the international
climate change negotiations. He has announced a target of reducing
the rate of deforestation of the Amazon Forest by 80% by 2020, which
would amount to about a 20% reduction in economy-wide emissions
compared with business as usual. This represents a significant
advance over Brazil's previous position that only the developed
countries should have emissions reductions targets and the
developing ones needed to preserve room for growth. Brazil,
however, insists that developed countries provide substantial
technology transfer and financial assistance to developing countries
so that they can take mitigation and adaptation measures.


16. There is a long history of cooperation between the USG and the
GOB in the science of climate change and biodiversity. NASA
supported a massive project called the Large-scale Biosphere
Atmosphere (LBA) Project in the Amazon, which continues with funding
from other sources. The Smithsonian Institution and the National
Science Foundation operate programs on climate change in Brazil.
NASA provides satellite imagery that Brazil uses to monitor the
Amazon. This is a potential area for greater cooperation as USG
agencies place a greater emphasis on this field of research.


17. The GOB has great interest in the study and understanding of
climate change and biodiversity. In addition, it has an active
program in R&D of advanced and next generation biofuels with the USG
under the 2007 Biofuels Memorandum of Understanding. The GOB and
the USG are looking for other areas to pursue S&T cooperation with
respect to renewable energy, energy efficiency, carbon sequestration
and storage, and nuclear energy. These efforts include Memoranda of
Understanding signed by DOE's National Energy Technology Laboratory
(NETL) with the Brazilian Coal Association (Associagco Brasilera do
Carvco Mineral) and the Pontifical Catholic University of Rio Grande
do Sul (PUCRS - Pontifcia Universidade Catslica do Rio Grande do
Sul). Both MOUs place special emphasis on exchanging information on
coal utilization for power generation and clean fuels production,
including coal gasification; efficient and environmentally
responsible use of coal; development of combustion technologies for
high-ash coals; studies in coal mine safety, coal mine methane, mine
ground water control, backfilling, and acid mine drainage; coal GHG
mitigation technologies, including CO2 capture and storage; and,
capacity building for the above technologies. DOE is also
supporting work by the National Renewable Energy Laboratory and
Argonne National Laboratory with Brazilian counterparts to evaluate
the life cycle greenhouse gas emissions and land-use impacts of
advanced processes for biofuels production in Brazil and the United
States.


18. Furthermore, Brazil has developed excellent skills in remote
sensing and imagery analysis, which it uses to monitor the Amazon
Forest. INPE, the agency primarily responsible for this work, would
like to find ways to provide these skills to other developing
countries with tropical forests. The GOB is interested in the
possibility of trilateral cooperation with the USG in this area.

FULBRIGHT AND HIGHER EDUCATION COOPERATION


19. The Fulbright Program offers grants for graduate and
post-doctoral studies in all fields of knowledge. The Fulbright
Program in Brazil, which dates back to 1957, has awarded grants for
3,000 Brazilians for educational programs in the United States and
for 2,500 Americans for educational programs in Brazil. Of the
Brazilians who have gone to the United States, 286 participated in
science or technology programs, and 83 Brazilians are currently
studying in the United States in scientific or technical fields.
Since its inception in 2007, four Brazilians have been selected for
the International Fulbright Science and Technology Award for
Outstanding Foreign Students, which provides winners the opportunity
to pursue a Ph.D. at top U.S. universities. This award is
considered the most prestigious international scholarship in science
and technology. In addition, two Brazilian scholars were selected
to take part in the 2010 Fulbright New Century Scholars Program, the
theme of which is "The University as Innovation Driver and Knowledge
Center." Now in its sixth year, this program provides a platform
for a group of outstanding scholars from around the world to focus
on a single issue of concern to people, institutions and governments
worldwide. The selected scholars, one-third of whom are from the
United States and the rest from other countries, spend a year
conducting research, both individually and collaboratively, to
advance understanding on the year's chosen topic. It is very

BRASILIA 00001321 005.4 OF 007


unusual to have two scholars from the same country participate in
this program, which speaks to the quality of the Brazilian
applicants.


20. The Fulbright Commission in Brazil works in close collaboration
with CAPES, a Brazilian federal agency charged with overseeing
graduate-level education in Brazil. CAPES also supports a variety
of scholarships for Brazilian students and scholars to study and
conduct research abroad. This year Fulbright and CAPES will phase
out the four-year PhD program and launch in its place the Fulbright
Doctoral Dissertation Research Award Program, which will provide a
nine-month research grant for Brazilian doctoral students enrolled
in Brazilian universities who wish to study or do research at U.S.
institutions to complement their studies and research in Brazil. The
priority areas for these grants will be fields of study related to
science and technology. In the first year, 40 grants will be
offered, and the goal is to increase the number to 50 in the coming
years. A call for applications for this program will begin in
November of 2009 and the first students will depart in the fall of

2010.


21. Since February of 2008, the Fulbright Commission in Brazil has
coordinated the Brazil-U.S. Higher Education Council Bio-Fuels
Network, which aims to create a framework to enhance information
exchange and facilitate research collaboration and partnerships
between scientists, universities and research institutions in Brazil
and the U.S. in the area of biofuels. The Network has established
an active website that includes an international database to connect
researchers from United States and Brazilian institutions that
currently includes 140 Brazilian and U.S. researchers and
professionals working in the area of biofuels. The Network
organized an annual short course on biofuels, the first of which was
held at the University of Sao Paulo from July 27-August 7 of this
year. The course takes an interdisciplinary approach to bio-energy
and biofuels technologies and aims to improve communication among
institutions of higher education, science, and other public and
private organizations in Brazil and the U.S. Participants included
Brazilian and U.S. graduate students, as well as private sector
professionals. The Network hopes to increase its activities by
seeking funding for joint proposals developed by Network members,
starting webinars and a bi-monthly e-newsletter. The Bureau of
Educational and Cultural Affairs (ECA) has only provided the Network
with funding for two years. ECA is currently evaluating the program
to determine if it will extend funding beyond December of 2009.

INNOVATION


22. Brazilian officials continue to point to innovation as one of
their highest priorities and have indicated interest in increasing
cooperation in this area. Continuing bilateral discussions on
innovation would provide the USG with an excellent opportunity to
highlight the importance of intellectual property rights (IPR) as a
pillar of innovation. However; there is some resistance
(particularly from the Ministry of External Relations) to linking
conversations on innovation, economic development, and intellectual
property protection. This resistance seems to be motivated by the
Ministry of External Relations' political desire for Brazil to take
a leading role among developing nations and a policy belief (led by
Ministry of Health) that pharmaceutical patents contradict the
public interest by limiting access to medications. Furthermore, the
Ministry of External Relations' consideration of cross-retaliation
on IPR (in the World Trade Organization cotton dispute) could be
perceived as a lack of commitment to the long-term value of IPR in
attracting and promoting innovation. Participants from the Ministry
of External Relations will not eagerly seize on the theme of
innovation's ties to IPR protection. However, officials and
ministries dealing with industry and trade are more aware of IPR's
importance to economic development and growth. The powerful Sao
Paulo Industry Federation (FIESP) as well as other Brazilian private
sector representatives have indicated concerns regarding proposals
to cross-retaliate on IPR in the cotton case.

ASSISTANCE AND TRILATERAL COOPERATION


23. Bilateral development assistance in Brazil is diminishing as
Brazil's economy advances, notwithstanding the areas of continued
extreme poverty and sharp regional disparities. Germany and the
European Union lead assistance efforts tend to focus on forest
conservation and sustainable development, while the United Kingdom
is devoting its assistance efforts almost entirely to climate change
mitigation and carbon-free economic growth. USAID has modest
assistance programs in Brazil directed at health and youth

BRASILIA 00001321 006.4 OF 007


employability in the poor Northeast and to sustainable development
in the Amazon. While the GOB accepts limited development aid, it
does not actively seek assistance, even during natural disasters
such as the recent flooding in the Northeast and the Amazon region.


24. Brazil is taking on a new role as a provider of development
assistance, rather than a recipient. Together with Brazil's
Ministry of External Relations, USAID is developing an MOU that will
establish triangular development assistance relationships with Haiti
and with Portuguese-speaking African countries in the areas of food
security and health. The GOB is confident that it is in a position
to showcase its agricultural expertise and experience in HIV/AIDS
treatment. The GOB actively seeks a partnership of equals with the
USG and other developed countries to apply this experience in other
developing countries. The USG and GOB have already commenced a
project in Sao Tome to address the problem of malaria there.
Further, the USG has repeatedly called on Brazilian medical
specialists to assist its health assistance programs in Africa.


25. Possible areas of trilateral cooperation extend beyond food
security and health. Since signing the Biofuels Cooperation
Memorandum of Understanding in March 2007, the USG and the GOB have
been working together to assist developing countries in the
Caribbean, Central America, and now in Africa in making science
based decisions about biofuel policies. Moreover, the USG and GOB
are conducting joint research on advanced and next generation
biofuels. We are also discussing possible joint cooperation on
hydropower in Haiti and have seen initial interest in how the USG
and the GOB might utilize their impressive assets and skills in
remote sensing and earth observation to benefit other tropical
forest countries.

BARRIERS TO RESEARCH AND COOPERATION


26. Despite strong interest for increased cooperation on a
technical-level, S&T cooperation between the GOB and the USG has
occasionally been plagued by bureaucratic and political obstacles.
Dr. Nina Fedoroff, during her visit to Brazil in late October, had
several conversations with her counterparts about these "barriers to
cooperation." From the USG perspective, these barriers often take
the form of onerous customs procedures; constantly changing,
multilayered research authorization requirements; and particularly
lengthy and difficult procedures required to receive government
permission for any research involving health, genetic resources, or
traditional knowledge. From the GOB perspective, the most commonly
cited "barrier" is the cost and procedure involved in obtaining a
U.S. visa. The JCM will provide an opportunity for both sides to
discuss these barriers, and ways to reduce them in an effort to
increase cooperation.

U.S. DEFENSE DEPARTMENT S&T INTERESTS IN BRAZIL


27. The United States was a direct contributor to the birth of the
Brazilian Aerospace Industry. In 1945, Brazilian Air Force Col
Montenegro visited Wright Patterson AFB and MIT. These visits
resulted in Col Montenegro and MIT Professor Richard Smith
establishing what is today known as the Aerospace Technical
Institute (ITA),the Department of Aerospace Technology (DCTA) and
the successful aircraft manufacturer EMBRAER, which is now a private
company. Very intense cooperation throughout the 1960s transitioned
to a decline in military S&T cooperation during periods of human
rights violations and military dictatorship in Brazil. The
Brazilian military and the U.S. military continue to work to
increase collaborative efforts after a long lull in cooperation.
The Brazilian military has emphasized that they have been faithful
custodians of U.S. sensitive technologies, while at the same time
expressing resentment over what they label as embargoes on
technology transfer. In response to the misuse of the term
embargoes, DTSA had a briefing team clarify to the Ministry of
Defense that most of the complaints related to commercial
contractual issues with private companies and not USG trade control
issues. S&T dialogues are held at the General Officer Level on an
annual basis, alternating between Brazil and the United States.
These meetings are referred to as National Executive Agent Meetings.
The Brazilian Air Force Executive Agent, Brigadier General Venancio
will be participating in the JCM. While Venancio would like a
return to the cooperation of the 1950's and 1960's and has great
respect for the United States, he is one of the officers who has
accused the USG of having "embargoes" against technology transfer to
Brazil.


28. The Air Force Office of Scientific Research (AFOSR) has

BRASILIA 00001321 007.4 OF 007


collaborative efforts with military and civilian universities.
Extensive interest in Brazil led to a proposal to open a regional
office in Brazil, however, due to Brazilian political resistance,
this regional office had to be established in Santiago, Chile. The
Brazilian Air Force is particularly proud of its cutting edge
hypersonic research, which is being conducted in collaboration with
the U.S. Air Force. If the Super Hornet is selected in the F-X2
competition the Brazilian Air Force will receive a Tri-sonic wind
tunnel as a Boeing offset which will significantly improve their
aerospace research and development capabilities.


29. One of the most significant visits in the area of S&T was a
visit by former DARPA Director Dr. Tether in September of 2008. The
intent was to discover collaborative opportunities and hopefully
generate interest in submitting White Papers to DARPA with
collaborative project proposals. Great interest was expressed
during Dr. Tether's visit, but no DARPA collaborative projects with
Brazil have yet emerged.


30. The GOB has a high regard for the scientific know-how and
technical prowess of the U.S. Army Corps of Engineers (USACE).
USACE has a robust engagement plan with the Brazilian Army
Engineers. USACE has worked closely with the GOB on potential
cooperation on ports management, dredging and transmodal cargo
operations as well as waterway navigation and management. USACE has
been invited to to accompany the Brazilian Military and the
Brazilian Agency for Cooperation (ABC) on a visit to the future site
of the Artibinite 4C Dam in Haiti to explore possibilities of
technical cooperation in the region. In September 2009, USACE sent
a team to assist the Brazilian Waterways Agency (ANA) with an
assessment of the Navigability of the Teles Pires - Tapajos river.
USACE is currently looking at forming a formal cooperation agreement
with ANA. An important annual event between USACE and the Brazilian
Army engineers is the annual Chief of Engineers visits, alternating
host countries every year.

KUBISKE