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FarCenter

(19,429 posts)
Sat Dec 21, 2013, 12:35 AM Dec 2013

Insight: How U.S. spying cost Boeing multibillion-dollar jet contract

Obama visited Brazil in 2011, Rousseff went to the White House in 2012, and the jets deal was discussed at length by the leaders during both trips. But it wasn't until Biden's visit in May that Boeing was finally on the verge of winning the deal, Brazilian officials said.

Rousseff remained concerned that the U.S. Congress, especially Republican Party members who are traditionally skeptical of leftist governments in Latin America, could block the technology transfers on national security grounds even after a deal with Boeing was signed.

But Biden, based on his 36 years of Senate experience, offered Rousseff a detailed and convincing explanation of why that wouldn't happen, said Brazilian and U.S. officials who were present.

In comments after the meeting, Biden made it clear where U.S. priorities were: "We're ready for a deeper, broader relationship across the board on everything from the military to education, trade and investment."

Boeing executives, U.S. diplomats and even Brazilian officials were exuberant. The expectation, confirmed by Rousseff's aides, was that she would likely announce her choice of Boeing in October, when she was due to make the first formal state visit to Washington by a Brazilian leader in nearly 20 years.

IT ALL FELL APART

The optimism began to fade just five weeks later, when the first Brazil-related NSA documents were released. Then, on September 1, when a report said Rousseff herself had been a target, it became clear that all bets were off and that the Boeing bid was in severe danger.

The day after that report, a person who had been pushing for Boeing angrily questioned whether the intelligence obtained from Rousseff's communications justified possibly losing the deal. "Was that worth $4 billion?" the person asked rhetorically, speaking on condition of anonymity.


http://www.reuters.com/article/2013/12/20/us-boeing-brazil-insight-idUSBRE9BJ10P20131220
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