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NEWS AND VIEWS THAT IMPACT LIMITED CONSTITUTIONAL GOVERNMENT

"There is danger from all men. The only maxim of a free government ought to be to trust no man living with
power to endanger the public liberty." - - - - John Adams

Wednesday, July 6, 2011

Turkey to buy German U-Boats and American Fighters


New U-Boats for Turkey as the nation starts to expand their influence,
economic power and military in the region.

A 2 billion-euro submarine deal between Turkey and Germany’s ThyssenKrupp Marine Systems to manufacture six U-214 platforms entered into effect Friday, according to officials from both sides of the venture says the Hurriyet Daily News.

“The two-billion-euro order for six U-214 submarine material packages placed with ThyssenKrupp Marine Systems by the Republic of Turkey has been activated with the receipt of the advance payment,” the company said in a statement. “As a longstanding partner and supplier to the Turkish Navy, ThyssenKrupp Marine Systems can now begin executing the order. The order will contribute to securing employment at [ThyssenKrupp’s] Howaldswerke Deutsche Werft, or HDW, in Kiel, as well as at many subcontractors in Germany and Turkey, for the next 10 years.”

Turkey originally selected HDW against French and Spanish rivals in the summer of 2008, when officials said the German offer was worth 2.5 billion euros. Renegotiations over price and a clear road map for Turkish local participation led to a final agreement on a price reduction of over 500 million euros, bringing down the final cost to around 2 billion euros.

Under the Turkish modern submarine program, the non-nuclear vessels will be built at the Navy’s Gölcük Shipyard on the Marmara Sea coast near Istanbul. The submarine program will form Turkey’s largest defense modernization project after a planned $13 billion deal to buy 100 next-generation F-35 Joint Strike Fighter Lightning II aircraft.

Ankara is hoping the new U-219 submarines will be in operation shortly after 2015.

Turkey to order 100 F-35 Fighters

Turkey plans to buy the U.S.-led F-35 Joint Strike Fighter Lightning II, a stealth multirole fighter jet, to meet most future needs for its Air Force’s next-generation fighter planes. It has voiced willingness to buy around 100 F-35s over the next 15 years, but as the program’s limited production stage begins, it so far has not formally committed to the program. To do so, it needs to submit a purchase order for a first batch of six aircraft before the end of the year.

“We will have talks [with the Americans] in the months ahead in an effort to resolve some matters. If we manage to reach an agreement, we expect to order the first six aircraft this year,” Murad Bayar, chief of the Undersecretariat for Defense Industries, or SSM, the government’s defense procurement agency, recently told the Hürriyet Daily News. “We expect to reach a deal.”

The F-35, whose production is led by the U.S.’s Lockheed Martin, the world’s largest defense company, will be built by a consortium of nine countries, including Turkey. Other members of the consortium are Britain, Italy, the Netherlands, Canada, Australia, Norway and Denmark.

A few years ago, when Turkey’s purchase of around 100 jets was expected to cost around $10 billion or $11 billion, Turkish companies grabbed project work around $5 billion, meeting nearly the half of the expense. But the unit price has gone up considerably over the past two years, exceeding $13 billion.

Now Turkish companies seek to raise their share to more than $6 billion to stay near the planned 50 percent figure. In addition, the United States remains reluctant to share millions of lines of source codes that make the plane’s flight possible. Turkey, however, wants access to part of these source codes related to operational needs.

Placing an order for the first six aircraft before the end of this year mostly is related to early deliveries, around 2014 and 2015, and a failure to do so would not mean the end of the world. “If we don’t place the first purchase order by year end, that would not necessarily mean that we have failed to agree, it may mean that we at this point may not have the finances,” Bayar said. “Anyway, we hope that none of this happens.”

Turkey has a plan to develop a second fighter aircraft in the 2020s. Turkish Aerospace Industries, or TAI, has about 18 months to develop the specifications for this second fighter jet, which should replace most of the Vietnam War-era F-4E Phantoms.

The European consortium Eurofighter repeatedly has asked Turkey to do the job together, but Ankara prefers to develop the fighter from scratch, probably with another country. The Eurofighter consortium already builds the Typhoon. Other options for Turkey include South Korea or Brazil.

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