U.S., France top UAE warplane shortlist -sources

[Reuter / Ashraf Fouad]

DUBAI, United Arab Emirates (Reuter) - U.S. and French firms
are considered top contenders for a crucial $6 billion warplane
order but Russia is still in the running with competitive
pricing, official UAE military sources said Sunday.
``The U.S. and France are at the top of the list, Russia has
a little chance and Britain is out'' of the race, one said of
the UAE's requirement for 80 long-range strike aircraft.
Warplane makers and governments alike are eager to secure
the deal to save jobs at home and give their strapped aerospace
industries a much-needed boost in a shrinking market.
The sources told Reuters the UAE was dropping a British
offer to lease it Tornado planes to meet immediate needs while
the Gulf state waits for the development of the troubled
next-generation Eurofighter 2000.
British Defense Secretary Michael Portillo offered during a
recent UAE visit to send two Tornados for trials soon.
The leaders of several world powers, including President
Clinton, have recently contacted Abu Dhabi to rally support for
their companies in the fierce competition.
``The U.S. has a good chance of getting the deal,'' said one
source who added that Washington was only ``offering 80 percent
of our needs.''
The UAE has made firm demands for a U.S. export license for
High-Speed Anti-Radar Missiles (HARM) and Standoff Land Attack
Missiles (SLAM), never before sold to a Middle Eastern state.
Western industry sources say Washington had urged Abu Dhabi
to accept its offer with possible upgrades in the near future.
``If they put that in writing and make a firm pledge that
all needs would be met, I don't think the UAE will have a
problem with that,'' a senior military source said.
Makers are pinning much hope on the deal to secure funds to
finance next-generation warplanes at a time of weak demand at
home with the end of the Cold War.
U.S. officials say the Gulf Arab states live in a dangerous
area with the Gulf War enemy Iraq to the northwest of the UAE
which is locked in a territorial dispute over three islands with
its stronger neighbor to the north, Iran. *REUTER*
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[Reuter / Ashraf Fouad]

DUBAI, United Arab Emirates (Reuter) - U.S. and French firms

top a United Arab Emirates list to supply a crucial $6 billion
warplane order, but Russia is still in the running with
competitive pricing, UAE military sources said Sunday.

``The U.S. and France are at the top of the list, Russia has

a little chance and Britain is out'' of the race to supply 80
long-range strike aircraft, one source said.

Warplane makers and governments alike are eager to secure
the deal to save jobs at home and give their strapped aerospace
industries a much-needed boost in a shrinking market.
The sources told Reuters the UAE was dropping a British
offer to lease it Tornado planes to meet immediate needs while
the Gulf state waits for the development of the troubled
next-generation Eurofighter 2000.
British Defense Secretary Michael Portillo offered during a
recent UAE visit to send two Tornados for trials soon.
The leaders of several world powers, including President
Clinton, have recently contacted Abu Dhabi to rally support for
their companies in the fierce competition.
``The U.S. has a good chance of getting the deal,'' said one

source, who added that Washington was only ``offering 80 percent
of our needs.''
The UAE has made firm demands for a U.S. export licence for
High-Speed Anti-Radar Missiles and Standoff Land Attack
Missiles, never before sold to a Middle Eastern state.

Western industry sources say Washington had urged Abu Dhabi

to accept its offer, with possible upgrades in the near future.

``If they put that in writing and make a firm pledge that
all needs would be met, I don't think the UAE will have a
problem with that,'' a senior military source said.

U.S. officials say the Gulf Arab states live in a dangerous

area, with Iraq to the northwest of the UAE, which is locked in

a territorial dispute over three islands with its stronger
neighbor to the north, Iran.

Lockheed Martin Corp. and McDonnell Douglas Corp. are in the
running for the UAE order with their F-16 and F-15 aircraft,
respectively.
They face tough competition from France's latest sea- and
land-based Rafale, which conducted trials in the UAE late last
year. Paris is ready to fit the aircraft with its most advanced
avionics and weapons systems.
One option under consideration is the UAE mixing the order.
``Sharing and mixing is still a possibility. It would not be
down the middle but say 60 aircraft from one company and 20 from
another,'' an official source close to the deal said.
Moscow, unlike Washington, is ready to export
top-of-the-line weapons and other systems along with the
airframes. Its offer, the least expensive, is backed by some
French firms to ease fears of lack of upgrades and service in
the future.
The UAE is seeking long-range strike aircraft ``able to
survive in a combat scenario'' and not downgraded models of
sophisticated warplanes.
``They must have an air defense role, interdiction,
precision strike weapons and advanced electronic warfare
capability,'' said one source, in reference to U.S. resistance
to release some systems for export.
There were indications the deal could be concluded in late
1995 or early this year, but well-placed sources told Reuters
oil-producing Abu Dhabi could announce its choice in the next
five months, possibly in May.
Financing for the deal and the UAE's intention to purchase
the aircraft from a world power committed to its security and
stability by a joint defense pact also play a major role in the
final decision.
France has made the firmist commitment to rush to the UAE's
aid if threatened, details of a joint U.S.-UAE defense pact are
still to be worked out, and London and Abu Dhabi have been
discussing a military accord for more than two years.
The military sources told Reuters the proposed UAE-British
pact still faced differences, while Abu Dhabi and Moscow could
announce joint defense plans soon.