MAIN HEADLINES FROM THIS ISSUE:

• German MOD regards offset as a contradiction to its principle economic policy of maintaining a market economy

  Official Position:
  “German MOD regards offset as a contradiction to its principle economic policy of maintaining a market economy”

  Actual Practice:
  Germany demands offset from German subsidiary in Switzerland

• Jordan looks to the gulf for an offset policy

  Jordan is making local production a condition of defence procurement “as much as possible.” The Kingdom might waive the obligation however if…

• Airbus puts the squeeze on South Africa

  Airbus Military has threatened to pull out of an industrial partnership that would be implemented should the company win an order to supply South Africa with eight A400M heavy-lift freight planes. The order was cancelled last November. Airbus continues to hold on to the deposit.

• China accepts Malaysia’s countertrade and technology transfer terms

  Malaysia’s MoD is considering the acquisition of more weapons from China under the 10th Malaysian Plan. Defence Minister Datuk Seri Dr Ahmad Zahid Hamidi said that his ministry was now more willing to purchase arms from China.

• Oil-for-loans swap provides China with a greater share of Ecuador’s oil

  China and Ecuador are set to deepen their energy relations with the signing of an oil-for-loans swap that will see Ecuador receive a $1bn credit line from the China Development Bank in exchange for 36,000 barrels per day of oil.