UPDATE 2-France wins Qatar tram deal, discusses Rafale jets

US sells $11bn worth of arms to Qatar Published time: July 15, 2014 09:46 Get short URL US Defense Secretary Chuck Hagel (L) and Qatar's Minister of State for Defense Affairs Hamad bin Ali al-Atiyah (C) arrive for a weapons sales signing ceremony at the Pentagon on July 14, 2014 in Washington, DC. (AFP Photo / Mandel Ngan) US Defense Secretary Chuck Hagel (L) and Qatar's Minister of State for Defense Affairs Hamad bin Ali al-Atiyah (C) arrive for a weapons sales signing ceremony at the Pentagon on July 14, 2014 in Washington, DC. (AFP Photo / Mandel Ngan) Share on tumblr Tags Air Force, Arms, Army, Big deal, Military, Qatar, USA Washington and Doha have signed the largest arms deal of the year, preparing to enhance Qatar’s military capabilities with $11 billion-worth of Apache assault helicopters, PAC-2 missile defense complexes and Javelin man-portable anti-tank missiles. The deal has been signed on Monday in Pentagon by US Defense Secretary Chuck Hagel and Qatari Defense Minister Hamad bin Ali al-Attiyah. Altogether Qatar is buying 10 batteries of Patriot missile defense systems and 500 Javelin anti-tank missiles manufactured by US defense industry giants Raytheon and Lockheed Martin, and 24 Apache helicopters made by Boeing, an anonymous US official told the AFP. A U.S. military AH-64 Apache assault helicopter (Reuters / Erik De Castro) The Patriot complexes with 247 PAC-3 missiles cost over $7 billion, the Apache helicopters and related gear are worth over $3 billion, and the Javelin anti-tank missiles cost additional $100 million. “Today's signing ceremony underscores the strong partnership between the United States and Qatar in the area of security and defense and will help improve our bilateral cooperation across a range of military operations,” said in a statement Pentagon spokesman Rear Admiral John Kirby. Qatar is the key US ally in the Persian Gulf region and home to the US Al-Udeid Air Base, with the headquarters of US Central Command (USCC) and US Air Force Central Command (USAFCC) stationed there. Patriot Advanced Capability-2 anti-missile launcher (Reuters / Richard Chung) Last December US and Qatar signed a 10-year Defense Cooperation Agreement ensuring presence of American troops at the military installations in the area, including the Combined Air Operations Center at Al Udeid Air Base, and closer interaction between American and Qatari armed forces. The agreement was signed in Qatar by US Defense Secretary Chuck Hagel and Qatari Defense Minister Hamad bin Ali al-Attiyah. “This is a critically important relationship in the region,” Kirby said. “And the secretary is pleased to be able to continue to make it stronger.” Pentagon claims that new order from Qatar will create 54,000 jobs in the US. A U.S. soldier explains the Javelin anti-tank missle (Reuters / Lee Jae-Won) A U.S. soldier explains the Javelin anti-tank missle (Reuters / Lee Jae-Won) It has been a priority for the US in recent years to improve the air defenses of American allies in the Persian Gulf, remaining “the defense provider of choice” for Qatar and other Gulf States, the same anonymous official informed the AFP. Qatar is investing in missile defense systems because of the missile arsenal of Iran across the Persian Gulf, the official said. Tehran possesses multiple missiles capable of reaching Qatar in case of a regional conflict. Qatari authorities have been acting as intermediary when it comes to organizing negotiations between the Taliban in Afghanistan, and American and Afghan governments after a Taliban office opened in Qatar last summer ahead of renewed talks. In January this year, another set of secret negotiations between the Karzai government and Taliban took place in the United Arab Emirates. Qatar also contributed to the US-Taliban deal that ended in release of Army Sgt. Bowe Bergdahl on May 31 this year. Bergdahl, who spent five years as a Taliban POW, was delivered to Qatar in exchange for the release five Taliban commanders imprisoned at Guantanamo Bay US detention facility in Cuba. There have been reports that Qatar has been actively participating in a number of conflicts in recent years, such as ousting Libyan leader Muammar Gaddafi in 2011 and the ongoing civil war in Syria. ========================= Mon, Jun 23 15:58 PM EDT * Alstom, Vinci win 2 bln euro tram deal * Talks continue on sale of Rafale jets (Adds defence analyst quote, background) By Elizabeth Pineau and Tim Hepher PARIS, June 23 (Reuters) - French conglomerates Alstom and Vinci signed a 2 billion euro ($2.72 billion) deal with Qatar on Monday to build a tram system in the future Lusail City, while the two countries also discussed a possible defence contract. The deal, which will see the light rail system starting to operate in 2018-20, was signed in front of journalists during a visit to Paris by Qatar's emir, Sheikh Tamim bin Hamad al-Thani. One of the Gulf's largest real estate developments, Lusail City is expected to house up to 200,000 people and contain commercial districts including the $275 million Marina Mall project, 22 hotels, four islands and two golf courses. The estimated $45 billion development will also feature the 80,000-seat Lusail Stadium, where the championship match of the 2022 World Cup soccer tournament will be played. Qatar has been under fire for its treatment of migrant workers, many of whom are reported to have died on the country's infrastructure projects, but has announced stricter measures for contractors involved in building work for the 2022 tournament. Asked whether France had raised the issue of worker conditions during the emir's visit, a French official said, "We talk about everything with Qatar. There are no forbidden topics." Leaders of the two countries also discussed the possible sale of French Rafale fighter jets, built by Dassault Aviation , to Qatar but there was no immediate conclusion. "They discussed it. Negotiations are continuing," a source close to French President Francois Hollande said following a meeting held during the emir's first official visit to France. Qatar is planning a significant increase in the size of its air force as the energy-rich Gulf state forges a wider international role after taking part in the 2011 Libya conflict. Its air force operates a squadron of 12 Dassault Mirage-2000 jets, but is now looking to buy 72 jets in two equal tranches. "Qatar has always chosen French technology for its armed forces," Hollande said in a speech toasting the visiting Qatari head of state before an official dinner. The emir made no reference to the Rafale during his remarks, delivered in French. "FRENCH STRONGHOLD" France is anxious to secure its first export buyer for the Rafale as it also tries to close a long-awaited $15 billion deal with India for a purchase of 126 of the multi-role jets. In Qatar, Dassault Aviation is competing with the Eurofighter Typhoon - offered by a European consortium of Airbus Group, BAE Systems and Finmeccanica - and the F-15 fighter built by U.S. planemaker Boeing. "Traditionally, Qatar is a French stronghold in arms exports but they have been buying from elsewhere," said Douglas Barrie, senior fellow at the International Institute for Strategic Studies, noting speculation that Qatar might split the order and go for a mixed fleet despite incurring extra training costs. "I would be surprised if the French walk away from this empty-handed. Is it beyond the bounds of possibility that someone else gets all 72 aircraft? No, but unlikely," he said. Qatar is among a number of Gulf states looking to renew air power but also seen as playing a waiting game with Washington for the newer Lockheed Martin F-35. The United States has not so far decided whether to offer its latest radar-evading combat jet to the Gulf, but arms sales experts say it could become available to the region about five years after Israel receives its first F-35 fighter jets in 2016. U.S. policy guidelines call for Israel to maintain a competitive military edge. "The key question is whether the Americans will release the F-35 and if so when," Barrie said. That, he said, would influence whether Qatar feels it can buy something in the interim and then make the case in Washington to release the F-35 into the region. Even then, competition for any interim deals is expected to be fierce. (Editing by Maya Nikolaeva, Alexandria Sage and David Evans)