OK WH Export Changes, LockMar CEO Urges Hill

OK WH Export Changes, LockMar CEO Urges Hill

In an exclusive interview with DoD Buzz, Lockheed Martin CEO Bob Stevens says he hopes Congress looks favorably on the Obama administration’s proposed arms export control reforms because it will make U.S. companies more competitive, help generate U.S. jobs and better protect crucial U.S. technology.

The administration announced roll-out of its first tranche of substantial changes yesterday, none of them requiring congressional approval. Jim Jones, the president’s national security advisor, plugged the changes in an opinion piece in yesterday’s Wall Street Journal.

Congressional aides have indicated deep unease with some of the administration’s more ambitious proposals, such as a single agency overseeing arms export licenses and merging the State and Commerce departments lists governing what is subject to an arms export license.


I asked Stevens what he would tell a senator or congressman to allay fears that they might end up voting for changes that might lead to the loss of crucial American technology.

He said he hoped “that we can turn to facts and look to history and the experience we have had over the last couple of decades and recognize that the world is changing. Today much technology is already available on a global basis.” His comments echo those of former Deputy Defense Secretary John Hamre a decade ago, as well those of an influential Defense Science Board report at the time. But key lawmakers remain wary of changes that might lead to shifts in what committees would oversee arms exports and in what technologies would be subject to arms export licensing.

Stevens said he believes “we have the resources, the understanding” to create a single list of technologies and “to safeguard and to protect them.”

U.S. competitiveness should also drive arms export changes, he said: “It’s also in the interest of members of Congress and the administration and people like me in the industry to work on ways we can be more competitive.”

There is good reason for companies such as Lockheed to lobby for changes to the arms export control regime. Today, 14 percent of Lockheed’s sales are to international customers. “We believe that will grow to about 20 percent over the next few years,” Stevens said. Among the key Lockheed systems affected are the Joint Strike Fighter, the F-16, missile defense and commercial satellites, he added.

Another reason for reform — time is a component of competitiveness, Stevens noted. Critics have long complained that the current arms export system takes too long and is too uncertain in its outcomes.

In the long run, Stevens said the new system proposed by the administration would do a much better job of protecting truly sensitive technologies as it would focus more resources on fewer targets.

Finally, I asked him about the long-delayed arms export treaties with Britain and Australia languishing in the Senate, where they await ratification. He hopes they get ratified soon, as they will “be a stepping stone for a process we can rigorously police so trade can occur more fluidly and in no way damage the security of the United States.”

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Despite what the mainline economists and politicians believe, exporting countries historically have lost their competitive edge in the technologies they export. To support their own economies, those countries need to gain their technology and know how and typically buy the first versions of technologes they want. To compensate us, in military goods, since all of that technology was paid for with American taxpayer dollars, the U.S. government should charge LM and other defense companies a technology recoupment or recovery fee for every item they sell to international customers.

Or other countries will continue to buy from all but us. I do question whether they could even support exporting more weapons to more countries. We have such a backlog in so many areas that It does seem that we can’t even keep up with our own needs. Missile defense is one area in particular.

They want to be able to sell what the US decides not to buy for one reason or another, some of it better than what we have but too expensive. But just who are they hoping to sell to since most of our allies are broker than we are (China — Korea — Nam — Iran — Hammas ?????). Our government needs to keep close tabs on these contractors.

Good Evening Folks,

Hi BOOMER. This whole issue is to explosive for the Obama White House. The same Republicans who side with Mr. Wheeler would be the first to say that President Obama was giving away the US military’s family jewels.

If Lockheed Martin wants so bad to sell internationally all they need to do is have Israel be the middle man. Israel unashamedly trades/sells US military technology to anybody with the cash. US give Israel. the AWAC and EC-2, Israel sells the technology to China, when China can’t figure it out, Israel sends in the technicians to China to build the systems. Israel is an old customer of Lockheed Martin, all Wheeler wants to do is cut out the middle man and sell direct.

Of course China then turns around and sells the technology to Iran and Saudi Arabia, then Israel bit**es about it.

ALLONS,
Byron Skinner

>Of course China then turns around and sells the technology to Iran and Saudi Arabia, then Israel bit**es about it.

But at LM it’s known as a positive cycle.

Your right but in reality Isreal is not as bad as France is about it, We sold them a boomer in the early 70’s and they shared it with Russia escalating the cold war. LM should had jumped on the band wagon like some of the other buying out overseas companies as satalite units, they use these satalites to produce and sell to other countries what we would not allow them to export from the US, some of it is almost the same as ours, just different enough to get away with the propriatary claim. We are not as advanced over all our foes as most would like to think. A lot of military items coming out of South & Central America, Korea, Tiawan, Malaysia, Eurasia and so on is from our own drawing boards. The military needs to go back to designing and propriatary designating it’s gear if we are to really be ahead of everyone else.

Good Morning Boomer,

I will agree with you France, Generation 5 Night Vision for T-90 MBT and Mig-31 fighters, made by Thalas-Angenieux to The Russian Federation. French avionics can be found in PRC military aircraft, (sometimes via Israel). Germany and The Netherlands are also in the game, they are selling to the PRC Marine Diesels (BMW) and maritime positing electronics systems (Phillips and Siemens). for both commercial and military hauls, are rather lose in who they well technology to, but are not the worst of the Europeans in transferring US technology to the the US would rather not have that information.

The French again mostly through Thalas-Angenieux is providing the electro/optical systems, fire control, ASW, navigational systems and radar systems for the new Russian Corvette series of of ships.

Look at the records of Switzerland and Portugal. Both of these countries have developed numerous “shell corporations” that lack assets but are widely traded on stock exchanges, and “Import/Export” branch Banks in the middle east that regularly move products, intellectual services and currency into Islamic countries.

It is a matter of dispute of who introduced RDX to the terrorists was it Portugal or Ukraine. Regardless of who was first both countries supply this critical element in the making of IED’s/EFP’s in Afghanistan that is killing Americans.

In 2004 it was a Swiss made RPG anti tank round nicknamed “The Yellow Pencil”, the round left yellow paint marks on entrance and exit holes, that hit and went through and exited an M-1-A2 Abrams tank of the 1/77 Armor 1st. ID, in Mosul Iraq.

ALLONS,

Byron Skinner

Yeah — you would think that as afraid as they are of those radical — gun toting — bible thumping — constitutional advocating tea partiers, that they would want to give the military what ever it takes to keep them at bay in case of an uprising?????????????

Senator Stevens is dead

It is an interesting dilemma. The folks who push arms control are generally not the same people who concocted ITAR, but the effect is the same. You have economic arguments conflicting with strategic policy arguments (to the extent that the NSS actually enunciates a declaratory strategy) in a very, very ugly business climate. The administration cannot seem to look itself in the mirror and fess up to the structural unemployment it is inducing by cutting defense. So the US Government ends up looking more and more like your generic Western European social democracy, with the same contradications and the same set of double standards. Nobody mentioned India here, but I would think that India would be a buyer, either directly or through intermediaries. I’m reading Cohen’s book on Indian military modernization, and Israel is already a significant supplier of UAV technology to India.

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