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U.S. Ambassador to Korea Alexander Vershbow reportedly made a last-ditch plea on behalf of a U.S. aerospace giant after press reports said Korea decided to hand a lucrative defense project to an Israeli firm. In a meeting with Defense Minister Yoon Kwang-ung last Wednesday, Vershbow is said to have asked for ¡°an objective and fair appraisal¡± of the bid for an airborne early warning system -- the so-called EX Project -- in which Boeing of the U.S. and the Israeli firm IAI ELTA were the last remaining bidders.
A military source said the two officials discussed not merely Korea¡¯s decision to cut its troop strength in Iraq but also the E-X Project. Vershbow brought up the project unexpectedly, the source added.
Korea has been one of the most faithful customers of U.S. arms in the last 50 years, with high-ranking U.S. officials often persuading Seoul to buy more by direct and indirect means. But Washington has lately exercised restraint, reasoning that any pressure on Korea to buy military hardware could backfire and fuel anti-American sentiment here.
The much-delayed E-X project aims to buy four airborne early warning systems, now starting from 2008, with a budget of W1.8 trillion (about US$1.8 billion). Boeing¡¯s E-737 is pitted against IAI ELTA¡¯s G-550 in the latest round of bidding. Given the close military alliance between Korea and the U.S., the situation looked favorable for Boeing, but the Defense Ministry seems decided to go with the lowest bidder as long as the planes meet Air Force specifications. IAI ELTA is reportedly asking $1.1 billion compared to Boeing¡¯s $1.5 billion.
(englishnews@chosun.com )
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