[sacw] IPARMW No. 15 (22 April 00)

[Harsh Kapoor]

INDIA PAK ARMS RACE & MILITARISATION WATCH NO.15
(22 April 2000)

[information & news for peace activists on Arms sales to the region,
defence budget figures, acquisitions & updgrades of weapons systems,
development and deployment of new weapons, implications of militarisation;
the developments on the Nuclearisation front and the doings of the
'intelligence' agencies. Bringing this information to wide public knowledge
is our goal here. No to secretive & exclusive control of this information
by technocrats, planners who plot national security hidden from public
scrutiny.
Please help us in the information gathering work for wide public
dissemination in South Asia.
Send Information via e-mail for IPARMW series to: aiindex@m... for
inclusion in the Emailings]

+++PLEASE NOTE THAT DISPATCHES FROM SACW WILL BE DISCONTINED FROM 23 APRIL
2000 TILL MID MAY 2000+++

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I INDIA
[1.]

=46OREIGN REPORT
Issue 2588
April 13, 2000

Indian spending blunder

TERRIFIED by government investigations into major defence deals over
the past decade, negotiations by Indian military and defence officials
for desperately needed military hardware and ordnance for operational
preparedness are at a standstill. This is despite healthy military
funds and gathering war clouds over the northern, disputed Kashmir
state. "No one is willing to finalise defence contracts out of fear of
being investigated," a military officer admitted. The Directorate of
Military Intelligence policy of placing officers from the Additional
Directorate General Weapons and Equipment under observation following
the probe into military purchases ordered by defence minister George
=46ernandes has not helped matters. Senior Ministry of Defence (MoD)
officials have also taken a collective decision not to process files
regarding purchases.

-----
[2.]

Jane's Navy International
April 2000

India's major exercises

The Indian Navy will this month conclude 10-week long manoeuvres off
the eastern and western coasts. These involve around 40 ships and
submarines, and 45 naval and Indian Air Force aircraft. The exercises
are intended to sharpen the country=EDs edge by validating new tactical
doctrines.

---
[3.]

Defense Week, April 17, 2000, Vol.21, No.16,

Indian Navy Deploys Nuclear-Capable Land-Attack Missile,

MOHAMMED AHMEDULLAH

[4.]

ASIA PULSE, April 13, 2000, Nationwide
=46inancial News,

KARACHI SHIPYARD TO CONSTRUCT FOUR FRIGATES,
KARACHI,
----
[5]

Jane's Defence Weekly, April 12, 2000,
HEADLINES; Vol. 33; No. 15,

Indian Air Force looks to Russia's AEW&C system,
Rahul Bedi JDW Correspondent

----
[6.]

Mideast Mirror, April 14, 2000, ISRAEL; Vol.
14, No. 73,

Israel, unrelenting on China arms deal, seeks to broaden arms sales to India

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II PAKISTAN

[1.]

Dawn

Seven Saudi ships participated in a weeklong joint naval exercise with
Pakistan.

"Joint exercises: Saudi ships to arrive tomorrow"
http://www.dawn.com/2000/04/15/nat12.htm

-----------------------
[2.]

Jane's Defence Upgrades
16-30 April 2000

Pakistan reveals 125mm armed Type 59 MBT
The prototype of the Al Zarrar (Striker), an upgraded Type 59 main
battle tank (MBT) for the Pakistan Army, was shown for the first time
during Pakistan's 60th National Day parade held in Islamabad on 21
March. The Chinese-built Type 59 MBTs have been undergoing a
progressive three phase upgrade programme over the last few years
under the leadership of Pakistan's Heavy Industries Taxila (HIT)
facility. Besides improving the Type 59's armour, mobility and
firepower, the upgrade also offers improved reliability and reduced
maintenance.
------------------
[3.]

=46reedom Center Pakistan: Flat No 8, 2nd floor, Cantonment Plaza, Peshawar
Sadder. Tel:+92-91-286740 UK: 22 Valetta Road, Acton, London W3 7TN.
Tel:+44-0181-749-2627 E-mail: Freedomcenter74@h...;
freeshiraz@y...

"Pakistan's defense deals during the last 10 years"

A Freedom Center report
by Shiraz Paracha

London: Pakistan entered into $6,000 million defense deals with different
countries during the last 10 years. Some of such deals have been shaky and
involved hidden costs. At least one defense deal was put on hold amid in
corruption charges against the high-ranking military officers. The
transparency of all the other defense deals could not be confirmed as the
military in Pakistan is secretive, and not accountable before any public
body including the parliament. The Freedom Center has compiled a report,
using several sources, on the Pakistan's military deals with France, China,
Britain and Ukraine. Pakistan with a population of nearly 135 million
people spends more than $6,066 per soldier and just $36 per student of the
public money. Around nine per cent of the GNP direct goes to the military
expenditure, while the education has been receiving below 3 per cent of the
GNP. Yet the military blame politicians for creating the mess in Pakistan.
Each time the generals grabbed the power in Pakistan they claimed they were
to clean up the economic and political system, instead they exacerbated it.
At the dawn of the new century Pakistan is again under the military rule.
The generals have directly ruled the country for more than 25 years. And
during the rest of the period the men in uniform were the backseat drivers
dictating the civilian governments, which were kept under siege by the GHQ.
The total number of the Pakistan's regular armed forces are 587,000 as
compare to India's 1.8 million. Pakistan spends nearly $4 billion on its
defense while Indian defense budget has been around $10 billion. Pakistan
military expenditure increased seven fold between 1978 and 1991. In
Pakistan, per capita expenditure on the military has been $30 as compare to
$11 on education. The defense budget accounted for 44.5 per cent of the
Pakistan federal revenue in 1993-94. Currently, more than 26 per cent of
the overall budget is devoted to defense in Pakistan, 37 per cent goes to
external debt, which is nearly $38 billion at the moment, and only 21 per
cent on development. However, corruption and mismanagement have engulfed
the whole system and the unaccountable defense sector is not an exception.
The Pakistani establishment has been very sensitive about country's defense
and security issues, which is understandable. Nevertheless, it's secretive
in the matters, which other wise, should have been open to scrutiny and
public debate. Purchase of the defense equipment is an area that has been
notorious for dubious deals, as there has been no openness for public
accountability. Pakistan had discussed the Mirage 2000-5 contract with
=46rance in 1992 as the US government had refused to deliver F-16 fighter
planes to Pakistan under the Pressler amendment. Pakistan had already paid
$656 million to Lockheed Martin but the US also refused to return the money
unless a third buyer could be found.
(It has been reported that New Zealand has agreed to buy the jets). There
have been allegations of corruption and receiving kickbacks in the F-16
deal. Hafiz Hussain Ahmed, deputy Amir JUI is one of the few Pakistani
politicians who dared to publicly speak about the commission charges in the
=46-16 deal. Pakistan wanted to procure two batches of 20 Mirage 2000
fighter-bombers to add to the 40 that had been already bought in the 1980s.
The price first cost at $3.2 billion and later reduced to $2.36 billion.
There are plenty of hidden costs also attached to this deal. In April 1997,
Nawaz Sharif, the then prime minister, announced that the deal was under
review. He put the deal on hold for two years amid concerns over high costs
and bribery. However, this deal has not been cancelled and would take place
in the near future. The French government struck another defense deal with
Pakistan in 1994. Pakistan wanted to buy three diesel powered Agosta 90B
submarines from France. Initially the deal was worth $600 million. but it
soon climbed to $950 million. It was alleged that $350 million increase was
a result of corruption and commission by the top defense officials. The
first submarine, which was entirely built in France by the 'Direction des
Construction Navels', was delivered to Pakistan in 1998, the second one was
assembled in Pakistan and the third was to be built in Pakistan. However,
it was a very shaky deal and the then prime minister, could do nothing more
than asking the Navy Chief Admiral Mansurul-ul Haq to retire amid
allegations of bribery. But Pakistan remained committed to the deal. At the
same time, Pakistan signed an additional contract of $100 million with
=46rance. Under this contract, Pakistan bought an unspecified number of
>'Aerospatiale SM-39 submarine-launched Exocet anti-ship missiles'. It is
worth mentioning that in both those defense deals Pakistan rejected much
cheaper offers of Sweden, Russia and the UK. British submarine, for
example, was offered at $849 million including additional training as
compare to french $950 million. In February 1998 Pakistan secured a
cut-price deal of $120 million for 40 ex-French Air Force, refurbished
Mirage III from Sagem and Sogerma, France. There were questions about the
purchase of Russian made T series tanks since the 1980s. Pakistan was
offered around 300 T-72 tanks at a cheap cost by Poland in the late 1980s
but it opted for the Check offer. The cost of a Polish T-72 tank was 1,000
dollars less than a Check unit of the same version. In 1990 Pakistan
ordered 450 T-69-II tanks to Norinco, China for $1.2 billion. All the tanks
had been delivered by 1996. Pakistan signed another contract to buy 320
Russian built T-80UD tanks with Ukraine in July 1996. Originally the deal
was at $580 million but the cost went up to $620 million. By the end of
1997, 100 units had been delivered to Pakistan. Pakistan bought six Amazon
class Frigates from Britain at the cost of $90 million in 1993-1994. Seacat
ShAM (ship-to-air missiles) and second hand Lynx helicopters were also part
of this package. Pakistan also bought BN-2A Defender Transport aircraft
from Britain.
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