Defense: France and Brazil to sign arms deal

France and Brazil have announced their intention to sign an arms deal by the end of 2008.

French President Nicolas Sarkozy and his Brazilian counterpart, Luiz Inacio Lula da Silva, met in French Guiana this week and declared they wanted to forge a "strategic alliance" accord this year.

The deal would include a technology transfer enabling Brazil to produce a Scorpene submarine, ground attack aircraft and helicopters.

Sarkozy said France is ready to pass Brazil "not just military materials" and that Brazil will be treated with transparency in the process.

"There are no taboos. Brazil is a force for democracy and a friend of France," Sarkozy said at a press conference.