Turkey May Punish Boeing Over Genocide Vote
Business In The Beltway
Forbes.com
10.11.07
By Brian Wingfield
WASHINGTON – Boeing could lose more than a billion dollars worth of
defense contracts with Turkey if the House of Representatives adopts a
resolution to label as genocide the killing of Armenians by Ottoman
Turks nearly a century ago, a State Department official indicated Thursday.
R. Stephen Beecroft, executive assistant to Secretary of State
Condoleezza Rice, told reporters traveling to Russia and the Middle East
with the secretary that Turkey would consider canceling its Boeing
contracts if the House passes the measure, which could be voted upon as
early as next week.
The Bush administration has lobbied fervently against the resolution,
which has touched a raw nerve for Turkey, a strategic Muslim ally of the
United States in both the war on terror and in Iraq. On Thursday, Ankara
recalled its ambassador to the U.S. for consultations, though he is
expected to be back in Washington within a week to 10 days, the
Associated Press reported.
Officials from the Turkish Embassy did not return a request for comment,
and a spokesman for Boeing Integrated Defense Systems, which builds
military equipment, said the company was not aware of any potential
retaliatory action from the Turkish government.
"Our longstanding relationships with Turkish customers, industry and
communities are based on years of experience and mutual respect and
benefit," said the spokesman, Paul Lewis. "We are confident in our
relationship and remain focused on the business and community interests
that have always brought Boeing and Turkey together."
Boeing’s primary defense contract in Turkey is a $1 billion deal to
provide the government with four 737 Airborne and Early Warning Control
aircraft and the accompanying ground support. The first test flight for
the aircraft was completed last month. The Turkish military also uses
Boeing-made guided missiles for its fighter jets.
It was not immediately clear whether Turkey’s contracts with other
U.S.-based military suppliers could be affected. Two years ago, Lockheed
Martin, inked a $67.7 million deal to upgrade Ankara’s F-16 fleet, and
Northrop Grumman has in place a $160 million deal to supply the Turkish
Air Force’s Boeing 737s with radar systems.
In 1915, amidst the crumbling of the Ottoman Empire and the backdrop of
World War I, Ottoman Turks began a campaign to drive Armenians out of
what is now modern-day Turkey. About 1.5 million Armenians were killed.
The Turkish government maintains that the widely accepted number is an
exaggeration, and that what deaths there were came as a result of war.
On Wednesday the House Foreign Relations Committee passed a
nonbinding – and hence symbolic – resolution to label the killings as
genocide. A floor vote on the issue could come as early as next week.
With additional reporting by Matt Swibel
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