Exclusive - Saudi Arabia, U.S. in talks on billions in arms sales

[The SC]

THAAD missile model is displayed during Japan Aerospace 2016 air show in Tokyo


Washington is working to push through contracts for tens of billions of dollars in arms sales to Saudi Arabia, some new, others in the pipeline, ahead of U.S. President Donald Trump's trip to the kingdom this month, people familiar with the talks told Reuters this week.

Saudi Arabia is Trump's first stop on his maiden international trip, a sign of his intent to reinforce ties with a top regional ally.

The United States has been the main supplier for most Saudi military needs, from F-15 fighter jets to command and control systems worth tens of billions of dollars in recent years. Trump has vowed to stimulate the U.S. economy by boosting manufacturing jobs.

Washington and Riyadh are eager to improve relations strained under President Barack Obama in part because of his championing of a nuclear deal with Saudi foe Iran.

Lockheed Martin Co (LMT.N) programs in the package include a Terminal High Altitude Area Defense (THAAD) missile defence system with several batteries, the sources said. The THAAD system, like the one being made operational in South Korea, costs about $1 billion.

Also being negotiated is a C2BMC software system for battle command and control and communications as well as a package of satellite capabilities, both provided by Lockheed.

The sources spoke on condition of anonymity because they were not authorized to discuss the negotiations, which also include previously reported contracts or items under discussion for years.

One such deal, an $11.5 billion package of four multi-mission surface combatant ships and accompanying services and spares, was approved by the State Department in 2015. Talks followed to hammer out capabilities, configuration and design for the complex warships but the deal has never gone to final contract.

The next step for the ships is likely a letter of agreement between the two countries, the sources said.

Versions of the ship used by the U.S. Navy, the Littoral Combat Ship, are built by Bethesda, Maryland-based weapons maker Lockheed Martin and Australia's Austal Ltd (ASB.AX). If a deal goes through, it would be the first sale of a new small surface warship to a foreign power in decades.

Any major foreign weapons sale is subject to oversight by Congress. Lawmakers must take into consideration a legal requirement that Israel must maintain its qualitative military edge over its neighbours.

Also, more than $1 billion worth of munitions including armour-piercing Penetrator Warheads and Paveway laser-guided bombs made by Raytheon Co (RTN.N) are in the package, the sources said.

The Obama administration suspended the planned sale because of concerns over the Saudi-led military campaign in Yemen and civilian casualties.

A U.S. administration official said the proposed Raytheon sale was still undergoing interagency review.

A Raytheon representative declined to comment on the sales.

A Lockheed representative said such sales are government-to-government decisions and the status of any potential discussions can be best addressed by the U.S. government.

A representative for the Saudi embassy in Washington declined to comment.

FLURRY OF ACTIVITY

One of the people with knowledge of the sales said that as planning for Trump's trip to Saudi Arabia intensified in recent weeks, the arms negotiations also accelerated.

Two U.S. officials said a U.S.-Saudi working group met at the White House Monday and Tuesday to negotiate the trip, as well as financing for military equipment sales and stopping terrorist financing.

© REUTERS/Kevin Lamarque Trump meets Saudi crown prince at the White House in Washington
Saudi foreign minister Adel al-Jubeir and other Saudi officials met with lawmakers at the Capitol on Thursday, including Senators Bob Corker and Ben Cardin on the foreign relations committee.

The Pentagon declined to comment. White House and State Department officials said it was U.S. policy not to comment on proposed U.S. defence sales until they had been formally notified to Congress.

The Obama administration had offered Saudi Arabia more than $115 billion in weapons. Most of the Obama-era offers, which are reported to Congress, became formal agreements though some were abandoned or amended.

Washington also provides maintenance and training to Saudi security forces.

http://www.msn.com/en-us/news/world...-billions-in-arms-sales-us-sources/ar-BBAN8Tf

 

[Ghareeb_Da_Baal]

lol.............

 

[Yaseen1]

u.s will steal Saudi Arabia resources by selling weapons more costly than their worth.Saudi Arabia should not waste money in buying u.s arms but rely on their own resources and if necessary buy Pakistan Turkey China and Russia made weapons.u.s is not permanent ally of any country specially Muslim world

 

[Arsalan]

@Śakra thank you for your valuable feedback.

Please do post again when you have something actually meaningful to share.

Thanks a lot.

The US-Saudia defense cooperation is stretched over decades now and Trump with all his bigotry still cannot deny the dollars coming there way from Saudia. This is the reality of our world.

 

[Irfan Baloch]

u.s will steal Saudi Arabia resources by selling weapons more costly than their worth.Saudi Arabia should not waste money in buying u.s arms but rely on their own resources and if necessary buy Pakistan Turkey China and Russia made weapons.u.s is not permanent ally of any country specially Muslim world

American weapons are proven to be superior in quality they are much cheaper than the French products that are prices almost 5 times

there is no chance of absolute replacement of first tier US weapon systems .. Turkey & Pakistan you listed are light years away in terms of resources, knowledge and R&D. even china is not there yet and relies on borrowed technology and is decades away from anything that Russia or west puts on the shelf.
it is more or a publicity stunt to put something out as "local" and I agree with it in its spirit but thats not the alternative

 

[The SC]

u.s will steal Saudi Arabia resources by selling weapons more costly than their worth.Saudi Arabia should not waste money in buying u.s arms but rely on their own resources and if necessary buy Pakistan Turkey China and Russia made weapons.u.s is not permanent ally of any country specially Muslim world

KSA stated many times that there will be no weapons purchase from any country without ToT..
There is a thread explaining it on the Arab Defence section..

 

[Silahtar]

@Bubblegum Crisis

What is the content of the $100 billion US & Saudi Arabia deal? Any details?

http://www.yenisafak.com/dunya/suud...-100-milyar-dolarlik-silah-antlasmasi-2659364

 

[foxf2390]

Where are those who see KSA as the Cradle of Islam and Chant Death to America on the same breath ?

 

[Ghareeb_Da_Baal]

lol...

 

[The SC]

@Bubblegum Crisis

What is the content of the $100 billion US & Saudi Arabia deal? Any details?

http://www.yenisafak.com/dunya/suud...-100-milyar-dolarlik-silah-antlasmasi-2659364

There are a lot of speculations, only THAAD is somehow credible, but for $100 billion, one can get a lot of systems with varying degrees of ToT.. So best is to wait a few more days till Trump arrives to KSA..
Note that the same news talk about $300 billions in arms procurements for KSA in the next 10 years..
This without even talking about the other $200 billion co-investments by the US and KSA in the infrastructure, industries and other sectors in both countries..

 

[Super Falcon]

KSA wasting money should have bought from Russia China this time

 

[Hassan Guy]

KSA wasting money should have bought from Russia China this time

why would they do that?

 

[Zarvan]

Jonathan Ernst | Reuters
President Donald Trump and first lady Melania Trump board Air Force One for his first international trip as president, including stops in Saudi Arabia, Israel, the Vatican, Brussels and at the G7 summit in Sicily, from Joint Base Andrews, Maryland, U.S. May 19, 2017.
The United States sealed a multi-billion arms deal to Saudi Arabia, the White House announced on Saturday, a move that solidifies its decades-long alliance with the world's largest energy producer just as President Donald Trump begins his maiden trip abroad as leader of the free world.


The agreement, which is worth $350 billion over 10 years and $110 billion that will take effect immediately, was hailed by the White House as "a significant expansion of…[the] security relationship" between the two countries.

Simultaneously, Saudi Arabia is in a broad-based push for economic reform, and as part of that effort signed a flurry of deals with private U.S. companies worth tens of billions of dollars.


Lockheed Martin, one of the world's largest defense contractors whose technology was part of the U.S-Saudi accord, said in a statement that the deal "will directly contribute to [Saudi Arabia's] Vision 2030 by opening the door for thousands of highly skilled jobs in new economic sectors."

The arms package represents an enhancement of Saudi Arabia's military capabilities as tensions flare in the region, with the U.S. viewing the Saudis as a linchpin in efforts to check the global ambitions of Iran. The country, the hub of Islam's most revered sites, but is also a target of radical Islamic extremism.

"This package of defense equipment and services support the long-term security of Saudi Arabia and the Gulf region in the face of Iranian threats, while also bolstering the Kingdom's ability to contribute to counter terrorism operations across the region, reducing the burden on the U.S. military to conduct those operations," the White House said in a statement.

For the Saudis, Trump's visit represents a diplomatic and public relations coup for Mohammed bin Salman, the Kingdom's 31-year old deputy crown prince. The U.S.-Saudi partnership has been fraught with controversy since the Sept. 11 attacks, which culminated last year in a Congressional vote to allow 9/11 families to sue the country for its suspected links to the attackers.

Saudi Arabia is the primary destination for U.S. arms sales, according to the Council on Foreign Relations, with the Kingdom purchasing nearly 10 percent of U.S. exports from 2011 to 2015.




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سلمان بن عبدالعزيز

✔@KingSalman
We welcome @POTUS Trump to KSA. Mr. President, your visit will strengthen our strategic cooperation, lead to global security and stability.

3:23 PM - 20 May 2017




The pomp and circumstance of the two-day Saudi visit also gives Trump — who sold himself to voters as an inveterate deal maker — a victory to merchandise abroad, just as his political pressures have intensified at home.

Over the course of the last week, the White House has been overwhelmed by news stemming from an inquiry into the Trump campaign's alleged links to Russia, and the abrupt dismissal of former FBI Director James Comey.

http://www.cnbc.com/2017/05/20/us-s...nearly-110-billion-as-trump-begins-visit.html

 

[Naara-e-Mastana]

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

 

[Hassan Guy]

*shane mcmahon theme plays*

Trust me these guys are gonna get F-35's soon.