U.S. approves $111 mln missile sale to South Korea http://today.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?view=CN&storyID=2006-06-27T144122Z_01_N27208862_RTRIDST_0_ARMS-KOREA.XML&rpc=66
Tue Jun 27, 2006
WASHINGTON, June 27 (Reuters) - The U.S. government on Tuesday said it had approved the sale of 48 Raytheon Co. (RTN.N: Quote, Profile, Research) SM-2 Block IIIB surface-to-air defensive missiles to South Korea in a deal valued at up to $111 million.
The Pentagon's Defense Security Cooperation Agency said the proposed sale was vital to U.S. national interest and would help South Korea develop and maintain a strong self-defensive capability. It said the sale would also contribute to what it called "an acceptable military balance" in the area.
The U.S. Congress has 30 days to block the sale, but such actions are rare. DSCA, which overseas foreign arms sales, said South Korea requested a possible sale of up to 48 SM-2 Standard missiles and related equipment and services, including spares, personnel training and technical data.
The deal would be worth $111 million, if all options are exercised, the agency said.
It said South Korea would use the missiles as the primary defensive system aboard its new KDX-III Aegis destroyers for anti-missile ship protection. Offset agreements were expected, but had not yet been defined, the agency said.
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