Boeing to take charges on KC-46 tanker over quality issue -finance chief

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  October 8, 2019 | International, Land

  Canada reviews footage of destroyed and captured Canadian-made Saudi armoured vehicles

  By DAVID PUGLIESE, OTTAWA CITIZEN The Canadian government says it is examining video footage which appears to show Canadian-made light armoured vehicles captured by rebels in Yemen. Yemen's Houthi rebels released the footage Sunday of the aftermath of a battle with Saudi Arabian forces. The fighting started as an ambush inside Saudi Arabia but then turned into a major cross-border battle, according to the rebels. The footage of the battle was shown on Houthi-run Al Masirah TV and Al Jazeera. Saudi Arabia has not acknowledged the fighting and the Houthi claims have not been independently verified. The footage shows the captured and destroyed light armoured vehicles as well as Saudi troops taken prisoner. Over the years, Saudi Arabia has purchased light armoured vehicles from Canada's General Dynamics Land Systems-Canada in London, Ont. In 2014, the then Conservative government announced a deal worth an estimated $15 billion to sell Saudi Arabia more than 700 light armoured vehicles. That controversial deal was later approved by the Liberal government. Besides the armoured vehicles, the video shows large amounts of captured small arms. It is not clear whether the Houthi forces took possession of some of the armoured vehicles or left them at the ambush site. Houthi spokesman Brig. Gen. Yahya Saree told Al Masirah TV that the captured soldiers were moved to “secure places.” Doug Wilson-Hodge, spokesman for General Dynamics Land Systems-Canada, said the company is declining to comment on the footage. Global Affairs Canada spokesperson Adam Austen said Friday that department officials are reviewing the footage. It is unclear what would be done after the footage is examined. Austen also noted the government is reviewing all export permits to Saudi Arabia but no final decision has been taken. “During this review, no new permits have been issued,” Austen added. A March 21, 2016 Global Affairs Canada memo released under the Access to Information law noted that officials in the department pushed for the sale of the light armoured vehicles to the Saudis despite concerns about human rights abuses and the possibility such equipment could be captured by rebels from Yemen. The memo pointed to the appearance of a Canadian-made LRT-3 sniper rifle photographed in the hands of a Houthi rebel in Yemen. More than 1,300 sniper rifles have been exported from Canada to the Saudi Arabian military and security forces, including several hundred of that particular model, the document added. “Canada's Embassy in Riyadh assesses that this rifle, along with other Saudi military equipment, was likely captured from Saudi fighters by Houthi fighters during military operations along the Saudi-Yemeni border,” then Foreign Affairs Minister Stephane Dion was told. The Liberal government launched the review of the light armoured vehicle contract after the murder of journalist Jamal Khashoggi inside the Saudi consulate in Turkey. Earlier this year a United Nations report determined that Saudi Arabia was responsible for the killing of Khashoggi who was a critic of that country's regime. A dozen organizations sent Prime Minister Justin Trudeau a letter earlier in August, questioning the status of the review and pointing out that no updates on progress have been provided. The lack of such information has brought “the sincerity of the effort into question,” according to the letter endorsed by organizations such as Oxfam Canada and Amnesty International. Relations between Canada and Saudi Arabia soured last year after the Canadian government called for the release of two jailed Saudi human rights activists. The Saudis have also fallen behind in their payments for the light armoured vehicles received from General Dynamics. It was revealed in December that the Saudis owed Canada more than $1 billion for vehicles already delivered. A Saudi-led coalition, which has been provided with arms and intelligence from the U.S. and other western nations, intervened in Yemen in 2015 after the Houthis overthrew the government. Saudi Arabia has faced severe criticism for its role in the ongoing war in Yemen, with allegations it has conducted unlawful airstrikes on civilians. Screen shots below of light armoured vehicles were taken from the Houthi video aired Sunday: https://ottawacitizen.com/news/national/defence-watch/canada-reviews-footage-of-destroyed-and-captured-canadian-made-saudi-armoured-vehicles

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  January 4, 2019 | International, Land

  Germany picks up two thorny defense and diplomacy assignments in 2019

  By: Sebastian Sprenger COLOGNE, Germany — Germany begins the new year with two prominent defense and diplomacy assignments: leadership of NATO's highest-alert combat formation, and a two-year seat on the United Nations Security Council. The two new responsibilities follow recent pledges by Berlin to play a more active role in global affairs, offering German Chancellor Angela Merkel an instant test to make good on those proclamations during the final years of her tenure. As of Jan. 1, Germany is on the hook to provide 5,000 soldiers for NATO's Very High Readiness Joint Task Force, or VJTF. The formation must be ready to fight wherever it is needed within 48 to 72 hours. Partner nations for this year's rotation include the Netherlands, Norway, France, Belgium, the Czech Republic, Latvia and Lithuania, bringing the total package to about 8,000. A key rationale for the quick-reaction force is to display to Russia the ability to rapidly ferry combat power across Europe at a time when speed is believed to be a Russian advantage. European governments are still wary from the 2014 Russian annexation of Ukraine's Crimea, and more recently from a naval standoff between the two countries in the Sea of Asov. Both incidents fit into a pattern of Russia steering clear of outright war while trying to shake up the post-Soviet order around its borders, according to issue experts. The German Defence Ministry's logistics planning for the VJTF role takes into account the need to quickly move combat gear if needed. Its acquisition office last month announced a $110 million support contract to ensure rapid access to military rail transport from civilian providers during Germany's one-year tenure. The Bundeswehr, plagued by equipment shortfalls, management problems or both — depending on who is asked — has had to dig deep to assemble the needed equipment for the task force lead. In the end, funneling supplies from across the force to the tip of the spear appears to have worked, but it has depleted the readiness of many units, said Christian Mölling, an analyst with the Berlin-based German Council on Foreign Relations. “It means the rest of the Bundeswehr is no longer the kind of deterrent it is meant to be,” he said in an interview. With the task force now on high alert, Mölling said, the thing to watch will be Germany's national decision-making process in the event that it will be called up. Parliament and the government, he argues, lack a well-rehearsed process for assessing whether a given conflict warrants deploying the task force, potentially kicking off a comprehensive national debate that would negate any hope of a rapid reaction. That is especially the case because of Moscow's penchant to keep its activities just below the conflict threshold that would trigger Article 5, NATO's clause for collective defense when one member is attacked. Amid deepening global crises and a deteriorating relationship between Europe and the U.S., a German government debating the definition of a worthy VJTF deployment would probably lead to Russian President Vladimir Putin “grabbing a bag of popcorn,” Mölling quipped. “We just don't have the necessary routine for a case like that,” he said. As a nonpermanent member of the U.N. Security Council, it's easy to foresee the animosity between Germany and the Trump administration in Washington coming to a head in New York, said Ulrike Franke, a policy fellow at the European Council on Foreign Relations think tank. Many Germans are deeply wary of the U.S. president and his knocking of NATO and other multilateral institutions that have brought Berlin back from the devastation of World War II. That is even more the case since Jim Mattis, a vocal believer in America's global alliances, called it quits as defense secretary last month. Foreign Minister Heiko Maas on Jan. 1 tweeted a list of objectives for Germany during its Security Council tenure. They include countering climate change and related global security effects, and a commitment to arms control and disarmament — issues that the Trump administration has dismissed. When it comes to the voting pattern of Berlin and Washington, often aligned on the Security Council stage, things could get a little awkward, Franke predicts. In practical terms, however, “I'm pessimistic that a lot will change,” she said. But Germany's term holds the promise that government leaders here will get into the habit of developing truly global foreign policy positions and selling them to audiences foreign and domestic, she said. https://www.defensenews.com/global/europe/2019/01/02/germany-picks-up-two-thorny-defense-and-diplomacy-assignments-in-2019/

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  July 22, 2020 | International, Aerospace

  Lockheed Martin May Go Shopping if Defense Budgets Fall Next Year

  July 21, 2020 | By John A. Tirpak If defense spending goes down in the coming year—expected because of large COVID-19 bailout packages—it could be an opportunity for Lockheed Martin, company President and Chief Executive Officer James D. Taiclet said July 21. In a second-quarter results call with investors and financial reporters, Taiclet—in his first such call after succeeding Marillyn A. Hewson in the job—said the company isn't betting on defense budgets to go up or down. But Lockheed is sitting on so much cash—nearly $8 billion—it could go shopping for other companies in distress if budgets fall, he said. “If there is a downturn, we're going to look for silver linings that may be there,” Taiclet said. Given the company's strong backlog and balance sheet, “there could be opportunities for us to act in a period where asset prices are depressed, for things we may want to bring into the company.” Acquisition targets “we really wanted ... might be even more available at attractive prices.” He did not discuss large possible acquisition interests, and only broadly mentioned looking at small companies able to build Lockheed's vertical integration in some technology areas. Taiclet declined to speculate on whether budgets will rise or fall. “We're just getting the company ready for either scenario, frankly,” he said. “If it's stable or slightly rising, ... we know how to handle that. But if it's declining, we're planning for that, too.” In case of a downturn, he's asked business area managers to do “a ‘Red Team' kind of exercise ... We would offer our customers ... ‘this is what we think you should do with our products and programs for extending'” the life of existing platforms. With a $150 billion backlog in hand, though—a new company “high water mark,” Taiclet said—“it's going to be two to three years” before any defense budget cuts “actually go into the defense industrial base production lines, so we have time to work with the customer ... They can have their contingency plan and we're behind them 100 percent.” Taiclet said international customers may also see budget declines, but doesn't expect Lockheed to be hit hard by that. While some requests for proposals are “moving to the right,” the planned in-service dates of prospective customers are not, he noted. Taiclet and Kenneth R. Possenriede, vice president and chief financial officer, said the company expects 90 total new F-16 orders from Taiwan and another country; C-130s for Indonesia; Aegis systems for Japan; and MH-60R helicopters for India, as well as increasing orders for missile defense systems. They also said the chief competitors to the U.S. are spending lavishly on defense systems and the threat is not diminishing, despite COVID. China is “aggressive and ... aspirational,” Taiclet said, while Russia is “back in the game,” making strategic investments in long-range systems to make up for its diminished ground forces. Production of the F-35, Lockheed's marquee aeronautics program, will likely be 40 percent for foreign users in the coming years, Possenriede said. Of the aeronautics division's $9 billion in orders, $7 billion is accounted for by the F-35, with a backlog of 411 airplanes. Taiclet noted that Lockhed has hired 9,000 new employees since the COVID-19 pandemic began, and is seeking to hire 3,000 more in this calendar year. https://www.airforcemag.com/lockheed-martin-may-go-shopping-if-defense-budgets-fall-next-year