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French defense chief urges fair US tanker deal

by Staff Writers
Washington (AFP) March 3, 2009
French Defense Minister Herve Morin on Tuesday called for fair competition as Washington prepares to reopen bidding to US and European aerospace rivals on a lucrative contract to build a new air refueling tanker.

The 35-billion contract for a new generation of refueling tankers was awarded in February 2008 to Northrup Grumman and its European partner, the European Aeronautic Defence and Space Company (EADS), parent of Airbus.

But the deal was withdrawn in July after US aerospace giant Boeing successfully appealed the decision.

"I felt an obligation to mention the future call for tender regarding an American tanker," Morin told reporters at a joint press conference with US Defense Secretary Robert Gates.

Morin said he reminded his counterpart that an "opening had to be necessary in both directions," apparently a reference to US demands to open up European defense contracts to US-based firms.

"You can't be a great supplier of military equipment and at the same time consider there should not be a reciprocity," he said.

Gates in January said he hoped to reopen bidding in the spring on the tanker project, with a decision due in early 2010.

In September, the Defense Department canceled the competition, leaving the politically charged decision to the next president.

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When The Military Industrial Complex Runs Out Of Cash Part Two
Washington (UPI) Mar 3, 2009
The United States is committing significant new military forces to the "good war" in Afghanistan. Still, while here in Washington we are contemplating a budget deficit that is approaching banana republic levels because of stimulus spending and assorted bailouts, how are we planning to pay for these new military deployments? (Part 3: The U.S. Department of Defense prepares for painful procurement cuts in many of its most expensive and most important weapons systems.)







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