U.S. PLANS ARMS SALE TO SAUDIS

UNCLAS STATE 154739

FOR OFFICIAL USE ONLY

E.O. 12356: N/A
TAGS: MASS SA US
SUBJECT: U.S. PLANS ARMS SALE TO SAUDIS


1. TEXT OF MAY 16 WASHINGTON POST ARTICLE "U.S. PLANS
ARMS SALE TO SAUDIS, WHITE HOUSE TO NOTIFY CONGRESS OF
$500 MILLION DEAL" BY BARRY SCHWEID OF THE ASSOCIATED
PRESS FOLLOWS.


2. BEGIN TEXT:


3. IN A MOVE CERTAIN TO TOUCH OFF HEATED DEBATE, THE
WHITE HOUSE WILL NOTIFY CONGRESS NEXT WEEK THAT IT
INTENDS TO SELL $500 MILLION WORTH OF F15 FIGHTER PLANES
TO SAUDI ARABIA, REAGAN ADMINISTRATION AND CONGRESSIONAL
SOURCES SAID YESTERDAY.

CONGRESS, WHICH HAS THE AUTHORITY TO VETO THE PURCHASE,
IS LKELY TO TAKE A CLOSE LOOK AT THE PLAN IN LIGHT OF
REPORTS THAT THE SAUDIS SECRETLY PROVIDED FINANCIAL HELP
TO THE NICARAGUAN CONTRAS.

THE WASHINGTON POST REPORTED THIS WEEK THAT SOURCES CLOSE
TO THE SAUDIS ESTIMATE THEIR CONTRIBUTION TO THE CONTRAS
AT $23 MILLION IN 1984-85. SOME MEMBERS OF THE

CONGRESSIONAL COMMITTEES INVESTIGATING THE IRAN-CONTRA
AFFAIR HAVE ESTIMATED SAUDI CONTRIBUTIONS TO HAVE BEEN AS
HIGH AS $32.5 MILLION.

ISRAEL'S SUPPORTERS, MEANWHILE, ARE BOUND TO CHALLENGE
THE DEAL AS POSING A POTENTIAL MILITARY DANGER.

THE SOURCES, WHO DEMANDED ANONYMITY, SAID THE PLANES--12
TO 15, DEPENDING ON ULTIMATE PRODUCTION COSTS--WOULD BE
KEPT IN THE UNITED STATES AND PROVIDED TO THE ARAB
KINGDOM ONLY TO REPLACE JETS LOST IN ACCIDENTS.

"IT IS UNDER ACTIVE CONSIDERATION AS ATTRITION
REPLACEMENTS," ONE OFFICIAL SAID.

AFTER BITTER DEBATE IN CONGRESS, THE CARTER
ADMINISTRATION IN 1978 WON APPROVAL FOR THE SALE OF 62
JETS TO THE SAUDIS.

FOUR OR FIVE PLANES HAVE SINCE BEEN LOST IN ACCIDENTS,
AND THE UNITED STATES WANTS TO KEEP THE LEVEL UP TO 60,
AN OFFICIA1 SAID.

CONGRESS WAS TO HAVE BEEN NOTIFIED THIS WEEK. BUT THE
PLAN WAS "SHORT-CIRCUITED" BY THE CONGRESSIONAL HEARINGS
ON THE IRAN-CONTRA AFFAIR, THE SOURCES SAID.

SAUDI AID TO THE CONTRAS CAME AT A CRITICAL PERIOD WHEN
CONGRESS HAD PROHIBITED U.S. MILITARY ASISTANCE TO THE
REBELS.

IN THE PERIOD, THE ADMINITRATION SHIPPED 400 STINGER
ANTIAIRCRAFT MISSILES TO SAUDI ARABIA AND ALSO SAID IT
WAS CONSIDERING A PROPOSAL TO SELL $12 BILLION IN
ADDITIONAL ARMS TO THE OIL-RICH KINGDOM.

WHILE CONGRESS WAS UNAWARE OF THE SECRET CONTRA AID,
OPPONENTS THREATENED TO REJECT THE PURCHASES--AND WITH
ENOUGH VOTES TO OVERRIDE A VETO BY PRESIDENT REAGAN.

HE SCALED DOWN THE DEAL, BUT THE SAUDIS WITHDREW THE
ENTIRE PACKAGE.

THEIR NEW REQUEST INCLUDES BOTH F15C AND F15D JETS, WHICH
ARE PRODUCED BY MCDONNELL DOUGLAS CORP. THE SAUDIS
INITIALLY BOUGHT 47 F15CS AND 15 F15DS.

MCDONNELL DOUGLAS IS DUE TO END PRODUCTION OF BOTH TYPES
OF AIRPLANES IN MAY 1988. IT WILL TURN OUT THE MORE

POTENT F15E, WHICH AN OFFICAL DESCIBED AS A "STRIKE
AIRCRAFT" THAT THE ADMINISTRAT1ON WOULD NOT SELL TO THE
SAUDIS AND CONGRESS WOULD NOT APPROVE.

THE OFFICIAL, WHO DECLINED TO BE IDENTIFIED, ESTIMATED
THAT IT WOULD TAKE THREE YEARS TO MANUFACTURE THE FIRST
OF THE REPLACEMENT JETS.

THE FIRST GROUP OF FOUR OR FIVE-,OR MORE IF OTHER
EXISTING PLANES ARE LOST--WOULD BE SENT TO SAUDI ARABIA
THEN, WHILE THE OTHERS WOULD BE KEPT IN THE UNITED STATES
TO BE SUPPLIED AS NEEDED.


4. END TEXT.


SHULTZ