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Britain
U.S., Britain sign long-delayed military-trade pact
2007-06-29
U.S. and British leaders have clinched a defense-trade pact designed to stitch long-standing bilateral military and security ties even tighter, the State Department said on Thursday. If ratified by the U.S. Senate and the British Parliament, the treaty will do away with red tape for most military-related goods, services and information intended for use by the two allies.

The pact "will foster an even closer defense and security relationship between our nations, improve the capabilities of our armed forces to operate together, and make our cooperative research and development programs more efficient and effective," said Julie Reside, a department spokeswoman.

U.S. President George W. Bush wrapped up the signing of documents with Tony Blair on June 26, a day before Blair stepped aside as prime minister, the department said.

The U.S.-UK Defense Trade Cooperation Treaty follows years of tugs-of-war over technology transfer between the United States and Britain, despite their strong alliance in hot spots like Iraq and Afghanistan.

Arms trade is fraught with red tape even though the State Department says it approved 99.9 percent of the more than 13,000 export licenses requested by U.S. companies for British-bound items over the past two years. Britain-destined defense items accounted for about 20 percent of all such U.S. license requests, a State Department official said.

The treaty therefore would help "unclog" a system that has often frustrated U.S. defense contractors such as Lockheed Martin Corp., Boeing Co. and Northrop Grumman Corp., plus their British clients, the official said. The pact would carve out a kind of "license-free zone" for certain exports within a community of government and trusted contractors on both sides that meet certain requirements.

The United States and Britain still must agree jointly on which companies qualify to be in the community and which projects and operations are to be included, a White House official said. Exports outside this group will continue to require approvals from the authorities, the official said. A text of the treaty was not released.

Jeff Bialos, who headed the Pentagon's industrial affairs office under former President Bill Clinton, said the pact harked back to waivers for key allies that Clinton and Bush had sought to carve from the U.S. Arms Export Control Act.
It's a balancing act. OTOH, there are those in the UK defense community who prefer a stronger EU orientation. And there will be competitive pressure to sell to China. OTOH, I've personally talked with some MOD people recently who are Atlanticist, but driven mad by the uncertainty around military sales. The key is going to be who is on or off those lists.
Posted by:lotp

#1  As long as we are not compelled to buy anything from the Prince of Darkness; Lucas Electrical.....
Posted by: USN, Ret.   2007-06-29 15:26  

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