Sunday Times
Dominic O’Connell
BAE SYSTEMS, Britain’s biggest defence group, is pushing the British government to split with Europe and negotiate a special exemption to spare the UK from American sanctions over arms sales to China.
BAE executives and defence officials fear Congress will stop the transfer of vital defence know-how if Europe lifts its embargo on arms exports to China. Washington sources say four top legislators — senators John McCain, Joe Biden, Richard Lugar and Joe Lieberman — are ready to ban all technology transfers.
Mike Turner, BAE’s chief executive, said the company wanted a “carve-out” deal that would exempt Britain. BAE would not export any important UK technology if the embargo was scrapped.
“We have been very clear and upfront that if the embargo comes off, you will not see BAE exporting sensitive UK technology,” said Turner. “We have far too much at stake in the United States.” BAE is America’s sixth-largest defence contractor, with a US turnover of nearly £3 billion.
http://www.timesonline.co.uk/newspaper/0,,176-1502262,00.html