Exclusive - Saudi Arabia, U.S. in talks on
billions in arms sales: U.S. sources
Fri May 5, 2017 7:29pm GMT
By Mike Stone
WASHINGTON (Reuters) - Washington is
working to push through contracts for tens of billions of dollars in arms sales
to Saudi Arabia, some new, others in the pipeline, ahead of U.S. President
Donald Trump's trip to the kingdom this month, people familiar with the talks
told Reuters this week.
Saudi Arabia is Trump's first stop on his
maiden international trip, a sign of his intent to reinforce ties with a top
regional ally.
The United States has been the main supplier
for most Saudi military needs, from F-15 fighter jets to command and control
systems worth tens of billions of dollars in recent years. Trump has vowed to
stimulate the U.S. economy by boosting manufacturing jobs.
Washington and Riyadh are eager to improve
relations strained under President Barack Obama in part because of his
championing of a nuclear deal with Saudi foe Iran.
Lockheed Martin Co programs in the package
include a Terminal High Altitude Area Defense (THAAD) missile defence system
with several batteries, the sources said. The THAAD system, like the one being
made operational in South Korea, costs about $1 billion.
Also being negotiated is a C2BMC software
system for battle command and control and communications as well as a package
of satellite capabilities, both provided by Lockheed.
The sources spoke on condition of anonymity
because they were not authorized to discuss the negotiations, which also
include previously reported contracts or items under discussion for years.
One such deal, an $11.5 billion package of
four multi-mission surface combatant ships and accompanying services and
spares, was approved by the State Department in 2015. Talks followed to hammer
out capabilities, configuration and design for the complex warships but the
deal has never gone to final contract.
The next step for the ships is likely a
letter of agreement between the two countries, the sources said.
Versions of the ship used by the U.S. Navy,
the Littoral Combat Ship, are built by Bethesda, Maryland-based weapons maker
Lockheed Martin and Australia's Austal Ltd. If a deal goes through, it would be
the first sale of a new small surface warship to a foreign power in decades.
Any major foreign weapons sale is subject to
oversight by Congress. Lawmakers must take into consideration a legal
requirement that Israel must maintain its qualitative military edge over its
neighbours.
Also, more than $1 billion worth of munitions
including armour-piercing Penetrator Warheads and Paveway laser-guided bombs
made by Raytheon Co are in the package, the sources said.
The Obama administration suspended the
planned sale because of concerns over the Saudi-led military campaign in Yemen
and civilian casualties.
A U.S. administration official said the
proposed Raytheon sale was still undergoing interagency review.
A Raytheon representative declined to comment
on the sales.
A Lockheed representative said such sales are
government-to-government decisions and the status of any potential discussions
can be best addressed by the U.S. government.
A representative for the Saudi embassy in
Washington declined to comment.
FLURRY OF ACTIVITY
One of the people with knowledge of the sales
said that as planning for Trump's trip to Saudi Arabia intensified in recent
weeks, the arms negotiations also accelerated.
Two U.S. officials said a U.S.-Saudi working group
met at the White House Monday and Tuesday to negotiate the trip, as well as
financing for military equipment sales and stopping terrorist financing.
Saudi foreign minister Adel al-Jubeir and
other Saudi officials met with lawmakers at the Capitol on Thursday, including
Senators Bob Corker and Ben Cardin on the foreign relations committee.
The Pentagon declined to comment. White House
and State Department officials said it was U.S. policy not to comment on
proposed U.S. defence sales until they had been formally notified to Congress.
The Obama administration had offered Saudi
Arabia more than $115 billion in weapons. Most of the Obama-era offers, which
are reported to Congress, became formal agreements though some were abandoned
or amended.
Washington also provides maintenance and
training to Saudi security forces.
(Reporting by Mike Stone in Washington;
Additional reporting by Arshad Mohammed, John Walcott, Warren Strobel, Patricia
Zengerle and Jonathan Landay; Editing by Yara Bayoumy and James Dalgleish)
Original post: af.reuters.com
The United States has been the main supplier for most Saudi military needs, from F-15 fighter jets to command and control systems worth tens of billions of dollars in recent years. Trump has vowed to stimulate the U.S. economy by boosting manufacturing jobs.
Lockheed Martin Co programs in the package include a Terminal High Altitude Area Defense (THAAD) missile defence system with several batteries, the sources said. The THAAD system, like the one being made operational in South Korea, costs about $1 billion.
One such deal, an $11.5 billion package of four multi-mission surface combatant ships and accompanying services and spares, was approved by the State Department in 2015.
Also, more than $1 billion worth of munitions including armour-piercing Penetrator Warheads and Paveway laser-guided bombs made by Raytheon Co are in the package.
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THAAD missile defense: Details
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