By NATHAN HODGE And CAROL E. LEE
The Obama administration said it has reached a $30 billion agreement to sell advanced fighter aircraft to Saudi Arabia, part of a broader push by Washington to counter Iranian power.
APStaff Sgt. James Liedle refuels an F-15 aircraft at Joint Base Elmendorf-Richardson on June 14, during the Northern Edge military training exercises near Anchorage, Alaska.
The government-to-government deal announced on Thursday includes the sale of 84 new F-15 fighter jets and an upgrade of 70 others.
The package, which follows more than a year of discussions, comes amid escalating tensions between Iran and the U.S., and will help beef up the military of one of Washington's principal Middle East allies.
"This agreement reinforces the strong and enduring relationship between the United States and Saudi Arabia, and demonstrates the U.S. commitment to a strong Saudi defense capability as a key component to regional security," said White House spokesman Josh Earnest.
The White House also cast the agreement as one that would help give a lift to the U.S. economy, saying it would generate more than 50,000 manufacturing and supplier jobs in 44 states. The F-15s are manufactured by Boeing Co. in St. Louis.
Dennis Muilenburg, head of Boeing's defense segment, said in an interview the sale was a very important deal that reinforced the company's strategy of expanding international sales.
Boeing has set a target of making international business account for around 25% or 30% of defense segment revenues, up from a 7% share around five years ago.
"We're well on our way of achieving that" with the Saudi deal, Mr. Muilenburg said.
Boeing said the deal would create jobs in Saudi Arabia as well as in the U.S. Mr. Muilenburg said the sale would include Saudi industrial participation, including parts assembly and manufacturing at a facility in Riyadh.
Sales of advanced U.S. military equipment to allies in the Middle East have been a concern for Israel, which is keen to preserve its military edge.
U.S. officials have sought to reassure Israel that the fighter deal would benefit Israel's security by bolstering moderate allies in the Gulf.
The fighter sale "will not have an impact on Israel's qualitative military edge," said Assistant Secretary of State for Political-Military Affairs Andrew Shapiro in Washington.
"We did not gin up a package in response to current events in the region," he said, pointing out that Congress had received formal notification of the deal.
The Obama administration informed Congress last year of a plan to sell Saudi Arabia up to $60 billion in new weaponry, including the F-15s. While some lawmakers expressed reservations about the proposal, Congress didn't move to block the deal.
The Israeli Embassy in Washington didn't immediately respond to a request for comment.
U.S. officials have said the F-15s would be highly capable aircraft, comparable to the F-15s operated by South Korea and Singapore.
The new and upgraded fighters would be Saudi Arabia's "most capable and versatile aircraft" and could carry a range of precision-guided weapons and air-to-air missiles, said James Miller, U.S. principal deputy undersecretary of defense for policy.
The first of the new aircraft are expected to be delivered around 2015.
Anthony Cordesman, a defense analyst at the Center for Strategic and International Studies, said the Israeli military's concerns about Iran outweighed the potential risks Israel might perceive from Saudi Arabia or other Arab states acquiring improved military hardware.
"It's not as if it came as a surprise to anyone in Israel," he said.
http://online.wsj.com/article/SB10001424052970203899504577128674022827702.html
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