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MILPLEX
South America, Africa spend more on arms

China sells limited supplies of arms to Venezuela: US
Washington (AFP) April 13, 2011 - China has sold "very limited" supplies of weapons to Venezuela as it increases its activities in Latin America, mainly for commercial reasons, a Defense Department official said Wednesday. David Helvey, an Asia expert at the Pentagon, declined to give details about the arms sales because he was not sure how much he could reveal during public testimony at the US-China Economic and Security Review Commission. "Its activities in Latin America are increasing slowly over time. They start from a very low base but they have been progressively growing in recent years," Helvey told the panel.

"I think most of their activities in Latin America (are) motivated primarily by commercial and economic interests, where they are seeking to expand access to trade for resources and secure access to markets" for their manufactured goods," he said. "We have (also) seen some arms sales, very limited arms sales ...to Venezuela," Helvey said. When pressed for specifics, he said he would have to follow up with a written answer as he did not know what was appropriate for public discussion. "It has been very limited and we continue to watch that very carefully," Helvey said.

He said the United States wanted to ensure that "China's activities in Latin America or elsewhere be done in an open and transparent way, in a way that supports good governance, rule of law, human rights and is not disruptive to regional security dynamics." The panel was set up in 2000 to monitor, investigate and submit to Congress an annual report on the national security implications of the US-Chinese trade and economic relationship. It can make recommendations to Congress for legislative and administrative action.
by Staff Writers
Stockholm, Sweden (UPI) Apr 13, 2011
Global arms spending rose to more than $1.6 trillion in 2010, with South America and Africa accounting for the fastest relative increases over the previous year, a Swedish defense industry watchdog said.

Money spent on defense in South America last year increased 5.8 percent to $63.3 billion on the region's economic boom, the geopolitical rise of Brazil and internal security threats in some states, the Stockholm International Peace Research Institute said in a study released this week.

"This continuing increase in South America is surprising given the lack of real military threats to most states and the existence of more pressing social needs," Carina Solmirano, Sipri's South America expert, said in a statement. The watchdog from Stockholm has in the past warned of an arms race in South America.

Defense spending in Africa increased 5.2 percent over 2009, led by major oil-producers such as Algeria, Angola and Nigeria. Over the past decade, military expenditures rose by 64 percent.

While the increases in South America and Africa are cause for concern, they're coming from a relatively modest total and are dwarfed by the U.S. focus on military power.

While growth in U.S. defense expenditures slowed in 2010, its $698 billion spent remains exceptional compared to other nations.

"The United States has increased its military spending by 81 percent since 2001 and now accounts for 43 percent of the global total, six times its nearest rival China," said Sam Perlo-Freeman, the project's head researcher. "At 4.8 percent of gross domestic product, U.S. military spending in 2010 represents the largest economic burden outside the Middle East."

Defense spending in Europe, plagued by a debt crisis, fell 2.8 percent to $382 billion.

While major spenders such as Britain, France and Germany experienced modest cuts, many smaller Central and Eastern European countries saw large falls, Sipri said. They include Bulgaria (28 percent), Latvia (26 percent) and Georgia (25 percent).

In Asia, economic growth slowed down in 2009 while military spending continued to rise rapidly, Sipri said.

"Thus, the slower increase of 1.4 percent in military spending in 2010 partly readjusts growth in military spending to economic growth rates," the watchdog writes. "The Chinese government, for example, explicitly linked its smaller increase in 2010 to China's weaker economic performance in 2009."

In the Middle East, countries spent $111 billion on military in 2010, an increase of 2.5 percent over 2009. Sipri notes, however, that its data for the Middle East is plagued by a "very low level of transparency."

Iran, for example, is exempt from the report: It hasn't revealed its spending on arms.

earlier related report
Chile faces a domestic arms race
Santiago, Chile (UPI) Apr 13, 2011 - Chile is facing a domestic arms race with the rise in firearms acquisitions by the country's wealthy elite classes, national statical data showed.

The upsurge in large-scale purchases of firearms by high net worth households contrasted with an overall decrease in the number of gun owners from 5.3 percent to 4.9 percent, the National Institute of Statistics said in its seventh National Urban Citizen Security Study.

Crime is a major problem in some of the congested urban areas of Chile with huge income disparities, but is generally considered to be less of a threat to individuals and the corporate sector than in other Latin American countries.

Chilean President Sebastian Pinera vowed to reduce income gaps when he took office last year but faced challenges after an 8.8-magnitude earthquake and aftershocks in February 2010 caused huge destruction. Reconstruction after the quake claimed financial resources originally meant for economic development.

Chile was struck by further earthquakes and aftershocks in March this year.

Economic changes and urban insecurity are seen behind the rise in firearms purchases, though this is contested by officials.

Between 2009 and 2010 the number of wealthy Chileans owning guns rose from 9.5 percent to 13.8 percent, said the study.

Around 36.5 percent of Chile's upper class gun owners justified their purchases as necessary for protecting their families and households from criminal elements, MercoPress reported.

The government rejected any link between rising gun ownership and the security situation in Chile.

Deputy Director of Public Security Catalina Mertz said the statistics could be misleading and wrong, with a substantial margin of error. She said the rise in gun ownership among the wealthy had little to do with a heightened sense of insecurity and the need to protect one's home, the Santiago Times reported.

"If there has been an increase, then we have to look at what is motivating people to buy firearms, and there we can see a decrease in the percentage of people who say they bought their weapon to prevent or protect themselves from delinquents," Mertz said.

Security expert Lucia Dammert told La Tercera newspaper it would be important to establish "whether the heightened sales of guns are linked to protecting oneself or whether it is just people exercising their right to bear arms, which they were not able to do before."

She said the linkage between gun ownership and statistics for crime had to be treated with care. "If delinquency continues to drop we enter into a dangerous area where people will believe the drop is due to an increase in the acquisition of firearms," Dammert warned.



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MILPLEX
Elbit And IAI Establish Joint Company
Haifa, Israel (SPX) Mar 21, 2011
Elbit Systems has announced the signing of a founder's agreement (the "Agreement") with Israel Aerospace Industries ("IAI") to establish a joint company and a limited partnership (collectively the "Joint Entity") to perform a potential project of purchasing and maintenance of advanced training aircraft, as well as additional services (the "Project"), for the Israeli Ministry of Defense (the "MoD ... read more







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