Posted on 11/28/2002 12:23:11 AM PST by 11B3
SAUDIS DEMAND HUGE OFFSETS FOR ARMS DEALS:
Saudi Arabia has linked future weapons deals to huge offset packages that would ensure the transfer of technology to and training in the kingdom.
Gulf defense sources said Riyad has insisted that foreign companies competing for major contracts present proposals for offsets. These offsets must be a minimum of 30 percent and include the transfer of technology, production lines and the establishment of training facilities, according to the sources.
The kingdom has raised the prospect of barter deals instead of cash for weapons, including sale of Saudi oil for military systems, according to the sources.
"Saudi Arabia no longer sees weapons deals as a matter of prestige or even that of bolstering the military," one defense source said. "The Saudis want to justify defense purchases as part of economic development, particularly the employment of nationals."
Gulf sources said some of the Saudi demands were raised during negotiations with France over a proposed multi-billion dollar purchase of the Leclerc tank. France has been trying to win Saudi agreement to buy at least 150 main battle tanks.
But Saudi Defense Ministry officials were said to have submitted a long list of benefits as part of a Leclerc offset package. They included agreement that Riyad can pay in crude oil shipments rather than in cash for a portion of the project.
Another Gulf defense source said Riyad will not conclude any major purchase of weapons until after a U.S.-led war against Iraq. The source said the kingdom wants to review its defense posture after the fall of the regime of President Saddam Hussein.
We also have a deal with the Egyptians where they assemble M1 battle tanks for themselves.
I'm no admirer of the Saudis, but they have their reasons. A lot of their citizens need meaningful employment instead of oil money handouts. It's probably a good idea, since if they have a job, they're less conducive to radical Islamic b---s--t.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.