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

Posted on: Tuesday, 12 July 2005, 12:41 CDT

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.

Source: REUTERS

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