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Page 1

Daily News
by Gail Helmer

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Friday, March 16, 2001


Jane's Defence Weekly


Batch 3 Gripens to support NATO operations
The Swedish Air Force is expected to declare shortly that its first wing of Batch 3 Saab-BAE Systems JAS 39 Gripens, the latest variant of the multirole fighter, will be available for EU and NATO peacekeeping operations in the air-to-air and reconnaissance roles as soon as the aircraft begins full operations in 2004.

Scharping aims to save $240m in Bonn's budget
Germany's defence budget will not meet the needs of the armed forces, according to Defence Minister Rudolf Scharping. As part of his strategy to fund sweeping reforms of the Bundeswehr, the minister has tasked the director of finance within the Ministry of Defence to achieve savings of DM500 million ($240 million) within its DM46.86 billion budget.

PRC spending continues to rise
The People's Republic of China is set for the 13th consecutive year of double-digit growth in its official defence spending with the announcement on 6 March that Beijing's defence budget for 2001 will rise by 17.7% to Rmb141.004 billion ($17.05 billion).

Czech MoD seeks compensation for L-159 aircraft delays
The Czech Ministry of Defence is seeking compensation from Aero Vodochody for delays in the delivery of its L-159 advanced light combat aircraft.

Construction starts on Greek navy's Type 214
Construction of the first German Submarine Consortium-designed Type 214 submarine for the Hellenic Navy began last month when Greek Minister of National Defence Akis Tsohatzopoulos initiated the frame-welding process at the Howaldtswerke-Deutsche Werft AG shipyard in Kiel on 27 February.

Russia profiles 'Flanker' upgrades
The Russian Air Force on 6 March accepted for testing its first upgraded Sukhoi Su-27UBM (NATO reporting name: 'Flanker) two-seat combat-capable trainer (pictured) from the Irkutsk Aviation Production Association at Zhukovsky near Moscow.

Sweden orders Bv 206Ss for rapid reaction duties
The Swedish Defence Materiel Administration has awarded a contract worth SKr70 million ($7.2 million) for the supply of 15 Hagglunds Vehicle Bv 206S armour-protected all-terrain tracked carriers for the Swedish Army.

Turkey announces space agency
Turkish endeavours to participate in co-operative space programmes advanced on 26 February when Turkey's military-dominated National Security Council announced the establishment of a National Space Agency.

UK DPA looks to private sector for vehicle training
The UK Defence Procurement Agency on 1 March issued an invitation to negotiate to three consortia to provide basic training for the crews of UK armoured vehicles.

UN to deploy MONUC troops
The UN is to deploy around 1,500 troops from the UN Mission in the Democratic Republic of Congo by the end of this month.

Jane's Foreign Report
If this guy is for real...
LAST November's elections in Romania, which saw the return of President Ion Iliescu and his socialist Party for Social Democracy in Romania, and an unexpectedly strong showing by the extreme nationalist Greater Romania Party, were depressing.

Corruption in Asia-Pacific
THE recent political demise of President Joseph Estrada of the Philippines and the troubles of Indonesia's new President Abdurrahman Wahid ('Gus Dur') have once again focused attention on the critical role of alleged corruption as a destabilising factor in the Asia-Pacific. Apart from the Philippines (which has already experienced the overthrow of Ferdinand Marcos in 1986, due, in part to massive corruption), in recent years corruption contributed to the demise of governments or the ruling élites in countries such as the Philippines, Japan, Indonesia, South Korea, Thailand and Papua New Guinea, and, in all probability, led to the end of the Yeltsin era in Russia. Wherever it exists, corruption damages commercial integrity and good governance and undermines trust. How extensive is it? Does the 1997 East Asian economic crisis have lessons? We have an exclusive report.

Secrecy in Colombia
AMERICAN military aid to Colombia may be on a large scale but the American government insists that it is not launching another Vietnam as American troops in the country are forbidden to engage in combat with the country's guerrillas. However, private American companies, paid for by the State and Defence Departments and staffed by ex-servicemen from the Special Forces and by pilots, suffer no such restrictions.

How to annoy a new president - And how to annoy Nato at the same time EVERYONE promised that it would not happen, but it did: the European Union and Nato find themselves competing with each other in the Balkans. The event itself is not very important, but its significance is huge, as it shows the emptiness of the Europeans' promise that their new military structure will not come at the expense of Nato, whose principal member is the United States. FOREIGN REPORT's sources explain what happened.



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