THE EUROPEAN ARMAMENTS MARKET AND PROCUREMENT COOPERATION

Similar documents
Published by Macmillan Education in association with the International Institute for Strategic Studies

The British Prime Minister

PARTY STRATEGIES IN BRITAIN

CHANGE AND DEVELOPMENT IN THE GULF

THE MILITARY AND SOCIETY IN HAITI

THE ATLANTIC ALLIANCE AND THE MIDDLE EAST

CONTEMPORARY SECURITY AND STRATEGY

Military Executions during World War I

POLITICS AND SECURITY IN THE SOUTHERN REGION OF THE ATLANTIC ALLIANCE

CHURCHILL'S PEACETIME MINISTRY,

The Micro and Meso Levels of Activism

STUDIES IN ECONOMICS AND RUSSIA

Challenges for Europe

Morality Politics in Western Europe

Hayek: A Collaborative Biography

THE INTERNATIONAL RELATIONS OF JAPAN

Translating Agency Reform

RACE, GOVERNMENT AND POLITICS IN BRITAIN

The West, Civil Society and the Construction of Peace

Ireland: The Politics of Independence,

Studies in Social Policy

Ethics and Cultural Policy in a Global Economy

RUSI DEFENCE STUDIES SERIES PUBLISHED BY MACMILLAN

The European Union and Internal Security

The New Governance of the English Regions

Aspects of the Third Reich

PRIVATIZATION AND DEVELOPMENT

Also by John Brown LEEWARDS: History and Society in the Leeward Islands THE UNMELTING POT: Immigrant Settlement in an English Town THE CHANCER (a

A Century of Premiers

DOI: / Industrial Shift

Also by Maxwell Barrett

Women Political Leaders and the Media

MICHAL KALECKI ON A SOCIALIST ECONOMY

DOI: / Democratic Governance in Northeast Asia

Global Financial Crisis: The Ethical Issues

International Business and Political Economy

Interpreting Hong Kong s Basic Law

Leaders of the Opposition

Fraud, Corruption and Sport

French Politics, Society and Culture Series

Challenges to State Policy Capacity

Prime Minister, Cabinet and Core Executive

The Anarchical Society in a Globalized World

Social Welfare Development in East Asia

Modern Stateless Warfare

East-West European Economic Interaction

Alan Williams (editor) HEALTH AND ECONOMICS

OPEC Instrument of Change

DeveloplDents in British Politics 4

Politicians and Rhetoric

Foreign Policy and the French Revolution

Social Structure and Party Choice in Western Europe

The Migration and Settlement of Refugees in Britain

PRESIDENTIALIZING THE PREMIERSHIP

INTERNATIONAL SANCTIONS IN CONTEMPORARY PERSPECTIVE

Sex Worker Union Organising

Language and Power in Court

India, China and Globalization

MICKEY MOUSE NUMBERS IN WORLD HISTORY

SUPERPOWERS IN THE POST-COLD WAR ERA

THE SINGLE EUROPEAN CURRENCY IN NATIONAL PERSPECTIVE

Elections in Britain

Democracy and Social Peace in Divided Societies

Models of Local Governance

Modern Politics and Government

The Political Geography of Campaign Finance

COMMUNISTS AND NATIONAL SOCIALISTS

THE NEW SECURITY AGENDA IN THE ASIA-PACIFIC REGION

PUBLIC HEALTH POLICIES AND SOCIAL INEQUALITY

ESSAYS IN THE HISTORY OF HETERODOX POLITICAL ECONOMY

General Editors: Paul Collier and Jan Willem Gunning Published in association with the Centre for the Study of African Economies, University of Oxford

Agriculture and Politics in England,

ECONOMIC POLICY IN SWITZERLAND

DOI: / Sovereign Debt and Credit Rating Bias

PARLIAMENTARY ACCOUNTABILITY

Defending the American Presidency

Opium, Soldiers and Evangelicals

Football Hooliganism in Europe

Torture and the Military Profession

This page intentionally left blank

Paternalism and Politics

Britain and the Spanish Anti-Franco Opposition,

REFUGEES, CITIZENSHIP AND SOCIAL POLICY IN EUROPE

Counter-Terrorism. Community-Based Approaches to Preventing Terror Crime. Basia Spalek University of Derby, UK. Edited by

Radical Democracy and the Internet

HOSTAGE-TAKING TERRORISM

Enlightened Absolutism Reform and Reformers in Later Eighteenth Century Europe

Previous books by author

THE SPECTRE OF DEMOCRACY

Economics and Ethics

Ethnic Citizenship Regimes

Globalization, Export-oriented Employment and Social Policy

Theories of Democratic Network Governance

THE THEORY OF NATIONHOOD

Globalization and the Nation State

Also by Angélique du Toit. Also by Stuart Sim. CORPORATE STRATEGY: A Feminist Perspective

JAPAN'S EVOLVING FOREIGN POLICY DOCTRINE

Also by Paul McLaughlin

The Baltic States. The National Self-Determination of Estonia, Latvia and Lithuania

FULL EMPLOYMENT: A PLEDGE BETRAYED

Transcription:

THE EUROPEAN ARMAMENTS MARKET AND PROCUREMENT COOPERATION

Also by Pauline Creasey STRUCfURAL ADJUSTMENT IN EUROPE Also by Keith Hartley NATO ARMS COOPERATION: A Study in Economics and Politics Also by Fran~ois Heisbourg LA PUCE, LES HOMMES ET LA BOMBE (with Pascal Boniface)

The European Armaments Market and and Procurement Cooperation Edited by Pauline Creasey Research Fellow Centre for European Policy Studies, Brussels and Simon May Director, Business Development Northern Telecom Europe with contributions by Franc;ois Heisbourg and Keith Hartley M MACMILLAN PRESS

Centre for European Policy Studies 1988 Softcover reprint of the hardcover 1st edition 1988 978-0-333-45905-8 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright Act 1956 (as amended), or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 33-4 Alfred Place, London WClE 7DP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published 1988 Published by THE MACMILLAN PRESS LTD Houndmills, Basingstoke, Hampshire RG21 2XS and London Companies and representatives throughout the world Typeset by Footnote Graphics, Frome British Library Cataloguing in Publication Data The European armaments market and procurement cooperation. 1. Munitions-Europe 2. Europe Military relations I. Creasey, Pauline II. May, Simon, 1956-338.4'76234'094 HD9743.E862 ISBN 978-1-349-10026-2 ISBN 978-1-349-10024-8 (ebook) DOI 10.1007/978-1-349-10024-8

Contents List of Tables Vll List of Figures Vlll Notes on the Contributors IX Acknowledgements X 1 The Political and Economic Background 1 Pauline Creasey and Simon May I Introduction 1 II Forces for West European Security Cooperation 3 III The Bridge between Political and Economic Forces 14 IV Economic and Commercial Forces Encouraging Cooperation 16 v Franco-German Alliances and British Isolation 21 VI National Procurement Policies 23 VII Conclusion 28 2 The European Defence Market and Industry 31 Keith Hartley I Introduction: The Policy Debate 31 II A Framework for Analysis 32 III Some Evidence 40 IV Conclusion 55 3 Public Policy and the Creation of a European Arms Market 60 Fram;ois Heisbourg I Introduction 60 II Supply and Demand: New Trends and Constraints 61 III European Strengths and Weaknesses 68 IV Options for the Future 72 4 European Defence Firms in Cooperation Agreements 89 Pauline Creasey I Introduction 89 II The Creation and Management of Cooperation Agreements 92 v

VI Contents III Case-Study 1: Reseau Integre de Transmissions Automatique (RITA) and Ptarmigan 94 IV Case-Study 2: The Harrier Fighter Aircraft 114 V Case-Study 3: The Westland Helicopter Company 126 VI Constraints and Opportunities for European Defence Cooperation 144 Appendix: Technical Discussion of the RITA and Ptarmigan Systems 157 5 The Options and Prospects for Defence Procurement Collaboration 165 Pauline Creasey I The Special Characteristics of the Defence Market 165 II Aims and Limitations of Common Endeavours 169 III The Implications of Improved Armaments Cooperation between Europe and America 177 IV Government and Industry - Policies and Programmes 182 V The Changing Nature of the Alliance 185 Appendix: A Selection of Western Europe and Cooperative Armaments Ventures, 1986 193 Franr;ois Heisbourg and Pauline Creasey ~~ 1~

List of Tables 1.1 Shares in world exports of high R&D intensity products 16 1.2 Shares of Western Europe weapons exports in third country markets in 1986 19 1.3 Western Europe intra-trade in weapons exports and Western Europe weapons exports to the USA and 20 Canada 20 2.1 Demand 36 2.2 Major defence producers 42 2.3 Aerospace industries 46 2.4 Size of major aerospace companies 47 2.5 Output of major weapons, 1975-84 49 2.6 Major French arms exporters, 1978 53 3.1 Evolution of total military expenditure and the number of combat aircraft, 1970-85 62 3.2 The ratio of arms exports to defence investment, 1983/4 66 4.1 World market shares of military sales of helicopters in service, 1986 129 4.2 World market shares of European military helicopter producers, 1986 130 4.3 The financial proposals of the two bidders 136 4.4 Estimated European purchases 138 vii

List of Figures 3.1 The shape of things to come? The European arms procurement vicious circle 63 4.1 The structure of a cooperation agreement 95 4.2 A dynamic model of cooperation agreement activity 96 4.3 The Thomson-GTE and Plessey-Rockwell transfer of technology learning curves 103 4.4 The development of the Harrier variants 122 4.5 Chain of command communications 157 4.6 Offset chain of command trunk communications 157 4.7 The battlefield communications systems: the interaction between the control switch and mobile subscribers 160 4.8 A larger community of mobile users 161 VJll

Notes on the Contributors Pauline Creasey is Rockefeller Research Fellow, Centre for European Policy Studies, Brussels and Research Fellow at the Royal United Services Institute for Defence Studies, London. Previous positions have included Research Fellow, London Business School (1984-5), Economic and Social Research Council Scholar at the London School of Economics and Political Science (1980-4), and as administrator in the Home Office and Ministry of Defence, United Kingdom (1978-81). Simon May is Director, Business Development, Northern Telecom Europe, and former Research Fellow of the Centre for European Policy Studies. Previous positions have included Deputy Secretary General of the Action Committee for Europe (January 1985- September 1986), Political Adviser to EC Commission Vice President Christopher Tugendhat (1983-5), Research Fellow of the International Institute for Strategic Studies, Foreign Affairs Adviser to former Prime Minister, Edward Heath, and Adviser to the Chief Spokesman on European Affairs of HM Opposition, Douglas Herd (1977-9). Keith Hartley is Director, Institute for Research in the Social Sciences, University of York. NATO Research Fellow, 1986-7 and 1977-9. Consultant to the United States Department of Defense 1978, and to several United Kingdom government departments. Fran~ois Heisbourg is Director of the International Institute of Strategic Studies, London. Previous positions include: International Security Adviser to the Minister of Defence, France (1981-4), First Secretary, French Mission to the United Nations, with responsibility for disarmament and international security affairs (1979-81), Policy Planning Staff, Quai d'orsay, Paris (1978-9). Graduate, Ecole Nationale d' Administration (1977). ix

Acknowledgements The editors and the Centre for European Policy Studies wish to thank NATO and the Rockefeller Brothers Fund for the financial assistance which they gave for this study. P.C. S.M. X