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This article from NYTimes.com
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Global Arms Sales Rise Again, and the U.S. Leads the Pack

By THOM SHANKER
 
 

WASHINGTON, Aug. 18 — International arms sales grew 8 percent last
year, to nearly $36.9 billion, with the United States further
consolidating its stature as the supplier of choice, especially in
developing countries, according to a new Congressional report.

 American manufacturers signed contracts for just under $18.6
billion, or about half of all weapons sold on the world market
during 2000, with 68 percent of the American weapons bought by
developing countries.

 Russia followed, with $7.7 billion in sales, then France with $4.1
billion, Germany with $1.1 billion, Britain with $600 million,
China with $400 million and Italy with $100 million.

 The statistics are contained in a study, "Conventional Arms
Transfers to Developing Nations, 1993- 2000," published by the
Congressional Research Service, an arm of the Library of Congress.
The report, updated each year, is one of the most authoritative
resources on weapons sales available to the public.

 The author, Richard F. Grimmett, notes in an introduction that
developing nations remain the largest market for weapons, and a
growing one.

 "Despite global changes since the cold war's end, the developing
world continues to be the primary focus of foreign arms sales
activity by conventional weapons suppliers," wrote Mr. Grimmett, a
specialist in national defense at the research service.

 Worldwide arms sales rose in 2000 for the third year in a row. The
previous year, international weapons sales were nearly $34 billion,
when measured in constant year 2000 dollars. The value of sales
agreements with developing nations was $25.4 billion in 2000, the
highest in constant dollars since 1994.

 The two leaders in arms sales, the United States and Russia, both
increased their new contracts in 2000.

 The report is studiously nonpartisan. But its findings will
doubtless offer more material for human rights and arms control
organizations that criticize the American government — Democratic
and Republican administrations — for preaching peaceful relations
abroad while allowing American contractors to continue arming the
world.

 Certain details also underscore national security challenges for
the new Bush administration.

 The study documents a small but tangible supplier-buyer
relationship between Russia and Iran during a time when President
Bush is pressing Moscow to end the Antiballistic Missile Treaty.
One inducement that administration officials said they might put on
the table is to buy Russian interceptors for a missile shield;
another would be to offer joint development for high-technology
sensors, communications systems or "kill vehicles" of an eventual
missile system.

 At the same time, however, administration officials express
concerns that a Russia-Iran arms relationship could compromise
American technological secrets shared with Russia, in addition to
destabilizing the region.

 There are two ways to track the flow of arms: by sales contracts
and by deliveries.

 The study found that between 1997 and 2000, Russia agreed to sell
Iran $300 million in weapons, measured in constant 2000 dollars.
During that same period, Russia delivered to Iran $800 million in
arms.

 "In late 2000, Russia served public notice that it again intended
to pursue major arms sales with Iran, despite objections from the
United States," the report states.

 The administration's arguments for a missile shield beyond the
limits of the ABM Treaty cite Iraq and North Korea as the major
threats, and as the report notes, "Iraq was once a major purchaser
of advanced weaponry from Russia," but not since the Persian Gulf
war in 1991.

 "Russia would clearly pursue new major weapons deals with Iraq, if
current U.N. sanctions on Iraq that ban Iraqi arms purchases are
lifted," the report states.

 Russia's principal clients for weapons are India and China. But
Moscow enters into joint production deals with those nations, which
raises the possibility that eventually they will make the arms
domestically, curtailing purchases despite Russia's desire to earn
hard currency.

 The report also cautions on China's role in the arms market,
stating, "With a need for hard currency, and some military products
(especially missiles) that some developing countries would like to
acquire, China can present an important obstacle to efforts to stem
proliferation of advanced missile systems to some areas of the
developing world where political and military tensions are
significant."

 After reaching a peak of $2.7 billion in weapons sales in 1999,
China dropped to $400 million last year. Pakistan remained a major
buyer.

 The increase in sales by the United States, from $12.9 billion in
1999 to nearly $18.6 billion, was powered by a $6.4 billion sale of
80 F-16 fighter jets to the United Arab Emirates.

 The Emirates, by virtue of its blockbuster purchase of jets from
the United States, led the developing world in signing weapons
contracts in 2000, with $7.4 billion. India, which signed $4.8
billion in sales deals, ranked second, followed by South Korea,
which signed $2.3 billion in contracts.
 

http://www.nytimes.com/2001/08/20/international/20ARMS.html?ex=999322627&ei=1&en=30c1512288d2a46b

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