Saudi, US talk arms sales worth billions

Washington, Riyadh eager to improve strained ties

Washington, May 6: Washington is working to push through contracts for tens of billions of dollars in arms sales to Saudi Arabia, some new, others in the pipeline, ahead of US President Donald Trump’s trip to the kingdom this month, people familiar with the talks told Reuters this week.

Saudi Arabia is Mr Trump’s first stop on his maiden international trip, a sign of his intent to reinforce ties with a top regional ally.

The US has been the main supplier for most Saudi military needs, from F-15 fighter jets to command and control systems worth tens of billions of dollars in recent years. Mr Trump has vowed to stimulate the US economy by boosting manufacturing jobs.

Washington and Riyadh are eager to improve relations strained under President Barack Obama in part because of his championing of a nuclear deal with Saudi foe Iran.

Lockheed Martin Co programmes in the package include a Terminal High Altitude Area Defense (THAAD) missile defense system with several batteries, the sources said. The THAAD system, like the one being made operational in South Korea, costs about $1 billion. Also being negotiated is a C2BMC software system for battle command and control and communications as well as a package of satellite capabilities, both provided by Lockheed.

Combat vehicles made by BAE Systems PLC, including the Bradley Fighting Vehicle and M109 artillery vehicle, are also under consideration as part of the Saudi package, people familiar with the talks said. Both vehicles are in the Saudi inventory. British defense company BAE has 29,000 employees in the United States.

The sources spoke on condition of anonymity because they were not authorised to discuss the negotiations, which also include previously reported contracts or items under discussion for years.