EGYPT REFURBISHES U.S. HOWITZERS

MENL ^ | 9/25/2003

[yonif]

WASHINGTON [MENL] -- Egypt has launched a project to refurbish its arsenal of U.S.-origin howitzers.

The United States has approved an Egyptian project to refurbish its entire arsenal of M109A2/A3 self-propelled howitzers to ensure continued operations. The Defense Department has awarded United Defense a $43.7 million contract to improve 201 155 mm guns in a project that will be conducted in the United States

A Pentagon statement said the contract is expected to be completed by March 2006. Egypt will finance the contract from U.S. military aid, which amounts to $1.3 billion a year.

Egypt obtained the M109A2 in 1984 from surplus U.S. Army stocks. Industry sources said more than 20 percent of the fleet is no longer in service.

[yonif]

Ping.

[StockAyatollah]

So instead of buying the Crusader, we're going to re-furbish the artillery pieces of our friends the Egyptians. Right. Good use of my tax money. Yeah.

[Imal]

Aside from the fact that United Defense and the Carlyle Group are involved in both this contract and the Crusader program, I'm not sure I see the point.

[Bobby777]

so they'll be in proper working order when Egypt and Syria decide to take another run at Israel? ...

Why doesn't Egypt try buying food and try to build an economy? ... I understand the average Egyptian is very poor ... but the Arabs keep the masses hating Israel so they won't look at their own economies ...

[blanknoone]

Well, it is important that we help our 'friends' the Egyptians prepare to defend themselves against....well....no one is threatening them. Hmmm...

[Bobby777]

exactly ... and they're building the M1A1(?) under license ... think it's the A1 ...

maybe the "machine guns" vs. "butter" curve was never taught in the Egyptian schools ...

[Prodigal Son]

Interesting how that works isn't it? We give Egypt a big pile of taxpayer money. They buy weapons from us with it. They upgrade their weapons with it. US companies do the work. Americans are employed. Tax money that originally went to Egypt winds up in the American worker's pocket (and the shareholders' bank accounts). Worker pays his taxes (shareholders figure tax loopholes). Whole cycle keeps going...

[Monty22]

Their entire economy, culture, and society are based on that one thing only. Hating Israel. This goes for the rest of the arab/islamic world too, with lots of USA hatred as well.

[Southack]

Egypt's goverment is secular, and that fact makes the radicals in their own land (e.g. al qaeda) hate them.

[StockAyatollah]

My point is that, although the Crusader was a boondoggle, at least it was about defending the US, which happens to be one of the few constitutionally authorized duties of the federal government. My copy of the Constitution is missing the part where the republicrats in DC can steal my money and give to Egypt (or Israel or Liberia or...). Maybe you have a "new and improved" version that allows such things.

[Imal]

"My point is that, although the Crusader was a boondoggle, at least it was about defending the US, which happens to be one of the few constitutionally authorized duties of the federal government."

Point well made and well taken. And no, I'm not thrilled about my tax dollars being sent overseas, or, as in this case, bounced overseas and back into pork barrel projects here at home (which is a little better, but still abusive, IMO).

There are some interesting and well-made arguments for sending our public treasure overseas, but I would prefer that such nonsense stop, no matter how persuasive and seductive the arguments may be.

They usually amount to justification of tribute, which I find disgusting.

[XJarhead]

Shhh. Trying to inject some reason into this is only going to get you in trouble.

[UncleDick]

Wasn't the Iraqi government supposedly secular?

[Prodigal Son]

Here's something interesting relating (sort of) to this matter:

http://www.businessweek.com/investor/content/sep2003/pi20030925_0383_pi006.htm

Banc of America Downgrades Raytheon to 'Sell'

Analyst Nick Fothergill cites increasing pressure on the outlook for the U.S. defense budget

Banc of America downgraded Raytheon (RTN ) to sell from buy, and cut the $35 price target to $25.

Analyst Nick Fothergill says he downgraded the defense sector to neutral from buy, based on the federal budget outlook. He says Iraq supplementals and a rising U.S. fiscal deficit have started to place increasing pressure on the outlook for the defense budget. As growth in U.S. defense spending starts to slow, he expects U.S. defense companies to see GAAP earnings per share multiples move back towards their average 10-year multiple of 15.2.

Fothergill says another concern with Raytheon is that its Network Centric Systems segment (18% of 2002 EBIT) is at risk of seeing further cost over-runs on its 10 problem programs.