Sweden Sets Export Record of $1.95B

HELSINKI - Sweden's military exports set a record in 2010 despite a contraction of sales to the home market. Moreover, defense industry leaders are forecasting a stronger year in 2012, with Saab's $3.2 billion agreement to deliver 22 Gripen fighter jets to Switzerland providing a lift.

Arms exports by Sweden amounted to $1.95 billion in 2010. This contrasts with an equally high export level of $1.9 billion in 2009 and relatively modest exports, valued at $429 million, in 2001. The Netherlands was the biggest recipient in 2010, with purchases valued at $300 million.

The significant increase in exports has been motivated by a Swedish government policy to look to the wider international market for off-the-shelf weapons and equipment solutions. With fewer contract opportunities available, Sweden's defense industry has started to generate a higher proportion of its sales through exports.

Sweden exported military equipment and materials to 63 different countries in 2010. This compares with export sales to 52 countries in 2000 and 33 in 1990. Despite the government's broader procurement policy, the defense industry has gained from the establishment of the Defense Export Agency, which was established this year to support export initiatives by small, medium and large defense companies.

Exports of military equipment and materials from Sweden hit the $1 billion mark for the first time in 2004. The upward movement in exports since that time has produced export sales of $1.5 billion in 2006, $1.8 billion in 2008 and the $1.95 billion recorded in 2010.

The industry is forecasting exports will break the $2 billion barrier in 2011, when about 62 percent of production will be exported.

Italy Gives Bombing Stats for Libya Campaign

ROME - In their first official breakdown of facts and figures about Italy's air campaign over Libya this year, officials said military aircraft deployed 710 guided bombs and missiles during sorties. Italian Air Force Tornados and AMX fighter bombers deployed 550 bombs and missiles, while Navy AV8s deployed 160 guided bombs, the officials said during an event at Trapani Air Base in Sicily to honor military personnel involved in the conflict.

The Air Force total included Storm Shadow missiles, which sources put at between 20 and 30, which were fired from Tornado IDS aircraft - the first time the Air Force has deployed the missile during operations. The success rate of the Storm Shadow was 97 percent, one official said.

Otherwise, the Air Force deployed Paveway and JDAM guided munitions. AMX bombers for the first time used Litening III targeting pods, while Tornado IDS aircraft used JDAM munitions operationally for the first time.

Although the Air Force used guided bombs in its Kosovo campaign, Libya marked its first "extensive" use of guided munitions, said Air Force chief Gen. Giuseppe Bernardis.

With up to 12 different aircraft flying missions on given days during the seven-month operation, the Air Force racked up 1,900 sorties and 7,300 flying hours using Tornado IDS and AMX aircraft for strike missions, Tornado ECR for air defense suppression, F-16s and Eurofighters for no-fly zone patrol, C-130J and 767 tanker aircraft for refueling, and the unarmed Reaper UAV for reconnaissance.

Patrol and air defense flights accounted for 38 percent of flying hours, surveillance and reconnaissance flights took up 23 percent, ground-attack missions made up 14 percent, air defense suppression flights took up 8 percent, refueling flights took up 8 percent, flights detecting electromagnetic emissions and undertaking electronic warfare were 4 percent, while "armed reconnaissance and attacks on targets of opportunity" took up 5 percent.

More than 340,000 high-resolution pictures were taken by Reccelite pods on Tornado and AMX aircraft while 250 hours of video was transmitted in real time by Reaper UAVs.

Eight Italian Navy AV8 Harrier jets, which enforced the no-fly zone over Libya and operated bombing missions, flew 1,221 hours from the carrier Garibaldi, while 30 ship-based helicopters, including the EH-101, SH-3D and AB-212 types, flew 1,921 hours as part of the operation.

The Air Force also rushed into service its new Boeing 767 tanker aircraft. A third aircraft was delivered in November and the final aircraft is expected in the first quarter of 2012.

Italian Navy statistics released about the campaign revealed that two submarines, the Todaro and the Gazzana, were involved in the NATO Unified Protector operation.

Germany Prolongs Afghan Mandate

BONN - The German Cabinet decided Dec. 14 to extend the Bundeswehr's mission in Afghanistan by one more year, until Jan. 31, 2013, but also reduced the maximum number of troops to be deployed from 5,350 to 4,900 soldiers. The decision still has to pass the parliament.

The reduction is partly achieved by scrapping the flexible force reserve. However, the remaining 4,900 will also include German personnel of the Airborne Warning and Control System reconnaissance aircraft operated by NATO over Afghanistan. Before the end of this mandate's period, the government wants to further cut troop numbers to 4,400.

One day earlier, the control of the first of two German Provincial Reconstruction Teams (PRT) in the northern part of Afghanistan was handed over to a civil official. The Defense Ministry is no longer responsible for the PRT Feyzabad; instead, a diplomat of the country's foreign office in Berlin is in charge.

"This forms part of the changing nature of international commitments in Afghanistan," German Foreign Minister Guido Westerwelle said in a press statement. "They are increasingly taking on a civilian face, as is the case with the incremental transfer of responsibility for security to Afghan authorities and the reduction in international troop numbers."

However, German combat troops might stay in Afghanistan after the planned drawback in 2014. Defense Minister Thomas de Maizière confirmed this in a joint interview together with the foreign minister about two weeks ago. In the newspaper Bild am Sonntag, he mentioned the possibility that German troops would remain in the country to help train local forces.

Rafale Best Jet On Offer for Brazil: French PM

SAO PAULO - French Prime Minister Francois Fillon said Dec. 14 he was confident of selling Rafale fighter jets to Brazil and could beat off rival bids because the aircraft's technology cannot be matched.

The Rafale is competing against Boeing's F/A-18 Super Hornet and Saab's Gripen for a tender from Brazil to supply 36 multi-role combat aircraft.

The French premier begins a three-day visit to Brazil on Dec. 15."We are confident because we believe that the French offer has the best possible transfer of technology, without equivalent," Fillon said in an interview published with local media.

French Defense Minister Gerard Longuet was quoted earlier this month in Le Monde as saying that unless the Rafale can find a foreign buyer, the government will have to stop funding its production by Dassault Aviation.

The Rafale was used in the recent war in Libya but the fighter has repeatedly lost out in tenders in countries including Singapore, South Korea, Morocco and, earlier this month, Switzerland.

No Clear Signal Yet From Japan on F-35 Selection

TAIPEI, WASHINGTON and TOKYO - The F-35 could see its wings emblazoned with the red sun roundel, if Japanese media reports are correct.

The Lockheed Martin Joint Strike Fighter (JSF) has been in competition with the Boeing F/A-18 Super Hornet and Eurofighter Typhoon for the Japanese F-X program for several years. The F-X will replace Mitsubishi F-4EJ Kai Phantoms, due to begin retirement in 2015.

Japan plans to purchase between 40 and 50 fighters for roughly $10 billion. Tokyo is also considering replacing F-15Js within the next 10 years, increasing the number of F-X fighters to 150.

However, both the Japanese Ministry of Defense (MoD) and the U.S. Pentagon's Joint Program Office are denying any final decision has been made. Boeing discounted the reports, holding out hope the Japanese government will continue to work with the company, as it has with the F-15J.

"We've seen the speculation on the JSF winning but won't comment on that aspect," said Lorenzo Cortes, international communications, Boeing Defense, Space & Security. "The Japanese government could best respond to what's going on. We are expecting a formal announcement as early as this week, but ultimately, it's Japan's discretion as to when they want to do that."

The MoD has repeatedly said they "were unable to confirm neither decision in favor of the F-35 nor the public release of the announcement for Dec. 16," an MoD spokesman said. "Nothing has been decided on the selection, and we can't confirm when the decision will be announced."

Richard Aboulafia, an analyst with the Teal Group, Fairfax, Va., said that if true, Japan's selection of the F-35 is a "very strong endorsement from a respected service." The F-35 has been under attack in the U.S. Congress and media due to a variety of production and program problems.

"Despite all the doubts, they still see the F-35s capabilities and technology as the future," he said. "It's the first new customer outside the original partner nations."

Despite the Japanese endorsement for the F-35, there will be challenges finding a role for Japan's indigenous aviation industry, which is facing layoffs and reduced production with the end of the Mitsubishi F-2 fighter, the country's only active fighter line, scheduled to close soon.

"No licensed production will be tantamount to disaster," a Japanese defense industry source said. "We have excellent engineers, and a generation of skills will be lost."

A U.S. defense industry source in Tokyo said the F-35 program is a "complex multinational program that will take some negotiation to carve out a Japanese aviation industry role."

Part of the problem is the limited number of F-X fighters, 40 to 50, which "means investment would be quite high, so question is, does this position the F-35 to fulfill the F-XX/F-15J replacement program?"

Philippines' New Warship Sent to Disputed Waters

MANILA, Philippines - The Philippines launched its newest warship on Dec. 14, a former U.S. Coast Guard cutter that President Benigno Aquino said would be deployed to waters at the heart of a territorial dispute with China.

Aquino said the 378-foot (115-meter) Gregorio del Pilar would lead patrols in the parts of the South China Sea that the Philippines claims exclusively as its own and where exploration for potentially lucrative gas fields is underway.

"The Gregorio del Pilar, named after the newest general of the Philippine revolution, will take the lead in patrols for our sovereignty, and in ensuring that our waters are crime-free," Aquino said.

Aquino was speaking at Navy headquarters in Manila during a commissioning ceremony for the vessel, which replaces a World War II-era destroyer as the country's top warship.

Gregorio del Pilar was acquired from the United States earlier this year amid rising tensions between the Philippines and China in the South China Sea.

Tensions escalated after the Philippines accused the Chinese People's Liberation Army Navy of firing warning volleys at Filipino fishermen in the South China Sea, harassing an oil exploration vessel and putting up markers on Philippine islets.

Those areas are much closer to the Philippine landmass than Chinese, but China insists it has sovereign rights to virtually all of the South China Sea, even waters up to the coasts of Southeast Asian countries.

Other parts of the sea, which are reputedly rich in mineral resources and straddle vital sea lanes, also are claimed by Brunei, Malaysia, Taiwan and Vietnam.

The competing claims have for decades made the sea one of Asia's most dangerous potential military flashpoints.

Meanwhile in Beijing, state media reported that China has sent its largest patrol ship, the 3,000-ton Haijian 50, to the East China Sea to guard the country's territorial rights.

China has repeatedly locked horns with neighbors Japan and Taiwan over a group of uninhabited islands - called Senkaku in Japan and Diaoyu in Chinese - in the East China Sea that Beijing claims are in its territorial waters.

Japan and Taiwan also claim sovereignty over the area, which is similarly believed to be rich in oil and gas.

Taiwan Compulsory Service Reduced to 4 Months

TAIPEI - Taiwan will reduce compulsory military service from one year to four months, the defense ministry said Dec. 14, in what is widely seen as a first step towards scrapping conscription altogether.

Benefiting from improved ties with mainland China, the island's young men will have to spend shorter time in uniform beginning from early 2015, after parliament passed an amendment to the conscription law late Dec. 13, it said.

"We are gradually introducing a professional military, so there will be no holes in our defense capabilities," said David Lo, the defense ministry's spokesman.

The ministry plans to eventually maintain a permanent professional military of 215,000 soldiers, down from 275,000 conscripted and professional soldiers at present, he said.

Phasing out conscription was a campaign pledge by President Ma Ying-jeou in the 2008 election, and he has stressed that a "small, elite and strong" voluntary military rather than conscription is best for the island's defense.

Taiwan's relatively large army is a legacy of decades of tensions with China, however ties have improved markedly since Ma took office three years ago on a Beijing-friendly platform. He is running for a second four-year term in January.