DATE=1/29/97

TYPE=CORRESPONDENT REPORT

NUMBER=2-209390

TITLE=CZECH MILITARY (L-ONLY)

BYLINE=BARRY WOOD

DATELINE=PRAGUE

CONTENT=

INTRO: THE U-S NAVY AND THE AMERICA'S "MCDONNELL-DOUGLAS" COMPANY

ARE OFFERING THE CZECH REPUBLIC MODERN FIGHTER JETS UNDER A

UNIQUE LEASING ARRANGEMENT. V-O-A'S BARRY WOOD REPORTS THE MOVE

REFLECTS COMPETITION AMONG WESTERN DEFENSE COMPANIES TO SELL NEW

FIGHTER PLANES TO COUNTRIES LIKELY TO JOIN THE NORTH ATLANTIC

TREATY ORGANIZATION.

TEXT: THE ST. LOUIS-BASED COMPANY SAYS IT HAS OFFERED THE CZECH

AIR FORCE A FREE, FIVE-YEAR LEASE OF SEVEN (MODEL) F-18 FIGHTERS

NOW BEING USED BY THE U-S NAVY. THE COMPANY SAYS THE DEAL

PERMITS THE CZECHS TO QUICKLY OBTAIN NATO-COMPATIBLE AIRCRAFT AND

GAIN THE EXPERIENCE FROM WHICH THEY CAN MAKE A LATER DECISION ON

WHICH PLANES TO PURCHASE.

CZECH OFFICIALS REACTED POSITIVELY TO THE U-S OFFER. ONE

OFFICIAL SAID THE U-S PROPOSAL IS WELCOME, BUT THAT NO

DECISION WILL BE MADE UNTIL OTHER SUPPLIERS HAVE MADE THEIR

PROPOSALS. THE MCDONNELL-DOUGLAS OFFER IS LIKELY TO BE JUST THE

FIRST OF SEVERAL CREATIVE FINANCING ARRANGEMENTS OFFERED BY

WESTERN DEFENSE CONTRACTORS.

ANOTHER U-S COMPANY, AS WELL AS FRENCH AND SWEDISH MANUFACTURERS,

ARE HOPING TO SELL FIGHTER JETS TO THE CZECH REPUBLIC, HUNGARY

AND POLAND. THESE THREE COUNTRIES ARE LIKELY TO BE INVITED TO

JOIN NATO LATER THIS YEAR. ALL THREE CANDIDATE COUNTRIES ARE

EAGER TO OBTAIN NEW WESTERN AIRCRAFT TO REPLACE THEIR SOVIET-ERA

FIGHTERS. CONTRACTS WORTH SEVERAL BILLION DOLLARS ARE INVOLVED,

WITH POLAND LIKELY TO BE THE BIGGEST PURCHASER. ALL OF THE

WESTERN SUPPLIERS HAVE BEEN DEMONSTRATING THEIR AIRCRAFT FOR

DEFENSE OFFICIALS IN PRAGUE, BUDAPEST AND WARSAW.

IN THE CZECH REPUBLIC, THE PROCUREMENT ISSUE IS COMPLICATED BY

SHARP CUTS IN DEFENSE SPENDING. MCDONNELL-DOUGLAS, WHICH

RECENTLY AGREED TO A MERGER WITH "BOEING," SUGGESTS THAT IT WOULD

ULTIMATELY MANUFACTURE THE "HORNET" FIGHTERS AT A CZECH AIRCRAFT

FACILITY THAT'S BEING PRIVATIZED. THE U-S COMPANY SAYS THE

CZECHS COULD BE FLYING THE HORNET FIGHTERS WITHIN 18 MONTHS AFTER

A CONTRACT IS SIGNED. (SIGNED)

NEB/BDW/PCF/RRM

29-Jan-97 1:55 PM EST (1855 UTC)

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Source: Voice of America