Brazil to resume arms-building

by Luiz Castro | September 19, 2007 at 04:39 pm | 476 views | add comment

Brazil was once the 4th world arms bigest manufacturer. U.S. embargo to Iraq almost fail it's industry. Lula is puting some money back in the sector.

Brazil's President Luiz Inacio Lula da Silva says the country wants to revitalize its arms-building capacity and is making the necessary investments.

"In the 70s, we had modern factories that built tanks," the president told El Pais, a Spanish newspaper.

"But they have been dismantled. Brazil must return to what it had. To rebuild our weaponry factories, we must buy."

Lula denied that Brazil's armaments investments were related to neighboring Venezuela's recent moves to purchase arms.

He said that "Brazil's military budget is small", adding that there are more than twice as many reserve military members than those who are active.

Brazil plans to increase military spending by 50 percent next year. It has sought to modernize its submarines, build missiles in cooperation with South Africa and purchase secondhand planes.

Lula arrived in Spain on Friday for a three-day visit designed to deepen trade ties at the end of a European tour.

Lula will hold talks with Spanish Prime Minister Jose Luis Rodriguez Zapatero on issues such as increased use of biofuels