Saudi Arabia, US in talks on billions in arms sales

Saudi Arabia is Trump's first stop on his maiden international trip, a sign of his intent to reinforce ties with a top regional ally.

The United States has been the main supplier for most Saudi military needs in recent years, from F-15 fighter jets to command-and-control systems worth tens of billions of dollars. Trump has vowed to stimulate the US economy by boosting manufacturing jobs.

Washington and Riyadh are eager to improve relations strained under former President Barack Obama in part because of his championing of a nuclear deal with Saudi arch foe Iran.

Lockheed Martin products in the package include a Terminal High Altitude Area Defense (THAAD) missile defence system with several batteries, the sources said. The THAAD system, like one now being made operational in South Korea, costs about $1bn.

Also being negotiated is a C2BMC software system for battle command-and-control and communications, as well as a package of satellite capabilities, both provided by Lockheed.

The sources spoke on condition of anonymity because they were not authorised to discuss the negotiations, which also include previously reported contracts or data-x-items under discussion for years.

One such deal, an $11.5bn package of four multi-mission surface combatant ships and accompanying services and spare parts, was approved by the State Department in 2015. Talks followed to hammer out capabilities, configuration and design for the complex warships, but the deal has never gone to final contract.

The next step for the ships may be a letter of agreement between the two countries, the sources said.

Versions of the ship used by the US Navy, the Littoral Combat Ship, are built by Bethesda, Maryland-based weapons maker Lockheed and Australia's Austal. If a deal goes through, it would be the first sale of a new small surface warship to a foreign power in decades.

SOURCE : MIDDLE EAST EYE