India Hopes To Unveil Fighter Deal in 2 Weeks

NEW DELHI — India hopes to unveil within two weeks the winner of a $12-billion fighter jet deal for which France’s Dassault and the Eurofighter consortium are on a final short list, the air force said Jan. 17.

“Right now we have to do the selection for who is going to be the short-listed vendor,” Indian Air Force chief N.A.K. Browne said in New Delhi. “I am hopeful that in another two weeks time, we will be able to short list the name,” Browne told reporters on the sidelines of a military function, the Press Trust of India news agency reported.

The contract is one of the biggest under consideration in the global defense aviation industry at the moment.

The air force chief said final commercial negotiations would only start after India announced the lowest bidder.

Officials say “life-cycle” maintenance costs of each plane will determine the winner of the deal. The contract is for the outright purchase of 18 combat aircraft with another 108 to be built in India with options to acquire more.

India last April cut out U.S. bidders Boeing and Lockheed Martin as well as dropping Sweden’s Saab AB and the Russian makers of the MiG 35 from the race.

Such a large order attracted intense lobbying during visits to India last year by U.S. President Barack Obama, French President Nicolas Sarkozy, British Prime Minister David Cameron and Russian President Dmitry Medvedev.

India, the biggest importer of military hardware among emerging nations, issued the request for proposals in 2007 and trials of aircraft from the six companies competing for the deal began a year later.

France Offers Heron for NATO Role

PARIS - France is offering the Heron TP as its contribution in kind to the NATO Alliance Ground Surveillance program, but technical and financial problems related to adapting the medium-altitude, long-endurance (MALE) UAV to French standards are holding up a deal with Dassault and Israel Aerospace Industries (IAI), industrial and political sources said.

DASSAULT IS NEGOTIATING with Israel Aerospace Industries on the contract for the Heron TP, which the French company would then deliver to French authorities. (Israel Aerospace Industries)

French Defense Minister Gerard Longuet told the French aerospace journalists' press club that the deal would be sealed by "the end of 2012."

Dassault is negotiating with IAI on the contract for the Heron TP, which the French company would then deliver to French authorities.That's later than expected by industry and parliamentary sources, who had thought the controversial contract would be signed before the presidential elections starting in April.

"There are many difficulties" on adapting the Heron TP, driving the cost above the 320 million euro ($408 million) budget, a parliamentary source said. An extra 150 million euros each for Dassault and Thales has been estimated for the modifications, the source said.

That would push the cost to 620 million euros, approaching the 700 million euro price tag of a previous Dassault offer of the Système de Drone MALE.

The Defense Ministry has asked Dassault to submit a technical-financial proposal on the Heron TP at the end of the month.

Among the key modifications are a satellite communications link and de-icing equipment, vital to plugging the UAV into the French - and NATO - network and fly in the northern European climate, the industry executive said.

Procurement officials are working hard to make progress on the UAV case, and one option might be to acquire the Heron TP with little or no modification, the executive said.

That might create problems of interoperability within NATO as Paris has offered the Heron TP as its asset contribution, instead of paying cash, toward maintaining the AGS system, the executive said.

Although 13 nations are acquiring AGS, based on the Northrop Grumman Global Hawk UAV, all 28 alliance members help maintain the system in return for access to AGS information.

"The AGS package is still being discussed at NATO," an alliance press officer said. "It is a topic to be discussed in the February meeting of defense ministers."

NATO has long sought to launch the AGS program, intended to provide commanders with a common operational picture.

France has had a troubled relationship with AGS, as Paris looked to gain a big technological role. The planned AGS system relies on five Global Hawks to provide radar and optical pictures of conditions the ground, and a network of transportable ground stations. The UAVs will be based at Sigonella airbase, Italy.

The choice of the Heron TP sparked resistance in the French Senate, which argued for acquisition of General Atomics' Reaper on grounds of cost, performance and interoperability with allied forces.

Longuet defended the choice of the Israeli UAV as "a compromise between capability and a long-term interest for industrial policy," he told the press club.

"We could have found a cheaper, more efficient, quicker solution, but at the [unacceptable] price of long-term dependence," he said.

Longuet denied that most of the contract value would go to IAI, saying that air vehicle is the smallest part of the system, with communication and observation more important.

The government argues that adapting the Heron TP to French needs will help develop competences among about 10 domestic companies in high-value areas, particularly in communications. Critics of the choice say there would be more work for French companies on the Reaper, pitched by EADS and General Atomics.

"No proposition was made by Reaper, which did not want to share, nor to adapt to French standards," Longuet said.

General Atomics did not make a formal offer because France did not send a letter of request, an industry executive said.

In 2010, the U.S. company signed a technical-assistance agreement with EADS detailing its offer, the executive said. The agreement listed modifications, including a communications link developed by French equipment firm Zodiac for the Harfang UAV flying in Afghanistan.

General Atomics also wrote in June 2011 to French Sens. Jacques Gautier and Daniel Reiner, setting out a $209 million offer for seven air vehicles, ground gear and service support.

The government, however, sees Dassault as holding a key position on a strategic roadmap intended to ensure interoperability in observation, surveillance, targeting and air power. That position stems from its work on the Rafale and Anglo-French cooperation, in the government's view.

Longuet said risk-reduction work on the Heron TP would start in 2013.

Dassault and DGA were unavailable for comment.

On a proposed new MALE UAV to be developed with Britain, Longuet urged a pan-European rather than a strictly bilateral approach.

The project "should accept the construction of Europe," he said. "We can't ignore countries with industrial capabilities. We'll probably have an Anglo-French project, which cannot avoid opening to other European partners."

On the Anglo-French cooperation treaty, Longuet said, a new date for a summit meeting would be set for before his birthday on Feb. 24.

"There are no doubts on defense," he said on relations between London and Paris.

EADS and Finmeccanica signed a deal in December to team on UAV development, reflecting wider discontent in Italy and Germany over the Anglo-French defense accord.

France would not develop the EADS Talarion Advanced UAV, Longuet said.

One way of bringing a European dimension into the planned Anglo-French MALE UAV would be to integrate it into the European combat aircraft environment, dominated by the Eurofighter Typhoon and Rafale aircraft, Longuet said.

"If we're intelligent, we should say, 'You British work on Eurofighter with Germany, Italy and Spain, and we'll work on Rafale,'" he said. "It would be good if the MALE UAV were to be compatible with one and the other."

OTHER PROGRAMS

France will buy the A330 Multi-Role Tanker Transport (MRTT) from Airbus "in 2013 for delivery four years later," Longuet said, leaving Boeing out in the cold.

Longuet dismissed previous official denials that Airbus had been chosen as "semantic elegance."

The U.S. Air Force's $35 billion pick of Boeing over Airbus for its KC-X tender effectively shut the door on a French tender.

France is expected to order five to seven A330 MRTT units in a first-batch order that could total 14.

Paris had been considering leasing part of Britain's A330 tanker fleet, but the Libyan air campaign led French authorities to decide they wanted their own aircraft.

On domestic consolidation, Thales would likely take a 10 percent to 20 percent stake in Nexter in exchange for handing over its TDA Armements mortar and munitions business to the land systems specialist, Longuet said.

Thales' holding would be significant but would not leave Nexter "dependent," he said.

Answering a question on anxiety at DCNS, where Thales is raising its stake in the naval company to 35 percent from 25 percent, Longuet said, "Thales is not the obligatory supplier of systems. DCNS can choose its systems."

DCNS makes naval combat management systems, and executives fear Thales will impose its own products, relegating the company to being a platform maker.

Nexter and DCNS had to forge European alliances to compete with companies from emerging economies such as Brazil, but first they had to consolidate their domestic base, Longuet said. Nexter had to look to German partners, as that was where the land sector was strong, he said.

Asked about the health of French defense companies, Longuet said, "Thales is a company necessarily in more peril because it is innovative on creative subjects on a world scale. It is more difficult. It has to take risks and goes through periods of uncertainty."

Regarding arms exports, the 2011 total for France would be around 6.5 billion euros, helped by an Indian contract for modernization of its Mirage 2000 fighters, Longuet said. That compared with 5.12 billion in 2010.

In October, procurement chief Laurent Collet-Billon had told lawmakers in October he expected 2011 export sales to reach 7.5 billion euros.

On export prospects for the Rafale, Longuet said a UAE decision to pick the Rafale would help sell the fighter to Kuwait and Qatar, which want to be interoperable with their neighbor's Air Force.

"They are interested" but would not be the first to commit, he said. "If they think no decision is being made [by UAE], they will look elsewhere."

Kuwait is looking at acquiring 18 to 22 jet fighters, with Qatar potentially 24, industry executives said, according to La Tribune.

The Defense Ministry appeared to harbor worries about Qatar raising its stake in Lagardère, the family-controlled company which owns 7.5 percent of EADS.

"There are fewer problems in football than in military aeronautics," Longuet said. "It's a subject."

But the decision on Qatar's shareholding in Lagardère was up to the Finance Ministry, not the Defense Ministry, he said.

A Qatari sovereign fund holds 10.07 percent of Lagardère stock, making it the largest single stockholder in the French company, and has asked for a seat on the board. Qatar bought 70 percent of the Paris Saint Germain football club for 30 million euros in May.

Julian Hale in Brussels and Tom Kington in Rome contributed to this report.

India Casts Wider Net for Short-Range Missiles

NEW DELHI - The Indian Army has entered the global market to buy short-range surface-to-air missile (SRSAM) systems for $1.5 billion, a move that could further undercut a four-year effort to develop a system with MBDA of France.

The Army convinced the Indian Defence Ministry there is an urgent requirement for SRSAM, said Army sources, and did not want to wait for the Maitri project conceived four years ago. India and France have not been able to agree on details of the Maitri project, including funding arrangements, the source added.

The Army last month sent global tenders to defense companies in Europe, the United States and Russia including Raytheon of the U.S., Israel's Rafael, MBDA and Thales of France, Diehl Defence of Germany, KBP Tula and Rosoboronexport of Russia, Ukraineexport of Ukraine and LIG NEX1 of South Korea.

The requirements of the SRSAM are similar to those of the proposed Indo-French Maitri project, the Army source said.

The current tender is for two regiments (36 systems, 1,000 missiles) estimated to cost about $800 million each. The total Indian Army requirement is likely to be about eight regiments in the next five to seven years.

The Maitri project was proposed to be jointly developed by India's Defence Research and Development Laboratory and MBDA.

The selected vendor will have to transfer technology of the systems, as well.

The supply will be made in two batches and completed within five years of the signing of the tender, including the launchers, sensors, vehicles for transportation and the missiles. The system must have a service life of at least 20 years and the missiles of not less than eight years.

The SRSAM system should be able to engage multiple targets, including those flying up to 500 meters per second, and have a maximum range of not less than 15 kilometers.

In 2009, India bought two regiments of Spyder quick-reaction surface-to-air missile systems from Rafael. Another Indo-Israeli joint project is the $2.5 billion long-range surface-to-air missile project signed in 2009 and expected to be inducted in 2013, Indian Defence Ministry sources said.

Meanwhile, the Indian Army has begun inducting the homemade medium-range Akash, which has a range of up to 30 kilometers. In 2011, the Indian Army ordered the induction of two Akash regiments at a cost of about $3 billion.

The Army also has been negotiating the purchase of David Sling and Iron Dome missile interceptor systems.

Asian Navies Shift to Bigger Vessels, Downplay Littoral Ops

TAIPEI - As Western navies build fewer aircraft carriers, destroyers and submarines, Asian navies are moving in the opposite direction, ignoring the littorals with construction and procurement of larger warships and submarines.

The U.S. and Europe have stepped back from larger platforms designed for the Cold War and invested in smaller platforms such as the U.S. Navy's Freedom-class Littoral Combat Ship (LCS). But this is not the case in East Asia and the Pacific, where there have been increases in spending on destroyers and submarines in Australia, China, India, Japan, South Korea and Taiwan, said Bob Nugent, vice president of naval advisory services at AMI International, based in Seattle.

One of the most notable cases involves Taiwan's procurement of four Kidd-class guided missile destroyers and plans to procure eight submarines. Japan and South Korea have also invested heavily in guided missile destroyers equipped with advanced phased array radars.

Even in budget-challenged Southeast Asian countries, the trend has been a shift from smaller to larger platforms, such as frigates and large corvettes. Examples include Singapore's Formidable-class frigates, Indonesia's SIGMA-class corvettes, Malaysia's recent decision on the SGPV/LCS frigates, and Vietnam's plan to buy SIGMAs and the pending delivery of Russian-built Kilo-class submarines.

The main reason regional navies are ignoring littoral capabilities has to do with geography. In the region, "the home team enjoys an enormous advantage of range and proximity and the attacker would have to be prepared to conduct pre-emptive strikes against the coast state's bases before conducting operations in the littoral," said Sam Bateman a regional naval specialist at the S. Rajaratnam School of International Studies, Nanyang Technological University, in Singapore.

The U.S. Navy should "think twice" about deploying classic sea control/power projection capabilities, such as carrier battle groups, within range of subs and land-based strike aircraft, Bateman said. The U.S. Navy's new LCS will be "hugely vulnerable without close-air support and that cannot be guaranteed."

The U.S. and Singapore have recently agreed to allow the U.S. Navy to station the LCS in Singapore.

Air support is the "elephant in the room" with littoral warfare, Bateman said. Littoral warfare is dependent on fire support directed against targets on land, either from aircraft close-air support or naval gunfire. Despite all the advances with missiles, "the big caliber naval gun remains an attractive and effective way of putting down fire in coastal areas."

Another problem in the Asia-Pacific has been increased tension over exclusive economic zone (EEZ) claims, particularly in the South China Sea. Many countries, including China, claim restrictions over naval operations in their EEZs.

Some within the region have invested in stealthy vessels to avoid detection in the littoral environment. Singapore's Formidable-class frigates are based on the stealthy French-built La Fayette-class frigates and Singapore's ST Engineering is conducting research to develop the 27-meter Stealth Interceptor and 57-meter Stealth Patrol Vessel.

Taiwan wants to build a stealthy 900-ton catamaran corvette and is manufacturing a stealthy 180-ton fast-attack missile patrol boat, armed with Hsiung Feng-2 anti-ship missiles. The stealthy SIGMA-class corvettes procured by Indonesia and now being considered by Vietnam are other examples.

For Asian countries dealing with the littoral issue, the challenge is finding the right investment balance among intelligence, surveillance and reconnaissance (ISR) and defensive and offensive technologies, Nugent said.

"Unmanned systems are critical to ISR and defense in the littoral now and will become more so for offensive littoral warfare as unmanned maritime systems are more widely armed for all domains in the future," he said. Investments in better sensors and C4ISR are the other areas where the "gaps that create vulnerabilities in ship's self-defense against missiles and torpedoes in the littoral are getting a lot of attention."

Another area of growing interest is the use of unmanned surface vehicles (USV) and unmanned underwater vehicles (UUV). ST Engineering is developing the 9-meter Venus USV ostensibly for harbor patrol, but the vessel has potential for littoral warfare.

USVs and UUVs will be "particularly useful for littoral warfare as they can be launched outside the EEZ or convenient surveillance range of the coastal state, which is unlikely to have the capabilities of detecting them," Bateman said. "They can be used for surveillance/intelligence collection and as an offensive weapon - to lay mines or fire torpedoes," he said.

There is also potential for anti-submarine warfare, but that capability is as yet "unrealized."

Thales To Continue Rafale Electronic Gear Support

PARIS - France has renewed with Thales a 10-year service contract for an undisclosed sum to support electronic equipment on the Rafale fighter, the company said in a Jan. 10 statement.

The fixed-price contract includes a power-by-the-hour feature, with an agreed price for guaranteed availability of the equipment, a Thales spokeswoman said.

"The ten-year contract, known as Maestro, is a renewal of the current through-life support contract and broadens the scope of responsibility to ensure that Thales works more closely with operational personnel to guarantee fleet availability," Thales said in the statement.

The contract was awarded at the end of November, the spokeswoman said. No financial details were available, although the contract is understood to be worth several million euros.

The joint aircraft service support department, Structure Intégrée de Maintien en Conditions Opérationelle des Matériels, awarded the contract.

Under the arrangement, Thales guarantees fleet availability by boosting equipment reliability and will deploy company personnel on site to be closer to the operator, the spokeswoman said.

On the Rafales flown by the French Air Force and Navy, Thales will maintain the aircraft's phased array radar, electronic warfare suite, avionics, front-sector optronics and cameras, and communications

Qatar, Kuwait Await UAE's Move on Rafale

PARIS - Qatar and Kuwait are interested in buying French Rafale fighter jets but are waiting to see whether the United Arab Emirates will make a purchase first, France's defense minister said Jan. 9.

"They are, in effect, interested but they won't know for sure until the first one jumps in," minister Gerard Longuet said, adding that he hoped the UAE, which is talks with France to buy 60 Rafales, would make a decision "within a time frame that will allow its two neighbors, which hope to be interoperable with the Emirates, to make decisions."

Industry experts have estimated that Kuwait needs 18 to 22 new fighter jets and that Qatar needs 24.

After opening talks on the purchase in 2008, the UAE said in November that the offer for Rafales from France's Dassault Aviation was uncompetitive and opened up the tender to competition.

France has raised concerns over the future of the Rafale program, which has struggled to find foreign buyers to support a project that has so far cost more than 40 billion euros ($51 billion).

Longuet warned in December that production on the multirole fighter could halt if it remains unable to sell any abroad.

Future Dogfights

India OKs $1.18B Deal To Buy Mica Missiles

NEW DELHI - Five months after signing a $2.2 billion deal to upgrade its French Mirage aircraft, the Indian government Jan. 4 cleared an additional $1.18 billion deal to procure Mica air-to-air missiles from France.

The Indian Air Force will buy 500 Mica missiles from MBDA to mount on the 51 Mirage 200H aircraft that are to be upgraded by France's Thales and Dassault jointly with Bangalore-based Hindustan Aeronautics.

The Mica deal was cleared by the Cabinet Committee on Security, the nation's top government security agency and which is chaired by the prime minister.

Under the deal, MBDA will also have to execute compulsory defense offsets valued at about 30 percent of the total deal.

The Indian Air Force is upgrading 51 Mirage 2000H aircraft over the next 10 years. Two aircraft have already flown to France for the upgrade and will be delivered by July 2014.

The upgrade includes improved avionics, sensors, weapon capabilities and electronic warfare suite, in addition to a high-performance, multimode airborne radar with longer detection ranges.

The aircraft will be fitted with a new-generation digital electronic warfare suite and a glass cockpit with most of the flight and mission parameters projected on the head-up display.

BAE Sells 3 Offshore Patrol Vessels to Brazilian Navy

BAE Systems has sold three already built offshore patrol vessels (OPV) to Brazil as the first part of a deal that also involves a manufacturing license for at least five more warships built locally.

The vessels were originally built for the Trinidad & Tobago government, but that deal was terminated in 2010 when the Caribbean nation refused to take possession of the OPVs due to late delivery. The two sides are currently in arbitration.

The three vessels will cost the Brazilian Navy 120 million pounds ($186 million U.S.) with a further 13 million pounds being allocated for training and support by BAE.

The first two 90-meter vessels are scheduled to be reactivated and handed over in June and December of this year, with the final warship being delivered in 2013.

The deal also has BAE handing over a manufacturing license to the Brazilian Navy for the local construction of at least five more OPVs.

A BAE spokeswoman said the local shipyard will be nominated by the Brazilian Navy.

The warships weigh 2,200 tons fully loaded, are armed with 30mm and 25mm cannons, and have a helicopter flight deck.

The OPVs are part of a major program, known as Prosuper, aimed at expanding Brazilian naval capabilities. Competitions to supply frigates and a logistics ship are ongoing.

A British offer to sell redundant Royal Navy Type 22 frigates as a short-term measure was rejected by Brazil last year.

A submarine fleet is already being built with French assistance

Turkey, France Row May Jeopardize Missile Sale

PARIS - Turkey's suspension of military cooperation with France may make it harder to sell the Franco-Italian Aster 30 air defense missile to the Turkish authorities, a defense executive said Dec. 23.

Ankara froze bilateral defense cooperation and recalled its ambassador to France in retaliation to a new French law making it illegal to deny that genocides took place, including the deaths of Armenians in 1915.

"It doesn't make things easier, that's for sure," the executive said. "That makes relations tense with France."

Eurosam, a joint venture between French electronics company Thales and European missile maker MBDA, is prime contractor for the Sol-Air Moyenne Portée/Terrestre (SAMP/T) ground-based air defense system.

The SAMP/T system is competing in Turkey's tender for a long-range air and missile defense system. It is ranged against the Patriot missile from Lockheed Martin and Raytheon, the S300 from Russia's Rosoboronexport, and the HQ-9 from China Precision Machinery Import-Export Corp. (CPMIEC).

MBDA's team in Turkey is led by its Italian side, as there are strong industrial ties between Italy and Turkey, including cooperation between AgustaWestland and Turkish Aerospace Industries on the T-129 light attack helicopter.

"The SAMP/T offer in Turkey is officially made by Eurosam … but MBDA's Italian arm has effectively been the front office for the offer for a while now due to the ongoing friction between Turkey and France due in part to the genocide issue," said an Italian industrial source.

The SAMP/T is based on the MBDA Aster 30 missile and Thales Arabel multifunction radar. France and Italy were launch customers of the SAMP/T.

Between 2006 and 2010, France delivered a total 203.6 million euros of arms to Turkey, the latest annual report to parliament on French foreign military sales showed.

That made an annual average 40 million euros, or around 1 pct of average annual sales of 4 billion-5 billion euros.

As part of Ankara's response to the new law, French military aircraft cannot overfly or land on Turkish territory, French warships may not dock at its ports, and joint military exercises are canceled.

"From now on, we are revising our relations with France," Turkish Prime Minister Recep Tayyip Erdogan said, AFP reported.

French lawmakers adopted the new law Dec. 22.

Pentagon Chief Sees Close Partnership with Libya

TRIPOLI - U.S. Defense Secretary Leon Panetta said that Tripoli could become an important security partner of Washington as he visited Libya on Dec. 17 for talks with new regime officials.

"We are and will be your friend and partner," Panetta said at a news conference with Libyan Prime Minister Abdel Rahim al-Kib.

"This new and free Libya can become an important security partner of the United States," he said, adding that Washington was looking forward to building a close partnership.

"We stand ready to offer whatever assistance in the spirit of friendship and a spirit of mutual respect."

But Panetta, who also met Defense Minister Osama Jouili, stressed that his talks in Tripoli did not involve military equipment.

"At this stage there was certainly no discussions involving arms or military equipment," he said when asked about the type of security cooperation he envisioned.

Earlier he had told the travelling press, including an AFP correspondent, that his brief visit to Tripoli was to confer with the country's new rulers on the security needs of their government.

"The purpose of my trip to Libya is to have an opportunity to look at that situation up close but to also pay tribute to the Libyan people to what they did in bringing (former leader Moammar) Gadhafi down and trying to establish a government for the future," Panetta said.

He acknowledged that Libya's rulers would face huge challenges but said he was confident they would "succeed in putting a democracy together in Libya."

"I'm confident that they're taking the right steps to reach out to all these groups and bring them together so that they will be part of one Libya and that they will be part of one defense system," he said.

Panetta said he expected the Libyans "to determine the future of Libya" and "determine what assistance they require from the United States and the international community."

Libya's rulers are facing a big challenge as they try to disarm militiamen who fought to topple Gadhafi and secure thousands of surface-to-air missiles stockpiled under the former regime.

Pressure to disarm the former rebels has mounted after local media reported several skirmishes between militia factions in Tripoli, with some resulting in casualties.

There are concerns that the Man-Portable Air Defense Systems, or MANPADS, could be used by militant groups against commercial airliners and helicopters.

For his part Libya's interim premier said the United States was willing to help Libya "without any interference."

Kib also acknowledged that his government had a difficult task ahead.

"We know how serious the issue is," he said, adding: "I'm very optimistic."

"The Libyan people are known to be peaceful and I'm sure that they will be back to that mentality," he said in English.

Panetta's visit came a day after the United Nations and the United States lifted sanctions on Libya's central bank in a bid to ease a cash crunch in the post-Gadhafi era, diplomats said.

The U.N. Security Council ended a freeze on the assets of the Central Bank of Libya and the Libyan Foreign Bank, which was ordered in February as part of sanctions against Gadhafi.

The U.S. government said it would be freeing more than $30 billion (23billion euros) of assets belonging to the central bank and LFB in a bid to help the new Libyan government.

The Tripoli authorities have stepped up calls in recent weeks to release the estimated $150 billion frozen abroad to help pay salaries and keep services running.

On top of the $30 billion held in the United States, British Foreign Secretary William Hague said his government would immediately act to free about 6.5 billion pounds ($10 billion) held in Britain.

The easing of the sanctions "marks another significant moment in Libya's transition," Hague said in a statement.

"It means that Libya's government will now have full access to the significant funds needed to help rebuild the country, to underpin stability and to ensure that Libyans can make the transactions that are essential to everyday life."

Panetta was also to lay a wreath at the graves of 13 U.S. sailors killed in 1804 when their ship exploded during the very first foreign intervention by military forces of the recently independent United States against pirates based in North Africa.

He travelled to Libya from Turkey, where he held wide-ranging talks. On Dec. 15, he was in Iraq to take part in a ceremony marking the end of the U.S. mission there.