ARAB-US RELATIONS - Jan 14 - US Will Push Ahead With Arms Sale To Saudi Arabia

APS Diplomat Recorder, Jan 19, 2008

The Bush administration will move ahead with a high-profile arms sale to Saudi Arabia as early as Jan 14, as part of a $20 bn 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 Gulf states, as part of what US State Sec Condoleezza Rice, said was an effort to "bolster forces of moderation and support a broader strategy to counter the negative influence of al-Qaeda, Hizbullah, Syria and Iran".

At the time, the US disclosed no details of the deals, which are together thought to be worth up to $20 bn (13.5 bn, [pounds sterling]10.2 bn). It has since notified Congress of individual agreements, including a $9 bn sale of Patriot missiles to the UAE and a $1.63 bn 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 Bush said a formal notification to Congress could come Jan 14. Congress would then have 30 days to decide whether to object. This comes on the heels of another big contract signed on Jan 12 between Boeing and Gulf Air of Bahrain, home to the US's Fifth Fleet. The troubled airline timed the signing of a $6bn deal with Boeing for a firm order for 16 787 Dreamliners and an option for eight more. "The signing was timed to coincide with the president's visit", said a Gulf Air spokesman. The loss-making airline is also in talks with Airbus over eight narrow-body A320s as it seeks to build up its fleet to compete with regional competitors - the fast-growing Emirates Airline of Dubai, Qatar Airways and Abu Dhabi's Etihad. Commercial ties between the Gulf and France will also come into focus this week during a regional tour by France's President Nicolas Sarkozy and a retinue of industrial leaders. As well as defence co-operation, Sarkozy will also 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 heavy duty 1600 MW EPR 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.