UK, Brazil to sign defense agreement

Britain and Brazil are to sign a defense agreement the UK government hopes will pave the way for a multi-billion dollar contract for BAE systems to supply vessels to Brazil's navy, the Financial Times said on Tuesday.

The BAE deal -- which would involve six patrol boats and five to six Type-26 frigates -- could be worth up to 2.9 billion pounds ($4.5 billion) if the vessels were built in the UK, the newspaper said.

The FT said the six patrol boats, costing about 60-80 million pounds each, would likely be used for surveillance and deterrence at Brazil's offshore oil fields, as well as in more general maritime security and search-and-rescue operations.

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