The New Nation - Internet Edition

AFP, Rio De Janeiro

Brazil on Tuesday signed contracts worth 12 billion dollars to buy 50 military transport helicopters and five submarines from France.

The submarine deal involves the purchase of four conventionally powered Scorpene attack submarines, and the construction of a nuclear-powered submarine to be built with French cooperation. The signing ceremony took place in the presence of Brazilian President Luiz Inacio Lula da Silva and visiting French President Nicolas Sarkozy in Rio de Janeiro.

A French official travelling with Sarkozy said the total value of the contracts was 8.6 billion euros (12 billion dollars) -- 6.7 billion euros for the submarines, and 1.9 billion euros for the helicopters.

The French government will pocket around six billion euros of that total, with the rest going to private defense firms involved in the contracts.

The contracts involve significant transfers of technology-a priority for Brazil, which wants to develop an advanced defense industry of its own-and concretize a strategic partnership accord inked by Sarkozy and Lula.

The French president told a news conference his decision to allow the technology transfer was a conscious choice "to help Brazil have a status as a military power in the service of peace."

Lula, at his side, said: "Today, France is closer to Brazil, Brazil is closer to France."

Brazil has said it is looking to use the submarines to patrol its territorial waters which have recently yielded discoveries of massive oil fields.

Brazilian engineers will be responsible for building the nuclear engine of the atomic-powered submarine along with Argentine colleagues, without help from France. The rest of the vessel will rely on French technology, however.

The conventional subs will be built in France, with participation from the Spanish company Navantia.

Brazil is to build a submarine base near Rio de Janeiro to house the vessels.