Saturday, November 9, 2013

Boeing Might Lose $4B Brazil Deal For F-18 Jets After NSA Surveillance Scandal; Analysts Say Politics Won't Trump Business



Boeing Might Lose $4B Brazil Deal For F-18 Jets After NSA Surveillance Scandal; Analysts Say Politics Won't Trump Business
By Patricia Rey Mallén
on September 12 2013 2:37 PM
Brazil did not take it lightly when it found out that the U.S. National Security Agency had been spying on official correspondence, calls and emails from the Brazilian government. President Dilma Rousseff, whose cell phone had been tapped by the spy agency, asked for explanations and an apology from President Barack Obama, while Brazilian diplomats called the surveillance an “attack on sovereignty.”

But the NSA operation revealed by leaker Edward Snowden might have damaged more than relations between the two biggest economies in the Americas. It might also have put in jeopardy a $4 billion deal for fighter jets that was, until recently, almost a done deal for Boeing (NYSE:BA).

Brazil is in the market for 36 new fighter jets to modernize its air force. The order was hotly contested by the world’s major aircraft producers, and a three-way final round ended in America’s favor with the planned purchase of the F-18 Super Hornet from Boeing. The Chicago-based aviation giant was the clear favorite of Brazil’s government, over the Rafale made by France’s Dassault (EPA:AM), which was former President Luiz Inácio da Silva’s choice, and the JAS-39 Gripen NG from Sweden’s Saab (STO:SAAB-B). A visit by Vice President Joe Biden to Brazil earlier this year was widely considered as having sealed the deal for Boeing.

But as news broke that the NSA had been monitoring not only the Brazilian government but also oil giant Petrobras (NYSE:PBR), rumors began swirling that Brasília might not want to pursue the deal. “You cannot give such a contract to a country that you do not trust,” Reuters quoted a source close to the jet fighter negotiations as saying.

Brazil
Donna J. Hrinak was the U.S. ambassador for Brazil, and the president, Boeing Brazil for the Boeing Company.

Note: Clifford M. Sobel was the U.S. ambassador for Brazil, and is a director at the Millennium Promise.
Foundation to Promote Open Society was a funder for the Millennium Promise, and the Brookings Institution (think tank).
George Soros is the chairman for the Foundation to Promote Open Society.
Vernon E. Jordan Jr. is an honorary trustee at the Brookings Institution (think tank), a senior counsel for Akin, Gump, Strauss, Hauer & Feld, LLP, Valerie B. Jarrett’s great uncle, a director at the American Friends of Bilderberg (think tank), and a 2008 Bilderberg conference participant (think tank).
Akin, Gump, Strauss, Hauer & Feld, LLP is the lobby firm for the Boeing Company.
Valerie B. Jarrett is Vernon E. Jordan Jr’s great niece, the senior adviser for the Barack Obama administration, and a member of the Commercial Club of Chicago.
William M. Daley is a member of the Commercial Club of Chicago, was the chief of staff for the Barack Obama administration, and a director at the Boeing Company.
W. James McNerney Jr. is the chairman & president & CEO for the Boeing Company, and is a member of the Commercial Club of Chicago.
Commercial Club of Chicago, Members Directory
Please note: This link for the members of the Commercial Club of Chicago can no longer be found.
R. Eden Martin is the president of the Commercial Club of Chicago, and counsel at Sidley Austin LLP.
Michelle Obama was a lawyer at Sidley Austin LLP.
Barack Obama was an intern at Sidley Austin LLP.
R. Eden Martin is counsel at Sidley Austin LLP, and the president of the Commercial Club of Chicago.
Robert S. Osborne is a member of the Commercial Club of Chicago, and the EVP & general counsel for Booz Allen Hamilton.
Edward Snowden was an employee for Booz Allen Hamilton, and leaked information about for the National Security Agency (NSA).
Booz Allen Hamilton is a contractor for the National Security Agency (NSA).

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