Pentagon chief in India as fighter jet deal nears

[t-birds]

By Kristin Roberts
Reuters
Tuesday, February 26, 2008; 6:29 AM

NEW DELHI (Reuters) - U.S. Defense Secretary Robert Gates arrived in New Delhi on Tuesday to pursue closer strategic ties with India after a breakthrough aircraft deal the Pentagon thinks could usher in a new era of defense cooperation.

Gates' visit to India, the world's second-fastest growing major economy, also reflects the interest of both the United States and India to counterbalance the rise of China, defense officials said.

In meetings with Indian officials over two days, Gates will make a sales pitch for U.S. defense manufacturers competing against international rivals for a fighter jet contract potentially worth $10.2 billion.

"One of the messages the defense secretary will be bringing with him is, when you purchase from the U.S. you're getting not only the best product in the world but you have the best support system, the best maintenance package over the life of the product," the official said.

"You also have companies that operate with integrity, which is different than what India has seen with other partners in the world. We offer the full package."

After decades of pro-Soviet ties, India has moved closer to Washington in recent years, with new arms sales and joint military exercises. Millions of Indians also are turning to the United States for education, jobs and consumer goods.

POLICY SHIFT

Earlier this month, India agreed to buy six Lockheed Martin Corp C-130J military transport planes worth about $1 billion -- a deal that marked a major shift in weapons-buying policy by India, which has relied heavily on Russian arms and transport aircraft.

India now wants to buy 126 multi-role fighter jets, and U.S. manufacturers Lockheed and Boeing Co. are competing for the contract.

Also in the race are Russia's MiG-35, France's Dassault Rafale, Sweden's Saab KAS-39 Gripen and the Eurofighter Typhoon, made by a consortium of British, German, Italian and Spanish companies.

Gates' visit to New Delhi comes a week before India's March 3 deadline for bids.

"One of the things that has been the most, one of the most, significant changes since I came back to government, in an interval of 15 years or so, has been the significantly improved relationship between the United States and India," Gates said.

"And I want to see what we can do to not only strengthen that but perhaps expand it in other ways," he told reporters ahead of his visit.

India is fast becoming one of the world's biggest arms importers. Lockheed, the Pentagon's No. 1 supplier by sales, has said India could be the largest defense market in Asia with $20 billion in contracts over the next decade.

"SQUASH IT"

U.S. defense officials, however, denied a report that India wanted the United States to give it the USS Kitty Hawk aircraft carrier in exchange for New Delhi's agreement to purchase American F-18 fighters.

"Squash it," one senior official, speaking en route to New Delhi, said of the report.

"I will fall on my sword, I will hurl myself out of this airplane if there is any truth to this stupid story."

The focus on arms sales comes despite an impasse over a controversial civil nuclear deal seen by many as the centerpiece of India's strategic relationship with Washington.

The agreement, opposed by the Indian government's communist allies, would allow New Delhi to access U.S. nuclear fuel and reactors by overturning a three-decade ban imposed after India conducted a nuclear test while staying out of the Non-Proliferation Treaty.

"I'm here independent of that to see how we can expand the military-to-military relationship, independent of the civil-nuclear agreement," Gates said.

(Additional reporting by Bappa Majumdar; Editing by Alex Richardson)

 

[t-birds]

Gates visit here coincided with the announcement that India had tested a nuclear-capable missile, fired from an underwater platform in the Bay of Bengal. It was unclear if the test was successful.

Asked about the test, Gates said, "We have to deal with the world as we find it."

He added that, "I don't think there is ... risk particularly from our standpoint in doing that, I think that we have a lot of opportunities in the interaction with India."

India is building a nuclear-powered submarine expected to start sea trials next year. It would be able to launch ballistic missiles, which would give India second strike capabilities if its land- or air-based weapons were disabled.

Gates met with the prime minister, the minister of external affairs and other elected officials in the parliamentary government.

His visit comes during a somewhat volatile time in the region. Talks have stalled on a landmark nuclear cooperation pact between India and the United States, and New Delhi continues to eye nervously the ongoing unrest and terrorism threats in neighboring Pakistan.

Gates said that while he believes the nuclear agreement "is a good deal for both countries," his visit is independent of the ongoing negotiations. Still, he said, "We certainly are hopeful that India can get done what it needs to, so that we can get it done and get this agreement completed."

While neither subject was a major topic on the agenda for Gates' sessions with Indian officials, they are unquestionably linked with efforts to broaden India's military cooperation with the U.S. And officials are likely to seek out India's perception of the level of stability in Pakistan, where embattled President Pervez Musharraf's party was upended in recent elections, triggering questions about his future in office.