Turkey distancing from missile deal with China

Turkey’s defense procurement bureaucracy and industry are increasingly showing signs of weariness over a potential deal with a Chinese arms maker for the construction of the country’s first long-range air and anti-missile system.
Ankara may rethink its September 2013 decision to award the controversial contract to China Precision Machinery Import-Export Corp (CPMIEC).
Turkish companies that would be subcontracted for the air defense system are skeptical about potential corporate consequences because CPMIEC is on a U.S. list of companies that are sanctioned under the Iran, North Korea and Syria Nonproliferation Act, especially Aselsan, designated as the program’s prime local subcontractor.
Industry sources also says several unexpected technical snags had emerged during contract negotiations with CPMIEC.
Turkey has come under strong pressure from its NATO allies since it announced its decision over the T-LORAMIDS. Ankara said it had chosen CPMIEC’s FD-2000 missile-defense system over rival offers from Franco-Italian Eurosam SAMP/T and Raytheon of the United States. It said the decision was based on better price and better terms of technology transfer.

NATO and U.S. officials have said any Chinese-built system could not be integrated with Turkey’s joint air defense assets with NATO and the U.S. and that it may harm Turkey’s relations with the alliance.
hurriyetdailynews

Raytheon, Lockheed consider fresh bid for Turkey missile defense

Raytheon and Lockheed Martin are considering ways to sweeten their offer to build a Patriot missile defense system for Turkey after Ankara said it could still back away from a provisional $3.4 billion deal with China.
Turkey announced in September it had chosen China's FD-2000 long-range air and missile defense system against rival offers from Franco/Italian Eurosam SAMP/T and Raytheon.
It said China offered the most competitive terms and would allow co-production in Turkey, but the decision caused alarm in NATO countries worried about China's growing clout.
Secretary of State John Kerry and other U.S. government officials raised concerns after Ankara's choice of the missile defense system built by China Precision Machinery Import and Export Corp, a firm that is under U.S. sanctions for violating the Iran, North Korea and Syria Nonproliferation Act.
Sources familiar with the discussions have said the deal could affect Turkey's plans to buy radar-evading F-35 fighter jets built by Lockheed.
Turkey helped fund development of the F-35 and hopes its participation results in component orders for Turkish firms.
reuters

NATO's top commander questions Turkish missile deal with China

NATO's top military commander urged Turkey on Wednesday to buy a missile defense system that is compatible with other NATO systems
NATO member Turkey said in September it had chosen the FD-2000 missile defense system from China Precision Machinery Import and Export Corp, or CPMIEC, over systems from Russian, U.S. and European firms.
CPMIEC is under U.S. sanctions for violations of the Iran, North Korea and Syria Nonproliferation Act. Turkey later said its decision on the deal was not final.
Turkey has asked the United States to extend the pricing on Raytheon Co's Patriot missile defense system proposal, in a sign that Ankara is keeping its options open in case its talks with CPMIEC fall through.
chicagotribune