russia-china $1Bill. AWACS deal.

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Friday November 3 1:22 AM ET
Russia Touts Billion Dollar Radar Deal in
China

By Jeremy Page

BEIJING (Reuters) - Russia is lobbying for a billion dollar deal to supply
China with early warning aircraft after the United States blocked Israel from
selling an airborne radar system to Beijing, defense analysts and diplomats
said on Friday.

Russian Prime Minister Mikhail Kasyanov, who arrived in Beijing on Friday,
was expected to discuss with Chinese officials the sale or lease of up to five
Beriev A-50 early warning aircraft -- the Russian equivalent of the U.S.
AWACS, they said.

Israel canceled the sale of the Phalcon, the Israeli version of AWACS, to
China in July after pressure from the United States, which feared the system
could give China an edge over Taiwan and U.S. fighters.

Russian Deputy Prime Minister Ilya Klebanov, also in China this week, was
quoted by Russian media as saying Moscow and Beijing would sign ``very
serious, strategic contracts'' and were discussing the A-50 in particular.

A Russian embassy official confirmed Klebanov's remarks but declined
further comment.

Inferior But Worrying

Although the A-50, known to NATO (news - web sites) as Mainstay, is
thought to be inferior to the AWACS and the Phalcon, a deal would still
worry the United States, analysts said.

Washington made clear its resolve to protect Taiwan, which Beijing regards
as a rebel province, by sending two aircraft carrier groups in 1996 when
China held intimidating wargames.

Anxious to maintain air superiority, the U.S. Congress threatened to cut the
$2.8 billion it gives Israel annually if the Jewish state went ahead with the
$250 million Phalcon deal.

``The United States will be concerned about this (the A-50) but there's not
much they can do,'' said Paul Beaver, spokesman for defense industry
publisher Jane's Information Group.

``It's not a weapon of war,'' he said. ``You'd put it up 200 km (125 miles)
from Taiwan and watch Taiwan operations going on there.''

The A-50, comprising a mushroom-shaped radar mounted on an Ilyushin
IL-76 aircraft, can be used for reconnaissance, air support and early warning
of missile attacks to a range of up to 400 km (250 miles), defense analysts
said.

``It would give them an early warning capability that they don't have at the
moment,'' said one Western diplomat.

``It doesn't seriously change the balance of power but it does give the
Chinese greater capability as part of their overall modernisation program,'' the
diplomat said.

Long Shopping List

The deal would also consolidate a new strategic partnership between
Moscow and Beijing that many analysts call a relationship of convenience
based on opposition to U.S. dominance in world affairs.

``The Chinese would like to be able to buy from wherever they want, but
they can't and the Russians are prepared to sell up to a point,'' said the
diplomat.

``I don't think they have any other options.''

However, China was unlikely to rush into a deal on the A-50, worth $200
million each, without agreeing on extensive upgrades to its outdated radar
system, analysts said.

``They don't want to do a knee-jerk reaction and buy the first piece of
equipment they're offered,'' said one Asian defense analyst, who declined to
be identified.

``And they want to make sure given the state of the Russian defense industry
that if they buy it the Russians can actually pay to produce it and maintain it.''

Nor is the A-50 the only item on Beijing's shopping list.

China has also requested more than 30 Russian Sukhoi-30 jet fighters worth
$2 billion and is looking at Russian frigates, submarines and missile systems,
according to defense analysts.

``They have a shopping list and they keep adding to it,'' said Beaver. ``I
would imagine these A-50s are pretty close to the top of the list.''

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Don't worry. MiniMe, if elected, will make sure the ChiCom get the best US technology.

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"Get yourself a Pistolet Makarova and lose that pricey western gadget."
 
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