Posted on 06/12/2005 7:58:46 PM PDT by Righty_McRight
PARIS (Reuters) - The chief executive of Lockheed Martin Corp. (NYSE:LMT - news) on Sunday warned European governments not to lift the 16-year old arms embargo on China, saying retaliation from a hostile U.S. Congress could hold back transatlantic cooperation on defense projects.
The warning, by Robert Stevens, chief executive of the U.S.'s largest defense contractor, made clear that European access to lucrative U.S. defense projects could be dependent on adhering to U.S. policy.
"It seems to be a matter of risk management," Stevens told reporters at a dinner on the eve of the Paris air show. "If European governments open up advanced defense trade with China and we are willing to share these sensitive technologies (with Europeans), how can we be assured that there will be a sufficient protection of that information?"
Stevens, whose company is working on several programs with European partners, including the state-of-the-art F-35 Joint Strike Fighter jet, said the potential leaking of program information was "a non-trivial risk."
U.S. lawmakers, already angry over European subsidies for plane maker Airbus (EAD.PA), might seek to lock out European contractors from U.S. projects if Europe lifts the China embargo, Stevens warned.
"The potential for further action by the U.S. Congress should be taken seriously, as it could take the form of restricting the flow of technology from the United States to Europe," he said "This action would have very serious implications for transatlantic defense industrial cooperation."
Lockheed has led the way in working with European partners on high-profile contracts. In January, Lockheed led a team including AgustaWestland Inc., part of Italy's Finmeccanica (SIFI.MI), to a surprise victory in the bidding for the prestigious U.S. Presidential helicopter fleet, known as Marine One. That sort of cooperation can only be successful if Europe stays in line on China, he said.
"I have been asking that our European friends consider quite carefully the risks of lifting this embargo," Stevens said. "I hope any decision is preceded by thorough transatlantic consultations."
RM, you are on a roll tonight!
the QRS11 comes to mind...
Why the EU is not locked out of bidding right now is beyond me. Competition is fine when we are talking about tupperware or exhaust manifolds, but we need to monopolize the market on hi-tech warfare.
I was under the impression that Bush signed a document that caused the US to drop contracts with France about just over two years ago.... There has already been a decrease in cooperation with French companies and this impacted several US-British-French projects. Telling the Paris media this can only mean that the rest of Europe will finally get the same status as the French:)
One would think so...
Remember, though, that one of the Rats has a wife who is a lobbyist for European aviation concerns...
You never want to mess with Lockheed Martin.
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