US in $20b Gulf arms deal

The military assistance deals would provide $30 billion (Dh110 billion) in new US aid to Israel and $13 billion (Dh48 billion) to Egypt over 10 years. Image used for illustrative purpose only.

28 July 2007

Washington: The Bush administration will announce next week a series of arms deals worth at least $20 billion (about Dh73 billion) to Saudi Arabia and five other Gulf states as well as new 10-year military aid packages to Israel and Egypt, a move to shore up allies in the Middle East and counter Iran's rising influence, US officials said on Friday.

The arms deals, which include the sales of a variety of sophisticated weaponry, would be the largest negotiated by this administration.

The military assistance deals would provide $30 billion (Dh110 billion) in new US aid to Israel and $13 billion (Dh48 billion) to Egypt over 10 years, the officials said. Both figures represent significant increases in military support.

US officials said the arms sales to Saudi Arabia are expected to include air-to-air missiles as well as Joint Direct Attack Munitions, to convert conventional bombs into "smart" bombs. Most, but not all, of the arms sales to the Gulf states will be defensive, officials said.

Common goal

Officials familiar with the deal said the common goal of the military aid packages and arms sales is to strengthen the states against Iran at a time when the hardline regime seeks to extend its power in the region.

"This is a big development, because it's part of a larger regional strategy and the maintenance of a strong US presence in the region.

We're paying attention to the needs of our allies and what everyone in the region believes is a flexing of muscles by a more aggressive Iran.

"One way to deal with that is to make our allies and friends strong," said a senior administration official involved in the negotiations.

The arms deals have been under discussion for months, officials said.

The administration's plans will be announced tomorrow in advance of trips this week to the Middle East by Secretary of State Condoleezza Rice and Defence Secretary Robert Gates, and are expected to be on their agenda in Egypt and Saudi Arabia.

The administration has a notional list of arms to sell to the Gulf states, but there are no final agreements on quantities and specific models, US officials said.

Support

State Department and Pentagon officials started briefing key members of Congress about their intentions over the past week, US officials said. The initial reception has been positive, said officials involved in those briefings. They acknowledged, however, that some parts of the deal are supported more than others.

The Bush administration hopes to provide a full rundown this fall for congressional approval. "We want to convince Congress to continue our tradition of military sales to all six states," the senior administration official said. "We've been helping Gulf Arabs for years, and that needs to continue."

"There's a sense here and in the region of the need to build up defences against Iranian encroachment," said a US official familiar with the deals.

The aid packages to Israel and Egypt are further along. A US-Israel agreement, to replace a 10-year arrangement that expires this year, has been under discussion since February, officials said.

The new US package will include strictly military aid and would expand the US contribution 25 per cent over the current $2.4 billion per year; economic assistance has been discontinued now that Israel is considered a developed economy, US officials said.

President George W. Bush said last month that he was strongly committed to a new 10-year agreement that would increase US assistance "to meet the new threats and challenges [Israel] faces". Washington has long promised to help Israel sustain a so-called "qualitative military edge".

Rice is expected to announce tomorrow that, after her Mideast trip, Undersecretary of State Nicholas Burns will finalise the deals with Israel and Egypt.