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Turkey wastes $50m in cancelled missile deal with France

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  • Turkey wastes $50m in cancelled missile deal with France

    Turkey wastes $50m in cancelled missile deal with France

    July 2, 2011 - 11:33 AMT


    PanARMENIAN.Net - A cancelled deal that Turkey had signed for the
    purchase of 19,000 short-range missiles from France has caused more
    harm to the Turkish economy than was initially thought, a Defense
    Ministry official said.

    The official, speaking on the condition of anonymity, told Today's
    Zaman that a $50 million investment, which the Turkish Mechanical and
    Chemical Industry Corporation (MKEK) had made to produce missiles as
    part of the cancelled deal, was wasted because the facility it
    constructed for that purpose has remained idle since the late 1990s.

    In 1998 Turkey agreed with France on the purchase of 19,000
    short-range missiles for 400 million euros. As part of that deal,
    Turkey made a payment of 280 million euros, almost three-quarters of
    the total amount, but only received 3,600 missiles. When those
    delivered missiles were tested at the Land Forces Command (KKK) in
    Ankara, it was discovered that the missiles were defective and could
    not hit their targets. Although France was notified of the test
    results, operational missile deliveries started to miss deadlines and
    Turkey consequently cancelled the deal in 2004. Upon Turkey's
    application, the International Court of Arbitration ruled in favor of
    Turkey in 2009, but by that time Turkey had lost a decade trying to
    compensate losses rather than strengthening its defense industry.

    This recent revelation by the ministry official has added to Turkey's
    woes as it reveals that the country not only lost time but also money
    with the $50 million investment following this failed missile purchase
    attempt.


    From: Baghdasarian
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