ARMAMENTS LATIN AMERICA DEVELOPS AN UNEXPECTED APPETITE

Press, Volume CIX, Issue 32312, 2 June 1970, Page 14

ARMAMENTS LATIN AMERICA DEVELOPS AN UNEXPECTED APPETITE

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JOHN MULHOLLAND

in thi "Financial Times." iondonj

(Reprinted by arrangement)

Latin America has become an unexpected but welcome market for the arms industries of Britain and the rest of Europe which elsewhere are coming up against increasingly stiff competition from the United States and the Soviet Union. This month’s announcement of a s3om order for Vickers from the Argentine Government is only the latest example of I a mounting flow of business from that continent.

Traditionally, Latin American arm? have come from the United States, normally in the form of second-hand or outdated equipment. But in the late 1960 s United States policy changed, notably towards the “big three”— Argentina, Brazil and Chile—and severe limitations were placed on arms sales to these countries. The changed policy was summed up by former Vice-President Hubert Humphrey during the election campaign of 1968 when he called for strict control of arms sales to Latin America, asked for European co-opera-tion to see that it was obeyed and said that, in his view, “predatory colonels” were as much a threat to democracy as “armed terrorists.” Local Supplies The immediate Latin American reaction was to set up their Own arms industries. The view of Brazilian Admiral Heitor Lopes de Sousa that “a nation is only truly independent when it manufactures its own armaments” was echoed by the Argentinian Defence Minister. At the same time, the Argentinian Navy announced its intention to renew its fleet completely within the next 15 years and the Brazilian Navy indicated that it wished to replace at least half of its current fleet. The new local arms industries have certainly been successful. The first Argentinian AMX tank with 105 mm gun and a bridging vehicle were handed over to the army in October last year, and General Uriburu, head of the logistics department, said that Argentina intended to export tanks and other heavy vehicles “mainly to our Latin American neighbours.” He added that in the future Argentina would be building ground - to • air and ground - to - ground missiles. Brazil had been first in the rocket field at its space centre in Barreira do Intenio where by the end of 1967 it had successfully fired 250 rockets including its own DM rockets (similar to American Areas), as well as Americanmade missiles. This space centre is now equipped with a launching pad for the fourstage Javelin rocket able to reach an altitude of 1000 kms. Brazilian shipyards are also gearing up to renew the fleet and it is understood that they have begun building six coastal patrol vessels two river patrol vessels and a naval tanker. At the same time, the Brazilian Aeronautic Enterprise at Sao Jose dos Campos, near Sao Paulo, has started work on building 112 Macchi 326 G jet fighter/trainers under licence from Italy, as well as 200 locally designed, twinengined general purpose “Bandeirantes.” Meanwhile, on the other side of the Andes, Chiles naval shipyard, Astilleros de la Armada National, had delivered its first submarine chaser of 400 tons for tests ; by the end of last year.

Overseas Buying However, it was clear that for heavier and more sophisticated weaponry Latin America would have to look elsewhere. Former Brazilian Foreign Minister Magalhaes Pinto said in July, 1969, that “if the United States will not give us arms, then we will go to Europe." In fact, even before then Europe • had already been selling arms to Latin America. At the beginning of the decade Britain had sold an aircraft carrier to Brazil, the Minas Gerais, now the

pride of the Brazilian Navy. And “to keep the balance,” Argentina bought Holland!? Karel Doorman aircraft carrier (also ex-British), selling its outdated Independencia to Peru. There had also been considerable sales of Short and Harland’s Seacat missiles to both the Argentinian and Brazilian Navies.

But the big flood of orders only began last year, and has been mounting ever since, Brazil, Chile and Argentina each have two Oberon class submarines building in Yarrow and Barrow-in-Furness, and Brazil is considering ordering two more. There is l now news that Argentina has ordered two Type 42 class destroyers from Vickers with complex missile systems. Brazil has ordered four minesweepers from West Germany and is currently negotiating with Vosper for the sale of six guided-missile frigates, though problems have arisen over delivery dates and the order may go to West Germany. Chile also ordered two frigates earlier this year. Orders For Aircraft Orders in the aircraft field have been no less active. Two years ago, by ordering 16 Mirage-5 jets, Peru became the only country in Latin America with supersonic jets. This, the Brazilians comment, has “upset the military balance in the continent” The latest news on the aircraft front is that on May 15 a Brazilian Air Force mission, headed by Colonel Antenor Bentin, concluded negotiations with France for the pur--1 chase of 16 French Mirage-3 ’ fighter bombers, although it i is understood that the agree- ■ ment has not yet been signed. ' The Brazilian mission is ! currently in England, where ’ Colonel Bentin is examining , the possibility of buying i Lightning fighters, possibly as , part of a larger technical and ’ financial agreement Earlier i this month Chile placed : orders for nine more Hawker i Hunters to add to the 21 she ■ already has, and she has indi- : eated that she has plans to i buy supersonic aircraft. Argentina also has recently bought 12 Canberra bombers from Britain to replace outdated aircraft

Somewhat belatedly, the U.S. has reappeared on the scene with a State Department announcement* last week that it intends to sell 16 military jets (believed to be either Skyhawks or F-ss) to Argentina, and that “in principle" she is prepared to sell 50 more to Brazil, Chile and

Colombia. This announcement reflects the growing concern' in America at being left out of this arms bonanza.

Two months ago, Lieu-tenant-General Robert Warran of the U.S. Air Force stated before a Congressional' sub-committee that “the U.S. is decidedly losing the military equipment market of. Latin America.” He added that in the past five years Canada and Western Europe have sold over ssoom worth of arms to Latin America. For some reason his statement was suppressed by the State Department until news of Brazil's intention to buy Mirages came out In a complete policy somersault, a State Department official said that U.S policy now was to help Latin America to maintain their defensive positions at “reasonable levels” and that “it is unfair to expect them not to modernise their armaments.” Significance Of Race The United States, however, may find it an uphill task to get back into the market Latin American comment has been that European terms Of trade and especially long-term. credit are far superior to those offered by the Americans. Perhaps more serious from the U.S. viewpoint is the allegation made by military sources in Brazil that “British and European equipment is undoubtedly superior to North American equipment.” But while debating who gets the orders, one should not lose sight of a more sinis : ter aspect to the whole business. The reasons have been made pretty clear by both Argentina and Brazil. In August of last year the Brazilian Admiral Acyr Dias de Carvalho Rocha, head of the Atlantic defence group. : expressed the concern of ; Brazil and Argentina at the : “constant incursions” by Soviet warships into the ■ South Atlantic, and the fear that Russia intends to estab- , lish bases along the coast of , Africa. Tension was height- ’ ened at the end of last year ' when the visit of the Soviet ' Defence Minister, Marshal Grechko, to Cuba, was followed by the announcement that Russia intended to re-equip the Cuban armed forces and the appearance of a Soviet nuclear submarine in the Caribbean, with reported sightings in the South Atlantic.

Clearly, maintaining the “balance of power” within Latin America and reviewing outdated equipment are not the only motives in this new arms race.