Iran Renews Warning to U.S. on Aircraft Carriers

TEHRAN, Iran - Iran on Jan. 4 renewed its warning to America against keeping a U.S. Navy presence in the oil-rich Persian Gulf, underlining a threat that Washington has dismissed as a sign of "weakness" from Tehran.

"The presence of forces from beyond the [Gulf] region has no result but turbulence. We have said the presence of forces from beyond the region in the Persian Gulf is not needed and is harmful," Defense Minister Ahmad Vahidi said, according to state television's website.

"The long-term presence of the United States in the region increases insecurity and the possibility of tensions and of confrontation," the deputy chief of Iran's forces, Masoud Jazayeri, said, according to the Revolutionary Guards website.

"As a result ... the United States must leave the region," Jazayeri said.

Jazayeri noted the exit of the U.S. aircraft carrier John C. Stennis from the Gulf last week and said: "Since you've gone, don't come back, otherwise you'll be responsible for any problems."

The comments echoed a Jan. 3 warning that Iran would unleash its "full force" if a U.S. carrier is redeployed to the Gulf.

"We don't have the intention of repeating our warning, and we warn only once," Brig. Gen. Ataollah Salehi, the armed forces chief, said as he told Washington to keep its carrier out of the Gulf.

The White House on Jan. 3 brushed off the warning, saying it "reflects the fact that Iran is in a position of weakness" as it struggles under international sanctions.

The U.S. Defense Department said it would not alter its deployment of warships to the Gulf.

Iran has just finished 10 days of navy war games near the strategic Strait of Hormuz, at the entrance of the Gulf, meant to show it was capable of controlling the channel and closing it if necessary. Twenty percent of the world's oil ships through the strait.

The exercises climaxed on Jan. 2 with the Iranian navy test-firing three types of missile designed to sink warships.

The head of Iran's parliamentary national security and foreign policy commission, Aladdin Borujerdi, was quoted by the Fars news agency saying the U.S. description of Iran being weak "is a completely illogical stance."

He added: "The U.S. talks about sanctioning our oil but they should know that if Iran's oil exports from the Persian Gulf are sanctioned, then no-one will have the right to export oil through the Strait of Hormuz."

The developments have helped send the prices of oil soaring, though they pulled back a little on Jan. 4. Brent North Sea crude contracts in London were selling for $111.58 per barrel. New York trading of West Texas Intermediate crude was at $102.30 per barrel.

The Pentagon said in a statement it would continue the rotation of its 11 aircraft carriers to the Gulf to support military operations in the region and keep the Strait of Hormuz open.

"We are committed to protecting maritime freedoms that are the basis for global prosperity; this is one of the main reasons our military forces operate in the region," it said in a statement.

The increasingly tense situation in the Gulf was taking place as Iran struggled with turmoil on its domestic currency market.

Foreign exchange shops on Jan. 4 were shuttered as traders refused to comply with a central bank order putting an artificial cap on the value of the dollar against the Iranian rial, which has come under intense pressure in recent days.

The central bank also cut in half, to $1,000, the amount of dollars travelers flying abroad could buy.

Iranian authorities were trying to shore up their currency following its slide to a record low Jan. 2, days after the United States enacted new sanctions targeting Iran's central bank.

Tehran, however, insisted the volatility of the rial was not because of sanctions.

It "definitely has nothing to do with sanctions," foreign ministry spokesman Ramin Mehmanparast said Jan. 3.

The United States and other Western nations have imposed sanctions on Iran's economy over Tehran's controversial nuclear program, which they believe is being used to develop atomic weapons. Iran has repeatedly denied that allegation, saying the program is purely for energy and medical uses.

Helsinki OKs Patriot Missile Shipment to S. Korea

HELSINKI - Sixty-nine Patriot missiles impounded in Finland after being found on a merchant vessel in mid-December were headed for South Korea, the Finnish government said Jan. 4, granting their transit through Finnish territory.

"The missiles in question had been sold to the Republic of Korea by Germany," the government said in a statement, adding that it had granted a license to Seoul's "Defense Acquisition Program Administration to transit through Finnish territory 69 Patriot missiles."

The surface-to-air missiles, produced by U.S. firm Raytheon, were discovered on December 15 aboard the British-registered Thor Liberty docked in the southeastern Finnish port of Kotka.

Confusion initially surrounded the shipment.

Finnish police said the goods were bound for China but did not have the necessary authorization to pass through Finland, while a German defense ministry spokesman said the missiles came from the German military and were destined for South Korea.

The spokesman said it was a "legal sale on the basis of an accord between two states at the government level" and that export authorizations were in order.

However a senior Finnish defense ministry official said Finland had not received any transit license application for the missiles from Germany.

A joint team of Finnish customs and police officials removed and impounded the missiles during an investigation for suspected illegal export of defense material.

The vessel's Ukrainian captain and first mate were also detained for questioning and later slapped with a travel ban which is still in effect.

Last week the customs service said it planned to widen the investigation.

"Next week ... we will want to hear more suspects or persons of interest in the case. It is possible there may be others of interest," the head of the Finnish customs anti-crime unit, Petri Lounatmaa, told AFP.

Finnish transport safety officials have cleared the Thor Liberty to leave Finland, but the vessel has remained in port due to the travel ban imposed on its first officers, and the removal of its cargo.

Mideast Weapon Sales Part of Long-Term Plan: U.S.

The final days of 2011 saw the Obama administration finalize two important weapon sales with countries in the Middle East: a $3.48 billion sale of a Lockheed Martin-made missile defense system to the United Arab Emirates, and a $29.4 billion sale of Boeing-made F-15 fighter jets to Saudi Arabia.

While the announcements come as tensions between the United States and Iran continue to rise over a dispute regarding access to the Strait of Hormuz, the deals themselves are not meant to address current events, State Department officials said.

The F-15 deal was finalized with Saudi Arabia on Dec. 24. However, the White House first notified Congress of that sale, which includes 84 new aircraft and the modernization of 70 existing aircraft as well as missiles, spare parts, training, maintenance and logistics, in October 2010.

During a Dec. 30 State Department news conference, Andrew Shapiro, assistant secretary of state for political-military affairs, told reporters that the deal was not directed toward Iran, adding that work on the sale precedes the latest news out of the region.

"We did not gin up a package based on current events in the region," he said.

Over the last several weeks, the United States and Iran have stepped up the economic and military pressure on each other, with the latest threat coming from Iran, which warned the United States not to return one of its aircraft carriers to the gulf.

On Jan. 3, the Pentagon dismissed Iran's warnings.

"The deployment of U.S. military assets in the Persian Gulf region will continue as it has for decades," Pentagon Press Secretary George Little said in a statement. "Our transits of the Strait of Hormuz continue to be in compliance with international law, which guarantees our vessels the right of transit passage."

Meanwhile, Undersecretary of State for Political Affairs Wendy Sherman is on a four-day trip to Saudi Arabia and the UAE.

"While in the gulf region, she will consult with senior Saudi and Emirati officials on a wide range of bilateral and regional issues," according to the State Department. Her trip "further illustrates the robust strategic relationship the United States shares with both Saudi Arabia and the United Arab Emirates."

While the latest sales to the Middle East are being placed in this geopolitical context, the late December announcements are not tied to the escalating tensions, but part of a longer-term security plan, said Danny Sebright, president of the U.S.-UAE Business Council and a counselor at the Cohen Group, Washington.

"The overall sales with regard to both countries are definitely the result of a long-term concern with Iranian intentions, a long-term concern with wanting to improve individual countries' defense capabilities," Sebright said. "But, is the announcement of these two deals specifically tied to Iran? I would say no to that. I would say it's much more about internal decision-making in both countries - some with regard to terms and conditions of the sale, some with regard to budgeting, and some with regard to the Arab Spring."

According to Sebright, the United States gave the formal Letter of Offer and Acceptance to Saudi Arabia last spring and the Saudi government has been holding on to it until it was ready to sign.

"The basic deal had all but been done over a year ago, but they waited for internal and external reasons," he said.

A State Department official said, "While we decline to get into the specifics on the negotiations, the timeline here is not particularly atypical. A sale of this magnitude and complexity required close, continual consultations with our Saudi and industry partners to sort out the details."

Congress was first notified of the plan to sell UAE the Terminal High Altitude Area Defense System (THAAD) in September 2008. After negotiating the details of the contract, the United States and UAE signed the THAAD deal on Dec. 25. Lockheed Martin is on contract for four THAAD batteries for the U.S. Army, but the UAE deal is the program's first foreign sale.

Lockheed Martin's portion of the $3.48 billion sale is $1.96 billion. The overall deal includes two THAAD batteries, 96 missiles, two AN/TPY-2 radars, and 30 years of spare parts, support, and training to the UAE, according to the Pentagon.

Since the 2008 congressional notification, UAE trimmed the buy.

At first it was expected the country would buy three THAAD fire units, 147 missiles, and four radar sets for an estimated value of $6.95 billion.

The United Arab Emirates has asked Lockheed not to publicly discuss the delivery schedule of the weapon system, said Dennis Cavin, vice president of corporate business development at Lockheed Martin.

"This sale is an important step in improving the region's security through a regional missile defense architecture, and follows a number of recent ballistic missile defense-related sales," Little said in a Dec. 30 statement.

Sales from earlier in the year include a $1.7 billion direct commercial sales contract to upgrade Saudi Arabia's Patriot missiles and the sale of 209 Patriot GEM-T missiles to Kuwait, valued at about $900 million.

Loren Thompson, a defense analyst at the Lexington Institute, also put the sale in the context of December's announcement that Iraq would buy Lockheed's F-16s and Oman's decision to double the size of its F-16 fleet.

"When combined with the modernization of the Saudi Air Force and the extensive F-16 inventory of the United Arab Emirates, it is clear Arab gulf states will be positioned to greatly outmatch the antiquated tactical aircraft fleet of Iran," he wrote in a blog for Forbes.

According to Lockheed Martin, demand for missile defense capabilities continues to climb around the world.

"With regional threats in the Middle East and the uncertainties of what's going on in North Korea, demand for a very capable missile defense system has never been stronger," Cavin said. "The U.S. government is in discussion with a number of countries who have expressed interest in the THAAD, but we'd prefer that the Missile Defense Agency address any specifics with regard to which countries have contacted them."

The Missile Defense Agency declined to provide further details.

In announcing the Saudi deal, the State Department emphasized it would improve interoperability between the Saudi and American air forces.

In addition to greater cooperation with the United States, the sales also bolster internal cooperation among the Gulf Cooperation Council countries, which include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, Sebright said.

The gulf countries have taken more steps to improve internal coordination and work toward multilateral defense policies in the last year than they have over the last 25, he said.

Elbit Wins Customer in Americas for Hermes 900

TEL AVIV - Israel's Elbit Systems announced Jan. 3 that it has secured a contract to supply the Hermes 900 unmanned aerial system (UAS) to an unidentified American country. According to the firm, the approximately $50 million deal includes Hermes 900 airframes, universal ground control stations, the firm's advanced DCoMPASS electro-optical payloads and satellite communications links. Deliveries of the complete system will conclude in about a year.

SOURCES IN ISRAEL would only say that the end user was not an Air Force, but rather a government organization in a Central American country. (Elbit Systems)

The publicly traded firm declined to identify its latest customer for the Hermes 900, and defense and industry sources here were only willing to note that the end user was not an Air Force, but a government organization in a Central American country.

Less than six months after first flight of the prototype Hermes 900 in December 2009, Elbit began serial production of its self-funded system - first for the Israel Air Force and then for the Chilean Air Force.

The Hermes 900 medium-altitude, long-endurance (MALE) UAV is a higher-flying, heavier-hauling version of the firm's Hermes 450, operational in Israel, the United Kingdom and more than a half-dozen other countries. Like the Hermes 450, the Hermes 900 is designed for autonomous flight, automatic takeoff and landing, and full payload management by Elbit's universal ground control station. In addition to the redundant wideband line-of-sight datalinks built into the 450 model, the Hermes 900 features an advanced satellite communication channel for long-range missions at altitudes of more than 30,000 feet.

"We are proud that yet another customer has selected the Hermes 900, following orders by the Israel Defense Forces and Chile," Elad Aharonson, general manager of Elbit's UAS Division, said in the firm's Jan. 3 announcement.

Life Sentence Sought for Retired Turkish Generals in 1980 Coup

ANKARA - A Turkish prosecutor has sought life imprisonment for two former army generals on coup charges, the state-run Anatolia news agency reported Jan. 3.

Kenan Evren, 94, former chief of General Staff, and Tahsin Sahinkaya, 86, former air force commander, are being held responsible for the 1980 military coup, according to the indictment of an Ankara prosecutor's office.

Evren came to power after the coup and served as Turkey's seventh president from 1982 to 1989.

Five army generals took over power in 1980, but Evren and Sahinkaya are the only ones who are alive today.

The court now has 15 days to decide whether to accept the indictment and order a trial.

Evren and Sahinkaya were interrogated by prosecutors in June. A package of government-led amendments adopted in a 2010 referendum paved the way for the trial of those responsible for the military takeover.

Turkey's 1982 junta-made constitution reserved an article that exempted the former generals from any trial.

Turkey has endured three military coups - in 1960, 1971 and 1980 - but the military's political influence has decreased since the Justice and Development Party (AKP) of Prime Minister Recep Tayyip Erdogan came to power in 2002.

In previous remarks, Evren said he never regretted the 1980 coup and preferred to commit suicide rather than go on trial.

Cypriot Protesters Demand British Forces Leave

NICOSIA - Protesters demanding that British forces withdraw from Cyprus clashed with police at a military base, leaving around a dozen people hurt, police said Jan. 2.

Among the injured at the British military base of Akrotiri were demonstrators, police officers and a journalist. State television said at least three people were arrested.

Around 120 people had turned up at the Akrotiri compound near the southern coastal city of Limassol, and the protest got off to a peaceful start before quickly deteriorating.

Demonstrators threw stones, sticks and bottles at the base's police force outside the compound.

Shops and cars were also damaged in the skirmishes with the police, who are mostly Greek Cypriot.

A helicopter was dispatched and loud explosions could also be heard, although police on state television attributed them to firecrackers.

The protest was orchestrated by a new group calling themselves the National Anti-Colonial Platform, with their demands being the immediate withdrawal of British forces from the Mediterranean island.

The group's website vowed to return to a British base to continue their demonstrations.

Britain has retained two sovereign military bases on Cyprus - at Akrotiri in the southwest and Dhekelia in the southeast - since the island gained independence from British rule in 1960.

Last month, Britain confirmed it would retain both, with Defence Secretary Philip Hammond saying they "are in a region of geopolitical importance and high priority for the United Kingdom's long-term national security interests."

The bases, home to some 9,000 personnel and their families, are seen as strategically imperative and have been used by British forces in offenses against Iraq, Afghanistan and Libya.

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