Mar 28, 2009

The old arms purchase game.

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The Shah of Iran, the Western backed puppet who was installed into power also ran a huge unaccountable defense budget, maybe $10 billion out of a possible GDP of $65 billion in 1976 alone. This fact was well known within Iran, certainly with the anti-Shah critics, and also with the anti-Shah critics outside of the country. For example he bought 80 F-14 Tomcats for $3.8 billion in 1975 to basically save the defense manufacturer Grumman's from going bankrupt; a hugely over inflated price for 1975.....but I suppose as a foreign backed puppet that's what you do, in addition to shifting a high percentage of your national earnings into the Jew banks in Switzerland, Manhattan and "The City". What did all this expenditure on foreign American arms ($30 billion 1969-79) actually achieve for Iranian national defense when it came to the crucial moment, an actual war with Iraq, in 1980?


NOTHING. In many respects.

What really counted in Iran's defense was the bravery of individual patriotically motivated Iranians, mainly outside of the military willing to defend their country, with their bare hands, stones, sticks and basic small arms, all of which was greatly helped on the opposite side by the stupidity of the other great American puppet Saddam Hussein and his mishandling of a significant opportunity for his country, with an invading army of 500,000 men. The expensive American arms for lack of spares and expertise to use them (60% desertion of the Shah military personnel by 1980, helped by mullah purges of the senior military figures) lay redundant mostly whilst the war raged on for 8 years.

This is the basic pattern of Third World purchases of arms from First world nations. Saudi Arabia, and Gulf states most spectacularly. The corruption of government officers, and the purchase of defense equipment which don't really add to the overall all in one compact compasite defense of the country, but rather increases and compromises the defense system, and subjects it to the whims and wiles of foreign powers with their political interests, and individual geostrategic interests.


And so to India.......where the Times of India very pertinently and astutely notes the correlation between Indian elections, with their huge campaign expenses, and the signing of defense contracts at similar times...........CORRUPTION.

This is why the Congress Party and BJP repeatedly appoints marginal clowns to the defense portfolio.............Fernandes, Anthony; why India has only 40 ordinance factories, when it should be 400 or 1,000; why India after 62 years of Independence is still purchasing its basic conventional military hardware from foreign sources; Why India with its huge scientific and engineering skills (40,000 of the best working for the USA alone)....can't make basic defense equipment....CORRUPTION/LOSS OF SOVEREIGNTY.

Lets say India purchases 126 jet fighters from Russia for $10 billion, to replace the aging MiG's 21, 23, 27. Like the Shah's defense budget the unit cost is way over inflated, but that is not the real cost alone. Sure Netaji and Babuji....with their middle men and prostitutes make gains, but any modern equipment you purchase requires spares. A modern jet fighter may have anything between 4---5,000 parts................a well serviced jet fighter with a service life of 30 years will require a lot of spares.......and that cost can be anything upwards of $20 billion in addition, over 30 years for the above hypothezised purchase. Let us hope it does not take place, and the Indian airforce takes its chances with the latests fourth generation fighter that DODO has to offer----baazi, and anticipates the fifth generation project with Russia with patience.



Now imagine that money being invested into an Indian domestically manufactured military system, working not perfectly, it doesn't have to, but reasonably. The jobs generated, the additional technology generated and learning experience as you focus on improving your product, and the security of not relying on foreign supplied spare parts to the overall Indian military machine.


As things stand the Indian military is a joke. Its not a serious strategy to defend India, and the 2% spent on defense reinforces this perception.

The problem lies with the Congress Party and the BJP, as they have the power to maintain the present farcical situation or make fundamental changes to meet future real challenges. The Congress/BJP are suspicious of the Indian military and the fear of coups as in neighboring Pakistan. This fear was heightened under Mrs Indira Gandhi viz Sam Manekshaw in the 1970's.....however the reality is that the Indian armed forces have shown extreme professionalism in this respect, and have duly avoided entering politics.....So "Lets neglect the military, and not build them up because they might be a threat to us" does not hold as an argument. More, better, home grown munitions and arms have no direction correlations with threats of coups anyway......................there are variety of other more complex, socio/economic/and finally political reasons why coups happen in certain countries.


In fact abject neglect of the Indian military in the face of clear "needs" may fuel such a desire in the future, though unlikely (in reality what might happen in the case of India is that the quality prospective recruits in the future cease to apply for enrollment in the profession and instead opt for the much more rewarding private sector).

The other explanation for the current mess is simple CORRUPTION; the desire to satisfy private individual needs over national security and interests.



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Poll campaigns fuel defence deals?
By Rajat Pandit Times of India

NEW DELHI: There is something about mega defence deals and the general elections. If the previous NDA regime inked a flurry of arms deals in the run-up to the 2004 general elections, the UPA government is doing pretty much the same this time.

(So both parties are familiar with the scam)

First, in January, the UPA government covertly signed the biggest-ever defence deal with US in the shape of the around $2.1 billion contract for eight Boeing P-8I long-range maritime reconnaissance (LRMR) aircraft for the Navy.

( I note the huge flurry of multi billion $ defense contracts for the navy; the least important service for India ................its the army which is the most important, followed by the airforce strategically speaking)

Despite having A K Antony as defence minister, who promises "transparency'' at the drop of a hat, the government kept this deal under wraps till it was first reported by TOI a few days later.

(Because there is CORRUPTION)

Then, towards end-February, the defence ministry secretly inked the largest-ever deal with Israel in the form of the huge Rs 10,000-crore joint project to develop MR-SAM (medium-range surface-to-air missile) systems for IAF.

(India is relying on a little terrorist state for its vital defense....to be sure India should source its equipment from the best, but doesn't morals and an ethical foreign policy play a small part in all this?.............I am sure Russia has better SAM's, or perhaps India could try and make them herself)

A month later, the defence ministry is still tight-lipped about the exact contours of the project, which include a staggering Rs 600 crore as "business charges''. "We have nothing to say,'' said a defence ministry (MoD) spokesperson, questioned about the project on Friday.

(CORRUPTION----so which journo is going to uncover the scoop here, or have the netas become complacent and thick skinned to such accusations?)

That the armed forces desperately need reconnaissance aircraft for maritime snooping as well as MR-SAM systems to bolster the country's air defence cover is not disputed. Neither is the fact that both the projects were in the pipeline for a couple of years.

But eyebrows are being raised about the "propriety'' of such deals being signed -- and that too in a thoroughly opaque manner, as if the MoD had something to hide -- in the run-up to the April 16-May 13 general elections.

"Technically, both the deals were signed before the model code of conduct came into force on March 2. But yes, the government should have been more open about them,'' admitted a senior official.

Murky wheeling and dealing, commissions and kickbacks, of course, have always been an integral part of the armament procurement process, with political parties often being accused of using defence deals to swell their election war chests.

The NDA regime, too, had sealed a spate of defence deals just before the 2004 elections. They included the $1.5 billion package deal for Russian aircraft carrier Admiral Gorshkov, the $1.1 billion one for three Israeli `Phalcon' AWACS (airborne warning and control systems), and the Rs 8,000 crore project for 66 British Hawk AJTs (advanced jet trainers).

All these three deals, incidentally, have been facing some problems. While the Gorshkov contract is now being renegotiated, with Russia demanding an additional $2 billion, the delivery of the first Phalcon has been delayed by well over a year to May now.

(The Gorshkov aircraft carrier deal is increasingly looking like a JOKE, a big joke for India. For $3.5 billion which is the latest price tag for the Russian second hand retro-fitted carrier, India could theoretically make 1 NEW light aircraft carrier herself. Second, the performance of the Russians in upholding the deal; delays by a couple of years; followed by one post contract marked up price demand of $700 million, and when that is paid, another marked up price demand into $2 billion more recently............and India is putting up with this from the Russians?....you've got to be kidding!.......the contract should be torn up, and the Russians taken to litigation for recovery of all sums......otherwise, in my opinion India doesn't even need aircraft carriers anyway.....nuclear power stealth submarines capable of carrying ballistic warheads, that's the priority for India, as far as the navy goes)

MoD also recently floated a global tender for acquiring additional AJTs, virtually cancelling plans for a follow-on order for 40 more Hawks for IAF and 17 for Navy at a cost of around Rs 2,210 crore.