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Reuters: CEOs Warn Against Armenia "Genocide" Bill

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  • Reuters: CEOs Warn Against Armenia "Genocide" Bill

    CEOS WARN AGAINST ARMENIA "GENOCIDE" BILL
    Andrea Shalal-Esa

    Reuters
    http://www.reuters.com/article /idUSTRE62157G20100302
    March 3 2010
    UK

    Tue Mar 2, 2010 6:19pm ESTWASHINGTON (Reuters) - The aerospace and
    defense industry is urging House of Representatives lawmakers to
    reject a measure that would call a World War One-era massacre of
    Armenians by Turkish forces genocide, warning it could jeopardize
    U.S. exports to Turkey.

    Barack Obama

    The chief executives of Lockheed Martin Corp, Boeing Co, Raytheon
    Co, United Technologies Corp and Northrop Grumman Corp issued a rare
    joint letter, warning that passage of the measure by the House Foreign
    Affairs Committee could lead to "a rupture in U.S.-Turkey relations"
    and put American jobs at risk.

    "Alienating a significant NATO ally and trading partner would have
    negative repercussions for U.S. geopolitical interests and efforts to
    boost both exports and employments," the CEOs warned in a February
    26 letter to the committee's Democratic chairman, Representative
    Howard Berman.

    They said U.S. defense and aerospace exports to Turkey exceeded
    $7 billion in 2009 and were seen reaching a similar level in 2010,
    supporting tens of thousands of U.S. jobs.

    Industry executives are worried about Turkey's continued participation
    in several big U.S. weapons programs, including the Lockheed F-35
    fighter, a $1.2 billion deal with Boeing for 14 CH-47 Chinook
    helicopters, and Patriot missile sales.

    Turkey is one of eight international partners working with the United
    States on development of the $300 billion F-35 fighter, a program
    that has already seen some erosion of overseas amid cost overruns
    and delays in critical testing.

    "Turkey is clearly one of the critical partners on the F-35 program
    and one that is buying a lot of airplanes early in the program, so it
    would have a corrosive effect if they pulled out," said Jim McAleese,
    a Virginia-based defense consultant. "It would set the stage for other
    allies to reevaluate their schedule or even the overall quantity of
    F-35 purchases."

    The nonbinding resolution, to be voted on Thursday by the House panel,
    would require President Barack Obama to ensure that U.S. policy
    formally refers to the massacre as "genocide" and to use that term
    when he delivers his annual message on the issue in April -- something
    Obama avoided doing last year.

    The Aerospace Industries Association, which represents more than 270
    member companies, expressed concern in a separate letter, noting that
    U.S. exports to Turkey had more that tripled to over $10 billion
    in 2008, and U.S. companies were pursuing further arms sales at
    the moment.

    "In this current economy, we cannot afford to turn our back on
    increasing U.S. exports and sustaining U.S. jobs by alienating one of
    our most important trading partners," said Marion Blakey, president
    of AIA, the largest U.S. trade group.

    Turkey on Monday warned its ties with the United States would be
    damaged if the House panel approved the measure.

    One industry executive, who was not authorized to speak on the record,
    said U.S. companies fear Turkey could back out of deals with them
    and buy weapons form European firms instead.
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