No. 188-M

The Department of Defense announced today that the Government of Greece has requested a possible combined lease/sale arrangement of four KIDD Class Guided Missile Destroyers, 62,000 20mm cartridges, 4,800 5"/54 projectiles, 64 anti-submarine rockets, 320 MK 36 Super Rapid Bloom Offboard Chaff, 32 HARPOON missiles, 48 MK 46 MOD 5 torpedoes, ammunition, and other related ammunition items, shipyard/port support services and post transfer activities relating to "hot ship" turnover of one KIDD Class destroyer, "cold ship" transfer reactivations for three KIDD Class destroyers from the U.S. Navy, logistics support services, publications, repair and calibration services for shipboard equipment, publications and technical data/drawings, support equipment, spare and repair parts and other elements of logistics necessary to prepare the frigates for transfer to Greece in a "Safe to Steam" condition with all shipboard and weapon systems operational. The estimated cost is $742 million.

This proposed sale will contribute to the foreign policy and national security of the United States by improving the military capabilities of Greece and furthering NATO rationalization, standardization and interoperability.

Greece needs these frigates to continue its naval modernization program and enhance its air defense capability. Greece already has HARPOON missiles and anti-submarine rockets in its weapon inventory. Greece will use these missiles to augment its present missile inventory and enhance its anti-ship warfare capability. The missiles will be provided in accordance with, and subject to the limitation on use and transfer provided under the Arms Export Control Act, as embodied in the terms of sale. This sale will not adversely affect either the military balance in the region or U.S. efforts to encourage a negotiated settlement of the Cyprus question. Greece, which already has missiles in its inventory, will have no difficulty absorbing these additional missiles.

The proposed sale of this equipment and support will not affect the basic military balance in the region.

The principal contractors will be BAV, Alexandria, Va.; Hughes Missile Systems Company, Tucson, Ariz.; Boeing Corp., St. Charles, Mo.; and Alliant Techsystems, Hopkins, Minn. One or more proposed offset agreements may be related to this proposed sale.

Implementation of this proposed sale will not require the assignment of any additional U.S. Government personnel or contractor representatives in-country for extended periods of time in support of this transfer. There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.