Article Posted on : - Sep 14, 2010

A file photo.

NEW YORK (PTI): The US plans to ink its biggest arms deal ever, estimated at USD 60 billion with Saudi Arabia in a bid to build up defences against Iran in the region.

In the next two weeks, the Obama administration will notify the US Congress about a plan to sell USD 60 billion worth of aircrafts to Saudi Arabia, including as many as 84 new F-15 fighters, an upgrade of 70 more, and three types of helicopters - 70 Apaches, 72 Black Hawks and 36 "Little Bird" defenders, The Wall Street Journal said on Monday.

Washington is also currently in talks with Riyadh about potential and naval missile-defence upgrades worth tens of billions of dollars more, according to The Wall Street Journal, which reports that the administration plans to push the plan as creator of at least 75000 jobs and build up defences against Iran in the region, the report said.

The prospect for job growth could help build support in Congress for the USD 60 billion package, officials told the newspaper, speaking on conditions of anonymity.

"It's a big economic sale for the US and the argument is that it is better to create jobs here than in Europe," said one person close to the talks.

A notification, which is expected to be sent to Congress soon, will authorise the Saudis to buy as many as 84 new F-15 fighters, upgrade 70 more, and purchase three types of helicopters- 70 Apaches, 72 Black Hawks and 36 Little Birds, officials said.

Boeing Co., which makes the F-15s, the Apaches and the Little Birds, noted that the Saudi package would directly or indirectly support 77000 jobs across 44 states.

Besides the USD 60 billion package, US officials are also discussing a potential USD 30 billion package to upgrade Saudi Arabia's naval forces, according to The Journal.

An official described these as "discreet, bilateral conversations" in which no agreement has yet been reached.

That deal could include littoral combat ships, surface vessels intended for operations close to shore, the official said.

The report further noted that current discussions also included expansion of Saudi Arabia's ballistic-missile defences, with the US recommending that its key ally buy systems known as THAAD (Terminal High Altitude Area Defense) and to upgrade its Patriot missiles to reduce the threat from Iranian rockets.

The US has sought to build up missile defence across the region, and the Saudi package could be similar to one in the United Arab Emirates, officials said.

THAAD is the first system designed to defend against short-and intermediate-range ballistic missiles both inside and outside the Earth's atmosphere, the report said.

It complements the lower-aimed Patriot missile defence system, providing a layered defence.

There exists export potential for the system in the Middle East, where a major concern exists about Iran's ballistic missile development, according to officials of Lockheed Martin Corp., which makes THAADs. .

Pro-Israel lawmakers in the United States have voiced concerns over such an arms deal with Riyadh, saying they might "undercut Israel's military edge and provide support to a government with a poor human rights record.

US officials, however, have said that Israelis are increasingly comfortable with the Saudi sale because the planes won't have certain long-range weapons systems.

Israel itself is in line to buy a more advanced fighter, the F-35, and should begin to receive them around the same time the Saudis are expected to start getting the F-15s, they added.

"We appreciate the administration's efforts to maintain Israel's qualitative military edge, and we expect to continue to discuss our concerns with the administration about the issues," Michael Oren, Israel's Ambassador to the US, was quoted by Ynetnews as saying.