Armenian, Assyrian and Hellenic Genocide News

Turkish retaliation costs France satellite contract
by Lale Sariibrahimoglu, Jane's Defence Weekly - 01/31/2001
Posted: Friday, February 02, 2001 01:36 am CST

Cakmakoglu also added that Turkey would consider excluding French Giat Leclercs from its evaluation process to buy 250 tanks. Giat's Leclerc is among the five bidding companies in Turkey's $7 billion worth co-production of main battle tanks (MBTs).

French arms manufacturers last week voiced concern over Turkey's response to the French parliament's recognition of Turkish responsibility in the 1915 genocide of the Armenian people.

Turkey denies genocide accusations, saying that during those years, close to the Ottoman Empire's collapse, Turks also suffered losses. Ankara sees the accusations as a distortion of historical facts.

When Alcatel lowered its price to $240 million, Turkey decided last year to cancel a contract with Israel Aircraft Industries (IAI), giving the project to Alcatel. However, neither Israel nor Alcatel are believed to be able to meet Turkey's requirement for a resolution of 1m.

Industrialists argue that the military was unhappy with the French system and is using the French genocide bill as a pretext to cancel the satellite programme.

Sources at Alcatel confirmed Turkey had cancelled the contract to supply a military observation satellite in retaliation.

Cackmakoglu's statement that other measures against French suppliers were being considered was widely covered in the French media.

After Cakmakoglu specifically cited Giat Industries' current effort to sell its Leclerc MBT to Turkey, officials at Giat said the company had not been informed it had been excluded from the competition for the contract. However, one aide, quoted in the French newspapers Les Echos and La Tribune, said: "We're fearful, like all other French companies." Giat president Jacques Loppion said he had a "slight regret" about last week's vote in parliament on the Armenian genocide.

The French government itself was clearly against Parliament adopting the bill. A French foreign ministry spokesman said France was " fully intent on pursuing its good relations with Turkey" and that "on the French side, our policy and approach to Turkey hasn't changed".

Despite a warning made by Turkey's military-dominated National Security Council on 22 January over the repercussions of the French parliament decision, Turkey has so far appeared to have refrained from imposing sanctions against France that will hurt Ankara too.

The USA's Lockheed Martin last year applied to the Turkish Ministry of National Defence showing interest in the spy satellite deal. The company hopes to have a chance of winning the project now that Alcatel's deal has been cancelled.

In a related development, US Gen Eberhart Ralph, in charge of the USA's space programmes, recently visited Ankara to brief Turkish military on space programmes. The Turkish Air Force has intensified efforts to get involved in costly space projects.

Elsewhere, Jean-Francois Bigay, chairman of Eurocopter, said the French parliament's vote "will probably have an impact on our company". Eurocopter's Tiger helicopter was ejected last year from a competition to supply Turkey with a combat helicopter because of an issue unrelated to the Armenian genocide affair.

Turkey's Minister of National Defence Sabahattin Cakmakoglu announced on 23 January that Turkey will cancel a $240 million spy satellite contract with France's Alcatel in retaliation to the French parliament's resolution two days earlier that accused the Turks of genocide in Armenia in 1915.

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