Rapid Fire August 2, 2013: French 2014-2019 Acquisition Plans Rely on Sale of Govt Property & Exports

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* The French government presented [in French] its 2014-19 Loi de Programmation Militaire (LPM, a 6-year defense budget law), to be discussed in parliament in the fall. They are confirming President Hollande’s earlier commitment to a flat (in nominal terms) EUR 31.4B/year ($41.4B) for the first 3 years of the period. However reaching that number will depend on EUR 6.1B worth of “exceptional income” from the sale of government-owned buildings and possibly shares in defense companies. * To drill down into France’s planned acquisitions, see their LPM briefing document [PDF, in French]. Among them, France hopes that exports will help sustain Dassault’s required 11 Rafale deliveries per year. Between ignoring inflation, relying on big ticket item sales whose value and timing remain to be seen, and hoping for tentative exports, these are three significant caveats to the “flat spending” pledge. * General Martin Dempsey and Admiral Sandy Winnefeld were confirmed by the US Senate to second terms as chairman and vice chairman of the Joint Chiefs of Staff, while President Obama nominated Deborah James as secretary of the Air Force. James has been working at SAIC for the last 11 years. She was a House staff member for a decade, […]

* The French government presented [in French] its 2014-19 Loi de Programmation Militaire (LPM, a 6-year defense budget law), to be discussed in parliament in the fall. They are confirming President Hollande’s earlier commitment to a flat (in nominal terms) EUR 31.4B/year ($41.4B) for the first 3 years of the period. However reaching that number will depend on EUR 6.1B worth of “exceptional income” from the sale of government-owned buildings and possibly shares in defense companies.

* To drill down into France’s planned acquisitions, see their LPM briefing document [PDF, in French]. Among them, France hopes that exports will help sustain Dassault’s required 11 Rafale deliveries per year. Between ignoring inflation, relying on big ticket item sales whose value and timing remain to be seen, and hoping for tentative exports, these are three significant caveats to the “flat spending” pledge.

* General Martin Dempsey and Admiral Sandy Winnefeld were confirmed by the US Senate to second terms as chairman and vice chairman of the Joint Chiefs of Staff, while President Obama nominated Deborah James as secretary of the Air Force. James has been working at SAIC for the last 11 years. She was a House staff member for a decade, then Assistant Secretary of Defense for Reserve Affairs in the 90s.

* BAE Systems’ sales for the first half of 2013 [PDF] were up 1% to £8,448M ($12.8B). The backlog grew by 7.8% to £43.1B. Like its American peers BAE has seen decreased IT sales in the US. Platform & Services performed better in the UK and the Middle East.

* The UK’s Financial Reporting Council gave up on the investigation into the conduct of KPMG Audit plc as BAE Systems’ auditors, because the facts are too old. FRC | Financial Times.

* Finmmeccanica’s sales for the same period [PDF] were down by 1% to EUR 6.2 billion ($8.2B), but their backlog is down 8% to EUR 42.6B and orders were down by 19% Y/Y. Bookings from aeronautics and space both grew, but they’re smaller than the declining defense electronics and helicopter order books. And they are facing much fresher legal challenges than BAE.

* In the US National Defense University’s Strategic Forum: The Rebalance to Asia: U.S.-China Relations and Regional Security [PDF]:

“In the Chinese narrative, Beijing has not changed its foreign policy goals, expanded its territorial claims, or adopted a more assertive attitude toward maritime territorial disputes. Rather, other countries, emboldened by passive or active U.S. support, have stepped up their efforts to challenge China’s long-established territorial claims, forcing China either to allow them to trample on Chinese sovereignty or to take appropriate measures in response. Chinese officials, academics, and military officers stress that China’s policy environment has changed, and that leaders must now be more responsive to the concerns of Chinese citizens, including nationalists who advocate a tough line on sovereignty disputes.”

* Retired Maj. Gen. Luo Yuan seems to have been assigned the “bad cop” role in Chinese propaganda/intimidation/outreach (depending on whom you ask) efforts. His latest unsolicited advice is that Taiwan should buy its weapons from mainland China. Luo’ve got Hutz Pah!

* In a joint press conference with President of Tajikistan Emomalii Rahmon, Russian President Vladimir Putin said the implementation of their agreement to extend the presence of Russia’s base in Dushanbe was proceeding as expected. That deal has already been ratified by Russia’s parliament and is expected to go through the Tajik parliament in the fall, with a possible extension to 2042.

* Poland and the Czech Republic want to participate in a joint purchase of Carl Gustav recoilless rifle ammunition handled by the European Defense Agency (EDA) and initially set on behalf of the three Baltic states.

* MRAPs are built to survive IEDs but rollovers can also lead to serious injuries and death. Egress training can improve the odds for the troops, as explained in the video below:

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