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US to seal 10 billion fighter jets deal with Muslim state

US to seal 10 billion fighter jets deal with Muslim state

WASHINGTON – In a telephone call with the emir of Kuwait U.S. PresidentDonald Trump pressed the Gulf monarch to move forward on a $10 billionfighter jet deal that had been stalled for more than a year.

Trump was acting on behalf of Boeing Co, America’s second-largest defencecontractor, which had become frustrated that a long-delayed sale criticalto its military aircraft division was going nowhere, several peoplefamiliar with the matter said.

With this Oval Office intervention, the details of which have not beenpreviously reported, Trump did something unusual for a U.S. president – hepersonally helped to close a major arms deal. In private phone calls andpublic appearances with world leaders, Trump has gone further than any ofhis predecessors to act as a salesman for the U.S. defence industry,analysts said.

Trump’s personal role underscores his determination to make the UnitedStates, already dominant in the global weapons trade, U.S. officials say,despite concerns from human rights and arms control advocates.

Companies that stand to benefit most include Boeing, Lockheed Marrtin Corpand others.

Those efforts will be bolstered by the full weight of the U.S. governmentwhen Trump’s administration rolls out a new “Buy Americanlink>”initiative this week aimed at allowing more countries to buy more and evenbigger weapons. It will loosen U.S. export rules on equipment ranging fromfighter jets and drones to warships and artillery, the officials said.

Reuters has learned that the initiative – which industry sources said willbe announced on Thursday – will provide guidelines that could allow morecountries to be granted faster deal approvals, possibly trimming back tomonths what has often taken years to finalise.The strategy will call for members of Trump’s cabinet to sometimes act as”closers” to help seal major arms deals, according to people familiar withthe matter. More top government officials will also be sent to promote U.S.weapons at international air shows and arms bazaars.

Shares of major U.S. defence contractors added to gains after the news andRaytheon hit an all-time high.

Human rights and arms control advocates warn that the proliferation of abroader range of advanced weaponry to more foreign governments couldincrease the risk of arms being diverted into the wrong hands and fuellingviolence in regions such as the Middle East and South Asia.

The Trump administration stresses that the main aims are to help Americandefence firms compete better against increasingly aggressive Russian andChinese manufacturers and give greater weight than before to economicbenefits of arms sales to create more jobs at home.

One Trump aide, speaking on condition of anonymity, said the new initiativeis also intended to ease human rights restrictions that have sometimes ledto an effective “veto” over certain arms deals.”This policy seeks to mobilize the full resources of the United Statesgovernment behind arms transfers that are in the U.S. national and economicsecurity interest,” a White House official said, responding to a requestfor comment on the story.

“We recognise that arms transfers may have important human rightsconsequences,” the official said. “Nothing in this policy changes existinglegal or regulatory requirements in this regard.”One of the main architects of the new policy has been economist PeterNavarro, a China trade sceptic ascendant in Trump’s inner circle. Hiseffort to boost arms exports has drawn little resistance within the WhiteHouse, officials said. – Agencies