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US plans up to US$1 billion arms sale to Australia
12.30pm Saturday July 15, 2006
WASHINGTON - The Pentagon unveiled plans today to sell Australia shipborne missile launching systems built by Lockheed Martin Corp. and related gear valued at up to US$1 billion ($1.61 billion).
In a mandatory notice to Congress, the Pentagon's Defence Security Cooperation Agency said Australia was seeking to buy up to three MK 41 Vertical Launch System "ship sets" and modify up to three MK 7 Aegis weapons systems.
The total value could be US$1 billion if all options are exercised, it said.
The deal would provide Australia with "significantly improved" air warfare capability, the announcement said.
It would also boost the Royal Australian Navy's ability to participate in coalition operations, match logistics support with the US Navy and enhance the lethality of Australia's Air Warfare Destroyer, the agency said.
The MK 41 launch system is described by Lockheed Martin as capable of launching missiles for every threat in naval warfare, including air-air, anti-submarine, ship self-defence, land attack and ballistic missile defence.
- REUTERS
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