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Germany now world's No. 3 arms exporter

Lockheed gets $213 million for Egypt jets
Washington (UPI) Mar 17, 2009 - The U.S. government has given Lockheed Martin Corp. an initial $213 million to build 20 F-16 jet fighters for Egypt. The decision caps an agreement last December in the which the U.S. aerospace giant would sell 24 F-16 fighter aircraft to Egypt for more than $3.2 billion. The order, which was approved this month, includes 16 F16Cs and F-16Ds, which are expected to bolster Egypt's designs to replenish its aging fleet of jet fighters. The deliveries are set to run through 2013 and the $213 million contract fee concerns preliminary work for the production of the 20 advanced aircraft. Lockheed Martin's F-16s are powered by the General Electric Company's F110-GE-129 engine. The combat aircraft were developed by General Dynamics, which in 1993 sold its aircraft manufacturing offshoot to Lockheed Martin.

The deal is expected to boost work at the aerospace corporation's operation base in Orlando, Fla. That operation focuses on the production of missiles, weapons-targeting and training systems that are integral to the construction of the F-16 aircraft. It wasn't immediately clear whether the new jets for Egypt would have the advanced Sniper targeting system, The Orlando Sentinel reported. Billed by the plane manufacturer as "the pod of choice in the international marketplace," Lockheed said it had provided relevant information to the U.S. government about the use of Sniper on the batch of aircraft bound for Egypt. The advanced targeting system was included in a similar deal for F-16 jets ordered by Morocco late last year. Egypt was the first country in the Arab world to buy F-16s through a Foreign Military Sales program called Peace Vector. It received 42 F-16s in its first order 30 years ago and has since then placed five more orders for a total of 240 F-16 Fighting Falcons.

John Larson, vice president of Lockheed Martin F-16 programs, said in a company statement that the latest deal with Egypt bore "testament to the enduring partnership and commitment we have made to the government of Egypt. "We remain committed to providing our customer with a proven, advanced Fourth Generation multi-role fighter." Amid its concern for the Iranian nuclear program, Israel has grown increasingly wary of massive acquisition of modern U.S. defense equipment by its regional neighbors. The sales were first announced in 2007 and included 10-year military assistance packages of $30 billion for Israel and $13 billion for Egypt as well as Foreign Military Sales estimated at about $20 billion and spread among Gulf Nations including Saudi Arabia, the United Arab Emirates, Bahrain, Jordan and Qatar.
by Staff Writers
Stockholm, Sweden (UPI) Mar 17, 2009
Germany in the past five years more than doubled the volume of its arms sales and is now Europe's largest weapons exporter, a new study states.

Germany's global market share jumped to 11 percent during the 2005-09 period, up from 6 percent at the start of the millennium, data released this week by the Stockholm International Peace Research Institute indicate.

That means Germany shot to become the world's third-biggest weapons exporter, passing by the once-thought-untouchable military industry powerhouses France and Britain, which came in at rank Nos. 4 and 5, respectively.

The United States and Russia are still the biggest arms exporters, with more than half of all sales shared between them. U.S. companies from 2005-09 sold arms to 70 countries -- more than any other nation.

In Europe, the dynamics seem to be shifting. While France increased its sales by around 30 percent, British arms exports dropped 13 percent.

The German export boost was fueled mainly by the popularity of German-made submarines and armored vehicles.

Krauss-Maffei Wegmann and Rheinmetall build tanks and armored vehicles, with German shipyards owned by ThyssenKrupp Marine Systems developing submarines and ships that have been sold all over the world.

On a global scale, fighter jets dominate the arms trade -- they account for 27 percent of total sales. SIPRI, a Swedish peace research institute, warns that increasing jet sales to the Middle East, Asia and Latin America are destabilizing peace in those regions.

"SIPRI data show that resource-rich states have purchased a considerable quantity of expensive combat aircraft," said Paul Holtom, head of the arms transfers program at SIPRI. "Neighboring rivals have reacted to these acquisitions with orders of their own. One can question whether this is an appropriate allocation of resources in regions with high levels of poverty."

SIPRI is warning of selling combat arms in unstable regions.

While the United States sold one-third of its arm exports to South Korea, Israel and the United Arab Emirates, more than half of Russian exports went to China and India.

The Asian market has been highly active recently, with five of the 10 largest importers for 2005-09 being Asian states -- China, India, South Korea, Singapore and Pakistan.

For the southeastern part of the continent, SIPRI experts warn of a dangerous arms race.

"In 2009, Vietnam became the latest Southeast Asian state to order long-range combat aircraft and submarines," said SIPRI's Asia expert Siemon Wezeman. "The current wave of Southeast Asian acquisitions could destabilize the region, jeopardizing decades of peace."

Weapons sales to Latin America were 150 percent higher during the last five years compared to the beginning of the millennium, following a significant upswing in both military spending and an almost competitive behavior when ordering arms, SIPRI found.

"This clearly shows we need improved transparency and confidence-building measures to reduce tension in the region," said Mark Bromley, SIPRI's Latin America expert.

SIPRI has been compiling data on the international arms trade since the 1950s. Its online database is the most extensive available to the public.



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