France to Guarantee Pakistan Arms Purchase Finance, Echos Says

[Neo]

France to Guarantee Pakistan Arms Purchase Finance, Echos Says

By David Whitehouse

April 19 (Bloomberg) -- France is ready to guarantee financing for military-equipment purchases by Pakistan of between 400 million and 500 million euros, daily Les Echos reported, citing an unidentified person.

Safran SA and Thales SA may be among the companies to benefit, according to the newspaper. France may also guarantee 200 million euros of finance to modernize three Pakistani submarines, Les Echos said.

http://www.bloomberg.com/apps/news?s...k&pid=20601087

[Mastankhan]

Ho,

The onion is going to be peeled a layer at a time.

[Araz]

Originally Posted by Mastankhan

Ho,

The onion is going to be peeled a layer at a time.

But htis time the sting is gone from it.!! I think it is time that we have a bit of moral in our dealings and decline any further "help 2 from the french.MESMA for the 90Bs is a done thing, but the rest the french can take a hike. Once they get kicked out of India with no chance of rafale deal, they will have some sense knocked into them.
Araz

[Selma Shirazi]

One thing I don't understand is why such deals are not secured during the preliminary round of negotiations where the offers are made. Isn't it waste of effort and valuable time to see the deal go sour because the adversary is offering more money? There should be some mechanism to secure independant dealing or to have the possibility to sue the manufacturer incase the deal is denied in final stage due non political reasons.

[Mastankhan]

Hi,

When there is deceit and deception---kickbakcs and bribes, then there is no security of the deal. Even though paf will lose out on the deal due to the time strain, I doubt if it had invested any money in the project. The biggest loser is going to be thales/ate etc.

[Araz]

Selma
It is simply not possible to secure a deal prior to negotiations, as every nitty gritty is checked and recheked.Prices are renegotiated and equipment is changed around to fit the price.Also the after sale service agreements can take a huge time to negotiate. So it does take an average of 18 months to 2yrs to negotiate.
Mastan
Brother, fortunately PAF this time round has alternatives , so yes the french will lose out big time on this.Also there are murmurs of some dirty fingers in the pie,trying to be greedy, which resulted in the deal taking place in the first place. The real question is that with the advent of AWACS do we need a good radar or can we get along with a decent one and wait a few yrs to see how the AESA situation pans out for PAF.In any case I suspect arming all JFs with AESA will be an overkill. Working on the Swedish principle, 1:4 ratio ought to be good enough.
Araz

[Mastankhan]

Hi,

The only reason the deal could not be sealed was due to it being in the design and assessment stage for the most part. The system was specifically designed for this plane.

If it had already been an existing system---a plug and play---then off corse you can sign a binding agreement and add a damage clause to it as well---like pakistan did with the cargo plane---it shows that pak is still not upto par at making deals at the world class level. It shows the lack of competence in the managers responsible for the deal making.

Paf has developed a bad bad habbit of being dealt a nasty nasty blow at the very last minute---maybe they like pain---they have too many hurdles come their way and that is not a good practise---maybe they need to change their directions and the road that they are travelling on.

PAf can make us believe that there is nothing lost--but truthfully much is lost---instead of moving ahead---paf has to worry about its flank one more time---this package should have been done and sealed months ago---securities and guarantess should have been agreed upon ahead of time.