Armament companies seek out US commissions

Pavel Baroch
25. 3. 2008 17:00
The issue is bound to the radar base negotiations

Prague - Besides the two agreements that specify conditions for the planned radar base in the Czech Republic, there is an additional contract waiting to be signed by Prague and Washington.

Although it has not been discussed much in public, the third contract is crucial for the Czech arms industry.

If signed, the agreement would open the doors for Czech arms producers to US Ministry of Defense's orders. 

Certificates come first

US arms industry is legally enabled to cooperate only with partners from countries that have special certificates. Enterprises from "non-certified" states have to ask for a special exception.

"It is the biggest hamper to our possible cooperation with American companies," said Jiří Hynek, the president of the Defense Industry Association of the Czech Republic.

Among the "qualified" countries are, Great Britain, France, Norway, as well as Egypt, Portugal, Turkey, Greece or Austria.

Hynek would like to have the agreement on armament commissions signed with the United States as the first one of the three contracts. He fears that one the major agreements about the radar base are signed, nothing more would be negotiated.

The association's president added that he has spoken with representatives of major American companies and they too do not approve of the  current complicated relations with Czech companies.

Opening phase of negotiations

Discussion with the United States is lead by the Czech Ministry of Defense. So far, the army has provided information that suggests that the contract easing Czech companies' entrance onto the American market would probably not be signed before the two agreements concerning the radar.

"The negotiations are in the opening phase," assured Petr Sýkora from the Ministry of Defense, adding that both sides are clarifying their positions and exchanging basic information. 

Contracts on the radar base can be signed in a matter of weeks. The ministry would like to have the third agreement that concerns Czech armament companies signed before the end of the year.

The issue of acces to US defense contracts is discussed not discussed much among the public
The issue of acces to US defense contracts is discussed not discussed much among the public | Foto: Reuters

The ministry claims that the third contract is discussed independently of the other two agreements.

Czechs as mere helpers?

Hynek stresses that the contract is also important because it may enable Czech firms to be granted contracts associated with the radar base construction, thus avoiding being degraded to a position of mere "helpers".

US company Raytheon that would be in charge of the radar base construction has released its idea of how Czech firms could participate on the project. Primarily it has mentioned less pivotal jobs such as putting up fences, construction of buildings, road maintenance or refuse disposal.

Czech defense industry companies are not willing to accept this and want to negotiate with Americans.

"We can do much more than that," said Hynek, adding that Czech arms industry can offer high-end technologies, for example a complex security system for all buildings at the base that would include special motion sensors, satellite and land communication, computer programs or fire protection. 

 

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