US Will Push Ahead With Arms Sale To Saudi Arabia

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Forum Spin Doctor
Financial Times
January 14, 2008 By Daniel Dombey and Simeon Kerr
The Bush administration will move ahead with a high-profile arms sale to Saudi Arabia as early as today, as part of a $20bn package of deals with the Gulf states.
The Gulf is gearing up to sign a raft of military contracts after the US last July concluded military assistance agreements with Saudi Arabia and other regional states, as part of what Condoleezza Rice, secretary of state, said was an effort to "bolster forces of moderation and support a broader strategy to counter the negative influence of al Qaeda, Hizbollah, Syria and Iran".
At the time the administration disclosed no details of the deals, which are together thought to be worth up to $20bn (€13.5bn, £10.2bn). It has since notified Congress of individual agreements, including a $9bn sale of Patriot missiles to the United Arab Emirates and a $1.63bn missile sale to Kuwait.
So far it has limited its announcement of deals with Saudi Arabia to smaller transactions.
The US had delayed the announcement of the sale of bomb guidance kits, known as Joint Direct Attack Munitions, to the kingdom because of misgivings in Congress over whether the equipment could be used against the US or Israel.
But a senior administration official travelling with President George W. Bush said a formal notification to Congress could come today. Congress would then have 30 days to decide whether to object.
Movement on the deal comes on the heels of another big contract signed over the weekend between Boeing and Gulf Air of Bahrain, home to the US's Fifth Fleet.
Commercial ties between the Gulf and France will also come into focus this week during a regional tour by Nicolas Sarkozy, France's president, and a retinue of industrial leaders.
As well as defence co-operation, Mr Sarkozy will be hoping to cement trade links with the usual battery of energy, infrastructure and aerospace accords.
He has pledged French help in developing civil nuclear power in the region and is expected to sign a co-operation agreement with the UAE, which is determined to accelerate the development of its nuclear power capability. Areva, Total and Suez have joined forces to help the UAE government establish the groundwork for the eventual construction of two reactors.
However, people close to the subject say it could take years to put in place the necessary security, training and operational expertise required before a firm contract for a nuclear reactor could be signed.
--Additional reporting by Peggy Hollinger and Ben Hall in Paris
 
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