Friday, July 30, 2010

DTN News: Canadian Jets Repel Russian Bombers

DTN News: Canadian Jets Repel Russian Bombers
Source: DTN News - - This article / report compiled by Roger Smith from reliable sources including Brian Lilley, QMI Agency Parliamentary Bureau
(NSI News Source Info) TORONTO, Canada - July 30, 2010: Canadian fighter jets scrambled to repel Russian bombers that made several attempts to probe Canadian airspace on Wednesday. QMI Agency has learned that two CF-18s took off from CFB Bagotville to intercept two TU-95 long range bombers about 463 km east of Goose Bay, N.L. Attempts by Russia to test Canadian airspace have been going on since 2007; military and intelligence analysts tell QMI Agency the frequency has been increasing since then, but one senior official described Wednesday's event as "not the usual s--t." "The response as always was a rapid, effective deterrent," Defence Minister Peter MacKay told QMI Agency. "They were in the buffer zone," said MacKay, stressing that although the planes did not enter Canada's sovereign airspace, the bombers did come inside the 300 nautical mile zone that Canada claims. "They did not give us any advance notice," said MacKay, adding that NORAD fighter jets have intercepted between 12 and 18 Russian bombers per year since 2007. After the CF-18s made contact with the Russians the pilots shadowed them until the bombers turned northeast and headed out of Canadian airspace. The TU-95 bomber, known as the Bear, is capable of carrying nuclear weapons and may have been loaded with warheads on this trip. One military analyst tells QMI Agency the Russians have been known to fly with nukes on board just to flex their muscle and prove to the world they are still a powerful country. "We certainly weren't aware of what if any weapons were on board," said MacKay. Canada is in a race with Russia and other Arctic nations to lay claim to the frozen territory that may hold untold treasures. Geologists believe the Arctic shelf holds vast stores of oil, natural gas, diamonds, gold and minerals. A 2007 Russian intelligence report predicted that conflict with other Arctic nations is a distinct possibility, including military action "in a competition for resources." The United States, Norway, and Denmark (through Greenland) also lay claim to portions of the Arctic seabed based on their coastal waters. China, which does not have an Arctic coast, has sent icebreakers and ships into the Arctic Ocean. A Chinese admiral said earlier this year since China has 20% of the world's population, they should have 20% of Arctic resources. The incursion into Canadian airspace also comes as debate rages over whether Canada needs the next generation of fighter jets to replace the nearly 30-year-old CF 18s. The Harper government has committed to buying 65 F-35 stealth fighters at a cost of $9 billion. Critics have said such Cold War-type jets are no longer needed. Rob Huebert of the University of Calgary's Centre for Military and Strategic Studies tells QMI Agency the Canadian Air Force needs to upgrade its fleet now that Russia is upgrading its bombers. "The mere fact that the Russians are building the next generation of bombers means that we need something or we need to accept that the Americans will do it for us," Huebert said. "This is about a Russian military resurgence, the Russians asserting their authority in the north," military analyst Mercedes Stephenson told QMI Agency. Stephenson says that after the Cold War ended the Russian military was in a shambles but the last few years have seen a lot of money poured into restoring past glories, particularly in the air force. Asked if he was playing up this Russian incursion to boost support for the F-35 purchase, MacKay said no. "Surely even the most cynical, partisan person would not suggest that we engineered the visit of a Russian bomber to boost support for our air force," said MacKay. Previous Russian incursions into Canadian airspace February 2009: Hours before U.S. President Barack Obama's big visit to Canada, two Russian bombers were intercepted just outside the Canadian Arctic. Two Canadian CF-18s were dispatched to signal the Russian aircraft to turn back to its own airspace. The Russians called Canada's reaction "a farce." General Walter Natynczyk, the chief of the defence staff, said, at the time, sporadic incidences of Russian incursions had started in 2007 after many years of no activity. August 2008: Canadian jets scrambled during a visit by Prime Minister Stephen Harper to Inuvik in the Arctic to intercept an aircraft nearing Canada's airspace. Defence Minister Peter MacKay said Russians were unwilling to notify Canada of planned military flights nearing our airspace. September 2007: Russians boasted that two of their Tu-95 bombers flew along the coasts of Alaska and Canada and returned via the North Pole during a 17-hour flight. They said their flight was accompanied by NATO planes.
*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News, contact: dtnnews@ymail.com

DTN News: Aerospace/Defense Headlines - News Dated Friday July 30, 2010. (Part #1)

DTN News: Aerospace/Defense Headlines - News Dated Friday July 30, 2010. (Part #1)(NSI News Source Info) TORONTO, Canada - July 30, 2010: Comprehensive daily news related on Aerospace/Defense for the world of TODAY.
  • U.S. worried more secret documents may be released 6:07 pm - Reuters
  • 3rd Annual WBAB Long Island Police Tug-of-War Championship 5:51 pm - PR Newswire
  • TAM shareholders to inject $81 mln in fresh capital 5:20 pm - at Reuters
  • PharmAthene Provides Update on NYSE Amex Listing Compliance Plan 5:00 pm - PR Newswire
  • Xenonics Appeals Notice of Delisting From NYSE Amex 5:00 pm - Business Wire
  • Northrop Grumman Issues Worker Adjustment and Retraining Notifications to Employees in New Orleans 5:00 pm - GlobeNewswire
  • Four killed in Air Force plane crash in Alaska 4:35 pm - Reuters
  • U.S. Army, Marine Corps Servicemen Receive "Rumble With a Cause" Grand Prizes from Armed Forces Foundation and Oshkosh Defense 4:33 pm - Business Wire
  • UPDATE - Sea Launch to exit bankruptcy in Russian hands 4:14 pm - at Reuters
  • Northrop Grumman Issues WARN Notice to Fort Eustis Employees 3:56 pm - GlobeNewswire
  • Photo Release -- Northrop Grumman, U.S. Navy Mark Delivery of First Production E-2D Advanced Hawkeye to the U.S. Navy Fleet 3:37 pm - GlobeNewswire
  • PREVIEW-Embraer Q2 net seen up 4.6 pct as deliveries rise 3:19 pm - at Reuters
  • Quasar Aerospace Industries, Inc. Announces Extension Agreement With Mineseeeker Overseas Operations 3:08 pm - Marketwire
  • Myers Industries Declares Quarterly Dividend 2:36 pm - Business Wire
  • Cuomo widens insurer probe with 6 more subpoenas 2:32 pm - Reuters
  • UPDATE - Cuomo widens insurer probe with 6 more subpoenas 2:31 pm - at Reuters
  • U.S. Senate OK's tougher airline safety measures 2:23 pm - at Reuters
  • Zygo Announces the Pending Departure of Walter A. Shephard, CFO 2:00 pm - Marketwire
  • CIRCOR Declares Regular Quarterly Dividend 1:30 pm - Business Wire
  • Bombardier Learjet and Governor Parkinson Announce Financing Agreement to Secure Learjet 85 Production in Wichita 12:31 pm - Marketwire
  • Iron Eagle Group (IEAG) Announces Signing of Multiple Letters of Intent 12:14 pm - Business Wire
  • Cyberlux Fulfills First $340,000 Shipment of Its $3.4 Million National Guard Bureau Contract 12:03 pm - Business Wire
  • Herley Gets $2.3 Million in International Bookings 11:47 am - PR Newswire
  • Honeywell Declares Quarterly Dividend 11:45 am - PR Newswire
  • Environmental Tectonics Corporation Announces the Expansion of its Board of Directors 11:27 am - PR Newswire
  • ASI Awarded FAA SE2020 Systems Engineering Contract to Support NextGen Modernization as a Partner With General Dynamics Information Technology 11:24 am - PR Newswire
  • Lockheed Martin Manufactures and Delivers 1,000th Decoy Payload for Ship Self-Defense System 10:07 am - PR Newswire
  • Iraqis' Torture Case Against Contractor Proceeds in U.S. Court, According to Burke PLLC and the Center for Constitutional Rights 10:00 am - PR Newswire
  • Honeywell Provides Guidance System For Atlas V Rocket 10:00 am - PR Newswire
  • Northstar Aerospace Inc. notice of conference call to announce second quarter 2010 results 9:53 am - CNW Group
  • NASA Selects Orbital for Major Sounding Rocket Program Prime Contract 9:44 am - Business Wire
  • UPDATE - Airbus to boost output as outlook brightens 9:17 am - at Reuters
  • Photo Release -- Northrop Grumman Appoints Kevin Mitchell Sector Vice President of Production Operations for Technical Services Sector 9:00 am - GlobeNewswire
  • U.S. Aerospace, Inc. Obtains $500,000.00 Additional Funding and Extends Remaining Debt One Full Year 9:00 am - Business Wire
  • UPDATE - Moog Q3 profit beats Street; sees higher FY11 revenue 8:43 am - at Reuters
  • Atlas Air Worldwide Holdings Subsidiary Places Three 747-8F Aircraft with British Airways 8:32 am - Business Wire
  • Curtiss-Wright Awarded Contract From Moog 8:30 am - GlobeNewswire
  • Valley Forge Composite Technologies, Inc. Receives a $1,700,000 Order Bringing Total Orders for 2010 Above $12,700,000 8:24 am - PR Newswire
  • AMETEK Declares Quarterly Dividend of Six Cents Per Share 8:00 am - PR Newswire
  • AMETEK Announces Appointment of Anthony J. Conti to Board of Directors 8:00 am - PR Newswire
  • Lockheed Martin Commends Bi-Partisan Support for NASA FY 2011 Budget 8:00 am - PR Newswire
  • Moog's Third Quarter EPS Increases 73% 8:00 am - Marketwire
  • EF Johnson Technologies, Inc. to Introduce FIRESafe Features at APCO 7:00 am - PR Newswire
  • ITT Reports Solid Second Quarter and Forecasts Strong Operational Performance for the Full Year 6:59 am - Business Wire
  • Research and Markets: Airfinance Journal - Annual Subscription Package: Independent Editorial and Informed Analysis 6:12 am - Business Wire
  • Russian Cosmonaut Supports Animal Defenders International Opposition to NASA Primate Experimentation for Space Research 6:00 am - Business Wire
  • Airbus to boost output as outlook brightens 5:14 am - Reuters
  • DTN News: U.S. Department of Defense Contracts Dated July 30, 2010

    DTN News: U.S. Department of Defense Contracts Dated July 30, 2010 Source: U.S. DoD issued July 30, 2010 (NSI News Source Info) WASHINGTON - July 30, 2010: U.S. Department of Defense, Office of the Assistant Secretary of Defense (Public Affairs) Contracts issued July 30, 2010 are undermentioned;

    CONTRACTS

    DEFENSE LOGISTICS AGENCY

    Universal Sodexho, Tacoma, Wash. is being awarded a maximum $180,000,000 firm fixed price, prime vendor, indefinite delivery and indefinite quantity contract for maintenance, repair and operations for the Korea region. There are no other locations of performance. Using services are Army, Navy, Air Force, Marine Corps and federal civilian agencies. The original proposal was Web solicited with four responses. The date of performance completion is July 31, 2011. The contracting activity is the Defense Supply Center Philadelphia (DSCP), Philadelphia, Pa. (SPM500-05-D-BP07).

    Unicor, Federal Prison Industries, Washington, D.C. is being awarded a maximum $35,000,000 firm fixed price, sole source, indefinite delivery and indefinite quantity contract for radio system parts. There are no other locations of performance. Using service is Army. There was originally one proposal solicited with one response. The date of performance completion is July 29, 2015. The contracting activity is the Defense Logistics Agency Warren, Warren, Mich. (SPRBL1-10-D-0011).

    Bethel Industries Inc., Jersey City, N.J.** is being awarded a maximum $14,193,225 firm fixed price, sole source contract for coats. There are no other locations of performance. Using service is Army. There was originally one proposal solicited with one response. The date of performance completion is July 30, 2012. The contracting activity is the Defense Supply Center Philadelphia (DSCP), Philadelphia, Pa. (SPM1C10-10-D-1068).

    Lord Corporation, Erie, Pa. is being awarded a maximum $11,448,064 fixed price with economic price adjustment, sole source contract for helicopter parts. There are no other locations of performance. Using service is Army. There was originally one proposal solicited with one response. The date of performance completion is September 12, 2010. The contracting activity is the Defense Logistics Agency Aviation, Richmond, Va. (SPM400-02-D-9413).

    Missile Defense Agency

    John Hopkins University/Applied Physics Laboratory (JPU/APL), Laurel, Md., is being awarded a $147,400,000 ceiling increase to the cost-plus-fixed-fee contract HQ0006-07-D-0001. Under this modification JPU/APL will continue work on advanced technology initiatives by providing technical support to systems engineering and integration for assessments, studies and analyses of command and control, battles management and communications, fire control, missile engineering, combat systems, space component and space systems. The work will be performed in Laurel, Maryland. The performance period for this work is from August 2010 through December 2011. Research, Development, Test and Evaluation funding Fiscal Years 2010 and 2011 will be used to incrementally fund these efforts. The Missile Defense Agency is the contracting activity (HQ0006).

    NAVY

    Alliant Techsystems (ATK), Mission Systems Group, Defense Electronics Systems Div., Woodland Hills, Calif., is being awarded a $50,067,115 firm-fixed-price contract for the Low Rate Initial Production (LRIP) II of the Advanced Anti-Radiation Guided Missile (AARGM). This contract provides for the conversion of 37 government furnished AGM-88B High-Speed Anti-Radiation Missiles (HARM) into AGM-88E AARGM All-Up Round (AUR)/Captive Air Training (CATM) missile systems for the Navy (33) and the government of Italy (4), including related supplies and services. Work will be performed in Woodland Hills, Calif. (75 percent); Rocket Center, W.V. (11 percent); Piacenza, La Spezia, Italy (6 percent); Rome, Italy (6 percent); Clearwater, Fla. (2 percent), and is expected to be completed in February 2012. Contract funds will not expire at the end of the current fiscal year. This contract was not competitively procured pursuant to FAR 6.302-1. This contract combines purchases for the U.S. Navy ($38,173,005; 76 percent) and the Government of Italy ($11,894,110; 24 percent) under the Foreign Military Sales Program. The Naval Air Systems Command, Patuxent River, Md. is the contracting activity (N00019-10-C-0065).

    DG21 LLC, Dallas, Texas, is being awarded a $47,090,345 modification under a previously awarded firm-fixed price plus award fee, indefinite-delivery/indefinite-quantity contract (N62742-06-D-4501) to exercise the fourth option period for base operating support services at U.S. Navy Support Facility, Diego Garcia, British Indian Ocean Territory. The work to be performed provides for all management, labor, administration, supervision, materials, supplies, and equipment to provide integrated Base Operating Services. The total contract amount after exercise of this option will be $479,042,968. Work will be performed in U.S. Navy Support Facility, Diego Garcia, British Indian Ocean Territory, and work for this option is expected to be completed by July 31, 2011. Contract funds in the amount of $10,229,233 will expire at the end of the current fiscal year. The Naval Facilities Engineering Command, Pacific Division, Pearl Harbor, Hawaii, is the contracting activity.

    Saab Training USA LLC, Orlando, Fla., is being awarded a maximum $39,076,075 firm-fixed-price, indefinite-delivery/indefinite-quantity contract to modernize U.S. Marine Corps range training systems with various types of automated and non-automated target equipment and simulators. The contract includes a mix of systems and logistics engineering, design, development and systems integration as well as training, installation and delivery of the range training systems. Work will be performed on various Marine Corps installations across the continental United States and overseas in Hawaii and Japan. Individual delivery orders will be issued under the basic contract which will identify specific locations. These locations and percentage of work being completed there won’t be available until the delivery orders are issued. Work is expected to be completed August 2013. Contract funds in the amount of $1,579,637 will expire at the end of the current fiscal year. This contract was competitively procured with four offers received. Marine Corps Systems Command, Quantico, Va., is the contracting activity (M67854-10-D-8045).

    BAE Systems Information and Electronics, Nashua, N.H., is being awarded a $15,257,258 firm-fixed-price contract for the Low Rate Initial Production I (LRIP I) of 325 APKWS II guidance sections for the Navy, including shipping and storage containers. In addition, this contract provides for the APKWS II guided rocket UH-1Y integration, as well as technical and training manual updates and support equipment and support test equipment. Work will be performed in Nashua, N.H., and is expected to be completed in October 2012. Contract funds will not expire at the end of the current fiscal year. This contract was not competitively procured pursuant to FAR 6.302-1. The Naval Air Systems Command, Patuxent River, Md. is the contracting activity (N00019-10-C-0019).

    Raytheon Missile Systems, Tucson, Ariz., is being awarded a $14,734,424 modification to a previously awarded cost-plus-fixed-free contract (N00019-09-C-0061) for engineering and technical services in support of the AIM-9X system improvement program. Work will be performed in Tucson, Ariz., and is expected to be completed in February 2011. Contract funds will not expire at the end of the current fiscal year. This contract combines purchases for the Air Force ($7,728,158; 52.5 percent); the Navy ($2,506,266; 17 percent); and the governments of Korea ($2,663,322; 18.1 percent), Australia ($1,687,213; 11.4 percent), and the Turkey ($149,465; 1 percent) under the Foreign Military Sales Program. The Naval Air Systems Command, Patuxent River, Md. is the contracting activity.

    CACI, Inc. – Federal, Chantilly, Va. is being awarded a $14,193,000 cost-plus-fixed-fee indefinite-delivery/indefinite-quantity contract for scientific, technical, and administrative intelligence related services. It is planned to issue the first task order simultaneously with contract award in the amount of $5,003,115. This contract includes options, which, if exercised, would bring the cumulative value of this contract to $28,772,340. Work will be performed in Louisville, Ky., and work is expected to be completed by July 2011. Contract funds will expire at the end of the current fiscal year. This contract was competitively procured via Navy Electronic Commerce Online and Federal Business Opportunities as a two phase solicitation. Six offers were received in response to Phase I. Two proposals were deemed acceptable to proceed to Phase II. Only one offer was received in response to Phase II. The Naval Surface Warfare Center, Indian Head, Md., is the contracting activity (N00174-10-D-0018).

    Raytheon Space and Airborne Systems, El Segundo, Calif., is being awarded a $12,254,749 firm-fixed-price, cost-plus-fixed fee delivery order against a previously issued basic order agreement (N00019-05-G-0008) for the procurement of 30 ECP 6279 retrofit kits to support the F/A-18 radio detection and ranging retrofit program. Work will be performed in El Segundo, Calif. (59 percent), Forest, Miss. (31 percent), and Andover, Mass. (10 percent), and is expected to be completed in September 2012. Contract funds in the amount of $12,254,749 will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

    CAV International, Colorado Springs, Colo., is being awarded a firm fixed price contract in the amount of $10,505,433 for air terminal ground handling services at Naval Air Station Rota, Spain. This contract includes four one year option periods, which if exercised, bring the total estimated value of the contract to $57,469,122. Work will be performed in Rota, Spain, and work is expected to be completed by September 2011. Contract funds will expire before the end of the current fiscal year. This contract was competitively awarded, with five firms solicited and three offers received. The Fleet and Industrial Supply Center Signoella, Italy, is the contracting activity (N68171-10-C-0022).

    Singh Group Inc., dba Baja Pacific*, Oceanside, Calif., is being awarded an estimated $5,660,650 modification under previously awarded firm-fixed-price, indefinite-delivery/ indefinite-quantity contract (N62473-07-D-5005) to exercise option period three for tree trimming and removal services at various Naval and Marine Corps installations located in the San Diego Metropolitan Areas. Work will be performed in San Diego, Calif., and is expected to be completed by July 2012. Contract funds will expire at the end of the current fiscal year. This contract was competitively procured with three proposals received. The Naval Facilities Engineering Command, Southwest, San Diego, Calif. is the contracting activity.

    *Small Business

    **Small, Disadvantaged, Woman Owned Business

    DTN News: Experts See No Big US arms Sales To Taiwan This Year

    DTN News: Experts See No Big US arms Sales To Taiwan This Year
    Source: DTN News - - this article / report compiled by Roger Smith from reliable sources
    (NSI News Source Info) TORONTO, Canada - July 30, 2010: U.S. officials will defer any major new arms sales to Taiwan until at least 2011 as Beijing steps up pressure on Washington, where mending Sino-U.S. ties is a priority, defense analysts say. Sales of anything more than minor parts or low end upgrades will wait until early next year, possibly much longer, letting Taiwan trail further in the balance of power against China but advancing relations between the two superpowers, analysts say.
    China has used stronger language and action this year, including the snubbing of U.S. Defense Secretary Robert Gates, to deter arms sales to Taiwan, the self ruled and democratic island Beijing claims as its own and has threatened to take by force if necessary. Taiwan depends on its staunchest informal ally the United States for arms and wants new systems to keep up with China. The island says military strength is crucial even though the two sides have discussed trade and transit links since 2008 under China-friendly Taiwan President Ma Ying-jeou after decades of hostilities, lifting local financial markets. A delay in getting new weapons systems would further tip a balance of power that already favors China, putting Beijing in an even stronger position to push any potential political resolution between the two sides. China is rapidly modernizing its military, putting particular emphasis on boosting its air force and navy. Taiwan says it has seen no sign of China removing missiles aimed at the island and estimates the number may rise from about 1,400 to as high as 2,000 this year. Yet U.S. President Barack Obama is seen focusing more on domestic issues and ties with China, the world's third-largest economy and holder of billions of dollars in U.S. treasuries. “It's a combination, the perfect storm,” said Wendell Minnick, Asia bureau chief with Defense News. “You've got Obama dealing with domestic issues, you've got China ramping it up and you've got better Taiwan-China ties.” Some analysts anticipate a brief resumption of arms sales in early 2011 because Sino-U.S. contact normally dwindles at that time of year when both sides take holidays. But most expect Obama to defer the deals as long as China and Taiwan get along. “Given improvement in cross-Strait relations, Washington doesn't want to see any escalation of arms, so I don't think anything will come out of 2011,” said Raymond Wu, managing director of Taipei-based political risk consultancy e-telligence. Stuck in the pipeline are an upgrade to Taiwan's existing U.S.-made F-16 fighter jets, six new cargo aircraft and an overhaul to a fleet of Lafayette frigates, Minnick said. Taiwan has also asked for 66 new later-model F-16s. Any of those deals would outrage China, which reacted angrily when the U.S. government approved a US$6.4-billion arms package earlier this year. Increasingly confident as its economic might grows, China postponed Sino-U.S. military exchanges and threatened sanctions against U.S. firms that sell arms to Taiwan, although little has come of that threat to date.
    “China's words and actions are stronger compared to the past,” said Niu Jun, a Peking University international relations professor. “It's not a new tactic but it's getting stronger.” U.S. officials are coy about the timing of future arms sales, insisting that they do not consult China. But analysts say Washington listens attentively whenever Beijing makes noise. “When it all boils down to it, it is Chinese pressure and threats,” said Rupert Hammond-Chambers, president of the U.S.-Taiwan Business Council.
    In 1949, the Chinese Civil War ended with the Communists, led by Chairman Mao Zedong, establishing the People's Republic of China and the Nationalists retreating from mainland China to the island of Formosa better known as Taiwan and establishing the Republic of China. The United States recognized Taiwan as the legitimate Chinese state as part of a one China policy. In 1972, President Richard Nixon, after a period known as Ping Pong diplomacy which included bilateral table tennis exhibitions, the United States recognized the government in Beijing on the mainland as the official Chinese Government. Beijing maintains that Taiwan is part of China and they will be reunited in the future. The US has maintained that any reunification will be accomplished by peaceful means and has provided for Taiwan's security. Over the years, the United States has sold arms to Taiwan angering China. China has responded with military exercises and missile launches in Taiwanese territorial waters and airspace. For nearly forty years, the US has been balancing improving relations with China and keeping its commitment to Taiwan. The Arms Sale The package of Patriot interceptor missiles, Black Hawk helicopters, Harpoon land and sea missiles, and communications equipment constitutes the largest arms sale to Taiwan in many years. Despite strong pro-Taiwan rhetoric early in the Bush Administration, US companies sold relatively few weapons to Taiwan during the Bush era. The State Department maintains that the latest arms sale is necessary to ensure security in the Taiwan Strait. China's Response China is furious with the sale. In its toughest response in three decades to US arms sales to Taiwan, Beijing announced over the weekend that it would curtail military exchanges with Washington, and sanction US companies involved, and warned of severe harm to bilateral ties. Regarding the sanctions against the US companies involved, the US has not sold arms to China since the 1989 crackdown on students in Tiananmen Square. However, Boeing is one of the companies involved in the sale, and there are fears that sanctions could extend to the purchase of commercial airliners. Cooperation on issues such as Iran, North Korea and economic relations could be problematic. Secretary Clinton is seeking China's support for a new regime of sanctions against Iran and may not find much support in Beijing. The US has been pressing China on opening its markets and climate change but may discover new resistance. It will be interesting to see if President Hu Jintao of China was invited to President Obama's nuclear summit in April. However, it is unlikely that the US Government would back down from this arms sale and risk looking weak both to the international community and the opposition in America.
    *This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News, contact: dtnnews@ymail.com

    DTN News: China Overtakes Japan As No.2 Economy: FX Chief

    DTN News: China Overtakes Japan As No.2 Economy: FX Chief
    Source: DTN News / Reuters
    (NSI News Source Info) BEJING, China - July 30, 2010: China has overtaken Japan to become the world's second-largest economy, the fruit of three decades of rapid growth that has lifted hundreds of millions of people out of poverty. Depending on how fast its exchange rate rises, China is on course to overtake the United States and vault into the No.1 spot sometime around 2025, according to projections by the World Bank, Goldman Sachs and others. China came close to surpassing Japan in 2009 and the disclosure by a senior official that it had now done so comes as no surprise. Indeed, Yi Gang, China's chief currency regulator, mentioned the milestone in passing in remarks published on Friday. "China, in fact, is now already the world's second-largest economy," he said in an interview with China Reform magazine posted on the website (www.safe.gov.cn) of his agency, the State Administration of Foreign Exchange. Cruising past Japan might give China bragging rights, but its per-capita income of about $3,800 a year is a fraction of Japan's or America's. "China is still a developing country, and we should be wise enough to know ourselves," Yi said, when asked whether the time was ripe for the yuan to become an international currency. CAN IT BE SUSTAINED? China's economy expanded 11.1 percent in the first half of 2010, from a year earlier, and is likely to log growth of more than 9 percent for the whole year, according to Yi. China has averaged more than 9.5 percent growth annually since it embarked on market reforms in 1978. But that pace was bound to slow over time as a matter of arithmetic, Yi said. If China could chalk up growth this decade of 7-8 percent annually, that would still be a strong performance. The issue was whether the pace could be sustained, Yi said, not least because of the environmental constraints China faces. In an assessment disputed by Beijing, the International Energy Agency said last week that China had surpassed the United States as the world's largest energy user. If China can keep up a clip of 5-6 percent a year in the 2020s, it will have maintained rapid growth for 50 years, which Yi said would be unprecedented in human history. The uninterrupted economic ascent, which saw China overtake Britain and France in 2005 and then Germany in 2007, is gradually translating into clout on the world stage. China is a leading member of the Group of 20 rich and emerging nations, which since the 2008 financial crisis has become the world's premier economic policy-setting forum. In one important respect, however, China is still a shrinking violet: anxious to shield itself from the rough-and-tumble of global markets, it does not permit its currency to be freely exchanged except for purposes of trade and foreign direct investment. And Yi said Beijing had no timetable to make the yuan fully convertible. "China is very big and its development is unbalanced, which makes this problem much more complicated. It's difficult to reach a consensus on it," he said. In the same vein, China was in no rush to turn the yuan into a global currency. "We must be modest and we still have to keep a low profile. If other people choose the yuan as a reserve currency, we won't stop that as it is the demand of the market. However, we will not push hard to promote it," he added. NO BIG RISE IN YUAN China has been encouraging the use of the yuan beyond its borders, allowing more trade to be settled in renminbi and taking a series of measures to establish Hong Kong as an offshore center where the currency can circulate freely. But Yi said: "Don't think that since people are talking about it, the yuan is close to becoming a reserve currency. Actually, it's still far from that." He said expectations of a stronger yuan, also known as the renminbi, had diminished. There was no basis for a sharp rise in the exchange rate, partly because the price level in China had risen steadily over the past decade. "This suggests that the value of the renminbi has moved much closer to equilibrium compared with 10 years ago," he said. Yi's comments are unlikely to go down well in Washington, where lawmakers have scheduled a hearing for September 16 to consider whether U.S. government action is needed to address China's exchange rate policy. China scrapped the yuan's 23-month-old peg to the dollar on June 19 and resumed a managed float. The yuan has since risen only 0.8 percent against the dollar, and economists calculate that it has fallen in value against a basket of currencies. China would stick to the principle of holding its $2.45 trillion of official reserves in a mix of currencies and assets. The stockpile -- the world's largest - was so big that it was impossible to adjust its currency composition in a short space of time: "We won't be particularly bearish on the dollar at a given time or particularly bearish on the euro at another time." (Additional reporting by Zhou Xin; Editing by Ken Wills)

    DTN News: Syrian-Saudi Leaders Bid To Defuse Lebanon Tensions

    DTN News: Syrian-Saudi Leaders Bid To Defuse Lebanon Tensions Source: DTN News / AFP
    (NSI News Source Info) BEIRUT, Lebanon - July 30, 2010: Syrian President Bashar al-Assad arrived in Lebanon on Friday for the first time since the 2005 murder of ex-premier Rafiq Hariri in a joint mission with Saudi King Abdullah to defuse a tense political situation.
    The two leaders flew in together from Damascus and were greeted at Beirut airport by Lebanese President Michel Sleiman and Prime Minister Saad Hariri, son of the slain Sunni leader, as well as other dignitaries. They were then headed to the presidential palace for a mini-summit hastily organised to address tensions over reports of an impending indictment against members of the Shiite militant group Hezbollah for Rafiq Hariri's murder. It is the first visit to the country by Assad since Hariri's assassination soured bilateral ties and forced the pullout of Syrian troops from Lebanon after a 29-year deployment. Damascus has consistently denied accusations that it had a hand in the killing. Relations between the two countries have been on the mend since 2008, when diplomatic ties were established for the first time. Prime Minister Hariri has also made four trips to Syria in the past eight months. Saudi Arabia, a staunch supporter of the Hariri family, has played a key role in the rapprochement between the Arab neighbours. Saudi and Syrian flags were being flown throughout the Lebanese capital on Friday for the unprecedented joint visit, along with huge portraits of the king together with a welcome message. Security was also tight, with additional army and police deployed. The visit by the Saudi and Syrian leaders is scheduled to last only three hours and includes a lunch to be attended by some 250 officials, among them members of the unity government which includes two Hezbollah ministers. "The whole visit is about containing the situation for the immediate future," said Sahar Atrache, a Beirut-based analyst with the International Crisis Group think-tank. "They are here to exert influence on their internal allies ... to prevent a real escalation." The Arabic-language newspaper An-Nahar, which is close to Hariri's Saudi- and Western-backed governing coalition, called the summit "historic." "This joint visit is historic and decisive because of its timing and the consequences it can have on a mounting crisis in Lebanon related to the tribunal," it said. Fears of renewed conflict rose last week after Hezbollah leader Hassan Nasrallah revealed that he knew the UN tribunal probing Hariri's murder was poised to indict members of his party, which is backed by Syria and Iran. He made it clear that he would not accept such a scenario, accusing the tribunal of being politicised and part of an Israeli plot. "The Arab leaders' visit to Lebanon is an opportunity to show Arab unity in the face of this plot which aims to destabilise Lebanon and sow sedition," Hezbollah deputy Hassan Fadlallah told AFP. "This would not be in the interest of the Lebanese or their Arab brothers." Analysts say that in addition to threatening civil peace, an indictment of Hezbollah members would deal a blow to the party's reputation and destabilise Hariri's unity government. The Saudi monarch is expected to press Assad to use his influence over Hezbollah to avoid a political stalemate or a sectarian conflict similar to the one which brought Lebanon close to a new civil war in 2008. Assad last visited Lebanon in 2002, and King Abdullah is the first Saudi monarch to visit the country since 1957. Also coming to Beirut later on Friday is the emir of Qatar, Sheikh Hamad bin Khalifa al-Thani. The emir, who is staying until Sunday, is to meet separately with Lebanese leaders and due to visit the south of the country.
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