PRIVATE DEALER DOES A BRISK BUSINESS IN SURPLUS ARMAMENTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00001R000300080003-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: November 11, 2016
• Document Release Date: November 24, 1998
• Sequence Number: 3
• Publication Date: July 21, 1967
• Content Type: NSPR

-Special to The New York Tirrics
WASHINGTON, July 20
"While Mr. Nasser's tanks e
still` burning," said Sa U; I
Cummings, the world's lea in
private arms merchant,
were already negotiating it I
Israelis for the light weapo s
These "light weapons" e
about 70,000 Soviet-made r 1
and several thousand pis I .
They were abandoned al
with large stocks of amm n -
tion by the fleeing troop f
President Gamal Abdel Na e ,
of the United Arab Rep 1
during the Arab-Israeli war a t
ixionth.
Iv[r.. Cummings, presiders of
,the International Armam n s
Corporation, intends to u -
chase the bulk of the capt r
weapons and ammunition o
the Israeli Government for a e
,to sportsmen and collector n
YlTimunist countries. I I
War With Imported Weal 01 s
The Arab-Israeli war, fog it
entirely with imported wea op
was but one manifestation f a
growing international pro le
-the rapid build-up of con e -
tional arms in the develo i g
Sanitized - Approved For"Release :'Ct
CPYRGHT JUL
Pr;vafe- eal '7- Does a Brisk
Following is the last of a se -l in Surplus
rlne of nrtirloc nn the interns- .C C
arms r
tina?, Mr. McNamara was
asked. "The answer is nothing,"
he replied, "absolutely noth-
raceBy NEIL SHEEHAN I I
"It was such a natural out-
growth of what the United
States had been doing all
along;" he said, referring to
the 'vast grant aid program of
the nineteen-fifties, when the
United States distributed $17-
. ongress. complained for from "another nation at a
years" about giving away much higher price, which
arms, he said. "Why the corn
planning now that we're sell- ~.would involve a much greater
,_ ,__ , i diversion from her economic
by the' Senate Foreign Rela- A Chain Reaction
tions Committee. A staff study The sale to Argentin
in January said: :prorated Chile, which has al
"In Europe, American arms way considered Argentina
salesmanship has often been potential threat, to ask foe
tion and overpowering to the! could not be supplied becaus
sively for the arms markets in had made the original sales of
the underdeveloped regions of 'fer to. Argentina, about. $20
.. . .. .
is that only 11 per cent of the The Chilean purchase then
have one to th a
1developed countries. All sales The United States offered the
in this category, they maintain,,IPeruvians 15 . old-model F-86
care carefully^coordinatedawi~thl!jet fighter-bombers. The Peru-
?other responsible Government They wanted ~Vmore ~modern
anen n;eo
countries. billion i 7sales as of June 30, be plcpal"l" t" i -
In the five-year period e d (d supersonic Mirage fighter
19G6, mans that arms worth,' bombers from France.
June 30, 1966, the U t di,$1.22rbillion were sold to the
!States, through the Defense D - sensitive underdeveloped re- The acquisition of Mirages
!partment's arms sales- a ,I 'gions in the five-year period. by Peru Wcould heighten the
___- -,.._
`????,/ J. --^?'?' Jr. "?-'-" bi V -' bout $99 V-ll.Lllio.. Vl thiJl.
'arms merchant than Mr. - $1.22-billion has gone to the! Latin countries now possess
mings, $11.1-billion wort Of most explosive areas - the! only subsonic jets.
!weapons, 89 per cent of w i h Middle East, India and Pakis- Mr. Kuss inadvertently pro-
went to the North Atl t c tan. vided some testimony last year
(Treaty Organization allies d on why the Europeans are
to Australia and Japan. Secondary Sales Problem seeking to recover foreign ex-
t1t No percentage breakdow s There is- also growing evi- change spent on American
for the all G U. , dence that the cotes to C,,,.,?._- *eapone
,ended June 30. Mr. Kuss i - serious surplus problem there,' World Affairs Council "that
!tends to maintain sales f with the result that the Euro,' )while military exports consti-
'about $2-billion a year n 1 peans sell their secondhand !tute less than 5 -per' cent of
.1975. Sales combined i weapons. to ' the developing ,the total defense business in
grants totaled about $3-bi i countries in order to recover ,the United states, they consti-
a year in arms exports. some of the foreign exchange) tote a much more significant
The Administration def n s they have handed to Mr. Kuss proportion of the balance of
.strengthen allies, to proiiolef The United States has . al- Hess, running 15 to 20 per cent
of payments. 25 A-4 Skyhawk jet attack country defense expenditures."
Mr. Kuss professes pu zI - bombers to Argentina in 1965: European nations are also
merit at the increasing con e n to prevent the Argentines from selling their own newly manu-
(has been deepened, by t e ? Secretary of Defense ltobertl cause Mr. Kus's's aggressive
Arab-Israeli war - the 1 S. McNamara acknowledged' !salesmanship and the superior.
Since 1948.; ;.:; during Congressional testimony ;duality of American weapons
r ?bte` 5=0000
Saniti;eld
CPYRGHT
'Cuss on a $37-miilion tank!
Sale to Maly in spring of!
1
65, Prime. ,)C'a'ster Wilson
cided to intunsi y Eritain's'
France is exporting ;bout d0
r cent of her sera ;sac pro-
l ?
)Pica and since 1~63 has zs so.al
on in jet fighters, .arks' and!
licopters and is expected to.
11 submarine:; there soon. I
Israel's 250 fighters and 50l
tubers were all French-made!
Mirage, Myster c Curaga n i
d Vautour models.
A study of the international
rms traffic published in Octo-
er by the Institute of Strate-
ic Studies in London csti-
ated that as of 1065 about'
1.2-billion worth of arms was-
owing annually into the un-i
erdeveloped rogions.
This total included about,
tates, both sales and grants,
400-million from the Soviet
nion, $200-million fro :1
rance and $150-nmillion from
ritain. The flow fro., the So-
let Union has grown since
965.
In sales alone, Defense De-
artment statistics show that
mcrican arms purchased by
nd actually delivered to the
eveloping countries have in-
reased 13 times over five:
ears from $3.1-million in the
962 fiscal year to $444-million:
the 1966' fiscal year.
Italy, West Germany, Can-
I weapons in smaller but still.
ignificant quantities.
h
The problem of controlling'
e flow of arms to the under-.
errand since World War II.
The number of independent:
ith a neighbor.
Supply and Demand lase
The supply of weapons and
000300