Replies

>>"Poland got an extremely good deal"

Yes Poland got also a loan from US government, but US government did it to help Lockheed Martin.<<

Ahhh. . .no.

FMS is conducted to support the national security of the United States.

The below is from a brief I provide on the subject:

Why The US Conducts FMS
Sales Permit Physical Access to Country
Access Important for Strategic Reasons (Gulf War I)
Access Results in Increased Influence on Political Matters
US Arms Sales Strictly Controlled by Legal and Financial Constraints
Break the Rules, Lose the Loan, Lose Technical & Logistics Support, Deliveries Suspended

Access and Influence Gives Real Power to Shape Events in a Region/Country
Access and Influence Enhances Security
“The President Must Determine The Eligibility of the Prospective Purchaser on the Basis that Sales Will Strengthen US Security and Promote World Peace” (DoD 5105.38-M)

FMS Enhances US Security By:
Keeping Technical “Know-How” Current (R&D)
Keeping Factory Doors Open to Ensure US Defense Capability in Time of Crisis

Infrastructure = Security
However, US Defense Industry Suffering from World-Wide Defense Cuts
US Defense Spending is so Low, Pentagon is Now Unable to Fully Support Defense Infrastructure

Downsized and Reduced US Overseas Presence Demands Coalition Partners
US No Longer Able to Afford Large Forward Bases
FMS Takes the Place of “Actual” Presence
US Presence is Maintained Through Arms/Support
Coalition Shares Cost of R&D and Production
Lower Cost-per-Unit, Means Sufficient Numbers to Satisfy Defense Needs
Coalition Means Almost Seamless Integration, Less Loss of Life, Increased Opportunities for Success

How Does the Process Work:
Country Requests “Price & Availability”
Country Must Be on Congressionally Approved List before P&A is Provided
Specific Military Department Contacts Defense Industry to Get Rough P&A Estimate
Military Department Does “Sanity Check” to Make Sure Price is Reasonable
If P&A Appears Reasonable, P&A is Passed to Country
How Does the Process Work
Country Considers P&A and Submits Formal “Letter of Request” if they want the Stuff
The LOR is Evaluated and Validated
Evaluated for Authority to ask for the Stuff
Validated for Permission to Have the Stuff
If LOR Approved, The Process is Started
How Does the Process Work
“Letter of Offer and Acceptance” is Prepared
LOA is a “Total Package” Contract:
Establishes Terms and Conditions
Specific items to be Sold, Delivery Schedule, Liabilities, Cost, Training, Logistics, Follow-On Support, The Works!
LOA Must be Approved By White House, DoD, Commerce Dept, State Dept, and “others” (if Required)

President Notifies Congress When:
More than $50 Million in Military Stuff
More than $200 Million in Construction
More than $14 Million in Major Items
At any Price, If “Significant Military Equipment” is Involved (like F-16’s)

When Congress Notified, President Explains:
How the Sale Affects the Balance of Power
Impacts the Arms-Race
Impact on US Technological Edge
How it Supports US National Interests

Congress Thinks About the Sale
20-Day “Unofficial” Notification
30-Day “Official” Notification
50-Days to Approve/Disapprove Sale
Lack of Objection = Approval

Country has 120-Days to Sign Contract
Country Accepts and US Military is Honest Broker and Conducts Program Management Reviews, Monitors Delivery and Upgrades

Legal Authority
Foreign Assistance Act
Section 516; Nato
Section 517; Counter-Drug
Section 518; Bio-Diversity
Section 519; “No Cost” FMS
Section 520; Modernization
Arms Export Control Act
DOD 5105.38-M, Security Assistance

Myths and Misconceptions
US Sells Arms For the Bucks
US Sells Arms Because a Manufacturer Wants to
US Sells Arms Because We Can
Hollywood Has a Clue about FMS

Reality Check
FMS Promotes Peace and Security
FMS Protects US National Security
FMS Has Oversight and Accountability
FMS is Big Bucks—But Not the Driving Factor