September 1989, Page 25

Security and Intelligence

Saudi Arabia Finalizes New French Arms Purchase During Paris Air Show

By Michael Collins Dunn

Although this year's Paris Air Show made headlines only when the Soviet MiG-29 crashed on opening day, several events interested Middle East watchers. Saudi Arabia signed a major new arms contract with France, including purchase of shoulder-launched missiles, which the United States has declined to sell the kingdom.

Egypt discussed new cooperative projects with the French as well. Formation of a new Jordanian aerospace industry was also announced. Meanwhile Israel, with both a national pavilion and an Israel Aircraft Industries (IAI) pavilion, was promoting its wares in force.

Saudis Turn to Europe

Among visitors to the show was Prince Sultan, Saudi Arabian deputy prime minister and minister of defense and aviation, who signed a major contract said to be worth $2.7 billion in Paris on June 8. It includes purchase of 600 Matra Mistral shoulder-launched surface-to-air missiles (SAMs) and two or more helicopter-carrying frigrates.

The Mistral deal is a Saudi reaction to US refusal to sell Stinger shoulder-launched SAMs in greater than token quantities. The Mistral, being acquired in both shoulder-launched and vehicle versions, is the approximate French equivalent.

The frigrate purchase underscores the fact that the Saudi navy, once heavily dependent on the United States, is now almost entirely reliant on French and British vessels. While the Saudis continue to acquire US weapons systems, the Mistral system is still another reminder that when the US Congress blocks the sale of weapons made in the United States, its European competitors are more than ready to fill the gap.

Another visitor to France was Egypt's new defense minister, Gen. Yusuf Sabri Abu Talib. After returning to Egypt, he said on June 14 that Egypt had been granted new approval to manufacture French weapons systems. Egypt already assembles a number of French systems under license. The Egyptian defense minister indicated that extensive discussions had taken place on defense manufacturing, and that France and Egypt were also discussing joint military training.

Shortly before the show began, Egypt and General Dynamics has signed in Cairo the first agreement under new provisions which allow Egypt, as a "major non-NATO ally," to supply defense equipment to the US.

General Dynamics and the Arab Organization for Industrialization (AOI) signed an agreement under which AOI will provide part for F-16 aircraft to be built in the United States. Spokesmen for both the Egyptian government and General Dynamics continue to deny a report which appeared in the Washington Post claiming that Egypt plans to cancel its plans to build the General Dynamics M-1 Abrams tank in Egypt.

The show was also the venue for announcement of a new infrastructure-creating venture, Jordan Aerospace. It is half-owned by the Jordan Technology Group, with 35 percent ownership by Aerospace Marketing Services Ltd. of Cyprus. Pan American Trade Development Corp. of the United States in the external advisor for the Jordan Technology Group.

Jordan Aerospace will produce the Schweizer model 330 turbine helicopter both for use in Jordan and for export to other countries in the region. Although the helicopters will be first assembled in Jordan, Jordanian-built parts will be increased gradually until perhaps 60 percent will be locally built. The first Jordanian model 330 is to be delivered in the third quarter of 1990. The small helicopter has civilian uses and can be used as a military training helicopter. It is currently in prototype as a candidate for the US new generation training helicopter.

The United Arab Emirates Air Force was present at the show, promoting the planned 1991 air show in Dubai and introducing its magazine, Al-Quwwat Al-Jawiyya, as the first Arabic language magazine devoted to interests of air force officers throughout the region.

Israeli SDI

Israel's presence was particularly noticeable. Israel Aircraft Industries (IAI) used the show to display mockups of the Offeq satellite and of an "Arrow-like vehicle," allegedly resembling the Arrow anti-missile interceptor being developed for the US Strategic Defense Initiative (SDI) Organization.

IAI President Moshe Keret said that the company is placing greater emphasis on non-military export sales because of cutbacks in Israeli defense budgets and the cancellation of the Lavifighter project. Keret noted that IAI had reorganized and decentralized its divisions and is also concentrating on joint ventures abroad. Involvement with an American company in the Arrow program and with other companies in the United States and Europe on other ventures was cited to illustrate the kinds of cooperative deals IAI is looking for.

Keret also announced that the Israeli government had given the green light to the Amos communication satellite project, approving a guarantee of $125 million in government communications services over 10 years. The Amos will still need additional customers to make it viable, but IAI expects to assemble in the next two to three months an international consortium of Israeli, US and European companies, which it hopes will make the communication project viable.

IAI displayed its unmanned aerial vehicle, Impact, a third generation drone which is a candidate for US acquisition. It also announced that its Barak 1 shipborne anti-missile missile, just now beginning sea trials, has already been sold to three countries, which it declined to identify. Other systems introduced included a Nimrod laser-guided anti-tank missile about which spokesmen would say little, a proposed airborne early warning system (AEW) called Phalcon, which uses phased array radar and which IAI spokesmen claim can provide an AWACS-style early warning capability at lower cost, and the Offeq satellite.

Dr. Michael Collins Dunn is senior analyst of The International Estimate, Inc., Middle East editor of the biweekly newsletter The Estimate, and adjunct lecturer in Islam at Georgetown University's Center for Contemporary Arab Studies.