BRUSSELS, Dec. 3 (UPI) -- Former NATO chief calls on United Kingdom to increase spending
Former NATO chief Lord Robertson has called for U.K. defense spending to be increased by more than one-third.
Britain spends 2.2 percent of its gross domestic product on defense, well above the average of European NATO member states.
But Robertson, who served as the British secretary of defense from 1997 to 1999, says he believes the only way to guarantee the safety of future British generations would be to increase defense spending to 3 percent of GDP.
Britain will spend $68 billion on its defense sector in the 2007/2008 fiscal year, the world's No. 2 defense budget.
Robertson suggested the increase should be made at the expense of the health, education and housing budgets.
"Huge amounts of money are spent on soldiers who can't be mobilized, on tanks that will never move, on anti-submarine warfare assets against an enemy that doesn't have any submarines," he told the BBC.
Rosoboronexport chief named head of new consortium
Sergei Chemezov will become the head of the newly formed Russian Technologies, a holding company created by Russian President Vladimir Putin.
The holding company, which is the brainchild of the influential Chemezov, will include Rosoboronexport and will create an industry giant that will likely compete with France's newly created high-level military sales team that includes French President Nicolas Sarkozy and several ministers.
Besides arms trader Rosoboronexport, the company will also consist of Russia's largest carmaker AvtoVAZ; VSMPO-Avisma, the world's largest titanium producer; RusSpetsStal, which produces steel, and several other firms, The Moscow Times reports.
Through Russian Technologies, Chemezov, who has been a close ally of Putin's since their days in the security service, hopes to rebuild Russia's heavy industry sector.
Saab awarded Australian helicopter landing dock deal
Saab Systems has been awarded an $87 million contract to supply the Australian navy's new Landing Helicopter Dock with a Combat Management System, which it will design, produce and integrate.
The Combat Management System will be installed on Australia's two new amphibious ships, ordered from Tenix-Navantia earlier this year, and will include the 9LV CMS and Sea Giraffe AMB.
Russia to spend $305 billion over next three years on defense
The Russian Federation will be spending an average of $100 billion a year on defense from 2008 through 2010. The new budget has been approved by the upper chamber and covers both the defense and security industries.
In 2008 expenditure is budgeted at $91 billion. In 2009 that number will rise to $101.6 billion. In 2010 it will be $112 billion. This means expenditure will grow 19.1 percent, 31.5 percent and 46.1 percent respectively.
Russia's armed forces are expected to grow by 150 percent by 2010, and some of the expenditure could be spent on nuclear arms potential, Sen. Viktor Ozerov, the head of the Federation Council's defense and security committee, says.
EADS wins Swiss prototype contract
The European Aeronautic Defense and Space Company has inked a contract with the Swiss army to design high-tech infantry gear, according to Defense News.
The prototype should be delivered in September 2008 and could lead to a $178 million production deal in 2009 and two additional orders in 2010 and 2014.
Sagem will serve as the primary subcontractor.
Recently, EADS has also signed contracts for the production of high-tech gear for the German army and is also developing gear for the Spanish army.
Russia compensates Croatia for Soviet era
Croatia has received the first two of fourteen Mi-171 III transport helicopters from Russia. The helicopters will be delivered without charge as compensation for the former Soviet Union's debt. The remaining dozen helicopters will be delivered sometime in 2008.
The unusual agreement was initiated in late 2005, and the contract was signed in July of 2006. As part of the deal Russia will also be training personnel to fly the new helicopters.
