UK’s BAE chairman urges fewer U.S. export controls

WASHINGTON (Reuters) – Dick Olver, chairman of Britain’s
BAE Systems Plc, on Tuesday urged U.S. leaders to ease export
controls to help strengthen already close cooperation between
U.S. and British defense companies.

BAE, which recently completed its takeover of U.S. armored
car maker United Defense Industries, is Europe’s biggest
defense player in the U.S. market, and has a big role in the
$200 billion F-35 joint strike fighter program.

Olver said he could understand U.S. concerns about
sensitive technologies being re-exported to other countries
such as China, but he said there was “absolutely no chance” of
BAE or other U.K. firms engaging in such actions, given clear
U.S. laws and tight British export controls.

“BAE is going to do absolutely nothing to embarrass the
U.S. government, which is … our largest customer,” Olver said
in remarks at the Woodrow Wilson Center in Washington.

Despite tight British controls on exports and the close
alliance between the two countries, Olver said there were many
areas in which British companies had not been able to cooperate
fully with U.S. companies because of U.S. laws that required
export licenses and technical assistance agreement.

Thus far, cooperation on the F-35, led by U.S. defense firm
Lockheed Martin Corp. had gone well, but continuation of export
controls could hamper U.K. efforts to share its expertise on
short take-off and vertical landing, Olver said.

“At the industry level, the regime prevents us from
operating efficiently,” he said. “At the national level, it is
a question of whether the U.K. can depend on the U.S. to make
this a project of genuine mutual advantage.”

Failure to share technology threatened the ability of
British and U.S. forces to operate jointly, increased the risk
of friendly fire incidents and diminished both countries’
national security capabilities, Olver said.

“I believe we can do better — that we can deepen this
partnership, and provide a better service to the people at the
front lines,” he added.

Olver said attempts to pass “Buy America” legislation
appeared to have intensified in Congress in recent years, but
he considered such policies shortsighted because they would
ultimately harm U.S. competitiveness, reduce investment in the
United States and cut U.S. jobs.

Olver said his company had no immediate plans for another
large U.S. acquisition, but remained committed to expanding its
stake of the world’s largest defense market over time.