Hilmar,
That article seems less about AIDs prevention and more about spitting in the fact of the moralistic USA. All sorts of old sayings come to mind, including "cutting off one's nose to spite one's face" and "looking a gift horse in the mouth".
I have a suggestion. I understand Brazil has AIDS education and treatment campaigns specifically for males and children, not just efforts aimed at prostitution. So why not identify and spend the $40mill from the US on the "acceptable" campaigns. Distribute the $40mill thereby freed up across all other campaigns. According to my math that delivers an additional $40mill of campaign and I see no victim in such an approach, except possibly those who are no longer able to feel good about delivering a slap to the evil empire.
"... They ne'er cared for us
yet: suffer us to famish, and their store-houses
crammed with grain; make edicts for usury, to
support usurers; repeal daily any wholesome act
established against the rich, and provide more
piercing statutes daily, to chain up and restrain
the poor. If the wars eat us not up, they will; and
there's all the love they bear us."
-- Shakespeare: Coriolanus, Act 1, scene 1