Blair blocked ship deal to snub Chirac
Posted: 2003-02-04 12:57am
http://www.opinion.telegraph.co.uk/news ... altop.html
Blair blocked ship deal to snub Chirac
By Michael Smith and George Jones
(Filed: 04/02/2003)
Tony Blair blocked a decision to award a French
company a £3 billion contract to build the Royal Navy's two new aircraft carriers because of anger at President Jacques Chirac's behaviour over Iraq and Zimbabwe.
The industry journal Defence Analysis will say today that the reason for snubbing the French company was "purely political".
M Chirac's decision to invite President Robert Mugabe of Zimbabwe to Paris for a summit on Africa this month in defiance of EU travel sanctions proved to be "the last straw".
The disclosure that Mr Blair intervened to ensure that Britain's BAE Systems was made the prime contractor will increase tensions between him and M Chirac at today's Anglo-French summit at the resort of Le Touquet, near Calais.
The French are likely to be further affronted by the disclosure by defence sources that the decision to give BAE Systems the leading role was discussed in advance with Washington. America is angry about M Chirac's attempts to delay President George W Bush's plans for military action against Iraq.
Geoff Hoon, the Defence Secretary, announced last week that BAE Systems would build the Royal Navy's two new carriers, overturning the original recommendations of the Defence Procurement Agency that the French firm Thales should be the leading contractor.
Ministers said that giving the contract to BAE would secure 10,000 jobs in Britain. It said that, whichever company won, the carriers would be built in Britain.
Thales won a £100 million competition to build the ships and is said to have produced by far the best design. Having been reduced to the junior partner in what has been described as "an uncertain alliance", it will have a third of the contract at best, with the prospect of making very little profit.
The choice of BAE as prime contractor was made despite a rift between the company and the Ministry of Defence, which is angry at BAE's failure to complete several expensive programmes on time.
There have been long-running problems with the Astute submarine and the Nimrod maritime surveillance aircraft programmes. The ministry recently refused to indemnify the company against further losses.
Francis Tusa, the editor of Defence Analysis, said yesterday that officials had made a series of attempts to cover up the truth behind the affair by suggesting that negotiations had been going on for well over a month.
"But every industry source we have spoken to said the deal was sprung on both sides at the very last minute," he said. "There were no serious discussions of an alliance until two weeks before it was announced - and the Pentagon knew just about the same time they did."
That claim was confirmed by American defence sources, who said that the decision to reduce Thales to junior partner was well known in the Pentagon a fortnight before the decision was announced.
The French government had thrown its weight behind Thales. In talks with Mr Hoon, the French ambassador suggested that France might order the same type of carrier, thereby reducing overall costs.
British defence sources confirmed that Mr Blair made the final decision. A source said: "He was already pretty angry at the way Chirac was behaving over Iraq and the decision to invite Mugabe to France tipped the whole thing over the edge."
The Prime Minister was concerned that awarding the contract to France would have provoked a political row at a time when relations between London and Paris are their most strained since Labour came to power.
Mr Blair will seek to patch up his differences with M Chirac at today's summit, which was originally due to have been held in December. It was postponed after they argued vehemently over the common agricultural policy in October.
M Chirac is said to have told Mr Blair: "You have been very rude and I have never been spoken to like this before."
Although differences over Iraq, Zimbabwe and farm subsidies will dominate today's talks, the two leaders are expected to sign a joint declaration on defence.
The declaration will seek to put political force behind the development of a European rapid reaction force and plans to pool military equipment such as aircraft carriers for peacekeeping and humanitarian missions.
Blair blocked ship deal to snub Chirac
By Michael Smith and George Jones
(Filed: 04/02/2003)
Tony Blair blocked a decision to award a French
company a £3 billion contract to build the Royal Navy's two new aircraft carriers because of anger at President Jacques Chirac's behaviour over Iraq and Zimbabwe.
The industry journal Defence Analysis will say today that the reason for snubbing the French company was "purely political".
M Chirac's decision to invite President Robert Mugabe of Zimbabwe to Paris for a summit on Africa this month in defiance of EU travel sanctions proved to be "the last straw".
The disclosure that Mr Blair intervened to ensure that Britain's BAE Systems was made the prime contractor will increase tensions between him and M Chirac at today's Anglo-French summit at the resort of Le Touquet, near Calais.
The French are likely to be further affronted by the disclosure by defence sources that the decision to give BAE Systems the leading role was discussed in advance with Washington. America is angry about M Chirac's attempts to delay President George W Bush's plans for military action against Iraq.
Geoff Hoon, the Defence Secretary, announced last week that BAE Systems would build the Royal Navy's two new carriers, overturning the original recommendations of the Defence Procurement Agency that the French firm Thales should be the leading contractor.
Ministers said that giving the contract to BAE would secure 10,000 jobs in Britain. It said that, whichever company won, the carriers would be built in Britain.
Thales won a £100 million competition to build the ships and is said to have produced by far the best design. Having been reduced to the junior partner in what has been described as "an uncertain alliance", it will have a third of the contract at best, with the prospect of making very little profit.
The choice of BAE as prime contractor was made despite a rift between the company and the Ministry of Defence, which is angry at BAE's failure to complete several expensive programmes on time.
There have been long-running problems with the Astute submarine and the Nimrod maritime surveillance aircraft programmes. The ministry recently refused to indemnify the company against further losses.
Francis Tusa, the editor of Defence Analysis, said yesterday that officials had made a series of attempts to cover up the truth behind the affair by suggesting that negotiations had been going on for well over a month.
"But every industry source we have spoken to said the deal was sprung on both sides at the very last minute," he said. "There were no serious discussions of an alliance until two weeks before it was announced - and the Pentagon knew just about the same time they did."
That claim was confirmed by American defence sources, who said that the decision to reduce Thales to junior partner was well known in the Pentagon a fortnight before the decision was announced.
The French government had thrown its weight behind Thales. In talks with Mr Hoon, the French ambassador suggested that France might order the same type of carrier, thereby reducing overall costs.
British defence sources confirmed that Mr Blair made the final decision. A source said: "He was already pretty angry at the way Chirac was behaving over Iraq and the decision to invite Mugabe to France tipped the whole thing over the edge."
The Prime Minister was concerned that awarding the contract to France would have provoked a political row at a time when relations between London and Paris are their most strained since Labour came to power.
Mr Blair will seek to patch up his differences with M Chirac at today's summit, which was originally due to have been held in December. It was postponed after they argued vehemently over the common agricultural policy in October.
M Chirac is said to have told Mr Blair: "You have been very rude and I have never been spoken to like this before."
Although differences over Iraq, Zimbabwe and farm subsidies will dominate today's talks, the two leaders are expected to sign a joint declaration on defence.
The declaration will seek to put political force behind the development of a European rapid reaction force and plans to pool military equipment such as aircraft carriers for peacekeeping and humanitarian missions.
Dont stop there, go for broke , annex Normandy and Calais, Im sure the Royal Marines would love a day trip to the continent!!! 
