'I have final word on fighter jet deal': Lula

Brazilian President Luiz Inacio Lula da Silva stressed he will make the final decision on a multi-billion-dollar fighter jet contract, after publicly saying France's bid was the front-runner.

"If someone wants to make a better offer (than France), let them do it. That's the way negotiations work," Lula told reporters during a trip to northeastern Brazil on Friday.

But, he added, "one thing is sure: we want a transfer of technology and to build the planes in Brazil."

Lula has already said that France's Dassualt is positioned to win the contest to supply Brazil's air force with modern fighters that will bolster his country's ambitions to be Latin America's preeminent military power.

On Monday, he issued a joint statement with visiting French President Nicolas Sarkozy saying Brazil's official negotiations to buy 36 of Dassault's Rafale jets were to begin. The estimated value of the deal is between four billion to seven billion dollars.

But on Tuesday, Brazilian Defense Minister Nelson Jobim emphasized that the complete tender process would still be seen through.

The two sidelined rival bidders -- Boeing of the United States, offering its F/A-18 Super Hornet, and Sweden's Saab, with its Gripen NG -- were being invited to try to better France's improved package, which was outlined in a handwritten note by Sarkozy during his visit.

Brazil's air force is also to submit next month its extremely detailed evaluation of all three aircraft to Lula.

"The air force has the technological knowhow to make the evaluation, and it will do so," the Brazilian president said.

"But the decision is political and strategic, and it's up to the president of the republic and no-one else."

Lula, who wants his country to become one of the 21st century's big powers, has been adamant that Brazil must acquire the specialized knowledge to build its own independent defense industry.

"President Sarkozy is the only president up to now who has told me he not only wants to transfer the technology to Brazil, but build the plane in Brazil and and let our country have the option of selling to all Latin America what will be built here," Lula said.

"Now we have to see if Dassault can show the same flexibility as Sarkozy," he added.

Boeing and Saab have both already said most of their planes would be built in Brazil if either of their bids was chosen, and have stated their willingness to share "necessary" or "key" technology as part of the deal.

But Brazilian officials expressed doubt that they could match Sarkozy's promise of "unrestricted" technology sharing.

Brazil is also wary of US controls on the export of sensitive military technology and software after running up against them several times.

Most recently, in 2005, Washington prevented Brazil from selling 24 of its Super Tucano turboprop patrol planes to Venezuela because they contained US-made components.

Brazilian Foreign Minister Celso Amorim, speaking to reporters in Rio, reinforced his government's preference for the Rafale.

"There was an evaluation of various proposals, and Brazil made the decision to start negotiations with France. Its proposal was the most favorable," he said.

If Dassault is officially declared the winner, it will be a momentous occasion for the French company.

Up to now, it has failed to sell the Rafale to any other country despite bidding in tenders by Morocco, South Korea, Saudi Arabia, Singapore and the Netherlands.

It hopes a victory will boost its chances in other big competitions in India, the United Arab Emirates, Switzerland, Libya and Greece.

France last December sealed a deal to sell Brazil five submarines and 50 military helicopters -- and the associated technology -- for 12 billion dollars.

The Rafale, which can fly at twice the speed of sound, features near-stealth ability, high maneuverability and advanced active-array radar able to see through electronic counter measures to track multiple targets.

The F/A-18, used by the US navy and the Australian air force, is a combat-proven jet able to fly long distances with an extensive choice of missiles and bombs.

Saab's Gripen NG, which is about to go into production, is cheaper to run than its rivals but less powerful because it has one engine, not two. It is designed to land and take off from highways, and to data network with other Gripens for coordinated attacks.