Gen John Shalikashvili is due to visit Indonesia in early May and is expected to meet his counterpart, Gen Feisal Tanjung. US sources say that the proposed sale will head the list of topics to be discussed.
Government-to-government negotiations on the deal have stalled over Indonesian demands for export credit (Flight International, 13-19 March, P14).
The US Government is unable to provide any credit for foreign arms sales, while an alternative offer of commercial financing from General Electric Capital has failed to satisfy Indonesia.
Attempts to get around the problem by negotiating a direct barter deal between Pakistan and Indonesia has also failed. As the Pakistani F-16s were originally ordered as part of a foreign-military-sales deal, the US Government is insisting on retaining control of the aircraft's disposal.
Talks have also been clouded by the US Government's 1993 veto on the sale of four surplus Jordanian Northrop F-5E/Fs to Indonesia. Local sources say that Jakarta is wary of US intentions, in spite of a recent letter supporting the F-16 sale reputed to have been sent from US President Bill Clinton to Indonesian President Suharto.
The US Government has begun to release $385 million-worth of military equipment to Pakistan, embargoed since October 1990, under the Congressional Pressler Amendment. The equipment includes three Lockheed Martin P-3C maritime-patrol aircraft and McDonnell Douglas AGM-84 Harpoon and Hughes BGM-71 TOW missiles and spares. The 28 F-16s ordered and completed for Pakistan remain embargoed and in storage in the USA.
Source: Flight International
