Blair's clock is ticking on fight for US deal with Rolls-Royce

[sasha031]

A defence row could put relations with America at risk, writes our correspondent


WHEN President Bush announced plans this week to increase the US military budget for next year, only one item was missing from the Defence Department’s $439.3 billion (£253 billion) shopping list: a second engine research programme for the new Joint Strike Fighter (JSF) aircraft.
It was deemed too obscure to merit much coverage in the American media. But the decision has caused consternation in London. Tony Blair himself had discussed the $2.4 billion contract for Rolls-Royce and General Electric with the President on at least three occasions — “forcefully”, according to aides.

John Reid, the Defence Secretary, had been in Washington in December to drive home the point. Geoff Hoon, his predecessor, and a host of other ministers and officials had made numerous trips before. Rolls-Royce has spent millions of dollars on a lobbying campaign. And all for nought.
John Reid, the Defence Secretary, had been in Washington in December to drive home the point. Geoff Hoon, his predecessor, and a host of other ministers and officials had made numerous trips before. Rolls-Royce has spent millions of dollars on a lobbying campaign. And all for nought.

Some British ministers considered this a strange fight for Mr Blair to have picked. A second JSF engine was always likely to be seen as a bit of a luxury, particularly when US federal budgets have been drained by the war in Iraq and Hurricane Katrina.
http://business.timesonline.co.uk/article/0,,8209-2031396,00.html

[Benhurst]

1. A note to Tony Blair: Of course everything looked rosey as

long as you had your nose stuck up Dubya's ass.