HTTP://WWW.STOPNATO.ORG.UK
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[For anyone still in doubt about the true purpose of
the expanded, post-Cold War NATO alliance, this
feature will put any such doubt to rest.
The small Czech Republic, which needs 24 supersonic
fighters (at a cost of $2billion) like Afghanistan
needs a navy, backs out of an arms purchase contract
with Sweden because - Sweden is not yet a NATO member.
What is the ineluctable message given to Gripen and
other Swedish firms, ones with great influence over
Sweden's elected officials?]
 

The Washington Times
www.washtimes.com
  
Analysis: Big Czech arms deal on hold
Martin Walker
Chief international correspondent
Published 4/27/2002
     PRAGUE, Czech Republic, April 27 (UPI) -- One of
Europe's biggest and most controversial arms deals,
the Czech government's decision to buy 24 supersonic
Gripen fighters from Sweden at a cost of nearly $2
billion, is on hold after the Czech parliament this
week refused to approve the spending commitment. 
     Officials say the deal may not survive scheduled
June elections. 
     The purchase has contained some oddities from the
beginning. The Czechs decided to buy the planes as a
symbol of their commitment to the NATO alliance, which
the country joined in 1999. But the Swedes who
manufacture the Gripen are not NATO members, and there
is some question how well the fighters would operate
within the rest of NATO's air fleet. 
     The three other bidders for the deal, the
American Lockheed-Martin group offering F-16s, the
Eurofighter group whose aircraft is being bought by
Britain and Germany, and the French Dassault company,
all made the unusual decision to withdraw their offers
at the last minute, amid swirling rumors of
questionable procurement practices. 
     The Czech government has dismissed the concerns,
saying that the Gripen is a joint venture of the
Swedish group and Britain's BAe group, whose 35
percent participation in the Gripen deal is sufficient
guarantee that the fighter will be able to operate
with other NATO air forces. But although British prime
minister Tony Blair made a strong pitch for the Gripen
deal on a recent visit to Prague, raising some
eyebrows back home, the fact remains that Britain's
Royal Air Force has no intention of buying the Gripen.

     The deal has far-reaching implications for NATO,
because all three new members, Poland, Hungary and the
Czech Republic, have decided to upgrade and Westernize
their formerly Soviet-made air forces at the same
time. The prospect of a major sales bonanza attracted
massive interest from the world's combat aircraft
manufacturers. So far, the Hungarians and Czechs have
gone for the Gripen, and the Poles remain undecided. 
     With NATO now expected to bring in seven
additional new members from Eastern Europe at the
alliance summit in Prague in November, the promise of
the enlarged NATO arms market is even more tempting.
But the high cost of advanced fighter jets is a major
problem for the Eastern European economies still
making the difficult transition from Soviet-style
central planning to free enterprise. Czech critics of
the Gripen deal say the cost will derail more urgent
plans to modernize the military. 
     "The purchase will only add to the present
paralysis of the Czech military budget -- with effects
on the procurement system that will continue for the
next three decades," Petr Vancura, director of the
Prague Institute for National Security, told United
Press International. "The real Czech priority is to
modernize the army, not to buy a small number of
high-performance fighters. The net result could be net
weakening of the Czech military contribution to NATO
-- which makes the British aspect of the deal all the
harder to understand." 
     BAe is the only non-American defense group to be
treated by the Pentagon as virtually a U.S. national
in defense procurement matters, and is a close partner
of Lockheed-Martin in the development of the new
"joint strike fighter". The BAe role in the Gripen
deal has provoked some tension in the relationship
between BAe and Lockheed-Martin, industry sources have
told UPI. 
     "The Czech Republic is already lagging in the
fulfillment of its NATO obligations to modernize the
army because of previous irresponsible purchases and
other financial commitments of the Ministry of
Defense," Vancura added. 
     The Gripen team made a highly attractive offer,
which included promises to invest more money into the
Czech economy than the initial purchase price of the
fighters, including promises to transfer technology
that would upgrade the small Czech aeronautic
industry. This aspect of the deal convinced the Social
Democrat-led government to go ahead with the deal. The
government has so far been unable to get parliamentary
approval for the first batch of payments, however, and
looks to be running out of time before scheduled
elections, now just two months away. 
     One factor in the parliament's reluctance to
approve the deal has been suspicions surrounding the
Gripen purchase after other bidders decided to back
away from the deal. Although prime minister Milos
Zeman came in on a promise to clean up widespread
corruption and "put the fraudsters into jail," the
Transparency International index cites the Czech
Republic as one of the more corrupt countries in
Europe, behind only Russia, Ukraine, Latvia, Slovakia
and Romania. 


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