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1563151
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South Africa - Purchase of Aircraft
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1563151
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document
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South Africa - Purchase of Aircraft
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John O. Marsh Files (Ford Administration)
John Marsh's General Subject Files
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South Africa
Arms transfers
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1563151
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1975-07-31
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7
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1975
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1975-06-01
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6
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1975
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The original documents are located in Box 30, folder "South Africa - Purchase of Aircraft"
of the John Marsh Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 30 of the John Marsh Files at the Gerald R. Ford Presidential Library
NATIONAL ARCHIVES AND RECORDS SERVICE
WITHDRAWAL SHEET (PRESIDENTIAL LIBRARIES)
FORM OF
CORRESPONDENTS OR TITLE
DATE
RESTRICTION
DOCUMENT
1
Marsh to Scowcroft 6/17/75
la Letter
R.H.D. Rogers (Cheef of the South African Air
5/15/75
A
Force) to A Carl Kotchian (President Lockheed
Aircraft Corporation) (2 pp )
2
Scowcroft to Marsh, 7/14/75
2a Memo
Brent Scowcroft to Jack Marsh (2 pp )
7/14/75
A
2b Memo
NSDM 81 (2 pp )
8/17/70
A
FILE LOCATION
Marsh Files
General Subject File
South Africa
Box 30
RESTRICTION CODES
(A) Closed by Executive Order 12356 governing access to national security information.
(B) Closed by statute or by the agency which originated the document.
WHM 1/22/86
(C) Closed in accordance with restrictions contained in the donor's deed of gift.
GENERAL SERVICES ADMINISTRATION
GSA FORM 7122 (REV. 5-82)
bocup ensape
June 17, 1975
P-3C
MEMORANDUM FOR:
BRENT SCOWCROFT
FROM:
JACK MARSH
Carl Kotchian, President of Lockheed, and his Washington repre-
sentative, Dick Cook, were in to see me in reference to their
desire to engage in the negotiations for the sale of P-3C aircraft
to South Africa. It is more fully set out in the attached material
which they gave to me.
You may be aware that former Secretary Laird has indicated a
friendly interest in our Government pursuing these negotiations.
L would be: grateful if you would review the attached.
Many thanks
JOM/dl
GERALD : FORD
GERALD R. FORD LIBRARY
This form marks the file location of item number la
listed on the pink Withdrawal Sheet found at the front of this folder.
June 6, 1975
Potential Sale of P-3C "Orion" Aircraft
To The Republic of South Africa
The Maritime Command of the Air Force of the Republic of South Africa
plans to replace its obsolescent "Shackleton" aircraft with modern, long
range, aircraft specifically designed and equipped for the maritime surveillance
role. The potential candidates to replace the "Shackleton" are the British
"Nimrod", the French "Atlantic", and the U. S. "Orion".
The attached letter from Lt. General R. H. D. Rogers, Chief of the South
African Air Force, sets forth the intention of the South African Government to
fulfill its requirement for a replacement maritime patrol aircraft and requests
a firm indication regarding the availability of the P-3G'as a contender.
The "Orion" is designed, configured and equipped solely for the purpose of
ocean surveillance and anti-submarine warfare. It is a highly sophisticated
electronics platform carrying very specialized sensors for ocean surface and
sub-surface search.
The capability of the airplane for open ocean reconnaissance makes it
particularly effective in locating and assisting ships or downed aircraft in
the sea-air-rescue role. With over two thousand ships per month passing
through the sea lanes around the Cape of Good Hope, and the increased inter-
national air traffic over the oceans surrounding South Africa, the need for
an effective aircraft to perform the sea-air-rescue mission in event of an
aircraft or ship tragedy is apparent.
The Orion has no capability in overland warfare because of its vulnerability
to ground fire and specialized sensors and armament which are only effective
in the open ocean environment.
The U. S. Navy operates more than 400 of the P-3A, P-3B, and currently
produced P-3C aircraft. The armed forces of Australia, Iran, Norway, New
Zealand, and Spain also operate the aircraft. The Australian government re-
cently announced a decision to purchase 8 additional "Orion" aircraft and the
governments of Spain, Norway, and Iran are currently considering the purchase
of additional aircraft. Also, the governments of the Netherlands, Canada,
and Japan are currently considering an initial purchase of "Orion" aircraft.
The French "Atlantic" and the British "Nimrod" have not been very successful
in openly competing with the "Orion". Both were eliminated in the Australian
competition and Canadian consideration, and it is strongly believed that both
would be eliminated in an open competition in South Africa.
If additional foreign sales for the "Nimrod" and "Atlantic" are not forth-
coming in the near future, the production lines for both these airplanes will
probably be terminated, and the ocean surveillance and anti-submarine warfare
expertise which currently exists in France and England will be lost. This would
2880
GOBALD
Page Two
leave the way open for the "Orion" and follow-on U. S. maritime patrol aircraft
to capitalize on the future export market. The additional near-term export
potential for the "Orion" exceeds one and one-half billion dollars, and the long-
range export potential for a U. S. maritime aircraft, without foreign compe-
tition, could easily exceed twice that amount of money. Equally important, it
is of strategic value for the United States and its allies to achieve worldwide
commonality in their maritime surveillance aircraft.
The value of the South African purchase of 8 P-3C "Orions" with initial
support would be in excess of 200 million dollars. While this purchase in
itself would be significant, it would also enhance the possibility for sale of
U. S. manufactured wide-bodied commercial aircraft to South Africa. South
Africa is presently considering the purchase of commercial wide-bodied aircraft
and the contenders are the U. S. built Lockheed L-1011, McDonnel1-Douglas DC-10,
Boeing 747 and the French built A-300. France is fully willing to sell the
military "Atlantic" to South Africa, and the French could capitalize in packaging
the sale of a military aircraft with the sale of a commercial aircraft if the
U. S. is reluctant to sell the "Orion". It is estimated that in the next few
years South Africa will spend in excess of 700 million dollars for wide-bodied
commercial aircraft.
Although the South African Air Force has stated that delivery of replace-
ment maritime patrol aircraft should begin in 1980, the time required for pre-
paration of a Request-For-Proposal, evaluation of proposals, program planning,
aircraft manufacturing lead time, etc., makes it necessary to know within the
next few months whether or not the P-3C is a candidate replacement aircraft.
A delay of more than six months in P-3C export approval would likely eliminate
the airplane from consideration.
The sale of the P-3C to South Africa would provide that nation with an
effective and cooperative ocean reconnaissance and rescue force in an area which,
as a result of the current world oil situation, has become of increasingly
strategic importance to the United States and many of its allies. Accordingly,
the sale would contribute to the maintenance of international peace and
security and, therefore, would not violate the policy of the United States as
stated by U. N. Ambassador Stevenson in 1963 when agreeing to sanctions against
the sale of arms to South Africa.
FORD
4) Verbatim Copy of State Department Airgram
Am Consul Cape Town
121500Z May
#0542
Subject: Civil Aircraft Sales Proposals
1. During courtesy call on Ambassador May 9, Lockheed President A. C.
Kotchian made point that South Africans are looking for Exim loan guarantee
participation in financial package as evidence of USG support for commercial
aircraft sales to S.A.A. They also want similar participation by ECGD for
Rolls Royce engines. Lockheed has already approached Exim informally in this
regard and anticipates favorable response. (Company understands policy on
direct loans and does not request this type assistance.)
Lockheed Executive accompanying Kotchian indicated guarantees could also
have effect if making proposal more competitive with A-300 Airbus by reducing
total cost of financing proposals to be negotiated with commercial banks in
U.S. and U.K.
2. While confident of TriStar superiority over Airbus for S.A.A.'s domestic
and regional routes, Lockheed is concerned that politico-military considera-
tions advanced by French in combination with attractive commercial offer will
offset this and may be determining factor irrespective of S.A.A. evaluation
and recommendation to SAG.
Bowdler
Hard march musting a. manday.
GERALD R. FORD
GERALD R. FORD LIBRARY
This form marks the file location of item number
2
listed on the pink Withdrawal Sheet found at the front of this folder.