The Empire Strikes Back

Swiss delay Gripen jet delivery to limit costs

Switzerland will postpone delivery of 22 Gripen jets from Saab by about two years so it can co-ordinate its purchase with a larger deal from Sweden and possibly save on costs, the government said on Thursday.

"We hope... to realise certain synergies in the production and development of the programme," Defence Minister Ueli Maurer said at a news conference.

The Swiss government said it would be advantageous to co-ordinate its acquisition with Sweden's expected purchase of between 60 and 80 planes. The bill for Switzerland's 22 new Gripens would remain below 3.126 billion Swiss francs ($3.43 billion), it said.

Switzerland has wrangled for three years over how to replace its aged Northrop F-5E/F Tiger fighters, purchased in 1976 and 1981. In November the government opted to buy 22 JAS-39 Gripens for a price tag of 3.1 billion Swiss francs ($3.4 bln).

But the purchase of the warplanes has proved controversial, as it will require spending cuts in other areas, such as education and agriculture.

Sweden's parliament is expected to vote on its jet purchase in September, and the Swiss parliament has the Gripen purchase on its agenda for October, a spokeswoman for the Swiss defence ministry said.

The two countries were still in negotiations and further details still had to be ironed out, she also said.

Phantom Eye Set for Flight Tests

Boeing is readying its hydrogen-powered Phantom Eye unmanned air vehicle demonstrator for first flight following the completion of taxi tests at Edwards AFB, Calif. The testing, which included a high speed taxi run down the centerline of one of the runways at the base’s dry lakebed, concluded on April 21. 

The company adds that the 150-ft span vehicle achieved “all required test points in its preparation for first flight.”

Phantom Eye is powered by a pair of Ford truck engines modified to run on hydrogen and triple-turbocharged to operate at high altitude. Phantom Eye is designed to stay aloft at 65,000 ft. for four days, as a precursor to a 10-day-endurance UAV.

Uruguay’s Mujica supports Argentina in the YPF dispute, but opposition blasts the president

Uruguayan president Jose Mujica expressed solidarity with the Argentine government decision to nationalize the oil company YPF belonging to Spain’s Repsol and said he does not like the “arrogance of rich Europe”. His position however was strongly criticized by the opposition.

Enough submission, why compromise the good name of Uruguay? Senator Bordaberry 

We are embracing a leap into the abyss, said Senator Larrañaga We are embracing a leap into the abyss, said Senator Larrañaga

Mujica said that the decision taken by Argentina “is in the framework of its sovereignty” and such an initiative “might like or not, but at the end of the day governments can adopt such a decision”.

“In any case the mistake of Argentina was having sold the company, but that is an old mistake and if it mends it or not it is a problem for the Argentine people” said the Uruguayan leader in reference to the privatization process of YPF which took off in the early nineties.

Likewise Mujica questioned the reaction from the Spanish government and the European Union that openly expressed their disappointment with the expropriation of YPF from Repsol and announced reprisal measures.

“Our solidarity in the good times and the bad times. We don’t like the arrogance of rich Europe, because today it is with Argentina, tomorrow it is with us. Watch out: Argentina can commit mistakes as we all do but they also have their reasons; but no bullying, no arrogance”, pointed out the leader.

However Mujica’s solidarity was blasted by opposition leaders.

Senator Jorge Larrañaga leader of the main opposition party and chair of the Foreign Affairs committee said that “we are embracing a jump into the abyss because we are embracing a government that ignores the rule of law and that won’t be a free ticket”.

“Is it possible somebody can think that Argentina picking a fight with Europe, the US and part of the Americas at the same time is on the right track and with a happy ending? Whatever happened with the rule of law and the principle of legality? They are involving the whole of Mercosur unilaterally and in a capricious crusade”.

Larrañaga recalled that later this week Vice president Danilo Astori will be travelling to Spain and I wonder what he will tell his hosts when he climbs down after Mujica’s words”.

The opposition leader said he was not questioning or discussing Argentina’ decision, which is debateable, “but Uruguay can’t commit the mistake of embracing a decision of such characteristics”.

“But yes I am questioning our president, which I believe has committed a serious mistake; we all know most of the rest of America does not support such and initiative”.

“There’s a fight at the street corner and we happily join in. We’re treated as a messenger boy and nevertheless we side in”.

Senator Pedro Bordaberry and leader of the junior opposition party said that “Mujica must not sell the rich heritage and good name of Uruguay in honouring its word and contracts, for the vile price of shared ideology with Cristina Fernandez”.

“Enough submission, why the need to join Argentina? Why not look first at Uruguay and Uruguayan interests before going on your knees for the sake of ideological affinities?

Bordaberry said that back in 2002 when Argentina imploded and Uruguay suffered the spill over consequences, “we all did an enormous effort to maintain and respect for the good name of Uruguay, now Mujica has handed over that good name”.

Former president Jorge Batlle was equally acid.

“I’d say the Argentine president is fleeing ahead of events. First she took over a significant share of farmers’ crops with the export taxes; later she gobbled the private pensions scheme; later the Central bank, then all imports and money exchange operations and now this expropriation of YPF”.

“When a country so enormously rich and capable with an annual crop of over 100 million tons of grains, with ample mineral resources all along the country, heavy industry, state of the art agriculture ends up as a country in horrible conditions, what is going on?, asked former president Batlle.

Another former president also described Mujica’s attitude as a “very serious mistake” and suggested the president must learn “to better manage his silences than his words” because clearly any foreigner might ask, “if he supports the Argentine expropriation is he dumb, or does he think like them?”.

“We had no need to show solidarity with Cristina Fernandez and I think it is a major mistake to join somebody else’s fight”.

With out making speculations about the future, Lacalle said that all facts are indicating Argentina is heading for international isolation: is that what President Mujica wants to support?

Argentine Securities Commission puts more pressure on Falklands’ oil industry

Argentina’s National Securities Commission, CNV, announced on Thursday that it will inform UK regulatory authorities on the legal actions to be undertaken by the Argentine state against oil companies “illegally operating in the Malvinas Islands”.

CNV added in a release that it will inform of these actions to public investors and the International Organization of Securities Commission, IOSCO.

The announcement follows a warning from the Argentine Foreign Affairs ministry released Wednesday saying it will press charges against the oil companies operating in the South Atlantic unless they justify their actions before next Wednesday May 2.

Likewise it recalls that in 2001 CNV signed a collaboration agreement with the UK Financial Services Authority and the British Treasury with the purpose of “protecting investments and contributing to the integrity of securities markets”.

To that effect CNV said it will inform its peers that the Argentine Foreign Affairs ministry has sent letters to the London and New York Stock Exchanges requesting that those oil companies report to the market and investors of the legal risks involved is they go ahead with their operations.

CNV will also make public that through the Energy Secretary it informed the oil companies involved that the “operations and exploration works close to the Malvinas Islands are illegitimate and clandestine for they are been undertaken in “an area under Argentine sovereignty and outside the corresponding legal framework and specific regulations”.

“The legitimate sovereignty claim of our country over the Malvinas Islands constitutes relevant information for investors in capitals market, who have the right to have access to true and sufficient information regarding the risks inherent to the development of economic activities in territories involved in a diplomatic conflict”, said Alejandro Vanoli, CNV president.

According to the Argentine releases the companies currently involved in Falklands oil activities, and which have been notified of the risks are Rockhopper Exploration Plc.; Desire Petroleum Plc.; Argos Resources Ltd.; Falkland Oil and Gas Ltd. and Borders and Southern Petroleum Plc.

Earlier this week it was revealed by the London media that the British government, in a move designed to ease concern among the investment community about the Argentine legal threats, had written support letters to some 15 banks and oil exploration companies operating in the region.

In the letter, the Foreign Office says it is “deeply sceptical” that Argentina would be able to enforce “any penalties” in courts outside its own borders and adds that the government of the Falklands “is entitled to develop” oil and fishing industries in its own waters “without interference from Argentina.”

“The British Government has no doubt about our sovereignty over the Falkland Islands and surrounding maritime areas,” it adds.