White House To Unveil Rules for Aircraft Exports

As part of its ongoing export control reform initiative, the Obama administration is preparing to introduce new guidelines for the export of military aircraft, according to government and industry sources.

Proposed new export rules for aircraft and associated equipment should come late this week or early next week, an Obama administration official confirmed. (Pierre Verdy / AFP via Getty Images)

Proposed new export rules for aircraft and associated equipment, which fall under Category VIII of the U.S. Munitions List (USML), should come late this week or early next week, an administration official confirmed.

In July, the White House introduced a rule that outlined how the administration plans to move items off the USML, which is administered by the State Department, and onto the Commerce Control List (CCL), overseen by the Commerce Department.
"Moving militarily less significant parts and components from the USML to the CCL is a major step in implementing the Administration's common sense approach to export controls," William Daley, the White House chief of staff, said in a July 19 statement.
Items on the USML - from aircraft to generic parts and components - are all subject to the same controls. However, the CCL's controls are tailored to what the item is and where it is being exported.
For military aircraft and associated parts, the State Department will publish a more detailed category for what the administration proposes stays in Category VIII on the USML, while the Commerce Department will publish what the administration proposes should move to the Commerce list.
There are 21 categories of items controlled by the USML. In July, the Obama administration released details for the first category - Category VII: tanks and military vehicles - as a test case of sorts to demonstrate how such transfers could take place.
Since July, the government has been accepting feedback from industry and Capitol Hill about how to improve these transfers.
"We received a lot of good, worthwhile feedback from industry and Capitol Hill," Andrew Shapiro, assistant secretary for political-military affairs at the State Department, said in a September interview.
"As a result, we're really focusing on what are the things we can do most quickly," he said. "We are engaged in what we call a bright line exercise - of going through the various categories and figuring out which items should go on the CCL and which items belong on the USML as a way to offer guidance to industry about what the requirements are, and eliminate some of the ambiguity and confusion that exists under the current lists."
The new aircraft rules also will have a public comment period, in which the government will accept public feedback.
The State and Commerce departments also have been hard at work on Category XV - spacecraft systems and associated equipment - which includes the thorny issue of commercial satellites.
The 1999 National Defense Authorization Act transferred export-licensing jurisdiction over commercial satellites and related components to the State Department, making them the only items on the USML for which licensing jurisdiction is explicitly mandated by law.
The move was instigated by concerns on Capitol Hill that China had obtained secret U.S. technology through a commercial deal to launch U.S. commercial satellites into space using Chinese rockets.
There has been a growing push to ease restrictions on commercial satellites and to provide some relief to the U.S. space industry, whose ability to compete in the global market has been hampered by U.S. export laws.
According to an industry source, the Obama administration is expected to soon release draft Category XV rules along with the long awaited, congressionally required "1248" report on satellites.

India to Announce MMRCA Winner Next Month

NEW DELHI - India's $10 billion Medium Multirole Combat Aircraft (MMRCA) contest has entered its last stage, with the Indian Defence Ministry alerting the two competitors that the commercial bids will be opened Nov. 4.
Letters were sent Oct. 24 to France's Dassault Aviation and European company EADS, a ministry source here said. After the commercial bids are opened, the lowest bidder will be decided and price negotiations with the winner will begin.

The MMRCA program has picked up momentum in the Defence Ministry, and a contract is likely to be sealed by March 2012.
Based on flight trials of all the MMRCA competitors, the aircraft proposed by U.S. companies Lockheed Martin and Boeing, Sweden's Saab and Russia's MiG Aircraft were ejected from the race, leaving the Dassault Rafale, the Eurofighter Typhoon in the fray.
The Indian Defence Ministry floated its biggest global tender, worth $10 billion, for the acquisition of 126 MMRCAs in August 2007.
The Indian Air Force intends to replace its aging Russian-built MiG-21 fighter aircraft with the MMRCA because the Indian-designed and -built Light Combat Aircraft has been delayed by more than a decade.
Under the MMRCA proposal, India would buy 18 ready-to-fly fighters off the shelf and the remaining 108 would be built in India under technology transfer from the contract winner.

China Strongly Condemns U.S.-Taiwan F-16 Deal

BEIJING - China on Sept. 22 strongly condemned a $5.85 billion U.S. deal to upgrade Taiwan's fleet of F-16 fighter jets, summoned the US ambassador and warned the move would undermine warming military relations.
China, which claims Taiwan as part of its territory, urged the United States to cancel the deal and said it had jeopardized recent improvements in military ties between the two world powers and affected relations with Taiwan.
But analysts said the deal, which stopped short of selling new planes to Taiwan, would probably not be as damaging as an earlier arms package that led to a break in China-U.S. military exchanges in 2010.
"The Chinese military expresses great indignation and strong condemnation," the defense ministry said in a strongly worded statement announcing it had called in the acting U.S. military attaché for talks.
"U.S. actions ... have caused serious damage to Sino-U.S. military relations and have seriously undermined the good momentum of the peaceful development of cross-strait relations," the statement said.
Vice Foreign Minister Zhang Zhijun urged Washington to "immediately cancel the wrong decision" and summoned U.S. Ambassador Gary Locke to protest against the deal, which was branded a "huge mistake" by China's top newspaper.
"If American politicians feel that the United States can ... irresponsibly and randomly damage China's core interests without paying the price, this is a major and huge mistake," said the People's Daily, considered the mouthpiece of China's Communist Party.
But Jean-Pierre Cabestan, political science professor at Hong Kong Baptist University, said Beijing had learned lessons from the 2010 break-off in military ties and was unlikely to react as strongly this time.
"They are going to react, to get angry, and the military may take measures to better counter these retrofitted F-16s, but they will not break military ties with the United States like they did before," he told AFP.
"They're (China) in a new phase - more flexible and accommodating, and with the Taiwanese electoral factor, it reduces their room for maneuver a lot, and it will force them not to overreact on this."
Taiwan's President Ma Ying-jeou of the Beijing-friendly Kuomintang party will seek re-election in January, and Cabestan said China would be keen not to cause any upsets ahead of the polls.
Russell Leigh Moses, a Beijing-based political analyst, said China's reaction was an exercise in "how to avoid slamming the door while shouting."
"I think that Beijing's outrage has multiple audiences, in particular those at home on the mainland and in Taiwan," he said. "There are ways in which they could have said hardly anything, but the consensus clearly was - we'll go into the default mode of being pretty upset and angry, but not like it was a year ago."
Taiwan first lodged a request to buy 66 F-16 C/D fighters - which have better radar and more powerful weapons systems than its F-16 A/Bs - in 2007 in response to China's growing military muscle.
The deal to upgrade the existing fleet includes equipment, parts, training and logistical support.
The Taiwan defense ministry said it was "another signal of the solid foundation for mutual trust and the close security cooperation between Taiwan and the United States."
Observers and media in Taiwan said that although the deal may mean little in any war with China, it represented a valuable sign of U.S. commitment to help the island's defense.
"This is a U.S. compromise to satisfy some of Taiwan's defense needs and maintain friendly ties with Taiwan without touching China's bottom-line by selling new jets," said Kenneth Wang, a military expert at Taiwan's Tamkang University.
Washington recognizes Beijing rather than Taipei but remains a leading arms supplier to the island of 23 million inhabitants, providing a source of continued U.S.-China tension.
However, relations between the U.S. and Chinese militaries have improved over the past year. In July, U.S. Navy Adm. Mike Mullen became the first chairman of the U.S. Joint Chiefs of Staff since 2007 to visit China.
Ties between China and Taiwan have improved since Ma came to power in 2008, but Beijing has refused to renounce the use of force against the island, even though it has ruled itself for more than six decades since their split in 1949.

Taiwanese Official: F-16 Buy From U.S. 'Hopeless'

TAIPEI, Taiwan - Taiwan's bid to buy F-16 fighter jets from the United States has become "hopeless," a top Taiwanese official was quoted as saying in an Aug. 20 report. This follows up a report by Defense News last week that Washington told Taiwan it will not sell the jets.

AN ARMED U.S.-BUILT F-16 fighter takes off during a drill in April. (Sam Yeh / Agence France-Presse)

The comments by parliamentary speaker Wang Jin-pyng, who said the U.S. had changed its mind about selling the jets, mark the first time an official has stated publicly that the long-awaited deal is expected to fall through.

At that time, both U.S. and Taiwanese officials insisted no decision had been made.

It is now "all but hopeless" for Taipei to get the jets, although Washington will still help it upgrade the F-16A/Bs and provide the island other defensive weapons, Wang said in an Aug. 19 speech, according to the report in the Taipei-based China times newspaper.

However, the Taiwanese defense ministry said it was still seeking to acquire the new jets.

"We will continue to push for our request to buy the F-16C/Ds and we will not give up on that," ministry spokesman David Lo said.

Taiwan applied to the U.S. in 2007 to buy the 66 F-16C/Ds, improved versions of the F-16A/Bs that the island's air force now uses, claiming that the new jets were needed to counter a rising China.

Washington recognizes Beijing rather than Taipei but remains a leading arms supplier to the island.

China reacted furiously in January 2010 when the Obama administration announced a $6.4 billion arms deal with Taiwan. That package included Patriot missiles, Black Hawk helicopters and equipment for Taiwan's existing F-16 fleet, but no submarines or new fighter jets.

Taiwan's Defense Show in Decline; F-16s in Limbo

TAIPEI - The biennial Taipei Aerospace & Defense Technology Exhibition (TADTE), which ran Aug. 11-14, was forced to share floor space with a comic book convention at the World Trade Center here. If that was not humiliating enough, several mainland Chinese businessmen were seen perusing booths. Who and what they were about remain a mystery.

A UCAV on display at the recent Taipei Aerospace & Defense Technology Exhibition. (Wendell Minnick / Staff)

Those familiar with the vibrancy of the Singapore Air Show might be surprised to learn that Taiwan spends about $2 billion more than Singapore on defense annually, yet there was no evidence of that at TADTE this year.

The show has seen steady declines over the past decade. Only six U.S. defense companies exhibited this year: ITT, Lockheed Martin, Northrop Grumman, Raytheon, Pratt & Whitney and Sikorsky Aircraft. Missing were BAE Systems, Bell Helicopter, Boeing, General Dynamics, L-3 Communications, Rockwell Collins, Thales and U.S. Ordnance, all of which traditionally have had booths.
Part of the lack of interest could be attributed to the fact that Taiwan's shopping list for new arms has been filled for the near term and there are few, if any, items left to procure. The military is struggling to pay for $16.5 billion in new U.S. arms released since 2007, including Patriot PAC-3 ballistic missile defense systems, P-3C Orion maritime patrol aircraft, AH-64D Apache attack helicopters and UH-60M Black Hawk utility helicopters.
Added to procurement costs are expensive reform programs. The Ministry of National Defense (MND) is implementing a streamlining and modernization program that will reduce troop strength from 275,000 to 215,000 within the next five to 10 years.
Despite the MND's financial struggles, a U.S. Department of Defense delegation was in Taiwan during TADTE to finalize price and availability options for a $4.2 billion upgrade package for 146 F-16A/B fighter jets.
Sources at TADTE said the midlife upgrade package has been renamed a "retrofit" to reduce complaints from China. To further placate China, the F-16A/B retrofit will be released incrementally rather than as a total package under the U.S. Foreign Military Sales program.
The only serious competition at TADTE was between Northrop Grumman and Raytheon to supply the active electronically scanned array (AESA) radar for the F-16A/B retrofit requirement. Northrop's Scalable Agile Beam Radar and the Raytheon Advanced Combat Radar are vying to replace the current APG-66(V)3 mechanical radar.
If the U.S. government does not release an AESA radar for Taiwan, TADTE sources indicate that the Northrop APG-68(V)9 mechanical radar would be offered as a substitute.
Taiwan is awaiting a final decision by the U.S. on a deal for 66 F-16C/D fighters for $8 billion, and a 2001 offer for eight diesel submarines estimated at more than $10 billion.
TADTE participants said the U.S. plans to release the F-16A/B retrofit with the AESA radar, but not new F-16C/D fighters.
A senior Taiwan MND official said he was "disappointed" by U.S. plans to deny Taiwan the new fighters.
But senior MND and U.S. government officials are denying the report. MND officials insist the U.S. Defense Department delegation did not inform Taiwan of a final decision on the F-16C/Ds, and hope remains for a positive release.
Since 2006, the U.S. has repeatedly denied Taiwan's request for F-16C/D fighters to placate China. In July, the U.S. State Department indicated a final decision on the F-16 issue would be made before Oct. 1.
News of the DoD delegation's visit comes at an awkward time for the administration of President Barack Obama. U.S. Vice President Joseph Biden arrived in Beijing on Aug. 17 to discuss economic and political issues. China has insisted the U.S. end all arms sales to Taiwan, and has threatened to invade the island should it continue to refuse unification.

MND Pavilion

During TADTE, the MND displayed a variety of new weapons and equipment. The most startling were exhibits by the military-run Chungshan Institute of Science and Technology (CSIST).
CSIST displayed the new Hsiung Feng 3 (Brave Wind 3) supersonic anti-ship missile. Though the missile had been displayed at TADTE 2009, this is the first time it was described as an "aircraft carrier killer," with a mural depicting three HF-3 missiles sinking China's new aircraft carrier, the Varyag.
China began sea trials for the Varyag on Aug. 10, the same day the HF-3 display was unveiled to the media. The Taiwan Navy has outfitted two Perry-class frigates, the 1101 Cheng Kung and 1103 Cheng Ho, with the HF-3.
CSIST also displayed models of two new unmanned aerial combat vehicle (UACV) concepts. CSIST officials did not provide any information about the UACV models, but one appeared similar to the General Atomics MQ-9 Reaper, while the other had a diamond-shaped fuselage similar to the Boeing X-45.
A CSIST animated demonstration video showed three X-45-like UACVs flying alongside an F-16 on a mission to attack a Chinese air base. The video also demonstrated how the Reaper-like UACV could be used to attack ground-based radar facilities in China.
The 202nd Arsenal displayed a new 105mm low-recoil turret being developed for the eight-wheeled Cloud Leopard armored vehicle. One Cloud Leopard on display was equipped with a 40mm grenade launcher. Full-rate production has begun, and the military has a requirement for 300 vehicles.

U.S. To Deny Taiwan New F-16 Fighters

Offers AESA Radar in Upgrade for Older Jets
TAIPEI - Bowing to Chinese pressure, the U.S. will deny Taiwan's request for 66 new F-16C/D fighter aircraft, a Taiwan Ministry of National Defense (MND) official said.

An armed U.S.-built F-16 fighter takes off during a drill in April. A Taiwan Ministry of National Defense official says Taipei will not be able to purchase new F-16s and is “so disappointed” in the U.S. decision. (Sam Yeh / Agence France-Presse)

"We are so disappointed in the United States," he said.

A U.S. Department of Defense (DoD) delegation arrived here last week to deliver the news and offer instead a retrofit package for older F-16A/Bs that includes an active electronically scanned array (AESA) radar.
The visit coincided with the biennial Taipei Aerospace and Defense Technology Exhibition (TADTE), held here Aug. 11-14.
"The U.S. Pentagon is here explaining what is in the upgrade package," a U.S. defense industry source said at TADTE. "They are going to split the baby: no C/Ds, but the A/B upgrade is going forward."
Sources said an official announcement of the decision is expected by month's end.
But an official at the American Institute in Taiwan (AIT), the de facto U.S. Embassy, said "no decisions have been made," while DoD officials declined to comment on their delegation's mission.
The proposed upgrade package would make the 146 Taiwanese F-16A/Bs among the most capable variants of the aircraft, perhaps second only to the APG-80 AESA-equipped F-16E/Fs flown by the United Arab Emirates.
Originally requested by Taipei in 2009, the package would cost $4.2 billion, sources at TADTE said.
The new gear would include an AESA radar, likely either Northrop Grumman's Scalable Agile Beam Radar or the Raytheon Advanced Combat Radar, to replace the planes' current APG-66(V)3 radar.
Either one would be an improvement on the Northrop APG-68(V)9 mechanical radar once contemplated for Taiwan's upgrade package. The switch is meant to soften the blow of denying new planes to Taipei, a Lockheed Martin source said.
A decision between the two AESA candidates could foreshadow the U.S. Air Force's own choice as it prepares to upgrade its fleet of F-16s. The upgrade package will also improve the planes' Raytheon ALQ-184(V)7 electronic countermeasures pod by adding the capacity to intercept and save hostile radar transmissions, then use the same frequency to jam them.
However, ITT is offering the ALQ-211 Advanced Integrated Defensive Electronic Warfare Suite pod as an alternative.
ITT is also offering the BRU-57/A Smart Twin Store Carrier, which doubles the number of bombs an F-16 can carry, an ITT source said.
The package would also replace the AIM-9P/M Sidewinder air-to-air missile with the new AIM-9X; fit the planes to carry enhanced GBU-12 Paveway II laser-guided bombs; and add a digital radar warning receiver, helmet-mounted cueing system and center pedestal display.
The package will not include new engines to better handle the additional weight and electrical draw, though there could be an upgrade to bring the existing Pratt & Whitney F100-PW-220 to the PW-220E standard. The upgrade would swap out obsolete parts for newer ones, but wouldn't offer any additional performance.
Lockheed Martin will be working with Taiwan's state-run Aerospace Industrial Development Corp. (AIDC) to integrate the new gear on the jets.
"Changing a fighter's major sensor should not be taken lightly. It is more than electrical capacity. It is the integration of sensors, weapons, displays, etc., that make a fighter aircraft effective," Lockheed spokeswoman Laura Siebert said.

Consequences

Siebert said the failure to release F-16C/Ds will weaken Lockheed Martin's plans to extend the production line for the fighter.
"While Congress has been notified of Oman and Iraq's desire for F-16s, the Taiwan order for 66 aircraft is very important to the long-term viability of the F-16 production to include the U.S. Air Force, Lockheed Martin and the thousands of suppliers throughout the U.S.," she said.
More than a few TADTE attendees said the Obama administration might reverse the decision as the 2012 presidential election approaches and political pressure for new jobs builds.
A June report by the Perryman Group, a Texas-based economic and financial analysis firm, estimated that Taiwan's F-16C/D program would create more than 16,000 jobs and almost $768 million in U.S. federal tax revenue. Much of that tax revenue and new jobs would go to election battleground states: California, Connecticut, Florida, Maryland, Ohio, Texas and Utah.
But China holds about 8 percent of U.S. debt, the largest block in foreign hands.
As one TADTE attendee said, "Beijing's Kung Fu is better than Washington's."
The denial of the new jets will likely lead AIDC officials to ask the government to expand upgrade plans for Taiwan's 126 Indigenous Defense Fighters, of which 71 are currently slated for upgrades.
The company has also been pushing Taiwan's Air Force to allocate funds for full-rate production of the IDF C/D Goshawk, which features improved range and weapons payload.

Background

In July, the U.S. State Department indicated a final decision on the F-16 issue would be made by Oct. 1. Since 2006, the U.S. has repeatedly denied Taiwan's request for 66 F-16C/D Block 50/52s, a prospective sale estimated at more than $8 billion.
The planes would replace 60 F-5 Tigers and 60 Mirage 2000-5s due for retirement within five to 10 years.
China has called the sale a "red line." A recent editorial in the state-controlled People's Daily called for the use of a "financial weapon" against the U.S. if new F-16s were released.
The U.S. decision comes as a blow to the self-ruled island's effort to counter China's growing military, whose first aircraft carrier began sea trials last week, and therefore to its independence.
There are fears that losing Taiwan could spell the end of U.S. power projection in the region. Losing Taiwan would "change everything from the operational arch perspective to the posture of Japan and the U.S." in the region, said Raytheon's Asia president, Walter Doran, a retired admiral who once commanded the U.S. Pacific Fleet.
Staff writer Dave Majumdar in Washington contributed to this report.

Norway pulls Falcons back

HELSINKI - Norway has withdrawn its F-16 fighter squadron from NATO's Operation Unified Protector (OUP). The return of the F-16s ends Norway's direct involvement in the operation and the enforcement of NATO's no-fly zone over Libya.

Danish F-16 fighters are seen at the Italian military airport of Sigonella in March. Norway has withdrawn its F-16 fighters from NATO's Libya operation, but Denmark's fighter jets have continued bombing missions. (Mario LaPorta / AFP via Getty Images)

The Norwegian Air Force's squadron, comprising six F-16s, flew 596 missions, almost 10 percent of the total by NATO-aligned aircraft, since March. The aircraft dropped 542 bombs and logged about 2,000 hours of flight time over the four-month period, according to Norwegian Ministry of Defense figures.

The number of missions flown by the aircraft declined in June when two F-16s were recalled to Norway from Souda Airbase in Crete. Britain compensated for the partial withdrawal, sending an extra four Panavia Tornado GR.4 ground-attack jets to replace the F-16s.
By contrast, Denmark's F-16 fighter squadron, which joined the operation in early April, dropped some 705 bombs, including seven precision bombs, on Libya, according to the latest data from the Danish Ministry of Defense.
In recent weeks, six Danish Air Force F-16s have been engaged in bombing missions on targets located between Zlitan and the Libyan capital Tripoli. Targets have included military depots and support facilities.
The Libyan mission cost the Danes up to $16 million a month, a figure that excludes capital outlay to replace precision missiles, bombs and other munitions. The Danes' core arsenal includes GBU-49 type 500-pound bombs and 1-ton bunker killer BLU-109 warheads.
The Zlitan area, which lies 160 kilometers east of Tripoli, has seen increased fighting between rebel groups and forces loyal to the Libyan leader, Moammar Gadhafi, in recent weeks.

Denmark Extends Libya Mission

COPENHAGEN - Denmark decided Aug. 11 to extend its participation in NATO operations in Libya for three months and to allow the rebel National Transitional Council to send envoys to Copenhagen.
Denmark's multi-party Libya contact group announced at a news conference the Scandinavian country's six F-16 fighter jets would continue participating in NATO bombing missions over Libya for another three-month renewable period after the current one expires later this month.

"There is a broad agreement that the strategy we have chosen is the right one," Danish Foreign Minister Lene Espersen told AFP after the news conference.
She insisted that Denmark's participation in the NATO operations was creating a possibility for Libya to become a free and democratic society.
"But the pressure must remain on (Libyan leader Moammar) Gadhafi, so we will maintain our strategy, but adjust it so that it fits the developments of the past couple of months," she said, adding there were no plans to pull the Danish fighters out of Libya any time soon.
"We agree that Denmark must be patient and steadfast. We will continue both the military pressure on Gadhafi and our political efforts to find a political solution to the problems in Libya," Espersen told AFP.
The foreign minister added that Denmark was prepared to welcome envoys from the NTC as representatives of their country, after Copenhagen on Aug. 9 declared the two remaining Libyan diplomats appointed by the Gadhafi regime persona non grata.
"We have chosen to say that we are positively inclined to letting the National Transitional Council have a political representative in Denmark in order to have a partner for political dialogue so we are also able to ensure they move along the road of democracy," Espersen said.
She stressed the TNC had not yet applied for such a post, and it was not yet clear whether such a representative would be able to move into Libya's now empty embassy.
Other parties said they supported the strategy.
"I hope we soon see an end-date (for military operations), but that depends on when Gadhafi leaves the scene," Mogens Lykketoft, the foreign policy spokesman of the main opposition Social Democrats, told AFP.
The Socialist People's Party also agreed with the decision, and the party's defense spokesman Holger Nielsen told AFP that if the left-leaning opposition wins general elections - set to be held in Denmark no later than November - it would not shift the strategy.
"We have broad consensus among most political parties in parliament about this military mission, so I do not see any changes in the Danish policy towards Libya," he said.

Andrew Yang

Taiwan's Deputy Defense Minister

Taiwan's Ministry of National Defense (MND) continues to maintain a strong deterrence in the face of a growing Chinese military threat. The island state's future is uncertain as the U.S. and China grow closer and Washington wavers on the sale of new F-16 fighter jets. This makes Nien-Dzu "Andrew" Yang's role as the MND's policy coordinator a challenge.

Andrew Yang is Taiwan's deputy defense minister. (Patrick Lin / AFP via Getty Images)

The stakes are high. Should China capture or confederate Taiwan, the potential is great for destabilizing the region. China, which continues to threaten to impose unification by force, has more than 1,400 short-range ballistic missiles aimed at Taiwan. The MND, meanwhile, faces budget constraints as it struggles to implement an all-volunteer force, begin an expensive streamlining program, pay for $16 billion in new U.S. arms released since 2007, and convince Washington to sell it F-16s and submarines. U.S. Secretary of State Hillary Clinton announced recently the decision would be made by Oct. 1.
Adding to the confusion, since 2008, China and Taiwan have signed historic economic agreements that are moving them closer together. Taiwan has just opened the floodgates for mainland Chinese visitors, prompting fears of an increase in espionage and agents of influence here.
Yang is a former secretary-general of the Chinese Council of Advanced Policy Studies and adviser to the Mainland Affairs Council, Ministry of Foreign Affairs and the MND.

Q. China now has unprecedented influence over the U.S. with its economic, diplomatic and military muscle. How can Taiwan expect the U.S. to continue to defend Taiwan?

A. We are certainly aware that Beijing is a very important global and regional power and has close mutual interests with the United States. High-level visits are becoming regular in intensity. Beijing is increasing their influence over Washington decision-making not only over Taiwan, but over other important regional and global issues.
We firmly believe that Washington still plays great influence in Asia and has repeatedly made strong commitments to regional security. Taiwan is a very important factor contributing to the multilateral effort to preserve peace and stability in this region. So I do not think the United States will tip over to Beijing's side and ignore its vested interest in the Asia-Pacific region, particularly Taiwan. The U.S. has repeatedly emphasized they will continue to honor the Taiwan Relations Act and provide adequate and necessary articles to enhance our self-defense.

Q. How has the U.S. reacted to a reduction of tension between China and Taiwan since Taiwan President Ma Ying-jeou's 2008 election?

A. The U.S. fully supports President Ma's strategy and approaches. They consider his approach as a way to de-escalate tensions and find opportunities to enhance peace dividends and to reduce misunderstanding and miscalculation. This has, in a way, made Beijing less belligerent toward Taiwan.

Q. Has China reduced the military threat against Taiwan, or the number of missiles aimed at Taiwan?

A. No, they have not done anything yet. There has been nothing from Beijing's top leadership on the issue. I think Beijing considers that both sides can create a new kind of status quo based on engagement. It doesn't mean that Beijing is reducing its military preparations over Taiwan, but they have to think twice in terms of their approach.
There are more mutual interests involved, not just between Taiwan and mainland China, but also multilateral interests in this region, which Beijing needs to continue to develop its economy and stabilize its society. So Beijing has to make some kind of calculation here - whether to rock the boat for the sake of pursuing Beijing's unification policy, either by force or by other means; or work side-by-side with Taiwan and regional partners to create a more stable, peaceful and prosperous environment.

Q. As the U.S. becomes economically weaker and defense budgets are slashed, many in China see the U.S. as a declining superpower. Will this encourage Chinese adventurism?

A. If you look at Chinese President Hu Jintao's visit to Washington earlier this year, it seems to me that from the policymaker's point of view, they don't look at each other as enemies. That's number one. They are still reaching out to each other to the best of their ability to create a win-win situation. From Chinese leaders' comments, they are not taking advantage of U.S. weakness to advance Chinese strategic or national interests in this region. They still emphasize that China should work along with the U.S. to resolve many problems around the world.

Q. U.S. Secretary of State Hillary Clinton has said the U.S. will decide about the sale of 66 F-16C/D fighters by Oct. 1. What do you think Beijing's reaction will be if the U.S. releases new F-16s to Taiwan? China calls it a "red line."

A. They will be extremely unpleasant and upset, as they always are. They've been calling everything a red line for 30 years, ever since 1979, when the U.S. switched relations from Taipei to Beijing.
If we don't get the F-16C/Ds to replace our vintage fighters, then we lose our leverage and immediately face the challenge of fulfilling our responsibility of preserving peace and stability in the region. Washington sometimes does not get the right picture of Taiwan's responsibility. That is part of the reason we want new fighters. Otherwise, the U.S. has to send its own military to replace our daily patrols in the region.
China has already sent a strong warning to Washington that if such a decision is adopted, then U.S.-China relations will be damaged. Cutting off regular military exchanges is one way to show Beijing's animosity. But if we look at previous experiences, they will be downgraded for a while, but they have strong mutual interests binding each other together. So they have to make a decision on what will be the next step.

Q. Economic sanctions?

A. I don't think Beijing will take drastic economic actions against the U.S., because they have a lot of investments, including huge foreign reserves in U.S. banks. If the U.S. economy suffers, Beijing suffers.

Q. The U.S. offered Taiwan eight submarines in 2001, but the deal has been stalled. What's the status?

A. It's a long-delayed decision by the U.S. We are constantly urging them to pay attention to our concerns because we consider submarines to be important to our self-defense.

Q. What would happen if China took control of Taiwan and placed bases here?

A. It opens the door for Chinese military and power projection not only into the East China Sea, but also into the South China Sea. Taiwan would become an important hub and stepping stone for China to exert and expand its presence in the South China Sea, which is certainly not in the U.S. interest. It would immediately challenge U.S. strategic calculations and its security umbrella in the Asia-Pacific region. If Taiwan becomes part of China in terms of political integration in the future, then immediately the United States will lose a vital interest in this part of the world.

Q. There has been talk about beefing up Taiwan's military presence on Taiping Island in the South China Sea.

A. We are not ruling out our options. But the current decision adopted by the National Security Council and the president is to improve and reinforce the Coast Guard's capability on the island. So the Marines are training the Coast Guard members stationed on the island. We are also evaluating whether they can actually perform the assigned responsibilities and duties to protect the island and conduct judicial patrol over the waters.
We will never allow China to step onto the island. It is part of our territory, under our management. There is no room for compromise.

Q. Is the primary Chinese military threat amphibious invasion or missile bombardment?

A. It's a combination. They have all sorts of options at hand.
Of course, Beijing will use the minimum military option to achieve maximum political objectives. Our way of defending ourselves is to make sure they pay a high price and cannot succeed in achieving their political objectives. We have to make sure that if Beijing launches missiles against Taiwan, they cannot immediately compromise our defense and force Taiwan to come to terms with Beijing.

Q. Is the streamlining program still on schedule? You are going from conscription to an all-volunteer military force.

A. It is very much on schedule. By law, we have to implement this streamlining process starting in January. We have to implement the all-volunteer program.
It's an incremental process. We are not targeting any particular date to complete this transformation. Certainly, they are predicated on continuous sufficient resource allocation and support from the legislature.

Q. Do you worry about Beijing becoming more nationalistic, more aggressive?

A. It is always a major concern. China is a dynamic society. You have many forces inside China. People only talk about the good side of Chinese development, but not many pay great attention to the challenges and the difficulties.
They are facing increasing domestic problems. We hope the Chinese government can have better management of those problems, but you never know. We worry about succession. Beijing is going to have a top leadership change next year, so who will be the official leader? What does he think about Taiwan? What will be his priorities? We don't want to wake up to a renegade in charge of China who fires missiles over the Taiwan Strait.

Q. How good is Taiwan's intelligence inside China?

A. We are collecting good stuff, at least from our neighborhood. We also share our intelligence during regular meetings with the United States and others. We are much better off than our counterparts, like Japan and the U.S. The U.S. has its satellite images, but we have our human intelligence, and our analysts are resourceful. We have analysts who have spent 30 years watching China.

Ministry Profile

Established as the Ministry of War in 1912 in China; became the Ministry of National Defense in 1946. Moved to Taiwan in 1949 at the end of the Chinese Civil War.
Defense budget:
■ $10.2 billion for 2011
■ $11.2 billion projected for 2012
Troop strength:
■ 275,000 currently
■ 215,000 projected for 2014

Taliban Who Downed Helo Killed in Airstrike: U.S.

WASHINGTON - The Taliban insurgents who shot down a U.S. helicopter in Afghanistan, leaving 30 American troops dead, have been hunted down and killed in an air strike, a U.S. commander said Aug. 10.
Gen. John Allen, the new chief of U.S.-led forces in Afghanistan, told reporters at the Pentagon that "at approximately midnight on 8 August, coalition forces killed the Taliban insurgents responsible for this attack" with a bombing raid by an F-16 fighter jet.

Insurgents shot down a Chinook helicopter on Aug. 5 in the remote Tangi Valley in Wardak province, killing 30 American troops on board - including 25 elite special forces - in the deadliest incident of the nearly 10-year-old war for the NATO mission.
Describing the incident in detail for the first time publicly, Allen said that the helicopter had been sent in as part of an operation targeting a Taliban leader.
"The intelligence that had been generated to this point led us to believe there was an enemy network in the Tangi Valley in the Wardak province, and the purpose of this mission was to go after the leadership of that network," the general said.
When elements of the insurgent force were seen "escaping," the Chinook chopper carrying Navy SEAL commandos and Afghan soldiers was ordered in to head them off, he said.
The CH-47 was then shot out of the sky with a rocket-propelled grenade.
U.S. forces then tracked the insurgents responsible, calling in an air strike at night on Aug. 8 with an F-16, he said.
The Taliban leader originally targeted in Aug. 5's mission was not killed, Allen said.

US Defense Department awards $42.3m contract for Pakistan F-16 upgrades

The US Defense Department has awarded Lockheed Martin Aeronautics Company a $42.3 million contract to provide 10 additional upgrade kits for Pakistan’s F-16 aircrafts.

 
The contract has been awarded under the Foreign Military Sales programme.
Lockheed Martin will provide upgradation kits for the Pakistan F-16 A/B Block 15 Aircraft Enhanced Modernisation Programme.
Furthermore, the package includes 18 panel “simuspheres“, logistic support up to 21 months of which 12 months on-site and nine months on-call support will be provided.
Various related hardware and software systems are also included.
However, Pakistan had earlier ordered 50 JF-17 jets from China — Pakistan’s largest aircraft provider — which are due to be delivered in six months, said a statement from the Defense Ministry of Pakistan.
Earlier, in June 2010, US delivered the first batch of Block-52 F-16 Fighting Falcon jets to Pakistan.
Pakistan paid $1.4 billion for the jets and an additional $1.3 billion for the up gradation of its previous fleet of the fighter jets.
Back in Musharraf’s government, in January 2008, former US president George W. Bush scrapped nearly a $500 million deal to supply 18 F-16 jets built by Lockheed Martin Co. to Pakistan.

Morocco Takes Delivery of F-16 Jets

RABAT - Morocco took delivery on Aug. 4 of a first batch of 24 F-16 fighter jets from the United States as part of its air force modernization program, a senior U.S .officer said.

Another seven would be delivered at the beginning of 2012 and the remaining 13 in the following months, she added.

Four F-16s were delivered to Morocco, Maj. Gen. Margaret Woodward of the U.S. Air Force told reporters in the southern city of Marrakesh.

The 24 F-16s, the CD block 50-52 model, were among the most modern versions available, said Woodward.

The contract with the U.S., which includes the sale of equipment, services and pilot training, is worth an estimated $2.4 billion (1.7 billion euros).

The F-16s competed with the Rafale jet produced by France's Dassault to win the Moroccan deal.

The Benguerir air base north of Marrakesh took delivery of the aircraft in a ceremony attended by senior officers of the Moroccan and U.S. military, the MAP news agency reported.

China Officially Offers Pakistan J-10 Variant

ISLAMABAD - China for the first time officially offered Pakistan a variant of its most advanced frontline fighter, the Chengdu J-10 Vigorous Dragon/F-10 Vanguard.

Official Pakistani interest in the fighter dates back to February 2006, when then-Pakistani President Pervez Musharraf toured the J-10 production facilities on a trip to China. Pakistani government approval for the purchase of 36 FC-20s, a Pakistani-specific variant, was given in April 2006. Service entry was slated for the middle of the decade.

Citing defense sources, the offer was reported in the Urdu press here over the weekend. The offer was made during the recent visit to China by Lt. Gen. Waheed Arshad, the Pakistani Army chief of General Staff.

Precise details of the deal are not yet known. However, Usman Shabbir of the Pakistan Military Consortium think tank, said "the initial deal will be for at least two squadrons [at least 32 aircraft] and will be financed by China via a soft, long-term loan."

Analyst Kaiser Tufail said the J-10's operational autonomy would be far greater than that provided by the U.S.-built F-16C.

"It has to be remembered that India refused to consider the F-16C/D and F-18E/F, as they wanted a freer hand in operability aspects as well as technology transfer, which the U.S. was unwilling to provide," Tufail said.

With the J-10, Pakistan would "be able to operate it in an environment not constrained by security restrictions," and could base the aircraft wherever desired, Tufail said. He also said the lack of technology-transfer restrictions from the original equipment manufacturer is a factor.

"The J-10 will provide F-16-class capabilities for Pakistan but without the cost and political encumbrances of U.S.-sourced aircraft," Carlo Kopp of the Air Power Australia think tank said.

"What a J-10 would provide is quantity over any U.S.- or EU-sourced product," Kopp said, though he is still uncertain whether China will supply "pre-loved J-10A…or new-build J-10A or J-10B airframes."

Shabbir said the broader Sino-Pakistani combat aircraft relationship has eroded Western influence over Pakistan, though he remains concerned about the implications Pakistan's fragile economy has for its defense capabilities.

"The availability of J-10 and JF-17 from the Chinese means that Pakistan is now not that reliant on the U.S. and Europe for its aircraft requirements, and this of course will erode U.S influence over Pakistan in the long term," he said.

The Pakistani Air Force is the largest operator of U.S supplied weapons in South Asia and therefore most vulnerable to sanctions

U.S., Iraq to Discuss Fighter Jet Deal: Pentagon

WASHINGTON - An Iraqi delegation will visit the United States this month to discuss the purchase of 18 fighter jets, a Pentagon spokesman said Aug. 1.
"Iraq has requested 36 F-16s, (and) a delegation is coming here this month to discuss moving forward on 18 of the jets," Col. David Lapan told reporters.

He added that the two sides were in "just the initial stage" of the purchase and that if a formal agreement were to be reached it would take time to provide the aircraft and train pilots.
"It's a long process. It could be years," he said.
Iraqi Prime Minister Nuri al-Maliki said July 30 he had revived talks to purchase 36 U.S. F-16 fighter jets, rather than the originally mooted 18, in a multibillion-dollar deal that has been on the works for several months.
U.S. officials in Iraq - where 47,000 U.S. troops are still stationed - have said Baghdad can provide for its own internal security but does not have the necessary arms to police its air space, territorial waters and borders.
U.S. Adm. Mike Mullen, the outgoing chairman of the Joint Chiefs of Staff, said Aug. 1 that Iraq must make a decision quickly over whether it wants any U.S. troops to remain in the country past the end of this year.
A 2008 military pact requires the withdrawal of all U.S. forces by the end of 2011 but could be amended by mutual consent, and proposals for some U.S. trainers to remain have been gaining traction among Iraqi leaders.
The F-16, manufactured by Lockheed Martin, is one of the most widely used fighter jets in the world and has been exported to over 20 countries.

Norway Withdraws Jets from Libya Ops: Military

OSLO - Norway on Aug. 1 withdrew as planned its final four F-16 fighter jets that have been taking part in the NATO-led mission over Libya, the Norwegian military said.
The Norwegian planes, which landed at their bases in Bodoe in the north of Norway and in Oerland in the central west of the country, carried out 583 missions, out of a total of 6,493 flown by NATO since March 31, and dropped 569 bombs, military spokesman Petter Lindqvist told AFP.

On June 10, the center-left government, split over Norway's prolonged participation in the bombing, announced it would gradually withdraw its six F-16 fighter jets stationed at the Souda base on the Greek island of Crete.
The government explained that its small air force could not sustain a large air contribution for a long period of time.
Only eight of NATO's 28 member states have flown bombing missions since the alliance took command of the operation on March 31: Norway, Britain, France, Canada, Belgium, Denmark, Italy and the United States.
London has increased its contribution by adding four Tornado jets, effectively making up for the loss of the Norwegian planes.
NATO officials say Norway's departure will not affect the tempo of air operations, which have averaged more than 100 sorties per day including around 50 missions aimed at hitting targets.
The Scandinavian country, shocked by a bombing and shooting spree committed by a far-right extremist, will continue its involvement in the operation with 10 officers posted at the Libya air command centre based in Italy.

Iraq Plans to Double Planned F-16 Purchase

BAGHDAD - Iraq will ask for future defense contracts to include provision for trainers, bypassing MPs to allow some U.S. soldiers to stay past a year-end pullout deadline, Prime Minister Nouri al-Maliki said.
Maliki also told reporters on July 30 that he had revived talks to purchase 36 U.S. F-16 fighter jets, rather than the originally mooted 18, in a multi-billion-dollar deal that has been on the cards for several months.

"Training missions do not need the approval of parliament," the premier told a news conference. "The government will include in agreements to purchase weapons that there should be trainers to train Iraqi forces to use these weapons."
Maliki said he submitted a report to parliament which concluded Iraq's security forces still required training on purchased weapons. He did not give details on the report.
Foreign Minister Hoshyar Zebari said this month that plans for a contingent of U.S. military trainers were gaining traction among Iraqi leaders, but no agreement has yet been reached on the future of the American presence here.
Iraqi leaders have already missed a self-imposed July 23 deadline to reach agreement and, in the past, political deals have rarely been reached during the holy Muslim fasting month of Ramadan, which is set to start Aug. 1.
Politicians have previously noted the difficulty of reaching an agreement in parliament on a prolonged American troop presence, as many Iraqis still view U.S. forces as occupiers.
Maliki said he had signed documents restarting talks to purchase F-16s from the United States, a deal that had been close to agreement earlier this year but was put off due to widespread protests railing against poor basic services.
The original deal had involved the acquisition of 18 jets, but Maliki said the new contract would lead to the purchase of 36 F-16s.
"The new contract will be larger than what we agreed earlier, to provide security for Iraq," he said.
Any potential deal would be worth billions of dollars and take years to implement, as it would require the manufacture of the planes and the training of Iraqi pilots.
U.S. commanders say that while Iraq's forces are able to maintain internal security in the country, improvement is required in protecting Baghdad's airspace, territorial waters and borders.

U.S., China Discuss Weapons Sales to Taiwan

WASHINGTON - The United States and China on July 29 held top-level talks on Taiwan, with Washington working preemptively to avoid a fallout as a decision nears on whether to sell fighter-jets to Taiwan.
U.S. officials have said that they will decide by Oct. 1 on whether to sell F-16 jets to Taiwan, a longstanding request from the self-ruling island which fears that China's rapidly growing military has gained a major edge.

Wang Yi, the top Chinese official in charge of Taiwan, met with Deputy Secretary of State William Burns. Secretary of State Hillary Clinton joined part of the closed-door session, a State Department official said.
China's state-run Xinhua news agency said Wang "stressed that the Chinese mainland has been steadfast in opposing the U.S. arms sales to Taiwan, because it harms Sino-U.S. ties and the peaceful development of the cross-strait relations."
Burns took office as the State Department's No. 2 just July 28 after his nomination was held up by Sen. John Cornyn, R-Texas, who said he relented only after Clinton agreed to release a long-delayed report on Taiwan's arms needs. The jets would be built in Cornyn's home state.
Congress is a stronghold of support for Taiwan, with the House Foreign Affairs Committee last week voting without dissent on a measure urging "immediate steps" for arms sales.
China considers Taiwan to be a territory awaiting reunification, by force if necessary.
The United States switched diplomatic recognition to Beijing in 1979 but Congress at the same time approved the Taiwan Relations Act, which requires the United States to provide the islands enough weapons for self-defense. The law states that the U.S. administration will make the decision without consulting China.
U.S. Joint Chiefs of Staff Chairman Adm. Mike Mullen said he spoke about arms sales to Taiwan during a visit earlier in July to Beijing and "clearly, the Chinese would strongly prefer us to stop doing this."
But he said he explained to his Chinese counterpart, Gen. Chen Bingde, that the United States has "responsibilities, and they're legal responsibilities, in my country to support the Taiwan Relations Act."
The United States last year approved $6.4 billion in weapons for Taiwan, including Patriot missiles and Black Hawk helicopters, but not jets or submarines. China lodged a protest, suspending military ties with the United States for months.
Mullen has strongly advocated dialogue, saying it will be crucial to avoiding miscalculations as China ramps up its military budget.
The Pentagon offered praise on July 29 after China made a rare acknowledgement that it is building its first aircraft carrier.
State television on July 27 broadcast footage of the old Soviet ship, which is being refitted in the port city of Dalian. The defense ministry said the carrier would be used for "scientific research, experiments and training."
"That's a good sign to us. We've always talked about the need for transparency so that we better understand what their intentions are," Pentagon spokesman U.S. Marine Col. Dave Lapan told reporters.
He said that the Pentagon was already well aware of the carrier project, "but it's at least a positive sign that they are being more forthcoming."
China showed footage of the carrier at a time of high tensions on the South China Sea with Vietnam and the Philippines. China's defense ministry did not say when the carrier would be finished.
At a joint news conference during Mullen's visit, China's military chief Chen defended the project and noted that the United States has 11 aircraft carriers in service.
"China is a big country [and] we only have quite a number of ships, but small ships. And this is not commensurate with the status of the country of China," Chen said.

Exchange Rate Behind UAE Rafale Balk: Dassault

PARIS - The price resistance from the United Arab Emirates on the Rafale fighter jet stems from an unfavorable euro-dollar exchange rate, but talks on the French aircraft continue, Dassault Aviation executive chairman Charles Edelstenne said July 28.

The UAE's discussion with Lockheed Martin about a potential purchase of additional F-16 fighters was "not a negative sign," Edelstenne told a press conference on the company's results for the first half of the year.

"Talks are going on," he said.

But with the euro at $1.40, the Rafale's sale price was boosted by the currency exchange rate, Edelstenne said. Dassault could not cut prices by 40 percent to offset the weaker dollar.

"I make Mirages, not miracles," he said.

The euro was trading at $1.43 in early afternoon, with the dollar under severe pressure from the U.S. government impasse on raising the debt-ceiling limit ahead of the Aug. 2 deadline.

Edelstenne refused to disclose the unit price of a Rafale, but he said an export purchase generally involves a political decision to pay a "price premium" that granted "independence of action." As the Rafale is built in France, reflecting a strategic decision on sovereignty, its costs are in euros, making it more expensive than an American fighter aircraft sold in dollars.

On the French government's July 20 decision to start negotiations with Dassault on a supply of the Heron TP medium-altitude long-endurance (MALE) UAV, Edelstenne said this meant sustaining a French design capability in military aircraft instead of paying for the "Messerschmitt design office" in EADS.

Edelstenne said in picking OHB over EADS, Germany made similar national selections in its space procurement.

Asked what the significance was in selecting Dassault as supplier of an interim MALE UAV, Edelstenne said the choice showed a determination to maintain a French national capability in building combat aircraft, as the next manned fighter jet would not enter service for another 30 to 40 years.

The negotiations would determine what sensors and communications payloads would go on the Israeli Aerospace Industries' UAV air vehicle, which is intended to provide an interim solution until the planned Anglo-French new generation MALE UAV enters service, expected in 2020.

IAI has agreed to disclose technical information on the Heron TP, which will be adapted to French requirements, including the ability to carry weapons, Edelstenne said.

The interim MALE UAV could have a service life of around 10 years and could overlap with the new Anglo-French air system, a company executive said.

On an asset swap under negotiation between Safran and Thales, Edelstenne said the airplane engine and equipment maker was holding up a deal by saying "no" to each new proposal from the electronics company. That forced Thales into a corner, he said.

"The valuation levels are a bit extraordinary," Edelstenne said.

Dassault signed an agreement with the government on an asset swap when it took its 26 percent stake in Thales, covering inertial navigation, onboard electricity generation and optronics, Edelstenne said.

Safran's sales in optronics are worth around 600 million euros, and if the business were put into Thales, that would make the electronics company second or third in the world market for electro-optics.

At the Paris Air Show in June, French President Nicolas Sarkozy said the government would impose a settlement if industry failed to reach a voluntary agreement.

Edelstenne said he was "very satisfied" with the Thales first-half results, which were released on July 27. The results displayed early effects of the Probasis restructuring plan and improved management of large programs and contract negotiations, he said.

Dassault reported a 35 percent fall in net profit to 129 million euros from 197 million euros a year ago, as sales dropped 34 percent to 1.32 billion euros from 1.99 billion euros.

The sales and profit slide came from lower deliveries of the Falcon business jet, with a delay in shipment of the Falcon 7X into the second half.

Orders declined to 95 million euros from 99 million euros.

On a production rate of one unit per month, Dassault has delivered six Rafale jets so far this year out of 180 total orders to date.

Privately, company executives expect the French government to stretch out future Rafale orders because of expected defense budget cuts, especially if export contracts are won.

Besides the UAE, Dassault hopes to sell the Rafale to India, Brazil and Switzerland. India is holding to its timetable to buy 126 medium-range combat aircraft, and the Swiss government has shown renewed interest in replacing its F-5 fighters.

Toxins Grounded F-22s: Sources

The U.S. Air Force's fleet of F-22 Raptor fighters has been grounded since May 3 due to toxins entering the cockpit via the aircraft's life support systems, sources with extensive F-22 experience said.

Service leaders grounded the stealthy twin-engine fighter after pilots suffered "hypoxialike symptoms" on 14 occasions. The incidents affected Raptor pilots at six of seven F-22 bases; the exception is Tyndall Air Force Base, Fla.

But despite an investigation that has spanned nearly three months, no one yet knows what toxin or combinations of toxins might have caused the incidents, nor is it clear exactly how the chemicals are entering the pilots' air supply, sources said.

Toxins found in pilots' blood include oil fumes, residue from burned polyalphaolefin (PAO) anti-freeze, and, in one case, propane. Carbon monoxide, which leaves the blood quickly, is also suspected.

"There is a lot of nasty stuff getting pumped into the pilots' bloodstream through what they're breathing from that OBOGS [On-Board Oxygen Generation System]. That's fact," one former F-22 pilot said. "How bad it is, what type it is, exactly how much of it, how long - all these things have not been answered."

The blood tests were performed after each of the 14 incidents in which pilots reported various cognitive dysfunctions and other symptoms of hypoxia. One couldn't remember how to change radio frequencies. Another scraped trees on his final approach to the runway - and later could not recall the incident.

"These guys are getting tested for toxins and they've [gotten] toxins out of their bloodstreams," the source said. "One of the guys was expelling propane."

This source, along with the others, requested anonymity for fear of retribution.

The line of inquiry may shed new light on the death of Capt. Jeff "Bong" Haney, a 525th Fighter Squadron pilot who was killed when his F-22 crashed last November near Anchorage. Sources said that in Haney's last few radio calls before his jet disappeared, he sounded drunk, a classic sign of hypoxia. Haney was known as a prodigiously skilled aviator who was in line to attend the elite Air Force Weapons School.

Air Force officials have said they have not yet completed the investigation into the crash.

Asked for comment about the possibility that F-22 pilots had been exposed to carbon monoxide, an Air Force spokesman, Maj. Chad Steffey said, "The safety of our aircrews is paramount, and the Air Force continues to carefully study all factors of F-22 flight safety."

Asked about other toxins, Steffey referred questions to the Air Force Safety Center at Kirtland AFB, N.M., where officials did not repond by press time.

Officials with Lockheed Martin, which builds the aircraft, said they are cooperating with the investigation but cannot comment further.

Carbon Monoxide?

Beside the various toxins found in the pilots' blood, carbon monoxide is another potential cause of the hypoxia incidents.

The gas, one of many generated as exhaust by the plane's jet engines, might be getting into the cockpit, sources said.

Part of the problem, at least for pilots flying from Joint Base Elmendorf-Richardson, Alaska, where many of the known incidents have occurred, may be the startup procedures used in winter, one source said.

Because of the harsh climate, pilots often start their jet engines inside a hangar before taking off. That could allow exhaust gases to be trapped in the building, sucked back into the engines, and ingested into the bleed air intakes that are located within the engines' compressor sections that supply the OBOGS, sources said. The layout, sources added, is standard for modern jet aircraft.

But another source said that many of the hypoxia incidents have occurred well into flights or even during a day's second mission, long after the plane has left the Elmendorf hangar.

The U.S. Navy had problems with the OBOGS on its F/A-18 Hornet, which sucked carbon monoxide into its oxygen system during carrier operations. Between 2002 and 2009, Hornet aviators suffered 64 reported episodes of hypoxia, including two that killed the pilots, according to the July-August 2010 issue of "Approach," a Navy Safety Center publication.

The Navy modified the planes' OBOGS, has had no recent similar incidents and is not currently investigating the systems, Naval Air Systems Command officials said.

USAF Expands Investigation

In January, a safety investigation board led by Maj. Gen. Steven Hoog began looking into the the OBOGS on the F-16, F-15E and F-35 fighters; the A-10 attack jet and the T-6 trainer, according to May statements by officials with the service's Air Combat Command, which oversees combat aircraft.

In May, Air Force Secretary Michael Donley had ordered the service's Scientific Advisory Board to conduct a "quick-look study, gather and evaluate information, and recommend any needed corrective actions on aircraft using on-board oxygen generation systems," according to a July 21 statement by service officials.

The release indicated that the service is now looking at more types of aircraft: the B-1 and B-2 bombers and the CV-22 tilt-rotor and "other aircraft as appropriate."

According to the release, the investigation is conducting a "series of carefully controlled in-flight tests, the team will examine the subsystems identified in reported incidents. These include the pressurization system, mask and cockpit oxygen levels."

The release said the Scientific Advisory Board investigation followed the grounding of the F-22 fleet, but did not say whether it superseded, replaced or is merely accompanying the Hoog investigation.

One source said that F-22 test pilots at Edwards AFB, Calif., last week started flying sorties as the investigate OBOGS concerns as part of the Air Force safety investigation.

Air Force officials have confirmed only that some test pilots at the base are flying their jets under a special waiver granted to them to test an unrelated software upgrade.

However, the operational fleet remains grounded, with pilots and ground crews practicing in simulators as much as they can. But that is not a real solution because the pilots won't be able to maintain currency, one former F-22 pilot said.

"After 210 days, they've got to start retraining everybody," he said.

It would take weeks for the instructor pilots at Tyndall to re-qualify themselves and then start to train others, the former pilot said. Pilots with lapped currencies would be re-qualifying each other.

It would take four to six weeks afterward to re-qualify the operational squadrons. Service officials confirmed that 12 Raptors are stranded at Hill AFB, Utah, but declined to identify their squadron. The jets came to the desert base for a Combat Hammer exercise in which pilots and ground crews practice loading and releasing live air-to-ground weapons. Service officials said the jets are from the 1st Fighter Wing at Langley AFB, Va.

Meanwhile, Lockheed can't deliver new Raptors to the Air Force because the company and the Pentagon's Defense Contract Management Agency are unable to fly required test sorties needed to certify the jets meet specifications. Four aircraft have technically been delivered to the service but can't fly to their new home at Langley AFB.

At least two additional aircraft have been completed but remain at the factory undelivered.