* White House Chief of Staff Bill Daley tells ABC’s This Week that the United States will suspend $800 million in aid to Pakistan’s military. The suspension comes after Pakistan expels US military trainers and amid concerns regarding Islamabad’s effectiveness in fighting militants.
* China’s Chief of the General Staff of the Peoples’ Liberation Army tells a press conference with Admiral Mike Mullen that the United States should spend less on defense in light of its economic woes. The comments were made after the chairman of the Joint Chiefs of Staff used his visit to China to proclaim that both countries were rebuilding ties to confront common challenges.
* As NATO’s Libya campaign continues, fractures within the coalition, religious festivals and the rebels’ lack of cohesion may yet lead to Gaddafi clinging on to power.
* EADS’ Chief Executive Louis Gallois tells a conference that setting up businesses in emerging markets helps escape the disadvantages and constraints of the eurozone.
* QinetiQ Defence Acquisition Lifecycle Services announces that it was chosen by the UK Ministry of Defence (MoD) to provide a number of specialist lifecycle acquisition programs for its new ice patrol ship. This includes risk management and cost estimation for the icebreaker MV Polarbjorn, rechristened by the Royal Navy as HMS Protector.
* The Dutch have retired their Sagem Sperwer UAVs, and will use Boeing’s ScanEagle as an interim replacement on the front lines.
* The 3rd US Coast Guard National Security Cutter, Stratton, completes sea builder’s trials in the Gulf of Mexico.
* As China’s first aircraft carrier nears completion, speculation is mounting that construction of its first indigenous carrier is under way.