US Alarmed by BAE Systems sell-out



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US Secrets at Risk Through Franco German Take Over of BAE Systems

The US DOD and Federal Government are worried by the pending take over of British BAE Systems by the French and German Governments.



Broadly Risks

Firetrench Directory

The US is alarmed to discover that British Prime Minister “Call My Dave” Cameron has been quietly waiving through the take over of BAE Systems by the French and German Governments through their state-controlled EADS aerospace company.

Encouraged by US defence contractors, eager to take over lucrative BAE Systems contracts with the US DOS, steps are already underway to limit risk exposure by the US Government to the BAE Systems take over by the French and German Governments.

Concerns lie at several levels.

Britain has long held a special relationship with the US at military and intelligence levels, being considered trusted to hold US secrets. This relationship was formalized with the Bermuda Treaty between President Kennedy and British Prime Minister Macmillan. Under the treaty the two countries agreed to share secrets and military technology. In recent years, the loss of British sovereignty has resulted in attempts by the US to hold back the transfer of military software for British purchases of US aircraft, leading to some aircraft never being used because the lack of software prevented them from meeting mission targets. The US attempted to hold back paid for products because they feared the British would allow French and German access to the material which was rated as a high intelligence risk.

The take over of BAE Systems would allow German and French access to Trident missile technology amongst other highly protected US secrets.

There is also deep concern that the significant expansion into the US defence market by BAE Systems acquisitions of US defence contractors provides a potential further path into US defence secrets. Planning is already believed to be underway to identify all BAE Systems contracts that should be immediately terminated when the company is sold to the French and German Governments. Some US defence contractors are already rumored to be pressing for the US Federal Government to assist them in taking back control of companies purchased by BAE Systems. It has already been established that the prime French motivation in taking over the British company is its growing US market share.

There is deep US concern that the new company, including BAE Systems, would equal Boeing in size and that the French and German Governments would ignore the recent court ruling against their massive illegal Airbus subsidies and extend the practice of illegal subsidies to military products.

The threat to Britain is very serious. If the Franco German take over of BAE Systems is concluded there will be massive job losses in Britain in an industry that contributes strongly to exports and employment at home. On the experience of EADS, Franco German Government interference will mean that Britain has completely lost control of its defence industry at a time when Britain may withdraw from the European Union but have its military capability controlled in the Franco German interests.

There is also an alternative threat of equal severity. If the BAE Systems market in the US is closed by a worried US Administration, the company loses its attraction to the French and German Governments, leading to their withdrawal from the take over. That would leave Britain with a seriously damaged defence industry, a loss of trust by the Americans, and a complete review by the US of future relationships with Britain.

It looks as though “Call Me Dave” Cameron has damaged British interests whatever the eventual outcome.

BSD News Desk

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