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UAE Says Retaining Options on U.S. F-16 Deal

March 13, 1999 (by Lieven Dewitte) - The UAE said Sunday its aircraft deal with the United States worth about $7 billion remained unsigned, and it may still seek an alternative source on the international market.
The official United Arab Emirates news agency WAM quoted Chief-of-Staff Sheikhh Mohammad bin Zaid al-Nahayan as telling Abu Dhabi television that the UAEw as demanding that the 80 F-16 aircraft, made by Lockheed Martin "must be appropriate for the field of operations and the airspace in the UAE and the Gulf. "The options of the UAE are still open and the subject of this aircraft. . . has not yet been signed, explaining that the UAE has other alternative son the international market, " WAM said.

"We have demands and we are seeking to secure them to ensure the security and stability of the UAE, which are the most dear, " it quoted Sheikhh Mohammad as saying. The UAE in 1998 announced its intention to buy the aircraft from the United States, but talks on the details of the deal ran into difficulties after Abu Dhabi insisted on full control over "source codes" for the most advanced F-16, the block 60, and its weapons systems.

"The problem now is over codes and their use . . . whenever, wherever and(against) whoever, " one expert said of Washington's traditional reluctance to hand over "master keys" to technologically-advanced weapons systems.