Arm Now -- Pay Later
One of the fastest growing markets for industrial products in the world today is the defense systems of Third World nations. Total military spending by the underdeveloped nations is growing at...
...Statutory restraints on the FMS program are summarized in U.S...
...purchase of American arms...
...See Table 2 for a breakdown of FMS credits by region...
...U.S...
...As a result of a vigorous promotional campaign, FMS sales to underdeveloped countries rose from $96 million in fiscal 1965 to $1 billion in 1971--a 1,000 percent increase...
...Navy...
...The Pentagon's arms sales effort, known as the Foreign Military Sales (FMS) program, was developed as an adjunct to the grant system of Military Assistance Program (MAP...
...Navy 1969 1969-70 MB NETHERLANDS I Lockheed P-3C Orion maritime patrol Nov 1970 n.a...
...howitzer M-110 8-in...
...1969 AT3W 5 Cessna T-41A trainer aircraft MAP-funded n.a...
...Quoted in Chew, "Purveying Weapons...
...Recently, the Pentagon has requested approval of "concessionary" credit terms--3 percent interest and 20 years to pay-- in order to further encourage purchases by Third World nations...
...1 7 Direct Commercial Sales: Under existing legislation, direct sales of military hardware by private U.S...
...1968 SY (16) Fairchild C-119 Packet transport of arms transfers n.a...
...Meanwhile, not content to await the outcome of this legislative campaign, President Nixon in 1971 exercised his option, under Section 33c of the Foreign Military Sales Act, to waive the $75 million ceiling on arms transfers to Latin America...
...1968 1969-70 AT3W Cost: $6 mn...
...Military Assistance Program grant aid declined in these years from $1.24 billion in fiscal 1965 to $680 million in 1971...
...In order to compensate for increased U.S...
...Asia Date Date Recipient Qty Item Comment Ordered Delivered Source IRAN 2 Cessna 310L trainer aircraft MAP funded n.a...
...and Department of State Bulletin, February 22, 1971, p. 226...
...The results of this campaign were striking: between 1961 and 1967, U.S...
...6. For discussion of these programs, see: U.S...
...1 8 Total commercial sales for 1962-69 amounted to $3.5 billion, 1969 158 607 863 21 36 34 1,720 1 9 7 0 c 173 246 472 7 16 19 933 Total, 1950-64 445 222 4,015 9 267 136 5,095 Total, 1950-72 Grand Estimated Total 1950-72 1972 1971 259 1,031 500 21 72 15 1,898 245 711 1,029 18 144 2,146 Cash Sales Credit Sales = . . I I 1 1,546 1,864 9,786 7 3 313 257 13 838 462 2,153 110 53 37 7 23 15 3.193 2,008 4.017 9,896 125 690 280 15 17,031 I-6while sales for 1970-71 came to an estimated $983 million...
...GBW aircraft ated TURKEY 25 Convair F-102A Delta Dagger fighter MAP-supplied from n.a...
...4. George Thayer, "American Arms Abroad," The Washington Monthly, January, 1970, p. 63...
...But we are no more in a position to discontinue our supply of arms to our friends than we are in a position to disarm unilaterally, and I think in effect if we were to foreclose our sales of military equipment...
...15) Northrop F-5 Freedom Fighter aircraft No complete survey n.a...
...In order to protect American interests abroad from the threat of armed liberation movements, Nixon has forced our client regimes in the Third World to purchase substantial quantities of U.S...
...1968 AT3W MALAISIA n.a...
...GBW,MB 3 Lockheed C-130E Hercules transport Sep 1970 1971-72 MB,GBW aircraft BOLIVIA 12 Hughes 500M helicopter For COIN n.a...
...3 The United States, faced with mounting balance-of-payments deficits, has sought to encourage and exploit the growing appetite for advanced weapons in the Third World by mounting an aggressive and well-organized sales campaign...
...1968 AT3W 7 Bell 206A Jet Ranger helicopter For COIN & VIP 1968 1968-69 AT3W transport 5 Lockheed C-130E Hercules transport Cost: $15 mn...
...sale n.a...
...MAP- 1971 5 Destroyers supplied...
...Agency for International Development, Office of Statistics and Reports, U.6...
...Thus a study team organized by the Senate Foreign Relations Committee reported in 1967 that some North American F-86 Sabre fighters manufactured under license in Canada for use by the West German air force and later "sold" to Iran had ultimately wound up in the hands of Pakistan-despite an "official" U.S...
...Mar 1969 n.a...
...1970 beg.1971 MB 2 Lockheed KC-130 tanker aircraft Supplied by U.S...
...1971 1971 MB SPAIN 36 McD-D F-4C Phantom fighter-bomber Cost: $105 mn...
...I believe that the best hope of reducing our overseas involvements and expenditures lies in getting allied and friendly nations to do even more in their own defense...
...1970 AT3W 30 Lockheed C-130H Hercules transport Cost: $122 mn...
...1970 AT3W aircraft 4 Bell 206 Jet Ranger helicopter n.a...
...arms...
...Apr 1967 1968-69 AT3W 6 Kaman HH-43F Huskie helicopter Jan 1968 1968 AT3W 12 Cessna 0-2A light observation aircraft n.a...
...Congressional Record, October 15, 1969, E8503...
...GBW ation PAKISTAN 18 Lockheed F-104 Starfighter aircraft All arms transfers n.a...
...MB ECUADOR 12 Cessna T-41D trainer aircraft Oct 1970 Nov 1970 MB -9-__A___ _ Armc Tmrwefr_EL SALVADOR a's- a ~ U A w E s 6 Cavalier F-51 Mustang fighter Refurbished for aircraft $800,000...
...firms to sell licenses for the overseas production of American arms by foreign firms or governments...
...will supply equipment for and supervise construction of an M-16 rifle assembly plant in South Korea...
...Government's Export-Import Bank (Eximbank) has been authorized to serve as an agent for the Department of Defense by providing funds for the purchase of U.S...
...24 Hughes Tool Co., Aircraft Division 500M helicopter...
...VIETNAM, SO...
...Latin America Date Date Recipient Quantity Item Comment Ordered Delivered Source ARGENTINA 8 Hughes 369 helicopter n.a...
...1970 AT3W,MB aircraft garding deployment 1 batt Hawk S/A missiles J of Thai troops in 1970 n.a...
...dollars in millions] Total, 1965 1966 1967 1968 1969 1970 1971 1965-71 FMS Sales to developed nations 1,147 1,556 966 784 1,170 688 834 7,145 FHS sales to underdeveloped nations 96 204 128 299 515 227 1,048 2,517 FMS sales to int'l organizations 6 25 34 30 34 19 15 163 TOTAL FHS SALESa 1,248 1,785 1,128 1,113 1,720 933 1,898 9,825 Coercial saleab 274 312 345 335 329 567 416 2,578 GRAND TOTAL, SALES 1,522 2,097 1,473 1,448 2,049 1,500 2,314 12,403 Total military Aassistance grants 1,236 1,062 814 719 589 538 702 5,622 MAP grants to developing nations 1,042 965 678 640 584 538 702 5,149 aSource: U.S...
...as 3 Lockheed P-3 Orion maritime patrol part of agreement aircraft allowing continued 1970 beg.1971 MB 4 Sikorsky SH-3D ASW helicopter U.S...
...1968 SY aircraft to Vietnam can be 80 Bell UH-11 Iroquois helicopter made as much U.S...
...MB,AT3W 300 M-113 armored personnel carrier bargoed Mar...
...Ibid., p. 2-3...
...Overseas Loans and Grants, July 1, 1945-June 30, 1970 (Washington, D.C: 1971...
...1970 beg.1971 MB,AT3W 4 Sikorsky S-61D helicopter For ASW Jul 1971 n.a...
...1971 GBW 2 submarines loan agreement n.a...
...MB 1971 SAUDI ARABIA 2 Lockheed C-140 Jet Star transport 1969 AT3W aircraft (30) Northrop F-5A/B Freedom Fighter Sale being negoti- n.a...
...1968 1969 AT3W AT3W MEXICO 20 Beechcraft Musketeer Sport trainer Coat: $500,000 1969 1969-70 MB,AT3W aircraft NICARAGUA 4 Hughes OH-6A helicopter MAP funded 1970 n.a...
...Henry wore a homburg," one of his associates later recalled, "but he wasn't a Zaharoff...McNamara simply appointed him vicepresident and general manager in charge of pushing arms in the far corners of t e globe--and Henry pushed them...
...manufacturers or suppliers, for defense articles and services which are not available from USAF stocks or resources...
...paid with May 1968 1969 SY,AT3W 100 M-48 main battle tank credit from Libya, Saudi Arabia and Kuwait Mar 1968 - 10 - 1968-69 AT3W * _ e X X X Ad Do A -Arms Transfers Date Date Recipient Qty Item Comment Ordered Delivered Source JORDAN, con'd 18 Lockheed F-104A Starfighter aircraft Refurbished ex- May 1968 1970 SY,AT3W Taiwan air force 200 14-113 armored personnel carrier Sale under negoti- n.a...
...During this period, FSM sales to underdeveloped countries rose steadily from $96 million in fiscal 1965 to $1.05 billion in 1971, amounting to a total of $2.5 billion for the entire period (the dramatic increase in FMS sales to Third World nations is indicated in Chart A...
...So far, six countries have made use of this service: Britain ($810 million), Australia ($614 million), Italy ($153 million), Spain ($120 million), New Zealand ($55 million), and Austria ($31 million...
...AT3W 1 destroyer, "Fletcher" class Ex-U.S...
...1969 AT3W aircraft 14 Hughes 269 M helicopter n.a...
...1968 AT3W 14 Aero Commander 500 light aircraft Cost: $1.5 mn...
...bases abroad...
...MAAG personnel are specifically charged with the responsibility to "further the sale of U.S.-produced military equipment to meet valid requirements...
...Such third-country transactions are often employed when direct American sales would prove embarrassing to the U.S...
...Treasury . Credit terms are generally favorable: interest rarely exceeds 6 percent annually, and up to 10 years are allowed for repayment...
...Amendments to the Foreign Military Sales Act and Foreign Assistance Act have further restricted the transfer of advanced military equipment (particularly supersonic aircraft) to Third World countries...
...Michael Klare 1. U.S...
...Thus, Boeing-Vertol CH-47C Chinook helicopters now being assembled in Italy are eventually destined for sale to Iran...
...7. Cited in U.S...
...to our friends throughout the world, we are disarming ourselves...
...8. Quoted in Peter T. Chew, "Purveyinj Weapons to World's 'Needy,'" National Observer, February 16, 1970...
...Specifically, the MAAG's are enjoined with the responsibility to: -- Analyze and survey potential needs andl requirements of the country, keeping higher logistics headquarters informed, and requesting [data on the] availability (or future availability) of U.S...
...arms industry while arming America's client regimes, it is unlikely that the day will come soon when the United States will cooperate in the control of overseas arms races...
...MB aircraft PORTUGAL 1 Destroyer-escort Displmt: 1700 tons...
...Apr 1970 1971-73 MB copter 30 Lockheed P-3C Orion maritime patrol For ASW Nov 1970 n.a...
...In supporting this program, Pentagon officials calculate that when such students return to their country, they will request purchases of the American equipment they had become accustomed to using in training exercises...
...Military Assistance Institute, "MAAG Duties," Memorandum, December 3, 1964, cited in James Refson, U.S...
...beg.1971 license in Japan KOREA (SOUTH) n.a...
...Warnke went on to suggest: In many instances these are the cheapest defense dollars that we spend...
...1969 AT3W 3 Northrop F-5 Freedom Fighter aircraft On order 1971 n.a...
...ARMS TRANSFERS TO FOREIGN COUNTRIES, 1968-72 ABBREVIATIONS (excluding sources, which follow at end of table): ASW: antisubmarine warfare batt: battery B-Vt: Boeing-Vertol COIN: counterinsurgency displmt: displacement MAP: Military Assistance Program McD-D: McDonnell-Douglas mn: million NA: North American n.a.: not available S/A: surface-to-air SP: self-propelled S/S: surface to surface t: tons beg.: beginning Notes figures and dates in parentheses indicate that data is approximate...
...long-term 1969 1969-70 MB 4 Destroyers loan THAILAND (7) Bell UH-1 Iroquois helicopter M A-supplied as part n.a...
...See also discussion in Arms Trade/3rd World, pp...
...NA F-100 Super Sabre fighter aircraft $30 mn...
...1 One survey of worldwide defense spending indicates that Third World expenditures on military hardware increased from $3.3 billion in 1968 to an estimated $5.5 billion in 1972-an increase of 67 percent in five years...
...Senate, Committee on Foreign Relations, Foreign Military Sales, Hearing, 90th Cong., 2nd Seas., 1968, p. 42.Appendix: U.S...
...Aug 1969 beg.1971 MB,GBW aircraft 8 Boeing-Vertol CH-47C Chinook heli- Sep 1970 1972 MB copter 3 Destroyers Ex-U.S...
...AT3W being built by MAP i ISRAEL 73 Douglas A-4B Skyhawk attack aircraft All a sales to 1968 1968-69 AT3W 7 Sikorsky S-65A assault helicopter Israel are subject n.a...
...1971 GBW East Asia & Pacific Date Date Recipient Qty Item Comment Ordered Delivered Source AUSTRALIA 24 McD-D F-4E Phantom fighter-bomber 4-year lease, $6 mn...
...occupation of 4 Bell AH-1G HueyCobra assault heli- air and naval bases copter in Spain...
...240 Sikorsky Aircraft CI-53 Sea Stallion helicopter...
...17-19...
...1968 AT3W (5) Cessna T-37C trainer aircraft For training, COIN n.a...
...The MIT study is hereinafter cited as Military Training and Advice...
...1969 AT3W 16-18 McD-D F-4 Phantom fighter-bomber to much secrecy, Sep 1970 1971 MB 2 Lockheed C-130E Hercules transport so quantities must n.a...
...226 F-4 Phantom fighter-bomber...
...Apr 1970 1970 AT3W,MB aircraft COLOMBIA 2 Lockheed C-130E Hercules transport Cost :$6 mn...
...The new Agency's charter (embodied in Department of Defense Directive Number 5105.38) specifies that, among other functions, DSAA will: -- Conduct international logistics and sales negotiations with foreign countries, as directed by the Assistant Secretary of Defense (International Security Affairs) and in coordination with the Assistant Secretary Chart A: FMS SALES TO DEVELOPED COUNTRIES VS...
...For discussion of U.S...
...funds for this purpose are voted annually by Congress...
...Charles A. Meyer, "U.S...
...1971, Oct 1970 n.a...
...1968 AT3W 12 NA F-86F Sabre fighter aircraft MAP-supplied n.a...
...Under pressure from an aroused public and a war-weary Congress, the Administration has been obliged to withdraw American combat troops from Asia and to reduce the rate of defense spending at home...
...1973 GBW bomber 12 B-Vt CH-47C Cinook helicopter Cost: $41 mn...
...1968 AT3W aircraft JAPAN 30 Hughes OH-6A Cayuse light observation To be produced under n.a...
...74 The Boeing Company, Vertol Division CH-47 Chinook helicopter...
...Hopefully, we will be able at some point to talk with the Soviets both about the mutual disarmament and about control over arms races...
...33 McDonnell Douglas Corporation A-4 Skyhawk aircraft...
...1969 AT3W aircraft 5 Lockheed F-104 Starfighter aircraft 2 Bell 47G helicopter 2 NA-Rockwell Courser Couzmmander transport aircraft 18 Convair F-102 Delta Dagger interceptor aircraft Cost: $224,000 Cost: $424,000 MAP supplied from excess U.S...
...credits to individual countries are provided in NACLA Newsletter, Vol...
...MB aircraft 66 McDonnell F-101 Voodoo fighter Cost: $66 mn...
...Department of the Air Force, Manual 400-3, op...
...arms sales increased sixfol 9--from $300 million to $1.8 billion annually...
...As appropriate, develop plans and programs to demonstrate and promote the sale of such available (and future available) material to the country...
...2 5 Not only are the MAAG's enjoined to provide private firms with information, but also to actively promote such commerical sales: the same manual notes that it is U.S...
...9. Arms Sales and Foreign Policy, p. 3. 10...
...Maintain liason with and assist U.S...
...Overseas Loans and Grants, Preliminary FY 1971 and Trend Data (Washington, D.C.: 1971).-4The Nixon Doctrine places the Military Assistance Program and Foreign Military Sales in a special position in our foreign policy...
...Navy 2 Boeing 707 troop transport aircraft Cost: $18 mn...
...Thus the Air Force manual on Military Assistance Sales indicates: "When directed by appropriate authority, [MAAG personnel will] cooperate with representatives of specified U.S...
...Arms Sales and Foreign Policy, p. 3. 21...
...1968 AT3W 2100-3050 tons 2 gunboats Being built thru MAP n.a...
...GBW ation 128 Hawk S/A missile n.a...
...BGW,MB 11 Bell A-G ueyCobra attack heli- Cost: $13.8 n. Feb 1971 1974 MB copter BURMA 12 Kamen H-43B Huskie helicopter n.a...
...House of Representatives, Committee on Foreign Affairs, Foreign Assistance Act of 1971, Hearings, 92nd Cong., 1st Sees., 1971, 55...
...2 6 Concluding that significant host country purchases of U.S...
...combat forces from South Korea - 11 - (1969) 1968 1969 n.a...
...arms transfers 1968-1972, see Appendix...
...1965 268 154 793 6 22 6 1,248 174 355 1,181 2 47 25 1,785 135 354 525 38 43 34 1,128 1968 164 346 522 3 48 30 1,113 As can be seen in Table 2, Western Europe, Canada and Japan have been the largest customers for our military products...
...sales to developed countries reached a peak of $1.6 billion in fiscal 1966, and then dropped to an average of $900 million annually in the succeeding five years (see Chart A...
...n.a...
...MB 4 Cessna T-37 trainer aircraft were shipped June Mar 1971 n.a...
...MB South Vietnam...
...Of this number, the great majority came from Third World countries: thus Latin America accounted for 54,000 men, East Asia 144,000 and the Near East 50,000.28 Although ostensibly this program is designed to improve the defense capabilities of underdeveloped countries, a very real--if unspoken--goal is to inculcate a familiarity with, and appetite for, American-produced weapons...
...V, No...
...MB,AT3W 4 Coastal patrol boats but some weapons Nov 1970 n.a...
...weapons sales to the Third World is a major component of President Nixon's military policy...
...training programs for Latin Americans, see: Willard F. Barber and C. Neale Ronning, Internal Security and Military Power (Columbus, Ohio: Ohio State University Press, 1966...
...displmt: n.a...
...Department of Defense Directive 5105.38, August 11, 1971, cited in "Defense Security Assistance Agency," Government Business Worldwide, October 28, 1971...
...Military Assistance Policy Toward Latin America," Department of State Bulletin, August 14, 1969, p. 102...
...PF" class Displat: 900-1135 t; n.a...
...See also discussion in Arms Trade/3rd World, pp...
...FMS Loan Guaranties: In order to generate additional funds for purchase of U.S...
...175-8...
...Military Training and Advice: Implications for Arms Transfer Policies, Arms Control Project, Center for International Studies (Cambridge, Mass.: Massachusetts Institute of Technology, 1970), p. 10...
...3. Stockholm International Peace Research Institute, The Arms Trade with the Third World (Stockholm: Armquist & Wiksell, 1971), p. 9. (Hereinafter cited as Arms Trade/3rd World...
...see Chart A...
...firms to foreign governments are under the purview of the Department of State and Treasury...
...12 Northrop Corporation F-S Freedom-Fighter...
...arms and to supply mercenaries for U.S.-led counterinsurgency operations...
...Led by Senators J.W...
...12...
...1968) SY 10 Cavalier F-51 Mustang fighter Refurbished by MAP...
...beg.1971 GBW helicopter license in Japan 81 Bell UH-N Iroquois helicopter To be produced under Nov 1971 1972-75 GBW license in Japan n.a...
...Arms Sales and Foreign Policy, pp...
...65 Total numbers of aircraft and helicopters sold by principal U.S...
...Between 1950 and 1970, 319,000 foreign military officers and enlisted men received training at schools in the United States and at U.S...
...Provide assistance to the country in preparation of purchase or loan requests...
...CSource: U.S...
...House of Representatives, Committee on Foreign Affairs, Reports of the Special Study Mission to Latin America, Committee Print, 91st Cong., 2nd Seas., 1970...
...cit., p. 2-3...
...CNo PNS credits appropriated in fiscal year 1970...
...4 Since, in the immediate postwar era, most of our allies were unable to shoulder the burden of their own and the common defense, the United States gave generously of its own resources to remilitarize Western Europe and the "forward defense areas" on the borders of the Soviet Union in Asia...
...18 OH-58 light observation helicopter...
...Department of Defense, Office of the Assistant Secretary of Defense for International Security Affairs, Military Assistance and Foreign Military Sales Facts (Washington, D.C.: 1971), p. 21...
...193 S-61 helicopter...
...Jun 1970 1970-73 MB will be replaced by F-111C's 24 General Dynamics F-111C fighter- n.a...
...Thus, the United States began to ship large quantities of eapons to its allies who, it was hoped, would help stem the Soviety tide...
...2 Since most countries seek to acquire increasingly complex and sophisticated weapons, the production of such equipment tends to be concentrated in a handful of the most advanced industrial nations: between 1950 and 1969, four countries--the United States, Soviet Union, Britain and France--supplied 87 percent of the major weapons systems acquired by underdeveloped countries...
...1969 AT3W 16 NA-Rockwell OV-10A Bronco COIN of agreement re- 1969 beg...
...bDepartment of Defense sales only - excludes direct sales by U.S...
...Strong nationalist resentment has arisen over what is seen as United States efforts to infringe on the sovereign rights of a country to determine its own military'requirements...
...1 6 Country-X loans were prohibited by the Foreign Military Sales Act of 1968, and now the Eximbank is only allowed to make loans to developed countries...
...7 Hughes OH-6A helicopter MAP funded 1970 n.a...
...for ASW...
...beg.1970 MB,GBW JORDAN 18 Lockheed F-104A Starfighter aircraft 1 $100 mn...
...405 F-101 Voodoo fighter...
...arms in one country for sale to another country...
...FMS SALES TO UNDERDEVELOPED COUNTRIES, 1965-71 [By fiscal year...
...1967-68 AT3W LIBYA 10 Northrop F-5 Freedom Fighter aircraft 1967 1968-69 AT3W 1 Lockheed C-140 Jet Star transport n.a...
...Between 1962 and 1968, FMS sales to developed countries amounted to $10.5 billion while sales to underdeveloped nations came to only $1.1 billion.10 As the 1960's progressed, however, the market for American military products in the developed nations began to shrink: worried that the increased sophistication of modern arms would lead to the monopolization of weapons development by the Soviet Union and the United States, many European nations (and later Japan) expanded their own arms industries in order to be assured that they would not be "frozen out" of advanced military technologies...
...The Mutual Security Act of 1954 requires that firms wishing to engage in such trade must obtain a license from the State Department's Office of Munitions Control...
...307 206A Jet Ranger helicopter...
...NOTES 18...
...Agency for International Development, Office of Statistics and Reports, U.S...
...Sep 1969 beg.1971 MB,GBW 74 Bell COH-58A light observation heli- Cost: $11 mn...
...During the Kuss regime, the Pentagon's sales campaign was directed primarily at the developed nations of Western Europe, as well as Japan, Canada and Australia...
...18 (18) n. a. n.a...
...MB PERU 1 Douglas C-54 transport aircraft MAP supplied n.a...
...1968 AT3W 6 Lockheed C-130 Hercules transport Mar 1970 MB 1 Gunboat Displmt: 145 tons...
...8 While heading the ILN office, Kuss converted the Pentagon's military aid missions abroad into agents for the U.S...
...THE U.S...
...Backed by these arguments, the Administration is pressuring Congress to raise the ceilings on arms exports to Latin America and Africa...
...The Foreign Military Sales Act of 1968 limits annual arms exports to Latin America and Africa to $75 million and $40 million respectively, and suspends all U.S...
...SY: Stockholm International Peace Research Institute, SIPRI Yearbook of World Armaments and Disarmament, 1968/69, and SIPRI Yearbook of World Armaments and Disarmament, 1969/70 (Stockholm: Almqvist & Wiksell, 1969 & 1970...
...Export-Import Bank Loans: Since 1963, the U.S...
...Principal Eximbank borrowers have been the advanced nations of Western Europe--but Third World countries have also obtained funds from the bank under a program known as "Country-X" loans, in which the identity of the borrower was known only to the Department of Defense...
...firm to arrange for the licensed production of U.S...
...The shift in emphasis from grant aid to FMS sales is vividly demonstrated in Table B.) As can be seen in the Appendix, the principal beneficiaries of the growing sales program are the aerospace companies which produce the et fighters, transport planes, light aircraft, and helicopters currently sought by foreign armed forces...
...GBW 6 Hughes 500M helicopter May 1971 n.a...
...FMS SALES TO UNDERDEVELOPED COUNTRIES [By fiscal year...
...1968 SY MAP-supplied...
...171-4...
...military advisors are also mandated to cooperate with private industry in promoting the sales of American arms abroad...
...United States regulations require that all third-country deals receive the approval of the U.S...
...military export programs at the command level, President Nixon on August 11, 1971, created the Defense Security Assistance Agency (DSAA) as the sixth Defense-wide management organization (other such organizations are the Defense Supply Agency, Defense Communications Agency, and Defense Intelligence Agency...
...source: Departsent of States Bulletin, February 22, 1971, p. 226...
...DSAA assumed most of the functions of the Office of the Deputy Assistant Secretary of Defense for Military Assistance and Sales (the successor to the International Logistics Negotiations Office originally headed by Henry Kuss), which had shared authority over the FMS program with the sales agencies of the separate services...
...and U.S...
...GBW helicopter being negotiated Sources: AT3W: Stockholm International Peace Research Institute, The Arms Trade with the Third World (Stockholm: Almqvist & Wiksell, 1971...
...Sep 1970 1971 MB aircraft 25 Beechcraft Musketeer Custom III Cost: $825,000 Jan 197 beg.1971 MB,GBW trainer aircraft DENMARK 12 Hughes OH-6A Cayuse light observation Dec 1970 beg.1971 MB,GBW helicopter GERMANY, WEST 133 Sikorsky CH-53G Sea Stallion transport To be produced under Apr 1971 n.a...
...That is why, in the interests of maintaining an adequate defense posture at minimum cost, the growing use of credit-assisted sales of military equipment, as well as increased military assistance, seem clearly indicateed for the immediate future...
...1969) n.a...
...Mar 1971 1972-73 MB,GBW aircraft CANADA 124 Bell CUH-lN Iroquois helicopter Cost: $50 mn...
...stocks n.a...
...61 P-3C Orion aircraft...
...GBW transport aircraft license in Japan 104 McD-D F-4E Phantom fighter-bomber To be produced under n.a...
...Often compared to Sir Basil Zaharoff, the original "Merchant of Death," Kuss was promoted to Deputy Assistant Secretary of Defense in 1964 for his success in boosting military sales...
...1971 GBW 14 Grumman S-2E Tracker reconnaissance MAP-funded...
...62 Cessna Aircraft Company T-37 trainer, AT-37 attack plane...
...JT-8D turbofan engines for C-1 To be produced under Mar 1971 n.a...
...2, April, 1971...
...As noted by the Arms Control Project of MIT's Center for Internaional Studies, "it can also be suggested that any state interested in selling its arms to other countries is at a tremendous advantage when it has military advisors capable of providing sales information in such detail assigned to advise its potential sales customers...
...meedless to say, such mandates are extremely difficult to enforce while} in many cases, there is no desire to enforce them...
...Department of the Air Force, Directorate of Military Assistance and Sales, Information and Guidance on Military Assistance Grant Aid and Foreign Military Sales, 12th ed...
...The new head of DSAA, Army Lt...
...104 T-41 trainer aircraft...
...1 1 On the basis of this argument, Nixon in 1971 sought approval for the largest FMS program in United States history: $510 million in credits and loan guarantees was requested to help finance total arms purchases estimated at $2.15 billion--a 700 percent increase over the pre1961 average of $300 million a year and twice the average rate during the 1960's...
...46 General Dynamics Corporation F-1ll fighter-bomber...
...AT3W CHILE 1 Piper PA-31 Turbo Navajo transport n.a...
...2 4 Under current Department of Defense regulations, U.S...
...Michael Klare, "U.S...
...3 0 Since, as we have seen, the United States Government is determined to expand weapons sales to the Third World in order to further enrich the U.S...
...To realize that hope, however, requires that we must continue, if requested, to give or sell them the tools they need for this bigger load we are urging them to assume...
...MB,GBW 100 McD-D A-4N Skyhawk attack aircraft Sale under negoti- n.a...
...Department of Defense, Office of the Assistant Secretary of Defense for International Security Affairs, Military Assistance and Foreign military Sales Facts (Washington, D.C.: 1971...
...FMS Cash Sales: Under the Foreign Military Sales Act and other legislation, the Department of Defense is authorized to arrange direct government-to-government sales of American military hardware...
...Ex-U.S...
...amounts in millions] 1965 $1,147 M $96 1966 $1,556 $204 1967 $966 $128 1968 $784 $299 1969 $1,170 $515 1970 $688 3AM $227 (No credits appropriated) 1971 $834 $1,048 FMS sales to developed nations FMS sales to underdeveloped nations-7 of Defense (Installations and Logistics...
...private firms...
...and Arms Trade/3rd World, pp.171-4...
...George Thayer, who discusses the U.S...
...together, these countries have borrowed a total of $1.78 billion from the Eximbank...
...exporters, 1968-72 Lockheed Aircraft Corporation C-130 Hercules transport...
...May 1968 1968-69 AT3W 5 Piper PA-31 Turbo Navajo transport n.a...
...1971 GBW 18 aircraft be considered 18 McD-D A-4E Skyhawk attack aircraft tentative Nov 1970 n.a...
...1968 AT3W 6 Fairchild-Hiller FH-110O helicopter n.a...
...FMS Credit Sales: Under the Foreign Military Sales Act, the Pentagon is authorized to extend credit to underdeveloped nations for the1966 1967 -5Table 2: Military Sales by Region, 1950-72 (By Fiscal Year...
...Licensed Overseas Production: The 1954 Mutual Security Act and associated legislation enable the State Department's Office of Munitions Control to permit private U.S...
...ARMS SALES PROGRAMS In its drive to secure increased exports of military hardware to the Third World, the Department of Defense can employ a variety of methods for consummating and financing such sales...
...2. "Worldwide Procurement Potential for Military Arms and Equipment, 1972," Government Business Worldwide, December 20, 1971...
...Military Operations - Latin America," NACLA Newsletter, II (October, 1968), p. 1-8...
...14...
...23, 1970...
...troops (and other war-related activities in Southeast Asia) would contribute to an ever-increasing balance-of-payments deficit...
...arms industry-a function they still serve (see below...
...Government...
...Washington, D.C.: 1970), pp...
...2 9 In summarizing the Government's arguments on behalf of the Foreign Military Sales program, Assistant Secretary of Defense Paul C. Warnke commented in 1968 that "in a perfect world we wouldn't have to deal with arms sales...
...1968 AT3W 4 Bell UH-1H Iroquois helicopter For COIN 1968 1968 AT3W 7 Fairchild-Hiller FH-1100llOO helicopter n.a...
...AT3W,GBW 7 Martin B-57 Canberra bomber aircraft to Pakistan em- Nov 1970 n.a...
...arms at attractive interest rates...
...Senate, Committee on Foreign Relations, Arms Sales and Foreign Policy, Staff Study, 90th Cong., 1st Seas., 1967, pp...
...GBW helicopter license in Germany 175 McD-D F-4 Phantom fighter-bomber Cost: $1,240 mn...
...It is now more important than ever that these two instruments of U.S...
...1971Arms Transfers Date Date Recipient Qty Item Comment Ordered Delivered Source LAOS 20 NA T-28D trainer aircraft Used for COIN n.a...
...firms in furthering sales of U.S.-produced military equipment to meet valid country requirements...
...arms will win Washington's approval and thus advance their careers, many MAAG officers develop a personal interest in the FMS program, and thus, as noted by the MIT Arms control Project, generate independent momentum for the sales effort...
...SY SY GBW beg...
...Air Force (USAF) policy "to encourage direct transactions between eligible recipients and U.S...
...SP howitzers 6 Lockheed C-130 Hercules transport aircraft 48 M-108 105mm...
...Thus FMS shared the MAP program's Cold War goal of strengthening "Free World" defenses against anticipated Soviet invasions...
...Department of Defense, Office of the Assistant Secretary of Defense for International Security Affairs, Military Assistance and Foreign Military Sales Facts (Washington D.C.: 1971), p. 15...
...Such funds must be appropriated by Congress, and when repaid, returned to the U.S...
...1969 - 12 - AT3W AT3W AT3W -Arms Transfers Date Date Recipient Qty Item Comment Ordered Delivered Source ITALY 14 Lockheed C-130H Hercules transport Cost: $60 mn...
...1968 1969 AT3W aircraft 6 Bell UH-ID Iroquois helicopter For COIN 1968 1969 AT3W 4 Sikorsky S-61B helicopter For ASW 1968 1969-70 AT3W 25 Cessna T-37 trainer aircraft Can be used in COIN...
...Dec 1970 1970 MB aircraft 22 B-Vt CH-47C Chinook helicopter To be produced under n.a...
...policy of halting arms transfers to that country...
...1 5 Between 1950 and 1970, the Pentagon provided a total of $1.86 billion in credits under the FMS program, and another $1.34 billion is programmed for 19711972...
...industry in the export of military supplies, equipment and services...
...Under negotiation n.a...
...contract n.a...
...Fulbright and Stuart Symington of the powerful Foreign Relations Committee, these dissidents have been able to impose several restraints upon the FMS program...
...1968 AT3W MAP-supplied 2 Patrol vessels Displmt: 85-107 t...
...Arms Control & Disarmament Agency data, as cited in The New York Times, Mar...
...n. a. 1 Bell UH-iD Iroquois helicopter McD-D F-4 Phantom fighter-bomber Northrop F-A Freedom Fighter aircraft M-48A2C main battle tank M-107 175in...
...Once a license has been issued (presumably after it has received the blessing of the Department of Defense), the Office has no authority to supervise a sales agreement or to publish reports of such transactions...
...Congressional Record, October 15, 1969, p. E8503...
...Such sales totalled $11.13 billion between 1950 and 1970, and were expected to reach $13.84 billion by the end of fiscal 1972...
...66 North American Rockwell Corporation F-100 SuperSabre aircraft...
...2 M-107 175mm...
...Summary: Major Aircraft Exporters Bell Helicopter Company UH-1 Iroquois helicopter...
...Third Country" Arrangements: Occasionally, the United States will permit a foreign government to sell its U.S.-supplied weapons to another country, or a private U.S...
...GBW is a private intelligence newsletter.] MB: International Institute for Strategic Studies, The Military Balance, 1970-1971, and The Military Balance 1971-72 (London: International Institute for Strategic Studies, 1970 & 1971...
...AT3W I~~~~~~~~~~~~~~~~~~~~~~~ Near East & So...
...military spending abroad, therefore, he sought to persuade our allies in Western Europe and Asia to make substantial purchases of U.S...
...2 Actual sales and credit agreements under these various programs for the years 1965-71 are summarized in Table 1, "Trends in Foreign Military Sales," and in Table 2, "Foreign Military Sales Summary by Region...
...1968 SY aircraft For COIN BRAZIL 5 Lockheed T-33 trainer aircraft n.a...
...1970 n.a...
...policy be put to optimum use in helping to reduce both the monetary and the manpower burden we now carry in honoring international obligations...
...2 7 In their efforts to further the sale of American weapons to the Third World, MAAG personnel benefit from the program which sends thousands of Third World military personnel to armed forces schools in the United States and the Panama Canal Zone every year for training in various military specialties...
...1970 GBW copter troops are with24 M-109 175mm...
...5 At the same time, McNamara discovered that Congress was increasingly unwilling to subsidize the defense expenditures of our less-fortunate allies (MAP grant aid to Third World countries dropped from $1.3 billion in fiscal 1963 to$678 million in 1967), and thus he established an elaborate program of credits and loans to enable poor countries to borrow-funds for the purchase of U.S...
...to head the FMS promotion campaign...
...1972 GBW aircraft delivery pending 2 destroyers loan agreement n.a...
...GBW being finalized 6 Sikorsky S-61A4 transport helicopter Apr 1971 beg.1971 MB,GBW TAIWAN 70 Northrop F-5 Freedom Fighter aircraft n.a...
...for economic and military aid: no longer would our underdeveloped allies receive gratis the weapons we wanted them to have--instead they would be obliged to further tax their citizenry in order to pay for the military equipment we persuaded them to buy...
...Manage governmental and government-supported private sources of credit financing of foreign military sales...
...2 1 If the Director of DSAA is the Pentagon's "Vice-President and General Manager for sales," then the principal salesmen in the field are the military advisors assigned to U.S...
...Defense Secretary Robert S. McNamara, who sought to expand the Pentagon's conventional warfare capabilities, recognized that overseas deployment of U.S...
...1968 SY 180 M-48 and M-60 main battle tanks Cost: $36 mn...
...By equipping the indigenous people to contribute to their own defense and hence to the defense of the free world, we make it unnecessary for ourselves to get directly involved in [Vietnamtype] situations...
...n.a...
...Arms Sales and Foreign Policy, pp...
...beg.1971 AT3W,GBW license in Italy 2 Corvette...
...The New York Times, May 19, 1971...
...15 Douglas A-4F Skyhawk attack aircraft on order (1969) n.a...
...It was grounded in the knowledge that most of our allies were militarily vulnerable and in the belief that the Soviet Union was about to march into Western Europe and several other areas...
...1968 1968 SY aircraft 12 Hughes OH-6A helicopter (1966) 1968-69 SY 30 Cessna T-41D trainer aircraft MAP funded 1968 1969 SY 10 Cessna T-37 trainer aircraft MAP funded 1968 1969 SY DOMINICAN REP...
...1968 AT3W 24 Northrop F-5A/B Freedom Fighter 1967 1968 AT3W aircraft 32 McD-D F-4 Phantom fighter-bomber Cost: $140 mn...
...arms, McNamara in 1961 established a Pentagon sales agency, the International Logistics Negotiations (ILN) Office, and appointed Henry J. Kuss, Jr...
...long- n.a...
...SP howitzer M-113A armored personnel carrier MGR-1 Honest John S/S missile Gunboat (PGM) MAP-supplied...
...Until that day comes, however, I believe it is absolutely essential that we retain the ability to supply those countries that are willing to work with us toward a program of collective security...
...1969-70 AT3W 7 Bell 206A Jet Ranger helicopter Cost: $625,000 (1968) (1970) AT3W 20 McD-D A-4F Skyhawk attack aircraft Cost: $5 mn...
...14 C-119 transport aircraft...
...Under the Foreign Military Sales Act, the Department of Defense must maintain a reserve equivalent to 25 percent of all outstanding loans...
...Navy...
...47 Fairchild Hiller Corporation FHt-1100 helicopter...
...Military Training and Advice, p. 46...
...1969 AT3W aircraft 6 Lockheed C-130 Hercules transport Cost: $17 n. Aug 1969 1970-71 MB,AT3W aircraft MOROCCO 5 Northrop F-5 Freedom Fighter aircraft n.a...
...internal security MAP-funded Feb...
...howitzer drawn...
...1970 AT3W 9 Beechcraft 99A light transport Cost: $7.1 mn...
...1969 AT3W 20 Lockheed F-104 Starfighter aircraft Supplied by MAP 34 NA F-100 Super Sabre fighter aircraft from excess US 30 Fairchild C-119 Packet transport stocks 1970 beg.1970 MB,AT3W aircraft 50 Medium tanks 120 Howitzers 1 batt Nike-Hercules S/A missiles 3 Submarines Ex-U.S...
...100 F-104 Starfighter aircraft...
...74 F-86 Sabre fighter...
...1969 SY 60 Cessna A-37 ground support aircraft equipment is left n.a...
...weapons...
...Government in processing and implementing sales transactions...
...In order to make up for this decline in foreign sales, the Pentagon began to encourage substantial arms purchases by the Third World nations dependent upon the U.S...
...1971 GBW 2 Destroyer-escort Ex-U.S...
...long- 1971 1971-72 MB 3 LST landing ship J term loan UNITED KINGDOM 60 Sikorsky CH-53A Sea Stallion transport Cost: $234 mn...
...In the past, such guaranties have amounted to approximately $100 million annually (entailing an appropriation of $25 million for the reserve fund...
...Oct 1968 AT3W aircraft excess US stocks 25 Northrop F-5 Freedom Fighter aircraft n.a...
...1969 SY 20 B-Vt CH-47 Chinook transport heli- behind as U.S...
...GBW: Government Business Worldwide, "International Arms Traffic - Sales & Grants, 1971," (Washington, D.C.: IMD/International, 1971...
...Total military spending by the underdeveloped nations is growing at a rate of nine percent a year-twice that of developed countries, and also twice the rate of economic growth in the Third World...
...Increased U.S...
...Between 1945 and 1961, the United States gave away weapons worth a total of $25 billion, while arms sales in the same period amounted to only $2.5 billion, or ten percent of the grant effort...
...Military Assistance Advisory Groups (MAAG) in 45 countries...
...for n.a...
...economic and military aid to underdeveloped countries which divert an "excessive" amount of their resources to the acquisition of weapons...
...1 9 Europe, Canada and Japan accounted for the bulk of such purchases...
...49-50...
...dollars in millions] EAST ASIA & PACIFIC NEAR EAST & S. ASIA EUROPE & CANADA AFRICA LATIN AMERICA INT'L ORGANIZATIONS Unallocated credit TOTAL FMS SALES aSource: U.S...
...material that could be sold to meet these needs...
...6 McNamara's new arms sales policies were summarized in 1963 in Department of Defense Directive Number 5132.3, which affirmed : "Consistent with overall security objectives, maximum effort will be made to promote the program of selling U.S.produced military equipment and services to friendly nations...
...When President Kennedy took office in 1961, the goals of the FMS program changed radically...
...SP howitzers 18 M-109 155mm...
...1969) AT3W INDONESIA 3 Lockheed C-140 Jet Star transport n.a...
...weapons the Pentagon is authorized to guaranty loans by private banks and lending institutions to foreign governments for the purpose of obtaining American military goods...
...Sep 1971 1974-75 MB,GBW GREECE 40 Northrop F-5A/B Freedom Fighter n.a...
...total nAP aid during this period amounted to $5.6 billion, or less than half the amount of sales...
...Government...
...Department of the Army, General Policies and Principles for Furnishing Defense Articles and Services on a Sale or Loan Basis, Army Regulation 795-2-4, Washington, D.C., January 20, 1966, cited in Military Training and Advice, p. 42...
...In a 1969 statement to the Senate Subcommittee on Western Hemisphere Affairs, Assistant Secretary of State Charles A. Meyer reported that "Latin Americans have become puzzled and even suspcicous of our motives...
...Recent licensing agreements involve the production of Sikorsky CH-53G Sea Stallion helicopters in West Germany, and McDonnellDouglas F-4 Phantom fighter-bombers in Japan (see Appendix...
...In its effort to increase arms sales to the developing areas, the Nixon Administration has had to overcome the resistance of a handful of Congressmen who--in an attempt to prevent more Vietnam-type wars--have sought to limit military exports to Third World nations...
...amounts in millions] 1965 $1,042 $96 1966 $965 $204 1967 $678 $128 1968 $640 $299 1969 $584 $515 1970 $538 $227 (No credits appropriated) 1971 $702 _c-- I $1,048 MAP grants to underdeveloped nations FMS sales to underdeveloped nations-8who receive technical instruction at the InterAmerican Air Forces Academy at Albrook Air Force Base in the Canal Zone will naturally seek to fly in American planes (the kinds they are most familiar with) when they rejoin their own air forces...
...Department of the Air Force, Military Assistance Sales, Air Force Manual 400-3 (Washington, D.C.: 1966), pp...
...MAP supplied as part of ROK forces modernization pro- 1970 gram negotiated in conjunction with withdrawal of U.S...
...Jan 1971 GBW term loan Europe & Canada Date Date Date Date Recipient Qty Item Comment Ordered Delivered Source BELGIUM 12 Lockheed C-130H Hercules transport Cost: $55 mn...
...Feb 1969 n.a...
...Work directly with military departments and appropriate military area commands in arranging for receipt and transfer of military sales material, training and services...
...Such transactions can involve merely the sale of blueprints, or the construction of entire munitions factories (an example of the latter is the arrangement whereby Colt Industries, Inc...
...The Administration's plan was spelled out by Deputy Secretary of Defense David Packard in 1970 as follows: Table 1: Foreign Military Sales Trends, 1965-71 [By fiscal year...
...SALES APPARATUS In order to provide greater coordination of U.S...
...18 OH-6A Cayuse helicopter...
...7 In order to facilitate overseas purchases of U.S...
...2 2 MAAG functions under the FMS program include supplying the Pentagon with data on host country capabilities, resources and requirements, and acting as a go-between for the host country and the U.S...
...It is argued, for instance, that Latin American pilots Chart B: MILITARY ASSISTANCE GRANT AID TO UNDERDEVLOPED COUNTRIES VS...
...170-71...
...sales effort in his book The War Business, has written that: "Our arms aid program was originally conceived to promote the defensive strength of the West against the communist threat and to promote the concept of cooperative logistics--i.e., the use of common weapons systems--among allies...
...For a list of major U.S...
...for COIN 1 Fairchild-Hiller FH-1100 helicopter 1967 n.a...
...AT3W Being built thru MAP URUGUAY 2 Fairchild-Hiller FH-227B transport n.a...
...1 2 The 1968 Foreign Military Sales Act and subsequent legislation constitute a significant obstacle to President Nixon's effort to increase arms sales to the Third World, and Administration officials have campaigned vigorously to overcome these restrictions...
...5. Thayer, "American Arms Abroad," p. 64...
...SP howitzers 49 M-113 Armored personnel carriers 2 "Guppy"-class submarines Ex-U.S...
...See also Arms Trade/3rd World, pp...
...While these countries would prefer to obtain American equipment for their armed forces, he argued, Congressional restraints on the sale of sophisticated weapons are forcing them to turn to more expensive European substitutes...
...1 3 Since major sales agreements are normally accompanied by the provision of on-site training and technical assistance, the switch to European (or Soviet) producers would involve a corresponding decline in American influence upon the indigenous military...
...1971 MB aircraft VENEZUELA 4 Lockheed C-130H Hercules transport Dec 1970 1971 MB,GBW aircraft 12 Cessna 182 Skylane trainer aircraft Jun 1971 1971 MB,GBW Af rica Date Date Recipient Qty Item Comment Ordered Delivered Source CONGO (KINSHASA) 8 Lockheed C-130 Hercules transport Cost: $17 n. Jan 1971 MB aircraft ETHIOPIA (5) Bell UH-1H Iroquois helicopter MAP funded n.a...
...The wealth of information supplied to Pentagon salesmen in Washington by MAAG personnel gives the United States a distinct competitive advantage when negotiating for the sale of American equipment...
...1969 AT3W 40 NA F-lOOC Super Sabre fighter aircraft n.a...
...Military Training and Advice, pp...
...George M. Seignious II, has direct access to the Secretary of Defense as well as increased authority over the service sales agencies...
Vol. 6 • January 1972 • No. 1
