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Turkey wastes $50m in cancelled missile deal with France
July 2, 2011 - 11:33 AMT
PanARMENIAN.Net - A cancelled deal that Turkey had signed for the
purchase of 19,000 short-range missiles from France has caused more
harm to the Turkish economy than was initially thought, a Defense
Ministry official said.
The official, speaking on the condition of anonymity, told Today's
Zaman that a $50 million investment, which the Turkish Mechanical and
Chemical Industry Corporation (MKEK) had made to produce missiles as
part of the cancelled deal, was wasted because the facility it
constructed for that purpose has remained idle since the late 1990s.
In 1998 Turkey agreed with France on the purchase of 19,000
short-range missiles for 400 million euros. As part of that deal,
Turkey made a payment of 280 million euros, almost three-quarters of
the total amount, but only received 3,600 missiles. When those
delivered missiles were tested at the Land Forces Command (KKK) in
Ankara, it was discovered that the missiles were defective and could
not hit their targets. Although France was notified of the test
results, operational missile deliveries started to miss deadlines and
Turkey consequently cancelled the deal in 2004. Upon Turkey's
application, the International Court of Arbitration ruled in favor of
Turkey in 2009, but by that time Turkey had lost a decade trying to
compensate losses rather than strengthening its defense industry.
This recent revelation by the ministry official has added to Turkey's
woes as it reveals that the country not only lost time but also money
with the $50 million investment following this failed missile purchase
attempt.
From: Baghdasarian
July 2, 2011 - 11:33 AMT
PanARMENIAN.Net - A cancelled deal that Turkey had signed for the
purchase of 19,000 short-range missiles from France has caused more
harm to the Turkish economy than was initially thought, a Defense
Ministry official said.
The official, speaking on the condition of anonymity, told Today's
Zaman that a $50 million investment, which the Turkish Mechanical and
Chemical Industry Corporation (MKEK) had made to produce missiles as
part of the cancelled deal, was wasted because the facility it
constructed for that purpose has remained idle since the late 1990s.
In 1998 Turkey agreed with France on the purchase of 19,000
short-range missiles for 400 million euros. As part of that deal,
Turkey made a payment of 280 million euros, almost three-quarters of
the total amount, but only received 3,600 missiles. When those
delivered missiles were tested at the Land Forces Command (KKK) in
Ankara, it was discovered that the missiles were defective and could
not hit their targets. Although France was notified of the test
results, operational missile deliveries started to miss deadlines and
Turkey consequently cancelled the deal in 2004. Upon Turkey's
application, the International Court of Arbitration ruled in favor of
Turkey in 2009, but by that time Turkey had lost a decade trying to
compensate losses rather than strengthening its defense industry.
This recent revelation by the ministry official has added to Turkey's
woes as it reveals that the country not only lost time but also money
with the $50 million investment following this failed missile purchase
attempt.
From: Baghdasarian