Showing posts with label US arms sales to Saudis. Show all posts
Showing posts with label US arms sales to Saudis. Show all posts

Friday, June 16, 2017

Big US firms, Lockheed Martin and Boeing to reap big profits from Saudi contracts

Lockheed Martin Corp. and Boeing Co. will reap billions from Saudi contracts subsequent to President Trump's announcement that the Saudis will buy up to $110 billion in American weapons.

Speaking at a conference in New York last Wednesday, Marillyn Hewson CEO of Lockheed Martin Corp. said she could see the company gaining up to $28 billion in new business from the Saudis. Dennis Muilenbege CEO of Boeing Co. also hopes to profit from sales to the Saudis of more than $50 billion for both military and commercial sales. Often these deals involve long term maintenance and sustainment contracts that can run up to 30 years. Typically these contracts make up 70 percent of the total value of sales.
Foreign weapons sales can often take a long time to negotiate and also a lengthy period before delivery. Congress has to be notified of the deal and this can often result in objections as is this case with this deal. Six House representatives consisting of both Republicans and Democrats have introduced a resolution of disapproval that would block the proposed sales of precision-guided munitions and other offensive weapons to the Saudis.
Congress was notified of the proposed sales, as part of a larger arms deal with Saudi Arabia reportedly worth $110 billion, on May 19. Representative Amash a Republican from Michigan one of the sponsors of the bill said: “Saudi Arabia has one of the worst human rights records and has supported many of the extremists terrorizing the people of the Middle East and the world.
These arms sales extend a reckless policy from the Obama administration and prior administrations, and they come at a time when the Saudi government is escalating a gruesome war in Yemen.” Mark Pocan a Democrat from Wisconsin also spoke for the bill: “President Trump’s proposed $110-billion weapons sale sends the wrong message to Saudi Arabia. In addition to regularly dropping U.S. bombs on Yemeni civilians, Saudi Arabia appears to have every intention of using the U.S. weapons from this sale to enforce a blockade on Yemen that prevents food and medicine from reaching millions of people on the brink of starvation.For months, my colleagues and I have been demanding answers to the most basic questions on the U.S. role in the disastrous war in Yemen and have been met with deafening silence from the White House. As we introduce a resolution of disapproval against this unprecedented weapons sale, we are concerned about U.S. complicity in the world’s largest humanitarian crisis now consuming Yemen. Our bipartisan group of lawmakers will be urging our colleagues to take seriously our constitutional duty to vigorously debate the merits of arming the Saudis even further.”
I expect that the profits that the sales will bring to the likes of Boeing and Lockheed Martin will outweigh concerns about the use to which Saudi will put the weapons. Obama supported the Saudi sales ultimately and Trump will do so as well but with not the slightest complaints about their use by the Saudis.
Senators Rand Paul a Republican from Kentucky and two Democrats including Al Franken from Minnesota have introduced identical legislation in the Senate too that in the House. Under the Arms Export Control Act of 1976 a senator is able to force a vote on arms sales. This cannot be done in the house.
Even if the weapons deal passes Congress, contracts need to be drawn up between manufacturer and the country before manufacturing begins. Payment typically begins when a contract is signed with a future payment when the unit actually reaches an assembly line. There is a final payment when a unit is actually delivered followed by sustained payments.
In 2013 the Saudis received permission to buy 25 C-130 planes some as tankers and some a cargo haulers. But so far just two have been bought with the remaining 23 probably failing under the new deal. The Lockheed CEO said that the Saudis are seeking four multi-mission warship. Lockheed is proposing they but a variant of its Littoral Combat Ship. Lockheed also agreed it would form a joint venture that would support the completion and finally assembly of 150 S-70 Black Hawk utility helicopters. CEO Hewson also said that Lockheed's THAAD and PAC-3 missile systems could be on the Saudis shopping list. The appended video lists other items.
The U.K. also sells a substantial amount of weapons to the Saudis. A report on foreign financing of terrorism due to be released in the spring of 2016 has not yet been finished and apparently may never be made public due to its "sensitive" contents. It may be too sensitive for the U.K. government that recently approved 3.5 billion pounds worth of arms export licenses to Saudi Arabia. The report apparently focuses on the role of Saudi Arabia in financing terrorism.


Monday, June 5, 2017

Saudis give Trump a medal and order for $110 billion in arns

(May 20)Trump's first meeting with a foreign leader outside the United States is with King Salman of Saudi Arabia. In spite of the fact that Trump in the past has had harsh words for Saudi Arabia he was presented with a medal by King Salman.

King Salman presented Trump with the King Adbulaziz Medal in a ceremony at Al-Yamamah Palace in the capital Ryadh. The ceremony was held prior to a Saudi-American summit that will discuss bilateral ties and also fighting terrorism. At the ceremony were the First Lady Melanie Trump, US Secretary of State Rex Tillerson and other US officials plus the Saudi crown prince and deputy crown prince. After arriving Trump had a brief meeting with King Salman over coffee.
Over a two day visit Trump will be busy with three summits. The first is the US Saudi summit, the second followed by the Gulf Cooperation Council (GCC). In it the group will discuss relationships on the basis of partnership and tolerance according to the Saudi press. The third is an Arab-Islamic-US summit called together by King Salman. The three summits together have the slogan "Together We Prevail". The summits aim to reaffirm shared commitment to global security, deep economic partnerships as well as constructive political and cultural cooperation between Saudi Arabia and the US. There is of course no talk of human rights or the Saudi-led coalition's possible war crimes in Yemen.
A White House statement on Saturday says that the US and Saudi Arabia have agreed to an arms deal worth almost $110 billion to satisfy Saudi Arabia's defense needs. The statement said that the deal represented a significant expansion of the decades long security arrangement with the Saudis. The deal was announced during an official visit of Trump to Saudi Arabia. The statement also noted that the weapons were needed in the face of the long term threat of Iranian influence and threats in the region. It also said that the weapons will help reduce the burden on US military forces in the region by contributing to counter-terrorism operations, It will no doubt help the Saudis in their war on Yemen and to repress Shia groups in Saudi Arabi itself. Of course the agreement will also help strengthen the military-industrial at home and provide more opportunities in the region for US companies. Raytheon wil be one. It has announced a partnership with Saudi military industries to create an Arabia business unit. Altogether Trump signed agreements worth more than $380 billion with the Saudis. Among the military equipment the Saudis will receive is the Patriot and Terminal High Altitude Area Defense (THAAD) that will protect the Saudis from missile or other airborne attacks. Saudi Arabia may be encouraged by the US support for its military actions in the Middle East. Perhaps a medal for Trump is just what is needed to keep the arms supplies flowing.

US will bank Tik Tok unless it sells off its US operations

  US Treasury Secretary Steven Mnuchin said during a CNBC interview that the Trump administration has decided that the Chinese internet app ...