Dangers ahead in Air Force procurement: Aircraft contracts could reward Russia, French espionage and bribery, and other bad behavior

The Bottom Line

EADS is not a reliable defense partner of the United States, and it is not in U.S. interests to make the France-based company a long-term supplier of crucial defense infrastructure. Given that:

• The Russian government holds a stake in EADS and seeks to influence its management;

• The French government, which sponsored massive espionage and bribery to promote Airbus, owns a large stake in EADS;

• EADS unfairly competed against American aircraft manufacturers through spying and sponsorship of corruption;

• EADS workers, through their union representatives, show a demonstrated hostility toward the United States and Israel;

• European governments view EADS aircraft manufacturing as a jobs program for millions of socialist party voters;

• EADS recently attempted to undermine Western Hemispheric security by providing troop transport and patrol planes to Hugo Chavez over the strenuous objections of the United States;

• EADS has built a political influence operation in the United States to create pressure for the U.S. taxpayer to buy its products even if the military doesn’t want them;

• EADS has constructed a deceptive propaganda campaign to make its French Airbus look like an American military aircraft as it tries to get money from Congress;

• As U.S. government contracts to EADS increase, so will the influence of the French and Russian governments on American politics and defense procurement policy.

The U.S. cannot afford to reward bad behavior. It must never confuse Eurosocialist work programs with national defense needs. And it must not allow the Kremlin to exert political influence on American defense procurement.³⁷

∗Dr. Waller is the Vice President for Information Operations at the Center for Security Policy.  He is a subjectmatter expert in political warfare, public diplomacy, strategic communications, and information operations.

1 Stanley Holmes and Dawn Kopecki, “War on the Hill: Congress and the Air Force are headed for a clash over a huge tanker contract. At stake: the fortunes of Boeing and Northrop Grumman,” Business Week, January 30, 2007.

2

3 “Russian president expects serious coup with EADS,” RIA Novosti, Moscow, February 21, 2007, 1800 hrs.

4 Tom Zaitsev, “Vladimir Putin outlining interest in Russian EADS cooperation including equity stake,” Flight International, October 12, 2006, on flightglobal.com.

5 Pammy Olson, “Putin Hungry for EADS,” Forbes online, February 21, 2007.

6 Zaitsev.

7 Murdo Morrison, EADS rebuffs Russian bid to buy seat on board for $1.2 bn,” Flight International/FlightGlobal.com, September 19, 2006.

8 Chris Noon, “Putin Plays Innocent with EADS Stake,” Forbes Online, September 25, 2006.

9 “Russian President Denies Plans for Hostile Takeover of EADS,” Moscow News, October 11, 2006.

10 Pammy Olson, “Putin Hungry for EADS,” Forbes online, February 21, 2007.