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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 
 
 
¶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