THE US DEPARTMENT of Defense (DoD) has at the last minute withdrawn a memorandum of understanding (MoU) which was to have been signed by South Korea. The move threatens the Samsung KTX-II advanced trainer/light combat aircraft launch.
According to informed US sources, the DoD's Defence Security Assistance Agency blocked the MoU under pressure from the US Air Force.
It is understood that the USAF views Lockheed Martin's planned involvement in the KTX-II programme as a strictly private commercial deal and opposes the use of foreign-military-sales funding to support it.
The draft agreement had already been cleared by the Commerce and State Department and was due to be forwarded to Seoul for signature. Lockheed Martin is keen to play down the issue, describing it as "more of a mechanical rather than a policy problem".
The South Korean Government has asked for the MoU to guarantee the transfer of technology and rights to export KTX-IIs. A commitment from the US Administration is needed to overcome South Korean finance ministry opposition to the $1.5 billion programme (Flight International, 4-10 September, P32).
Lockheed Martin and prime contractor Samsung Aerospace have already concluded a teaming agreement and had hoped to secure an initial $46 million to begin full-scale development of the tandem-seat aircraft in early 1997. The programme schedule calls for the first prototype to be flown in 2001 and service entry in 2005.
The South Korean Government is considering allocating $7.2 million in bridging funding to maintain preliminary design work in lieu of an MoU from the USA. A 12-month bridging contract is in place with Lockheed Martin, after an earlier disagreement over cost prevented the launch of the KTX-II at the start of this year.
Industry sources are hopeful that the programme can still proceed in 1997 as planned. A high-level source suggests that the 1990 Defence Technical Industrial Co-operation agreement between Seoul and Washington, covering the F-16 South Korean fighter programme, could be extended to include the KTX-II.
Source: Flight International
