India Set to Open Bids for 126 Fighter Jets

NEW DELHI - India was set to open rival bids Nov. 4 from France's Dassault and the Eurofighter consortium, which are competing over a multibillion-dollar contract to provide 126 fighter jets.
The deal to supply war planes to fast-developing India has been fiercely fought over for four years, and the opening of the bids will start the final phase of the decision-making process.

"Negotiations with the (two) firms will start after opening the bids on November 4," Air Marshal D. Kukreja said. "Whatever is beneficial to the country, we will choose."
India in April pulled a surprise by cutting out U.S. bidders Boeing and Lockheed Martin - much to Washington's disappointment - as well as dropping Sweden's Saab AB and the Russian makers of the MiG 35 from the race.
"The final outcome will not be known immediately except perhaps an indication of whom we may prefer," retired Gen. Afsir Karim, an expert on Indian arms procurement, said Nov. 3.
"A price negotiation committee will finally determine the winner," he said.
Dassault's Rafale plane and the Eurofighter Typhoon have both been in action over Libya in recent months during the international operation to enforce a no-fly zone and protect civilians from Moammar Gadhafi's forces.
James Hardy, Asia-Pacific editor of Jane's Defence Weekly, said the contract was "the single biggest competition in the global defense aviation industry at the moment."
"Both aircraft... are coming off successful performances as part of the NATO air campaign in Libya," he said. "Failure here would be a major blow after both made substantial investment in promoting their platforms in India."
A source for the French group, who declined to be identified, said last week that the decision "could be settled in one day or it could take months if the (price) gap is narrow."
Dassault's rival, Eurofighter, is produced by a consortium of Britain's BAE Systems, Italy's Finmeccanica and EADS.
The contract is for the outright purchase of 18 combat aircraft by 2012, with another 108 to be built in India with options to acquire more.
Such a large order attracted strong 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.
The procurement of the fighter jets is a key part of India's military upgrade program, aimed at securing its borders against rivals Pakistan and China.

Turkey Signs Deal To Buy Six CH-47 Copters

ANKARA - Turkey has signed a government-to-government deal with the United States to buy six CH-47 Chinook heavy-lift transport helicopters, worth up to $400 million, a senior procurement official said.
The U.S. Defense Security Cooperation Agency, the Pentagon body that coordinates weapon sales, notified Congress of a potential sale of 14 CH-47F heavy-lift helicopters for $1.2 billion in December 2009, and Congress gave permission later that month.

But because of financial constraints, the Undersecretariat for Defense Industries (SSM), Turkey's arms procurement agency, later decided to buy only six CH-47Fs, five for the Army and one for the Special Forces Command, postponing a decision on the remaining eight aircraft. Contract negotiations among the SSM, the U.S. government and Chinook maker Boeing were launched last year.
"The contract was signed in late July," the procurement official said. "It was worth around $400 million. After the helicopters begin to arrive, we plan to make some modifications on them according to our needs."
The six CH-47F Chinooks will be the first heavy-lift helicopters in the Turkish Army's inventory. Their deliveries are expected to begin in 2013 and end in 2014.
"These helicopters have incredible capabilities. Three or four of them can transport a company-sized unit and its equipment to long distances only in a few hours," the procurement official said. The maximum speed of the CH-47F is about 312 kilometers an hour.
Developed in the 1960s, the Chinooks have been exported to many countries, including Australia, Britain, Canada, Egypt, Greece, Italy, Japan, Morocco, the Netherlands, Singapore, South Korea, Taiwan, Thailand and the United Arab Emirates.
The Chinook has been successfully operated in combat in several wars and armed conflicts.
The Chinook is a twin-engine, twin-rotor helicopter. The counter-rotating rotors eliminate the need for an anti-torque vertical rotor, allowing all power to be used for lift and thrust.
The CH-47F is the upgraded version of the CH-47D, and is the latest model in this helicopter family. It can carry up to 60 troops and personnel.
A CH-47 Chinook was shot down by Taliban forces southwest of Kabul in Afghanistan in earlier this month, killing 30 U.S. troops, including 23 Navy SEALs, and eight Afghans.
"These are not unsafe devices. On the contrary, these helicopters had mission flights of thousands of hours in Afghanistan only this year, and this was the first such incident," the procurement official said.
Turkey usually manufactures its own defense equipment, or jointly produces it with foreign partners. But since the number of heavy-lift helicopters being ordered is rather small, SSM decided on direct procurement from a single source, i.e. Boeing. The heavy-lift helicopter program is expected to be among Turkey's last direct foreign procurement projects.

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.

Gadhafi Unable to Launch Offensive: NATO

MONTREAL - Forces loyal to Libyan strongman Moammar Gadhafi are no longer able to launch a credible military offensive, the commander of NATO-led Libyan operations told AFP in an interview Aug. 11.
"The Gadhafi regime's forces continue to be weakened, both in strength and their will to fight," Canada's Lieutenant-General Charles Bouchard said, speaking from his Italy headquarters, as rebel troops made new advances.

"They are no longer able to launch a credible offensive," he added.
NATO was authorized in March by U.N. Security Council resolution 1973 to defend Libya's civilian population from attacks by Colonel Gadhafi's regime, which faced a popular revolt after 42 years in power.
As NATO-led airstrikes have helped the rebels on the ground without managing to decisively turn the tide in the conflict, Gadhafi has brought in fighters from other African countries to bolster his embattled forces.
"We're seeing lots of mercenaries, ruthless mercenaries that come from other countries and are enlisted by Gadhafi's forces to inflict extreme violence on men, women and children," Bouchard said.
"The recruiting of these mercenaries continues," he said. "There is a growing demand for their services which lends credibility to the fact that Gadhafi's forces are being affected by NATO's actions as well as defections of generals, policemen and even politicians."
The rebels, meanwhile, have treaded water since scoring early victories that led to their control of Cyrenaica in the west, and enclaves in Tripoli.
Today, there's "activity" on three fronts, in Brega in the east, and in Misrata and Jebel Nefoussa in the west. Gadhafi forces are "shooting blindly on civilians," Bouchard said.
"On the three fronts, we're seeing changes as anti-Gadhafi forces march forward to stop the attacks on the population," he added.
Gadhafi's regime this week accused NATO airstrikes on the village of Majer of killing 85 people, including women and children, south of the disputed city of Zliten.
"I can assure you that the target was a legitimate one that contained mercenaries, a command centre and 4x4 vehicles modified with automatic weapons, rocket launchers or mortars," Bouchard said.
"I cannot believe that 85 civilians were present when we struck in the wee hours of the morning and given our intelligence" on the target, he added.
"I can assure you that there wasn't 85 civilians present, but I cannot assure you that there were none at all."
"Frankly, I cannot say if there were any civilian deaths or how many," said the general, who accused Gadhafi forces of often leaving already dead corpses at military sites after they have been leveled by NATO airstrikes to make the bombings appear like blunders.
The NATO mission is due to wrap up in September unless it is extended by states participating in it, including Britain, Canada, France, Italy and the United States. Their governments are under increasing fiscal pressure to pull back.
And if the mission "Unified Protector" is not renewed? "It's just speculation," said Bouchard. "My goal is to bring this conflict to an end before the mission is over."

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.

L-3 Displays Intel Plane, Eyes Export

LONDON - L-3 Communications has taken the wraps off a modified King Air 350 ER turboprop, which it says offers overseas customers an intelligence, surveillance and reconnaissance capability in advance of the U.S. Air Force's Project Liberty MC-12 aircraft but without many of the export clearance hang-ups associated with selling sophisticated spy platforms.
The U.S. company used last weekend's Royal International Air Tattoo (RIAT) at the Royal Air Force base at Fairford, England, to debut its Spydr aircraft to air force chiefs and others from around the world who gather for the annual event.

Bob Spivey, vice president of special programs for L-3's Mission Integration Division, said if necessary the Spydr aircraft can avoid some of the issues created by International Traffic in Arms Regulations (ITAR) by using technology sourced from outside the U.S.
Italy's Selex Galileo announced July 18 it was partnering with L-3 to offer its e-scan PicoSAR synthetic aperture radar as a payload option.
The L-3 executive said they were also talking to German electro-optical/infrared turret provider Zeiss.
Discussions with other potential suppliers were also underway, but Spivey declined to name them at this stage.
"It doesn't matter whether we put an [L-3] Wescam or Zeiss ball on Spydr. It's the same capability, just a different source of technology. Using technology like the PicoSAR makes it exportable and gets us out of some of the ITAR issues," Spivey said.
The privately funded Spydr development is pitched at domestic and export customers in defense and civil markets looking for a lightweight, affordable ISR capability, Spivey said.
Nations big and small are looking for ISR capabilities for maritime and land surveillance, civil duties with the police and other roles that won't break the bank.
King Air platform builder Hawker Beechcraft brought a special missions demonstrator of its own to the Paris Air Show last month, and Spivey reckons Boeing and Raytheon will also be among those competing in the expanding market sector.
The Spiral 1 development aircraft shown by L-3 at RIAT featured a fuselage-mounted Wescam electro-optical/infrared turret, a fuselage pod with a 100-pound payload, a tactical data link, satellite communications, a full signals intelligence system and other sensor options.
Spivey said the aircraft was returning to the U.S. after the tattoo to have Spiral 2 developments installed - principally a 2-foot extension of the aircraft's nose to allow a second sensor turret to be fitted - before heading for the Dubai Air Show in November.
Further technology developments are planned within the year when the aircraft goes into a planned Spiral 3 upgrade.
Potential customers in the Persian Gulf region include Saudi Arabia and the United Arab Emirates, according to L-3 Chief Executive Mike Strianese, speaking at the Paris Air Show in June.
Spivey said L-3 and others had already given the Saudis their pitch to supply ISR aircraft for possible border patrol duties. The executive said the machine, which is effectively a next-generation aircraft beyond Project Liberty, is also creating interest in South America, the Indian subcontinent, Southeast Asia, southern Africa , the U.K. and the U.S.
Britain already operates a Raytheon-supplied King Air special mission aircraft known as the Shadow.
Spivey said the Spydr is about three generations ahead of that aircraft, which was purchased by the British as an urgent operational requirement for campaigns in Afghanistan and Iraq.
Mark Johnson, L-3's vice president of next-generation ISR special programs, said the key design themes were flexibility and modularity to allow the company to tailor Spydr to meet the differing demands of customers.
L-3 has delivered dozens of special mission King Air-based twin turboprops, including MC-12 aircraft, to the U.S. Air Force but is not restricted to using the platform.
"While we love the airplane, we are not limited to using it," Spivey said. "The King Air just happens to be our test airframe."
The executive listed the C-27J, EADS CASA aircraft and the Dash-8 as other potential airframes.
"We are more talking about mission system than platforms," Spivey said. "[The King Air] just happens to be a real nice turbo aircraft which gets up to 35,000 feet. In the maritime surveillance business, you may need something like the Dash-8."
Spivey said the modular mission system also allowed a move down to smaller aircraft than the King Air, and the company was already doing some lighter-than-air and special operations-type work.

Hacker Group Claims Hit on U.S. Defense Contractor

SAN FRANCISCO - Hacker group Anonymous on July 11 released a trove of military email addresses and passwords it claimed to have plundered from the network of U.S. defense consulting firm Booz Allen Hamilton.

AN IMAGE OF a data center in Chicago. Hackers say they stole thousands of passwords for U.S. military email addresses by getting into Booz Allen Hamilton's network. (Microsoft)

Anonymous made available a file containing more than 90,000 email addresses and other information it said in online messages that it stole from an unprotected server at Booz Allen.

"While this should certainly be embarrassing to Booz Allen Hamilton, the real impact is on the U.S. military," the post continued."Anonymous claims to have erased four gigabytes worth of source code and to have discovered information which could help them attack U.S. government and other contractors' systems," computer security firm Sophos said in a blog post.

In a message accompanying the data at file-sharing website The Pirate Bay, Anonymous said Booz Allen was targeted in a "Meltdown Monday" as part of an anti-security, or "antisec," movement.

"So in this line of work you'd expect them to sail the seven proxseas with a state-of-the-art battleship, right?" Anonymous said, using pirate jargon and playing off a reference to proxy computer servers.

"Well, you may be as surprised as we were when we found their vessel being a puny wooden barge," the message continued. "We infiltrated a server in their network that basically had no security measures in place."

Although some downplayed the value of the looted data, computer security specialists warn that the email addresses could be used to target messages that trick recipients into revealing information or downloading viruses.

Booz Allen declined to comment on the incident, citing a company policy of not discussing "specific threats or actions taken against our systems."

Anonymous rose to infamy last year with cyber attacks in support of controversial whistle-blower website WikiLeaks.

The group was linked to attacks on Visa, Mastercard and Paypal, which blocked donations to WikiLeaks after it published thousands of U.S. diplomatic cables.

Early this year, Anonymous took credit for breaking into the website of HBGary Federal, stealing tens of thousands of email messages and temporarily routing traffic to a page with a vitriolic message.

Anonymous claimed to have busted through HBGary Federal computer defenses in February because the firm was working with federal agents to expose the hackers' identities.

The HBGary hack was more sophisticated than the distributed denial of service (DDoS) attacks last year on the Amazon, Visa and MasterCard websites in apparent retaliation for their decisions to stop working with WikiLeaks.

In a typical DDoS attack, a large number of computers are commanded to simultaneously visit a website, overwhelming its servers, slowing service or knocking it offline completely.

In recent months, police in Spain, Turkey and Italy have arrested suspected members of Anonymous, which is believed to have branches in several countries.

Turkey Still Hopes To Order First F-35

ANKARA - Although Turkey still plans to buy about 100 F-35 Joint Strike Fighters, it has not formally committed to the U.S.-led program. To do so, it needs to submit a purchase order for a first batch of six aircraft before the end of this year.
"We will have talks [with the Americans] in the months ahead in an effort to resolve some matters," said Murad Bayar, chief of the Undersecretariat for Defense Industries, the government's defense procurement agency. "If we manage to reach an agreement, we expect to order the first six aircraft this year. We expect to reach a deal."

The F-35, whose production is led by Lockheed Martin, will be built by a consortium of nine countries, including Turkey. Other members of the consortium are Britain, Italy, the Netherlands, Canada, Australia, Norway and Denmark.
A few years ago, when Turkey's planned buy of about 100 jets was expected to cost approximately $10 billion, Turkish companies grabbed project work worth up to $5 billion. But the unit price has gone up over the past two years, exceeding $12 billion, according to Turkish officials.
Now Turkish companies seek to raise their share to around $6 billion to stay near the planned 50 percent figure. In addition, the U.S. remains reluctant to share millions of lines of source code that make the plane's flight possible. But Turkey wants access to part of the source code related to operational needs.
But placing an order for the first six aircraft before the end of this year is related mostly to early deliveries, around 2014 and 2015, and failure to do so would not undermine participation in the program, Bayar said.
"If we don't place the first purchase order by the year end, it would not necessarily mean that we have failed to agree. It may mean that we, at this point, may not have the finances," Bayar said. "Anyway, we hope that none of this happens."
The F-35 comes in three variants for conventional takeoff and landing, short takeoff and vertical landing, and for aircraft carrier operations.

Italy Removes Aircraft Carrier from Libya Campaign

ROME - Italy is withdrawing its aircraft carrier the Garibaldi from NATO's operation in Libya to cut 80 million euros ($114 million) in costs, a minister announced July 6.
They also planned to pull out another ship from the mission.

"We have cut back costs in Libya, from 142 million euros forecast in the first half of the year to less than 60 million for the second half," Defense Minister Ignazio La Russa said after a government meeting.
The news came after Italy's Cabinet moved to cut spending military spending.
The plan had been drawn up to pull the Garibaldi, its three fighter jets and 1,000 personnel out of the mission as they were "no longer necessary", La Russa said.
The Garibaldi would be replaced by a smaller boat and other planes from military bases would be used, he added.
Another ship would also be withdrawn from the mission as well, he added without elaborating.
Italy has several ships and eight planes deployed in NATO's mission against Libya's Col. Moammar Gadhafi. Seven of its air bases are also used by other members of the coalition.
With Italy grappling a financial crisis that has forced it to pass a series of austerity cuts, the government on July 6 said it had decided to gradually reduce its military operations abroad.
Italy has troops deployed in Afghanistan, Lebanon and Kosovo and is involved in NATO's military operations in Libya, despite the objections of the anti-immigrant Northern League party, Berlusconi's coalition ally.
The League, lead by populist Umberto Bossi, has called for a dramatic reduction in Italy's military presence abroad to free up public funds.
Some 7,200 Italian troops were deployed in 28 countries as of June 30, according to the defense ministry website: 4,200 troops in Afghanistan, 1,700 in Lebanon and 650 in the Balkans.
The finance ministry said July 6 it aimed to save 40 billion euros ($57.1 billion) over the next four years.

Sarkozy defends Libya Campaign

BRUSSELS - President Nicolas Sarkozy shrugged off criticism of the NATO-led campaign in Libya on June 24, saying the Western alliance should stay put until Moammar Gadhafi departs.

French President Nicolas Sarkozy addresses a press conference June 24 at a summit of the EU heads of state in Brussels. (Eric Feferberg / AFP via Getty Images)

As some alliance members pull out due to lack of assets, and NATO faces flak over the first civilian casualties in its three-month campaign, Sarkozy instead said at the close of a European Union summit that the campaign was making steady progress.

While skeptics had feared the campaign would get bogged down in the face of a counter-offensive by Gadhafi loyalists, "everyone can see Gadhafi's forces are retreating everywhere," he told a news conference.
"There is a general uprising of the population," he added. "There is progress."
"We will continue until Gadhafi's departure."
Meanwhile Italy's Prime Minister Silvio Berlusconi, whose foreign minister urged a halt in hostilities after NATO strikes last weekend claimed civilian lives, echoed that the campaign was squeezing Gadhafi's grip on power.
"Gadhafi is increasingly isolated," Berlusconi said. "He has been abandoned. No one can risk a forecast as to when he will leave power."
Amid mounting questions as to how the campaign will last and how much it might cost, Sarkozy said "the reason we're not moving faster is that we don't want mistakes."

Italy May Consider Final Date of Libya Mission: Minister

ROME - Italy may begin thinking about a date for the end of its active duty in Libya after the three-month period of its commitment in the conflict is over, its defense minister said in an interview June 18.
"What I'm saying is that thinking about a final date for our active participation could lead our British, French and U.S. allies to look for a diplomatic solution to the crisis," Ignazio La Russa told the Corriere della Sera newspaper.

La Russa said that both Italy's government and parliament should be involved in the process.
Prime Minister Silvio Berlusconi's center-right coalition government is riven by tensions after the small but influential anti-immigration Northern League called for a halt to Italy's participation in NATO air raids in Libya.
La Russa said that whatever Italy's position after the three-month period Rome would continue to make its military bases available for allied operations.
He also denied assertions by the Northern League that Italy's participation in the Libya campaign had caused an influx of refugees from North Africa across the Mediterranean Sea, which he said would have happened anyway.
The overwhelming majority of the estimated 11,000 Africans who have arrived in Italy from Libya are protected by the Geneva Convention and cannot be repatriated.
According to figures released June 17, only 60 of the 11,000 were Libyan.
Very few of the estimated 900,000 people who have fled fighting between the NATO-backed rebellion and forces loyal to Moammar Gadhafi have ended up in Europe, Antonio Guterres, the head of the U.N. refugee agency, said Wednesday.
The Libyan regime and the country's former colonial ruler Italy signed a pact in August 2008 on tackling illegal migration which have seen the number of clandestine arrivals decline by 94 percent.
Under-pressure Gadhafi has threatened to spark a migration invasion of Europe.

SIPRI: New START Unlikely to Have Short-Term Effect

HELSINKI, Finland - The recent New Strategic Arms Reduction Treaty is unlikely to much alter the nuclear landscape in the short term, said SIPRI (Stockholm International Peace Research institute), the Stockholm-based think tank.
New START calls for slowly paring the U.S. and Russian arsenals to 1,500 warheads from the nearly 5,000 currently deployed, which includes some 2,000 on high alert, SIPRI notes in its 2011 Yearbook, released on June 7.

"It's a stretch to say that the New START cuts agreed by the U.S. and Russia are a genuine step toward nuclear disarmament when their planning for nuclear forces is done on a time scale that encompasses decades, and when nuclear modernization is a major priority in their defense policies," Shannon Kile, a senior research analyst with SIPRI, said in a statement.
The think tank remains skeptical about the desire for meaningful short-term disarmament by the eight nuclear powers.
"The five legally recognized nuclear weapons states, as defined by the 1968 Non-Proliferation Treaty, are either deploying new nuclear weapon systems or have announced their intention to do so," says SIPRI, referring to the Britain, China, France, Russia and the U.S.
India and Pakistan are expanding their ability to make weapons-grade nuclear material, said SIPRI director Daniel Nord.
"South Asia is the only place in the world where you have a nuclear weapons arms race," Nord said.
SIPRI estimates that more than 20,500 warheads are in the arsenals of the world's eight nuclear powers: Britain, China, France, India, Israel, Pakistan, Russia, and the United States. Russia has 11,000, including 2,427 deployed, while the United States has 8,500, including 2,150 deployed, according to SIPRI estimates.

Global Spending 2010

The SIPRI report also included estimates of countries' defense spending.
It said Brazil, China, India, Russia, South Africa and Turkey are re-emerging as regional powers, with all but Turkey boosting their defense spending.
SIPRI estimates global military expenditure in 2010 rose 1.3 percent in real terms to $1.630 trillion. That's slower than recent years, which the think tank blames on the global economic crisis.
Military spending rose 5.8 percent in South America, 5.2 in Africa, and 4.1 in Oceania, a region dominated by Australia and New Zealand.
The biggest spender, the United States, spent almost six times more than China, its nearest rival, up to $698 billion in 2010.
Rounding out the top 10 were Britain, France, Russia, Japan, Saudi Arabia, Germany, India and Italy.

Industry Fronts Money for Typhoon Radar R&D

Industry is funding development of the Captor-E active electronically scanned array radar destined for the Eurofighter Typhoon because the four governments in the fighter program don't have the money available at this stage.
Selex Galileo chief executive Fabrizio Giuliani told reporters June 8 that members of the Euroradar consortium and Eurofighter would provide "pre-funding, not self-funding."

The Italian executive said that by the expected signing of a letter of intent backing the AESA program at the Paris Air Show later this month the governments of Britain, Germany, Italy and Spain are "committed to pay back Eurofighter and Euroradar what we anticipate [spending]."
Euroradar, which is led by Selex, also involves EADS and Indra. Eurofighter is the Typhoon management organization operated by BAE Systems, EADS and Finmeccanica.
Bob Mason, the executive vice president for sensors and airborne systems at Selex Galileo, said finance was not an issue. The important thing was to get the Eurofighter nations officially committed to the program through the letter of intent, Mason said.
"We understand the financial constraints. Finance is not the issue; that is being made available by Eurofighter and Euroradar for full-scale development. The issue is the backing of the governments and that's what the letter of intent will give us. Export customers like India and Japan will be more comfortable with the backing of the Eurofighter governments," he said.
The four nations "will join at the appropriate time when they have the budgets available," he said.
The availability of an AESA radar was a key requirement for the multi-billion dollar competition being run by the Indian government to equip the air force with a multi-role medium weight fighter. Typhoon was downselected recently alongside the Dassault Rafale for the final stages of the competition.
Talks over the releasability of the AESA technology to India is still under debate and depends on the final solution and final negotiations, Mason said.
"We are looking at the manufacturer of certain subsystems in India software transition in terms of modes and bringing new modes into the radar as well," he said.
Mason said they had agreed a "large amount of funding" from the Eurofighter governments through to the first production standard radars scheduled for completion in 2014 for aircraft production the following year.
The executive said Euroradar now had a huge team working on the development at Selex's main development plant in Edinburgh and elsewhere.
Aside from the Captor-E, Selex is also working in the combat aircraft field on a similar AESA radar for the Saab Gripen NG, and is involved in separate technology demonstrator programs funded by the British and Italian governments.

Powers Unlock $1 Billion For Libya Rebels

TRIPOLI, Libya - Key powers have vowed to unlock a billion dollars for hard-pressed Libyan rebels in talks to map out a "post-Gadhafi Libya" as a fresh volley of NATO air strikes rocked the capital on June 10.
Mikhail Margelov, the special envoy of Russian President Dmitry Medvedev, meanwhile said he was preparing to visit Tripoli to find a solution to the Libya conflict after meeting the opposition in their Benghazi stronghold.

Libya's former foreign minister, Abdurrahman Shalgam, said the rebel National Transitional Council needed at least $3 billion over the next four months to pay its expenses as it battles to oust Moammar Gadhafi.
In a boost to the opposition, the United States joined Australia and Spain in recognizing the NTC as the legitimate representative of the Libyan people, with pressure mounting on the veteran leader to step down.
"Gadhafi's days are numbered. We are working with our international partners through the UN to plan for the inevitable: a post-Gadhafi Libya," U.S. Secretary of State Hillary Clinton told talks in Abu Dhabi on June 9.
"Time is on our side," the chief U.S. diplomat said, adding international military, economic and political pressure was mounting on the Libyan colonel to abandon his four decades in power at the helm of the north African nation.
Clinton was meeting counterparts from NATO and other countries participating in the air strikes against Gadhafi's forces for a third round of Libya talks.
The chief U.S. diplomat said later that "people close to Gadhafi" have been making continuous contacts with many different interlocutors about the "potential for a transition" to a new regime.
"There is not a clear way forward yet," she told a news conference, also referring to the NTC as "the legitimate interlocutor" of the Libyan people.
Clinton offered no direct U.S. financial contribution to the rebels, pledging instead another "$26.5 million to help all the victims of this conflict, including Libyan refugees."
Such money will likely be distributed through relief agencies.
But Italian Foreign Minister Franco Frattini said Rome would provide the rebel council with loans and fuel products worth 300 to 400 million euros ($438 million to $584 million). And his French counterpart, Alain Juppe, said Paris would release 290 million euros ($420.9 million) of frozen Libyan funds for the NTC.
In a sign of the continued pressure on the Gadhafi regime, a fresh wave of NATO air strikes hit the Libyan capital very early June 10, with three strong explosions shaking central Tripoli at around midnight. Other more distant explosions followed.
In the past two days, Tripoli has been targeted by the most intense NATO air raids since the international military campaign began on March 19.
The nominee to be the next U.S. defense secretary, Leon Panetta, said the sustained economic, diplomatic and military pressure would likely lead Gadhafi to step down.
"I think there are some signs that - if we continue the pressure, if we stick with it - that ultimately Gadhafi will step down," Panetta told U.S. lawmakers.
"Frankly, I think there are gains that have been made. We have seen the regime weakened significantly. We have seen the opposition make gains, both in the east and the west."
Senegalese President Abdoulaye Wade urged Gadhafi to step down as he became the first head of state to visit the rebels' bastion of Benghazi in eastern Libya.
"I look at you in the eyes... the sooner you go, the better," Wade said.
A member of the NTC said on the sidelines of the Abu Dhabi meeting that an international fund aimed at helping Libya's rebels had "become operational" from Thursday.
A State Department official later told reporters "we have got commitments of something about $300 million that came out of today's meeting," including $180 million from Kuwait and $100 million from Qatar.
In Moscow, envoy Margelov called on Gadhafi to step down, saying the Libyan leader needs to take a "responsible, courageous decision about his future."
"I am now involved in preparations for a Tripoli trip," he told reporters after returning from his visit to rebel-held eastern Libya and Egypt.
Margelov said Medvedev had not ordered him to meet Gadhafi and instead planned to hold talks with the Libyan prime minister and foreign minister. He did not give any details on when the trip would take place but said the Russian side was waiting for NATO to arrange a transport corridor so that the visit could go ahead in full security.

A Flash of Opportunity

ROME - The Via Tiburtina, the old Roman road that heads east out of the Italian capital, is home today to various Finmeccanica outposts. But amid the units of the state-controlled giant stands Elettronica, the small family-run firm that has become a leading light on Europe's electronic warfare scene.
Sixty years after its founding, Elettronica is pushing into a new market it believes will help secure its future: infrared (IR) countermeasures for aircraft that do a better job than flares at playing havoc with the IR guidance systems of shoulder-fired missiles.
"With directional infrared countermeasures [DIRCM], we will be covering transport aircraft, helicopters and VIP platforms ... so we are moving into the world of homeland security," CEO Enzo Benigni said. "We see the market value for DIRCM rising above the 1 billion euro [$1.44 billion] mark."
Elettronica's supply of electronic warfare (EW) systems to large European programs like FREMM frigates, the NH90 helicopter and the Eurofighter Typhoon has allowed it to build revenue from 165 million euros in 2006 to 195 million in 2010. But Benigni knows the likes of the Typhoon program are due to wind down, and has been seeking new opportunities.
The firm's new DIRCM product, the ELT/572, is based on technology initially developed by Elbit Systems. Elettronica jointly funded the program and is now co-owner, divvying up potential markets with the Israeli company.
"Elbit proved to have the most advanced know-how to develop and industrialize the DIRCM, based on fiber laser, dual-color principles," Benigni said.
South America, India and the Middle East are key markets, he said. But the launch customer is the Italian Air Force, which has signed a 25 million euro contract to install five ELT/572 systems, each based on two turrets, on C-27J and C-130J transport planes and AW101 utility helicopters.
The ELT/572 also may be flown on the Air Force's new 767 tankers, P180 VIP/light transport and ATR maritime patrol aircraft and the Army's new Chinook helicopters.
Gen. Giuseppe Bernardis, chief of the Air Force, has said that Northrop Grumman DIRCM was unavailable in time for military export.
With its own product, Elettronica can exploit the demand for systems that lack U.S.-made components subject to Washington's International Traffic in Arms Regulations. The company also may stress the technical advantages the ELT/572 offers, with officials citing a potentially faster reaction time between the missile warning alert and the laser flash.
The new countermeasures work follows a series of joint initiatives planned with Israeli industry, a useful partnership for Italian industry after it was excluded from EW workshare on the international F-35 Joint Strike Fighter.
"Our work on Eurofighter helped us evolve to a level that gives us an undisputed technological advantage," Benigni said.
If Italy decides to acquire a new signals intelligence aircraft and opts for Israeli systems, he said, Elettronica would be a partner.
"And if Italy sells an armed version of the M346 jet trainer to Israel, we would be exploiting that opportunity, too," the CEO said.
The firm already has a strong presence in the United Arab Emirates, with business worth 1 billion euros contracted since the 1980s and a local joint venture. Electronic warfare, electronic support measures and electronic intelligence systems have been supplied for Dash-8 maritime patrol aircraft, new ships, including Baynunah corvettes, ground systems and Mirage 2000-9 fighter jets.
Orders from outside Europe now account for 9 percent of the firm's revenue, a figure Benigni said he would like to see rise to 40 percent within 10 years, alongside an overall revenue increase of 5 percent per year.
Benigni said he is encouraged by the Italian government's newfound desire to back defense exports.
"The [Ministry of Defense] is really assisting us, which is a huge change from the past," Benigni said. "Marketing in India requires a good deal of political support, particularly in the fighter contest, where I would not exclude the U.S. fighters re-entering the competition."
Founded by Benigni's uncle, Elettronica employs the CEO's son and daughter, suggesting the family tradition will continue. Stakes held by Finmeccanica (33 percent) and French company Thales (32 percent) are stable, he said. That leaves Benigni the majority shareholder.
DIRCM apart, Benigni said a second trend to watch is the combining of different emitters in one turret, which is attached to an aircraft's exterior.
Elettronica signed up in 2005 to an Italo-Swedish program to combine radar, EW and communications into one system with no interference. Though limited funding for research into the Multifunctional Active Electronically Scanned antennas was in the Italian defense budget last year, Benigni said funding is stalled.
"This was a missed opportunity," he said. "We know it's the future, and the first country to do it will have big advantages."
In the meantime, Elettronica will continue to benefit from ongoing work on the defensive aids systems it supplies for the Typhoon. Last September, a 400 million pound ($656 million) deal was handed to a European consortium, including Elettronica, to supply the Praetorian self-protection system for 112 Tranche 3A Typhoons.
But with no more Typhoon buys in the cards from Britain, Germany, Italy and Spain, what has been a solid revenue stream looks set to wind down. Benigni said a large part of the 80 percent of Elettronica revenue that comes from European programs came from Eurofighter.
"Elettronica is ... dependent on Eurofighter but has developed other technologies which are bearing fruit and can therefore maintain a good position in the market," said Michele Nones, head of the security and defense department at Rome think tank Istituto Affari Internazionali.
"Having Thales and Finmeccanica as shareholders could present problems since they are competitors, but they tend to balance each other out," Nones said. "And the firm has the attention of the Italian government since it is considered strategic. Italy believes it needs EW capability."
With a focus on engineering, Benigni said Elettronica's small size and niche status is an advantage.
"A big company does not have the same mentality. The Israelis have shown that," he said.
Elettronica recently fought off tough Israeli competition to win a contract for a naval electronic support measures system from an East Asia customer, the CEO said.
Benigni said the victory came thanks in part to Elettronica's focus on what he called "the science of architecture" - the arrangement of components in an electronic system that leaves room for growth.

About Elettronica

2010 revenue: 195 million euros.
Employees: 754.
Sectors (percentage of total revenue):
■ Fighter aircraft (44).
■ Product support (35).
■ Naval vessels (8).
■ Helicopters/maritime patrol aircraft/transport aircraft (12).
■ Land (1).

Russian Sub To Join NATO Exercise for 1st Time

BRUSSELS - A Russian submarine will take part in the world's biggest submarine rescue exercise with its former Cold War foe, NATO, next week, the military alliance said May 27.
The Russian submarine, the first to participate in any NATO exercise, will drop to the bottom of the Mediterranean Sea along with Portuguese, Spanish and Turkish submarines and will await listless for a rescue mission off the coast of Cartagena, Spain.

About 2,000 military and non-military personnel as well as ships and aircraft from more than 20 nations will take part in the exercise, dubbed Bold Monarch 11, that will run from May 30 to June 10.
Held every three years, it "is the world's largest submarine rescue exercise," said a statement from NATO's SHAPE allied military headquarters based in Mons, Belgium.
"The exercise is designed to maximize international cooperation in submarine rescue operations - something that has always been very important to NATO and all the submarine-operating nations," it said.
The inclusion of a Russian submarine in the exercise comes amid a warming of ties between Moscow and the 28-nation alliance, nearly three years after Russia's war with Georgia had sparked tensions between the two sides.
The U.S., Russia, Italy and Sweden are contributing submarine rescue vehicles and sophisticated gear to clear debris. France, Norway and Britain will use a jointly owned rescue system.
Aircraft will deploy from Italy, Britain and the U.S. to help locate the submarines and drop parachutists to provide emergency assistance.
The vast exercise will culminate with a 48-hour coordinated rescue and evacuation of 150 survivors, including casualties, from a submarine acting in distress.

Pentagon Agency Halts Kill Vehicle Production

The U.S. Missile Defense Agency has suspended production of the latest version of the Exoatmospheric Kill Vehicle (EKV), part of the Ground Based Midcourse Defense (GMD) anti-ballistic-missile system, while it looks into a 2010 flight test failure, said the agency's director, Army Lt. Gen. Patrick O'Reilly.
In May 25 testimony before the Senate Appropriations Committee's defense panel, O'Reilly also said a plan to shift program oversight of the Army's Patriot air and missile defense system to MDA could be in place as soon as 2013.

The GMD interceptor missile, which failed during the final moments of a December test, was an upgraded version of the currently deployed GMD system. This upgraded version includes a new EKV, the Raytheon-built component that intercepts an incoming missile in space.
The suspension will last until required design modifications are completed and verified, and the agency has diverted 2011 GMD funding to expedite the modifications.
The GMD program had two test failures in 2010. The first involved EKV quality control.
"We have identified and confirmed that we had an error in the assembly process of the new EKV," O'Reilly said during the May 25 hearing.
He said the problem was fixed by revising the factory's inspection processes.
O'Reilly said the agency has seen no problems in older-model EKVs currently deployed on older GMD systems, nor are there problems with the GMD booster.
As for the December test, O'Reilly did not say what the problem was.
"We have completed almost all of the ground testing to confirm what the problem was and have identified that problem," he said. "We're now in the process of correcting the problem, confirming it on the ground, but the nature of these type of problems make it very difficult to confirm in ground testing."
Investigators have found "one flaw, which … we are aggressively working to resolve it and prove it," O'Reilly said.
MDA will conduct "extensive ground testing" this summer and a non-intercept test with an upgraded EKV, and it will repeat the failed intercept test in 2012.
A Raytheon spokesman deferred comments to Boeing, the GMD program's prime contractor. A Boeing spokeswoman was not immediately available for comment.
In March, Boeing's top program official said he believes the problem was solely with the EKV.
Norm Tew, a Boeing vice president and the company's GMD program director, said during a March briefing that the December test was "the cleanest, most picture-perfect flight" conducted "up until the last few seconds."
GMD is designed to protect the United States from long-range ballistic missiles, particularly from North Korea and Iran.

Patriot Transfer

The plan to transfer the Patriot program, first discussed in April 2010, would relieve the Army of certain budgetary responsibilities while providing more stable funding to the program, service officials said at the time.
"The particular proposal we have made for the Army's case is literally to take their leadership that does currently oversee Patriot," O'Reilly said. "They would become part of the Missile Defense Agency, but still … have rating responsibilities to the Army."
The transfer is still being deliberated, and a final decision has not been made, he said.
The Army and MDA also had considered transferring the Medium Extended Air Defense System (MEADS) during the last year. But since then, the Defense Department has announced that the MEADS program would come to an end in 2013 because the United States will not move forward with production.
MEADS also involves Germany and Italy. The program's prime contractor is MEADS International, a consortium of Lockheed Martin and MBDA, the European missile company.
MEADS was planned to replace the Patriot system. Pentagon officials have said that due to MEADS delays, the Patriot system needed upgrades. But the Pentagon could not afford to upgrade Patriot and buy MEADS at the same time.

Selex Buys UAV Firm Utri

Finmeccanica unit Selex Galileo has purchased Utri, an Italian small UAV firm, Selex said May 12.
Trieste-based Utri, which was founded in 2003, has previously teamed with Selex, offering its designs for marketing by Selex.

Selex said it can now directly market Utri electric UAV products, including the Asio, a 6.5-kilogram Vertical Take Off and Landing (VTOL) UAV, the fixed-wing, hand-launched Crex-B weighing 2 kilograms and the ducted-fan VTOL Spyball.
Selex already markets the Falco tactical UAV, which it says is the only European-built UAV to be exported. The cost of purchasing Utri was not given.

Poland Hopes Obama Visit Will Bring F-16 Base Deal

WARSAW - Poland is hoping that the May 27-28 visit of U.S. President Barack Obama will pave the way for the stationing of U.S. F-16 fighter jets on Polish soil for the first time, Poland's defense minister said May 9.
"I hope that both sides will be ready with this agreement by the time President Obama arrives," Bogdan Klich said, quoted by the Polish PAP news agency.

"I confirm that at the moment we are holding talks with the Americans on the topic of detailed agreements that will govern on what basis the Air Detachment - the detachment that will permanently service the F-16 and Hercules crews and land personnel periodically visiting Poland - will be stationed on our territory," Klich said.
Last year, Klich said he hoped the F-16 rotations would begin in 2013.
The United States will announce the transfer of an F-16 base from Aviano in Italy to the Lask air field in central Poland during the Obama visit, Poland's leading Gazeta Wyborcza daily reported May 9, quoting an unnamed Polish diplomatic source.
A U.S. official familiar with the negotiations May 9 in Warsaw refused to confirm or deny the information, but indicated that an agreement announced by the Polish and U.S. presidents in Washington in December was "on track".
A press statement issued Dec, 8 by the White House following talks between Obama and Polish President Bronislaw Komorowski announced the "establishment of a U.S. air detachment in Poland to support periodic rotation of U.S. military aircraft", without providing a time-frame.
In December, Poland's Soviet-era master Russia warned it against hosting U.S. fighter jets, saying it would counter the move.

Libyan Rebels Say Italy Will Provide Weapons

BENGHAZI, Libya - Libya's rebel government said May 7 that Italy has agreed to supply it with weapons to fight against Moammar Gadhafi, but government sources in Rome said only "self-defense material" would be sent.
"They will supply us with arms and we will receive them very soon," Abdul Hafiz Ghoga, the vice chairman of the National Transitional Council, told reporters in the rebel capital Benghazi.

Ghoga said military officers from the rebel council had travelled to Italy, Libya's former colonial ruler, and reached an agreement with officials there for the supply of arms.
He gave no details on what weapons would be supplied.
If the arms supply goes ahead, that would make Italy the first European nation to provide weapons to the badly-armed and poorly-trained rebel force that has led the fight against Gadhafi since the uprising began in mid-February.
Foreign ministry sources in Rome said that Italy has agreed to send "self-defense material" to the rebels following agreements last month within the framework of UN Security Council resolution 1973.
They said these would not be assault weapons but gave no further details.
Italian Foreign Minister Franco Frattini said last month during a visit to Rome by NTC chairman Mahmud Jibril that Italy was thinking of sending "night-vision equipment, radars and technology to block communications."
Italy, France and Britain have each sent a small number of military advisors to Benghazi to help organize the ragtag rebel force.
Rome last month said it wanted the international community to consider arming the rebels under UN Resolution 1973, which authorized the use of all means to defend civilians.
U.S. Secretary of State Hillary Clinton and British Prime Minister David Cameron have both said they believe U.N. resolutions on Libya allow arming the rebels.
But other nations in the NATO alliance that is enforcing a no-fly zone over Libya and bombing Gadhafi's military have opposed arming the rebels.
Belgium came out against the idea and Germany has insisted there could be "no military solution" in Libya.
China and Russia, which hold permanent seats on the United Nations Security Council, have argued that NATO's bombing campaign may already be stretching the U.N. mandate.
The head of the rebel council said last month that "friends" had already supplied the insurgents with arms, without saying which countries had done so or what weapons they had provided.
Russia had been a traditional supplier for Libya since Soviet times but the lifting of a previous European Union arms embargo in 2004 opened up a new market to European contractors, who rushed into the oil-rich North African state.
The most vocal backer of lifting the embargo was Italy, which quickly became one of the top European arms suppliers to the Gadhafi regime before the uprising began in February.
France, Malta, Germany, Britain and Portugal also secured lucrative arms contracts with Tripoli.