OPERROR ALLOWS OTHER ACR TO PERFORM A CLB THROUGH OCCUPIED ALT. NMAC DOWNGRADED TO A POTENTIAL CONFLICT WITH LTSS.

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APCHING MATE INTXN AT FL330 WE RECEIVED A YELLOW TFC CIRCLE WITH 'TFC ORAL.' WE BOTH LOOKED OUTSIDE WITH NO VISUAL CONTACT. WE THEN RECEIVED A RED TFC ON TCASII WITH TFC CLB (AURAL) AT THAT TIME; FO WENT TO 40 MI MAP RANGE (SCALE) WHERE I OBSERVED THE ACFT ON TCASII AT APPROX 15 MI AT FL322. I ASKED THE CAPT IF WE SHOULD CLB. HE SAID NO WE HAD TFC OVERHEAD AT FL350. I MADE VISUAL CONTACT AT APPROX INSIDE 5 MI ON TCASII. AT THAT TIME I DISCONNECTED ACFT AUTOPLT AND MADE A CLBING R TURN TO 33400 FT. WE MISSED OTHER ACFT BY APPROX 100-150 FT. CALLBACK CONVERSATION WITH RPTR REVEALED THE FOLLOWING INFO: RPTR SPOKE OF THE ATC SIT IN THE BRAZILIAN AIRSPACE; STATING THAT OFTEN; ACFT ARE OFF ALTS OR DO NOT OPERATE WITH THEIR XPONDERS OR THEIR NAV LIGHTS ON; THUS NEGATING THE 'RA' FUNCTION OF HIS TCASII SYS. IN THIS CASE; THE FLT WAS INBOUND TO SAO PAULO AT FL330 WITH ANOTHER 'AMERICAN' TYPE ACR ABOVE WITH A DSCNT CLRNC. THE OPPOSITE DIRECTION TFC WAS IN A CLB AND WENT THROUGH THEIR ALT OF FL330 DURING THIS EVENT. THE CTLR HAD NOT GIVEN ANY TA AND EVIDENTLY HAD 'FOULED UP' IN HIS ATC PROCS. THE CAPT TRIED TO GET INFO FROM THE CTLR REGARDING THE OTHER FLT AND FINALLY; AFTER JUST TRYING TO HAND THEIR FLT OFF TO ANOTHER FREQ; ADMITTED WHO THE OTHER FLT WAS; A LCL CARRIER. RPTR SAID THAT LATER RUMORS REGARDING THIS EVENT HAD THE CTLR BEING FIRED BY THE GOV. RPTR SAID THE ENVIRONMENT DOWN THERE IS 'SCARY.' CAPT HAD HEARD THE 'OTHER AMERICAN' TYPE ACR BEING CLRED TO A LOWER ALT AND THAT IS WHY HE MADE THE STATEMENT OF 'DON'T CLB.'