UK strategic alliance

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In the past the UK defence industry has to juggle between UK-US co-operation and European consolidation. However in the past few months, a new trend has emerged, suggesting that the twin-track policy has entered a new phase that will exploit the transatlantic link more effectively. The Eurofighter program and the imminent merger of British Aerospace and Daimler Chrysler Aerospace (Dasa) still remains a visible sign of the European perspective. However recent developments point to a "new era in Anglo-American defence industry relations" (Kent Kresa, chairman of Northrop Grunman). Beneath the rhetoric, last years failure of the Lockheed Martin Northrop Grunman merger seems to have been partly the result of political pressure arising from the emerging relationship between London and Washington on defence procurement issues. On the background is an intriguing shift in US Department of Defence policy on joint ventures with the UK. There is progress on several UK-US projects for instance in the field of military satellite technology (Lockheed Martin) and airborne stand-off radar (Northrop Grunman), and UK defence electronic giant GEC has decided on a transatlantic alliance (possibly Northrop) instead of a European one.

Jane's Defence Weekly, Defence Industry report, December 1998.

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