My comment: Good signs coming from US administration about its defense
budget.

Peace and best wishes.

Xi

Gates Proposes Ending Lockheed F-22, VH-71 Helicopter
http://www.bloomberg.com/apps/news?pid=20601087&sid=aYfeSaDcCPe4&refer=home

April 6 (Bloomberg) -- Defense Secretary Robert Gates is recommending
the U.S. cap purchases of Lockheed Martin Corp.’s F-22 fighter jets at
187 and cancel the company’s VH-71 presidential helicopter and a new
Air Force communication satellite.

Four more of the F-22 fighters will be bought out of the 2009 war
supplement for a total of 187 aircraft, Gates said at the Pentagon
news conference today. He recommended terminating the presidential
helicopter program because “it runs the risk of not delivering the
required capability.”

Boeing Co.’s anti-missile Airborne Laser program made with
subcontractors Northrop Grumman Corp. and Lockheed should be limited
to one test aircraft, a person familiar with the decision said. The
recommendations must be approved by the White House and Congress.
Gates briefed members of Congress and their staff on the proposals
earlier today before a news conference at the Pentagon.

The changes “collectively represent a budget reshaped to reflect the
priorities of America’s defense establishment,” Gates said. “If
approved they will profoundly reform how this department does
business.”

Gates, in a prepared statement to reporters at the Pentagon, is also
recommend proceeding with buying three DDG- 1000 destroyers to be
produced by General Dynamics Corp. at Bath, Maine, and may continue
the older DDG-51 destroyers built by Northrop Grumman Corp. Ship
Systems at Pascagoula, Mississippi.

War Costs

The recommended cuts in weapons programs come as U.S. defense spending
is set to reach $654.1 billion for the fiscal year 2009, including war
costs, a 72 percent gain since 2000. President Barack Obama assigned
Gates, who took office during the Bush administration, to rein in
spending.

Standard & Poor’s Aerospace & Defense Index had risen 82 percent by
the seventh anniversary of the Sept. 11 attacks in 2008. Lockheed
shares tripled in that time, making it the biggest gainer among the
five largest U.S. defense contractors.

The recommendation to stop buying F-22s is a setback for Bethesda,
Maryland-based Lockheed, the world’s largest defense contractor.

Bridging the Gap

The company wants to keep building the plane to bridge the gap until
its new F-35 reaches full production. Gates would buy only four more
than the 183 F-22s currently on order by using the forthcoming war
spending, compared with the 60 more that the Air Force wants. He
endorses continuing Lockheed’s F-35 fighter program.

The F-22, conceived at the height of the Cold War to take on the
Soviet Union, was the focus of a lobbying campaign as Lockheed and its
subcontractors said halting production at the 183 already on order
could jeopardize 95,000 jobs in 44 states. At $354 million in
inflation-adjusted dollars including research and development costs,
it is the most expensive fighter in U.S. history.

Lockheed’s VH-71 presidential helicopter program based on a design by
AgustaWestland, a unit of Finmeccanica Spa of Italy, is a fleet of 28
helicopters, whose cost has more than doubled to $13 billion since the
company won the contract in January 2005. The original cost estimate
was $6.1 billion. Obama has called it an example of a program “gone
amok.” The current presidential fleet has some helicopters from United
Technologies Corp.’s Sikorsky unit that are 40 years old.

Gates recommends canceling the Air Force’s Transformation Satellite
Communication System program, which is intended to be a constellation
of five satellites and ground stations to provide data and message
services to ground forces throughout the world using laser beams. The
program, expected to cost as much as $11 billion, was to be awarded
this year. Boeing, Lockheed and its subcontractor Northrop Grumman
have said their designs show that the technology is feasible.


On Apr 5, 6:05 pm, xi <[email protected]> wrote:
> My comment: Echoing most economists and anybody with basic math skills
> I told several times that, once again, Americans have to choose "guns
> or butter". This time, guns are actual  guns, not just the usual
> economic statement. Americans and US governments have to choose either
> a military budget that matches the economic possibilities of a medium
> size country of 300,000 millions, in the range of Brazil or Indonesia,
> or they must accept growing poverty.
>
> As far as I know, this was part of the dilemma that USA and Europe
> (West and East) including Russia, had between 1960 and 1973. Let us
> see what they decide this time.
>
> Obama calls for fewer nukes. Others will call for fewer weapons, not
> just nukes. Matters that talks will replace threats. At least for a
> while. What else? Economic crisis does not allow governments high
> expenses in useless weapons without hurting well being of its people.
>
> But, what private defense corporations think about this reduction of
> budgets (and therefore of profits)? What military complex think? What
> will they do?
>
> Let us hope that history will not repeat. Humankind deserves one
> opportunity. Give peace a chance.
>
> http://www.youtube.com/watch?v=h9TLBPySMMY
>
> Peace and best wishes.
>
> Xi
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