Agreement Reached On Transfer of F-16s To Poland

Agreement Reached On Transfer of F-16s To Poland

WASHINGTON--An agreement regarding the "no-cost" transfer of 16 surplus F-16A/B fighters to Poland was reached last week, resolving opposition from Rep. Benjamin Gilman (R- N.Y.), chairman of the House International Relations Committee, according to government sources.
"Gilman was very happy with the final agreement," a congressional aide said last week. He added that Gilman was never opposed to the actual transfer of the Lockheed Martin [LMT] fighters to Poland, but took issue with the original transfer proposal.
In late October, Gilman's office drafted a letter expressing his opposition to a no-cost lease and that Poland should have to pay for the aircraft just like any other U.S. ally. A Pentagon source said last week that Gilman's office expressed its initial concerns during the pre-notification process.
The older model F-16s are currently in storage at Davis-Monthan AFB, Ariz., and would require some refurbishment by Lockheed Martin. The no-cost lease comes as the result of the aircraft's significant number of flying hours and the need for a large upgrade and support package.
Under the negotiated agreement, Poland would receive the 16 fighters at no cost per aircraft, but would have to pay "depreciation charges" to the United States over the span of the proposed five-year lease, the Pentagon source said. The bulk of the final agreement was worked out between Gilman and Frank Kramer, the assistant secretary of defense for international security affairs.
The final value of the package is about $250 million. The lease consists of two separate parts, the transfer of the 16 fighters and the related upgrade and support package.
About $17 million, the Pentagon's estimated value of the planes, was waived from the final proposal. The exact amount of the depreciation charges was not disclosed.
The proposed lease will serve as an interim solution for Poland, which has been seeking about 60 new fighter aircraft to replace aging Soviet-era MiG-21s and complement upgraded MiG-29s by 2010. In the meantime, it has been seeking 16 aircraft by 2002.
An industry analyst said that this lease would be a "real foot in the door for Lockheed Martin" because it takes some pressure off the Polish government to buy European fighters in the future. Pentagon sources had called Gilman's initial opposition "short-sighted" because it could have jeopardized new market opportunities for older F-16A/Bs out of service.
The congressional aide said that Gilman was worried other countries modernizing their air forces--particularly the Czech Republic, Hungary, and Chile--would expect free surplus F-16s in the future if a precedent was not established.
Congress was notified last Wednesday and has 15 days to approve the transfer under Article 36B of the Arms Export Control Law. An agreement is to be signed during the first quarter of 2001. If approved by Congress and the Polish government, deliveries could begin in early 2003."



Lockheed Martin F-16







Mikoyan MiG-21






Mikoyan MiG-29