EDA To Set Up Pilot European Satellite Procurement Cell

BRUSSELS - National defense ministers from 26 of the European Union's 27 member states (Denmark has an opt-out) have granted the European Defence Agency (EDA) a budget of 30.5 million euros ($40.7 million) in 2012 and agreed the agency should set up a pilot European satellite communication procurement cell.

Despite a considerable amount of talk about the importance of EU member states pooling and sharing more military capabilities and the ongoing financial crisis, there was precious little agreement on concrete initiatives with specific timelines.

At a news conference Nov. 30, EDA Chief Executive Claude-France Arnould described satellite communications as a "key enabler of any operation," allowing "soldiers to communicate, ships to navigate, HQ to operate in theater."

The new procurement cell will involve six to eight member states including the U.K., said Arnould.

It will be up and running straight away. Currently, member states spend about 3 million to 5 million euros per year to acquire satellite communications bandwidth. Demand is growing, particularly with the widespread use of UAVs on the battlefield, which require substantial communications capacity to control and transmit data from sensors.

The pilot program is designed to prove that pooling demand will reduce both costs (10 percent estimate) and ensure better availability (security of supply and rapid access). Astrium has been selected as the broker for this activity following an open competition.

Arnould said air-to-air refueling was a "major capability shortfall, as shown again in Libya," and that the aim "is to improve operational output and cost effectiveness and to address the dependency on the U.S. of European air forces."

Speaking privately, an EU official said that a medium- and long-term aim is to convince EU member states to reduce the current nine refueling fleets down to four (A400M, C130J, Airbus 330 and B767) and not to buy outside those aircraft types.

Another option Arnould noted is for those member states that are not buying A400Ms to instead purchase kits or pods allowing them to refuel from the A400M.

She stressed that there were "no proposals on the table for common procurement of new equipment" and that "capability is not just about acquisition." Training helicopter pilots is one example of a capability that the EDA has been working on since 2009.

The other eight areas for further consideration include maritime surveillance networking (currently covering EU borders only but might be extended for expeditionary tactical operations such as the Atalanta counter-piracy operation); medical field hospitals; future military satellite communications; ISR; pilot training; European transport hubs; smart munitions (the Libya operation showed that EU member state stockpiles were insufficient and that there was an overdependence on the U.S.); and naval logistics and training (capabilities such as aircraft carriers could be made available at all times by synchronizing maintenance schedules on a multinational basis).

Arnould also stressed that the EDA is working to coordinate with NATO as "cooperation is not a beauty contest between NATO and the EDA." She said the EDA would continue work on pooling and sharing, with a more comprehensive agenda coming out in the spring, just before NATO unveils its so-called smart defense proposals at its Chicago summit.

The key question is whether EU member states will follow up with concrete proposals in the 10 pooling and sharing areas other than the satellite communications cell. Regardless of how many proposals the EDA comes up with, that appears to be in doubt.

Arnould said there was "clear momentum for moving forward" and "an important window of opportunity to improve European defense capabilities" but conceded that "cooperation is not a natural reflex" and that "there are concerns, in particular about sovereignty and autonomy."

EU defense ministers also approved an administrative cooperation agreement between the EDA and Switzerland, under which the two parties can work together on research and technology, and armaments cooperation. The framework agreement sets out procedures for mutual consultation as well as for Swiss participation in ad hoc EDA programs and projects.

Amendment Would Allow U.S.-U.K. F-35 Transfer

The U.S. Senate approved an amendment to the 2012 defense authorization bill that would allow the United States to exchange certain F-35 Joint Strike Fighter (JSF) aircraft with the United Kingdom.

Sen. Carl Levin, D-Mich., chairman of the Senate Armed Services Committee, sponsored the amendment, which was approved by unanimous consent Nov. 30.

The Senate has also voted to limit debate on the authorization bill to another 30 hours, giving the legislation a chance to make it out of the Senate. If passed, the Senate authorization bill will have to be resolved with the House version passed earlier this year before making its way to the president for his signature.

The Pentagon requested the JSF amendment in a June 14 letter from Elizabeth King, assistant secretary of defense for legislative affairs, to Vice President Joseph Biden, in his role as president of the Senate.

The JSF trade, which the Pentagon describes as "mutually beneficial" and "cost neutral," requires such a legislative amendment to be implemented.

According to King's letter, the United States would give the United Kingdom one of its carrier variants (F-35C) in exchange for a short takeoff and vertical landing (STOVL) version (F-35B).

The United Kingdom decided last year, as part of its Strategic Defense and Security Review, to stop buying the F-35B. Instead, the Royal Navy will only buy the F-35C, which is being designed for conventional takeoffs and landings on aircraft carriers.

The cost-savings measure resulted in the U.K. having an extra F-35B on its hands.

The United States, which is buying the F-35B for the Marine Corps and the F-35C for the Navy, was not scheduled to receive its F-35Bs until later. A third variant, the F-35A, is being developed for the Air Force.

Under the exchange, the United Kingdom would have to cover any costs required to upgrade its F-35B aircraft so that it would be identical to the version the U.S. had planned to buy, according to the letter. The United Kingdom would also be responsible for any unique requirements it has for the F-35C.

Under the plan, United States would get an F-35B two years earlier. This means $10 million in additional operations and maintenance costs for the Marine Corps in 2013 and 2014 due to increased flight hours, fuel, training costs, etc.

In January, former Defense Secretary Robert Gates put the F-35B portion of the JSF program on probation for two years, saying he had serious concerns about the aircraft's performance in tests.

"If we cannot fix this variant during this time frame and get it back on track in terms of performance, cost and schedule, then I believe it should be canceled," Gates said.

A separate amendment, also approved Nov. 30, requires Defense Secretary Leon Panetta to submit a report to Congress on the F-35B's probationary period.

Sen. John McCain, R-Ariz., sponsored this amendment, which was also approved by unanimous consent.

Switzerland Taps Saab's Gripen as F-5 Replacement

STOCKHOLM - Swedish defense group Saab AB said Nov. 30 it was "proud and delighted" over Switzerland's decision to purchase 22 of its Gripen fighter jets to replace its aging F-5 fleet.

"Given that Switzerland is known globally for applying (the) highest procurement standards and requesting state-of-the art technologies, Saab is both proud and delighted that Gripen has been chosen as the Swiss Air Force's future multirole fighter aircraft," Saab said in a statement.

The Swiss selection "confirms that Saab is a market-leader in the defense and security industry and that Gripen is a world-class fighter system that provides the best value for money", Saab CEO and president Haakan Buskhe said in the statement.

Gripen is already in service with the Swedish, Czech, Hungarian, South African and Thai air forces.

Saab saw its share price take off on the Stockholm stock exchange after the announcement. Saab closed up 11 percent at 120 kronor ($17.75) in an overall market that closed up 5.14 percent.

Eurocopter Joins Turkey's Light Helicopter Race

ANKARA - Top European helicopter maker Eurocopter announced Wednesday that it will seek to become Turkey's key foreign partner in a program, worth more than $1 billion, to design, develop and manufacture hundreds of light utility helicopters, both military and civilian.

"We want to partner with Turkey in one of their top programs. The light utility helicopter program is a key project," said Thomas Hein, Eurocopter's vice president for sales and customer relations in Europe.

Under two multibillion-dollar contracts, Turkish Aerospace Industries (TAI) is co-producing with Italy's AgustaWestland 59 T-129 attack helicopters and jointly is making with Sikorsky Aircraft more than 100 T-70 utility helicopters, with a single copter weighing about 10,000 kilograms. To meet its heavy-lift helicopter needs, Ankara earlier this year signed a nearly $400 million contract with Boeing to buy six CH-47 Chinook choppers.Light utility helicopters generally weigh between 4,500 and 5,500 kilograms. "We are developing our product range, and we would like to produce, with Turkey, a chopper from scratch," Hein said.

Therefore, light utility helicopters are the last major copter type Turkey wants to produce with a foreign company.

"In my personal view, all major helicopter producers in the world will seek this cooperation with Turkey," Hein said.

Formed in 1992 through the merger of the helicopter divisions of France's Aerospatiale and Germany's DASA, Eurocopter sold 20 AS 532 Cougar utility helicopters to Turkey's military and then co-produced with TAI 30 other Cougars. But since 2006, the company has been silent about major Turkish helicopter deals, and Wednesday's remarks by Hein, who is responsible for ties with Ankara, means Eurocopter is back in the Turkish market.

Although it mainly is a defense project, the light utility program also will manufacture many private and commercial copters. But the Undersecretariat for Defense Industries (SSM), Turkey's procurement agency, has not formally announced the program. The Turkish government is expected to select a foreign partner in 2013. As a result, the number of helicopters to be produced and the financial size of the program are not clear, although the cost is expected to exceed $1 billion.

Although Eurocopter has developed tens of helicopter types in several categories, SSM insists on the development of a new type, and Hein said Eurocopter is ready to produce a new light helicopter with Turkey.

Eurocopter is part of European defense giant EADS.

China Blasts U.S. Deployments to Australia

BEIJING - China criticized a U.S. decision to deploy up to 2,500 Marines to Australia on Nov. 30, calling it proof of a "Cold War mentality," in Beijing's strongest comments yet on the issue.

President Barack Obama announced earlier this month that the U.S. would station the Marines in the northern city of Darwin in what many have viewed as a bid to counterbalance China's growing might in Asia-Pacific.

"We believe that any consolidation or expansion of military alliances is a manifestation of a Cold War mentality," defense ministry spokesman Geng Yansheng said in a statement.

It "does not conform with the current trends of peace, development and cooperation and is not conducive to enhancing mutual trust and cooperation between countries in the region".

Chinese state media has accused the U.S. president of trying to win votes by using his diplomatic ambitions in Asia to detract from U.S. economic woes.

Obama made the announcement as part of a week-long tour of the Pacific - during which he also took in three summits - aimed at asserting the United States as a Pacific power.

The U.S. views with increasing concern China's growing assertiveness in Asia-Pacific on territorial disputes, as do many of the Asian powerhouse's neighbors.

But China maintains it has a policy of "peaceful development" with all countries.

Geng said he hoped "relevant parties will do more to help peace and stability in the Asia-Pacific region, rather than the opposite.

Brazil Boosts Navy, But Fleet's Age, Size a Concern

SAO PAULO - As it bids for great power status, Brazil is boosting its naval power in the South Atlantic with an ambitious submarine program to protect its huge deep-water oil reserves and project its growing influence.

BRAZIL'S AIRCRAFT CARRIER Sao Paulo is seen in the Atlantic Ocean near Rio de Janeiro. (Brazilian Navy via AFP)

The emerging powerhouse already boasts Latin America's largest navy, but its aging fleet, including the Sao Paulo aircraft carrier - formerly the French Navy's Foch - nine British-built frigates and five coastal diesel-electric submarines, is in urgent need of modernization.

"The fleet is currently inadequate to carry out its assigned missions" in the South Atlantic, an area Brasilia regards as of high strategic value, Nelson During, chief editor of Brazil's respected defense website DefesaNet, told AFP.

Under the National Defense Strategy unveiled in 2008, the navy was tasked with developing a force to protect the country's huge "sub-salt" oil reserves, the Amazon river basin and its 7,491 kilometers (4,655 miles) of coastline.

The oil fields, located off Brazil's southeast Atlantic coast beneath kilometers of ocean and bedrock, could contain more than 100 billion barrels of high-quality recoverable oil, according to official estimates.

In a speech to the Navy's top brass in June, President Dilma Rousseff stressed that the buildup, including the acquisition of the country's first nuclear-powered submarine, was a key "instrument of deterrence."

Earlier this month Adm. Luiz Umberto de Mendonca told a congressional panel that some $117 billion would be needed by 2030 to fund the buildup, including the acquisition of 20 conventional submarines, six nuclear-powered ones and the creation of a second fleet to be based on the northeastern coast.

But During said such plans were "totally unrealistic given the 26 percent cut in this year's 15 billion real ($8 billion dollar) defense budget," adding that the navy only gets a third of that.

"We don't have the money and defense is not a priority in Congress," During added. "There is a feeling that we are a large country at peace with the world, with no external conflicts."

Eric Wertheim, an analyst with the US Naval Institute in Annapolis, said that Brazil, with "a powerful economy and around 200 million people ... must be able to defend its deep-water oil fields and protect the Amazon region.

"The country (must) also be ready for an unpredictable future that might include demands like escorting merchant ships that are vulnerable to piracy attacks on the other side of the world," Wertheim, who edits the Naval Institute Guide to Combat Fleets of the World, told AFP.

The recent oil spill from a well operated by a U.S. energy firm off Rio de Janeiro state "showed how unprepared the navy was to deal with such emergencies," he said.

The centerpiece of the naval buildup is the ProSub program, under which France is to supply four diesel-electric submarines and help develop the non-nuclear components of Brazil's first nuclear-powered fast attack submarine.

Except for the first boat, expected to be ready around 2016, all submarines are being built, with French technology transfer, at the Itaguai naval base and shipyard near Rio.

Brazil already has the uranium enrichment technology required for producing nuclear fuel and wants to use it to power the submarine.

But During said that because of repeated delays, the $2.66 billion nuclear submarine was not expected to be completed before 2025.

In addition to its deterrence value, a nuclear sub would give Brazil "status" and add "credibility" to its ambition to become a permanent member of the U.N. Security Council, he added.

Brazil also "intends to show the flag" in the South Atlantic, in view of its growing trade ties with African countries across the ocean, particularly former Portuguese colonies such as Angola, During said.

Some Brazilian strategists argue that Brazil should become "the dominant naval power in the South Atlantic, without excluding others," he added.

Last year, former defense minister Nelson Jobim raised eyebrows when he described any expanded NATO presence in the South Atlantic as "inappropriate," and some Brazilian lawmakers expressed concern when the United States decided to reactivate its 4th Fleet in the area in 2008.

But During dismissed those comments "as rhetoric for domestic consumption."

Germany Lends Air-Defense Radar to Israel

TEL AVIV - Germany recently delivered a Patriot air defense radar to Israel as a cost-free loaner pending conclusion of a three- to four-year refurbishment in the United States of Israel's own AN/MPQ-53 radars for its PAC-2 force.

German, U.S. and Israeli sources confirmed the trilateral cooperation, aimed at filling potential gaps in Israeli air defense coverage while Israel Air Force radars are being serviced at Fort Sill, Okla.

The loaner radar provided by the German Bundeswehr arrived here in mid-October, shortly before the first of three Israeli Patriot radar sets was shipped to the United States for servicing. The German delivery marks an expansion of strategic cooperation with Israel, which received two full-up Patriot PAC-2 batteries from Luftwaffe stocks in 2003 in the run-up to the U.S.-led coalition war in Iraq.

Sources said it will take about a year to replace aging components of each radar, extend service life, and improve its ability to interoperate with U.S. European Command's Patriot batteries that participate in biannual U.S.-Israel exercises and could be rushed here for emergency deployment during wartime.

The refurbishment program is estimated at $15 million and will be funded through annual U.S. Foreign Military Financing (FMF) assistance to Israel. Israeli and German officials confirmed that the German loaner radar would remain here until the upgrade program is complete and all Israeli radars are redeployed and integrated with other elements of the Air Force's Air Defense Force.

"Germany has contributed to the air defense system of Israel since 2003 with the loan of two Patriot systems. Additional components are temporarily on loan to maintain the operational capability of the systems," said Lt. Col. Holger Neumann, a German MoD spokesman.

An Israel Air Force officer emphasized that the recently launched Patriot radar upgrade is more logistical in nature and is not aimed at converting Israel's PAC-2 air defense force to the PAC-3 ballistic missile intercepting configuration.

Israel has no plans to procure PAC-3 missile interceptors from Lockheed Martin, he said. Instead, the Air Defense Force is looking to deploy the David's Sling air and missile defense system now in development by Rafael and Raytheon.

Nevertheless, the Air Force officer said Israel "is looking very closely" at a so-called Config-3 program that would render its existing PAC-2 force more capable of operating with PAC-3 intercepting batteries.

No decision has been made on the estimated $60 million Config-3 program with Raytheon, producers of the Patriot radar, engagement control stations, launching units, and improved PAC-2 interceptor missiles.