LEAD: US, Saudi Arabia agree to multi-billion-dollar fighter jet sale

Dec 29, 2011, 20:06 GMT

Washington - The United States and Saudi Arabia have signed an agreement for Washington to sell F-15SA fighter jets to the Saudi Air Force, the White House said Thursday.

The 29.4-billion-dollar deal will include 84 new planes manufactured by Boeing and the modernization of 70 others. It was signed Saturday in Saudi Arabia.

'This sale will send a strong message to countries in the region that the United States is committed to stability in the Gulf and broader Middle East,' said Andrew Shapiro, the State Department's assistant secretary for political-military affairs.

'It will enhance Saudi Arabia's ability to deter and defend against external threats to its sovereignty.'

Iran this week increased tensions in the region by threatening to close the strategic Strait of Hormuz, through which about 40 per cent of the world's ship-borne crude is transported.

Tehran's move came after the European Union threatened new sanctions targeting Iran's oil sector over its disputed nuclear programme.

US officials stressed the deal had long been in the works and the announcement was not timed to coincide with efforts to counter Iran.

'They're designed to address both current security threats as well as threats that may emerge down the road as well,' Shapiro said.

When pressed by reporters, he added: 'Clearly one of the threats that they face, as well as other countries in the region, is Iran. But it is not - this is not solely directed towards Iran; this is directed towards meeting our partner Saudi Arabia's defence needs.'

The first new planes will be delivered in early 2015 with the upgrades on existing planes to begin in 2014, said James Miller, principal deputy undersecretary of defence for policy.

It will take several years to implement the entire deal, and it will likely provide US jobs for at least a decade, he said.

The announcement was part of a broader 60-billion-dollar agreement first announced last year, which would be the largest-ever US arms deal. The broader deal also includes the sale of helicopters.

Boeing chief executive Jim McNerney said the sale, along with the helicopters, would amount to about 24 billion dollars in sales for the aviation giant.

'Boeing views Saudi Arabia as a market with great potential and has made it a priority to invest in Saudi Arabia's aviation industry while working to strengthen local technical and vocational training programs and institutions,' he said.

The White House lauded the deal as both a boost to the US economy and a sign of 'the strong and enduring relationship' between the two countries.

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