MURDER: AN ACCEPTED TOOL OF FOREIGN POLICY
US weapon-makers look overseas as the Pentagon cuts back
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WASHINGTON - With the United States looking to cut defence costs and rethinking the way it fights wars, many American defence contractors are looking for international buyers for the big, pricey weapons the Pentagon no longer wants or needs.
Boeing and Lockheed Martin are competing to sell fighter planes to countries such as India and Brazil. Boeing is trying to spark international interest in its C-17 cargo plane. Middle Eastern nations fearful of threats from Iran are bulking up on missile defence equipment from Lockheed and Raytheon.
"This is a world market right now,'' said Boeing's president of military aircraft, Chris Chadwick.
Globalisation is nothing new for many US industries, which often use overseas operations and sales to tap into fast-growing areas like China and as a hedge against domestic downturns. But the defence industry is closely tethered to one primary buyer, the American government.
It has been a lucrative relationship. Defence spending is up more than 40 per cent over the past eight years, fuelled in part by spending on wars in Iraq and Afghanistan.
But the US military is cutting back on weapon spending. Last year, the US military spent US$164 billion ($237 billion) to buy weapons. For the 2010 fiscal year, the Pentagon proposes spending only US$131 billion.
Overseas arms sales represent a relatively small segment of defence contractor sales. But many are turning to the global markets for growth now that the appetite for big and expensive weapons is waning in the US.
The push is helped by countries worried about security threats from nations such as North Korea and Iran. Many European allies need to upgrade their ageing equipment, and are turning to American firms as likely suppliers.
New markets have also emerged. Iraq was the second largest potential buyer of US military equipment last year, behind Israel, according to a March report by the Arms Control Association, a Washington think-tank. AP
From TODAY, World –Monday, 15-Jun-2009
White House seeks more funds vs A(H1N1)
06/03/2009 | 10:37 AM
WASHINGTON — The White House on Tuesday night asked Congress for $2 billion to help prepare for a possible swine flu pandemic — a request that came on top of up to $2 billion already pending in House-Senate talks on a huge war funding bill.
President Barack Obama also sent lawmakers a request for $200 million in humanitarian aid to Pakistan, where 2.5 million people have been displaced from their homes, in large part because of the government's campaign against insurgents.
The requests, if granted, would likely bring the cost of Obama's funding bill for military and diplomatic efforts in Iraq and Afghanistan to more than $100 billion.
Republicans in the House are lining up to oppose the war-funding bill if Democrats insist on including in it a new line of credit for the International Monetary Fund.
Democrats may have to scramble to pass the bill in the House, where Republican votes are likely to be needed to make up for about 50 anti-war liberal Democrats who opposed it last month.
At the core of the tentatively priced $98.8 billion House-Senate measure is $79.9 billion for the Pentagon, a figure that's also rankling House Republicans since it represents an almost $5 billion cut from the version that passed the House last month. That measure did not include funding for the IMF.
Responding to media reports that House Democratic negotiators have agreed to include a new $100 billion line of credit to the IMF — a top priority of President Barack Obama — the top Republican in the House said Tuesday he would oppose the bill.
"Let's be clear: a troop-funding bill should fund our troops, period," said Minority Leader John Boehner, a Republican from Ohio. "Weighing down this critical legislation with nondefense spending will only drag this process out further and cost it essential Republican support needed for passage."
Obama promised the IMF money at April's G-20 summit to help developing countries deal with the troubled global economy. About $8 billion for an earlier commitment for the IMF will be included. - AP
From GMANews.tv; see the source article here.