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IMMEDIATE RELEASE

Release No: 547-00
September 08, 2000

PROPOSED FOREIGN MILITARY SALE TO SAUDI ARABIA ANNOUNCED

The government of Saudi Arabia has requested a possible sale for a continuation of contractor maintenance and training technical services, spare and repair parts, support equipment, modification facilities, and labor to accomplish programmed depot maintenance (PDM) on their F-15 aircraft. The estimated cost is $690 million.

This proposed sale will contribute to the foreign policy and national security of the United States by helping to improve the security of a friendly country which has been and continues to be an important force for political stability and economic progress in the Middle East.

The contractor maintenance and training technical services will not alter the basic military balance in the region.

Saudi Arabia remains a highly valued, friendly nation and continues to lead the way for improvements in US-Arab relations. Its strategic location, proven oil reserves and moderate stance in the Arab world link its international interests and security with those of the United States. The Royal Saudi Air Force was a valuable participant in the Gulf War coalition and provides a tested deterrent force against aggression in the region.

The Royal Saudi Air Force will use contractor provided organizational and intermediate level maintenance and training services to maintain the operational capabilities of the F-15 aircraft. The PDM effort involves tear down and inspection of complete aircraft components. Any aircraft components will be repaired or replaced if they are found defective. The contractor services will provide for a continuation of the required logistics support through 2008.

The prime contractor will be Al-Salam Aircraft Co. (50 percent owned by Boeing Co.) of Saudi Arabia. There are no offset agreements proposed in connection with this potential sale.

Implementation of this proposed sale will require the assignment of six U.S. government and 50 contractor representatives in-country to support the program.

There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.

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