PARIS — BAE Systems has topped the list of the world’s biggest armaments companies, as the company, based in London, sharply expanded its sales of armored vehicles for the wars in Iraq and Afghanistan, a Swedish research institute said Monday.
Though BAE is a British company, more than half of its business is with the United States. Sales in its land and armaments business rose to $12 billion from $7 billion, the institute said, largely on the strength of sales to the U.S. military of mine-resistant, ambush-protected, or MRAP, vehicles.
Total arms sales by the world’s 100 largest arms-producing companies rose to $385 billion in 2008, an increase of $39 billion from a year earlier, the institute said. The data are for 2008 because that is the latest period for which the figures can be verified and analyzed, the institute said in its annual ranking.
The institute, partially financed by Sweden, describes itself as “an independent international institute dedicated to research into conflict, armaments, arms control and disarmament.”
Chinese companies were conspicuously absent from the list, even though the institute ranks China’s military spending as second only to that of the United States. “China probably would appear in the top 100 if we had adequate information,” Bates Gill, director of the institute and a longtime student of East Asian military affairs, said by telephone. “The figures are opaque. Still, it’s a big, big industry,” he said.
But even considering China’s huge domestic sales, it does not rank among the top 10 exporters, he said. The United States ranks first, Mr. Gill said, followed by Russia, Britain, Germany and France.
Mr. Gill said that “one or two of the big Chinese producers, those making rockets for their space program, for example, would probably rank in the top 25 if we simply valued Chinese production at the international market rate.”
China’s overseas arms sales have declined in the past two decades, Mr. Gill said. “Partly that’s because of a greater availability of other competitors with more advanced weaponry since the end of the Cold War,” he said, “and partly, quite simply, because China doesn’t compete very well in terms of quality.”
Still, he noted, Pakistan ordered Chinese fighter jets last year in a deal worth more than $1 billion, a sign that Chinese exporters were taking overseas markets seriously.
Also notable, the institute said, was that Navistar, a truck maker based in Illinois, sold military goods worth $3.9 billion to the U.S. government in 2008, an increase of 960 percent from 2007. The Navistar sales were primarily of armored vehicles for use in Afghanistan.
North American companies, of which all but one are based in the United States, dominate the list, accounting for 60 percent of arms sales by the top 100 companies, the institute said.
PRAGUE — With flourish and fanfare, President Obama and President Dmitri A. Medvedev of Russia signed a nuclear arms control treaty on Thursday and opened what they hoped would be a new era in the tumultuous relationship between two former cold war adversaries.
Meeting here in the heart of a once-divided Europe, the two leaders put aside the acrimony that has characterized Russian-American ties in recent years as they agreed to bring down their arsenals and restore an inspection regime that expired in December. Along the way, they sidestepped unresolved disputes over missile defense and other issues.
“When the United States and Russia are not able to work together on big issues, it is not good for either of our nations, nor is it good for the world,” Mr. Obama said as his words echoed through a majestic, gilded hall in Prague Castle. “Together we have stopped the drift, and proven the benefits of cooperation. Today is an important milestone for nuclear security and nonproliferation, and for U.S.-Russia relations.”
Mr. Medvedev called the treaty signing “a truly historic event” that will “open a new page” in Russian-American relations. “What matters most is this is a win-win situation,” he said. “No one stands to lose from this agreement. I believe this is a typical feature of our cooperation. Both parties have won.”
The Russian president signaled general support for the American-led drive to impose new sanctions on Iran, saying that Tehran’s nuclear program has flouted the international community. “We cannot turn a blind eye to this,” Mr. Medvedev said, while adding that sanctions “should be smart” and avoid hardship for the Iranian people.
Mr. Obama said he expected “to be able to secure strong, tough sanctions” on Iran during the spring.
The apparently warm relationship between the presidents was on display as they entered the hall to trumpet music. They whispered and smiled with each other in English as they sat side by side signing copies of the so-called New Start treaty, then traded compliments during a follow-up exchange with reporters.
Mr. Obama called the Russian a “friend and partner” and said, “Without his personal efforts and strong leadership, we would not be here today.” For his part, Mr. Medvedev said the two had developed a “very good personal relationship and a very good personal chemistry, as they say.”
While the treaty will mandate only modest reductions in the actual arsenals maintained by the two countries, it caps a turnaround in relations with Moscow that sank to rock bottom in August 2008 during the war between Russia and its tiny southern neighbor, Georgia. When he arrived in office, Mr. Obama made restoring the relationship a priority, a goal that coincided with his vision expressed here a year ago of eventually ridding the world of nuclear weapons.
Even as the two presidents hailed the treaty, however, they found no common ground on American plans to build an antimissile shield in Europe to counter any Iranian threat. Mr. Obama refused Russian demands to include limits on missile defense in the treaty, nearly scuttling the agreement. In the days leading up to the ceremony here, Russian officials alternately claimed the agreement would bind the program or complained that it did not and threatened to withdraw if it went forward.
The treaty, if ratified by lawmakers in both countries, would require each country to deploy no more than 1,550 strategic warheads, down from 2,200 allowed in the Treaty of Moscow signed by President George W. Bush in 2002. Each would be limited to 800 total land-, air- and sea-based launchers — 700 of which can be deployed at any given time — down from 1,600 permitted under the Strategic Arms Reduction Treaty of 1991, or Start.
Because of counting rules and unilateral reductions over the years, neither country would have to actually eliminate large numbers of weapons to meet the new limits. Moreover, the treaty does not apply to whole categories of weapons, including thousands of strategic warheads held in reserve and tactical warheads, some of which are still stationed in Europe.
But the treaty would re-establish an inspection regime that lapsed along with Start last December and bring the two countries back into a legal framework after years of tension. Moreover, both sides hope to use it as a foundation for a new round of negotiations that could lead to much deeper reductions that will cover weapons like stored or tactical warheads.
The first task for Mr. Obama after returning to Washington will be persuading the Senate to ratify the new treaty, and advisers planned to head to Capitol Hill on Thursday, even before his return, to brief Senate staff members.
Ratification requires a two-thirds vote, or 67 senators, meaning the president needs at least eight Republicans. The White House is counting on the support of Senator Richard G. Lugar of Indiana, the senior Republican on the Foreign Relations Committee and one of his party’s most respected voices on international affairs, to clear the way.
But it could still have to contend with skeptics like Senator Jon Kyl of Arizona, the Republican whip, who have expressed concern about limiting American defenses. And the polarized politics of Washington heading into a midterm election are volatile, meaning a vote could be delayed until after the election, which would further put off other elements of Mr. Obama’s antinuclear agenda, such as consideration of the Comprehensive Test Ban Treaty.
The White House wants a vote by the end of the year, and Robert Gibbs, the president’s press secretary, reminded reporters on Air Force One during the flight here that past arms control treaties have received near-unanimous votes. “We are hopeful that reducing the threat of nuclear weapons remains a priority for both parties,” he said.
But what he did not note is that the Senate has also rejected an arms control agreement in recent times, refusing to ratify the test ban treaty when it was originally brought up in 1999. Moreover, it took three years in the 1990s to ratify the first Start follow-up treaty, known as Start 2, which never went into force because of a dispute over Russian conditions attached during its own ratification process.
Mr. Obama hopes to use the trust built during the treaty negotiations to leverage more cooperation from Moscow on other issues, most notably pressuring Iran to give up its nuclear program.
Speaking after signing the treaty with Mr. Medvedev, Mr. Obama said the United States and Russia were “part of a coalition of nations insisting that the Islamic Republic of Iran face consequences, because they have continually failed to meet their obligations” under international rules governing the use of nuclear materials.
“Those nations that refuse to meet their obligations will be isolated, and denied the opportunity that comes with international integration,” he said. Iran maintains its nuclear program is for civilian purposes, but the United States and its western allies suspect Tehran wants to build a nuclear weapon.
Warmer relations with the Kremlin worry American allies in Central and Eastern Europe, which were already concerned that Mr. Obama’s decision last year to scrap Mr. Bush’s missile defense plan in favor of a reformulated architecture was seen as a concession to Moscow.
Hoping to soothe those concerns, Mr. Obama plans to have dinner Thursday night in Prague with 11 leaders from the region, including the presidents or prime ministers of Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia.
Similarly, Mr. Obama made sure before leaving Washington to speak by phone with President Mikheil Saakashvili of Georgia to reassure him of American support. He will meet separately with Czech leaders on Friday morning before returning to Washington.
Alan Cowell contributed reporting from Paris, and Dan Bilefsky from Prague.
WASHINGTON — As President Obama begins making final decisions on a broad new nuclear strategy for the United States, senior aides say he will permanently reduce America’s arsenal by thousands of weapons. But the administration has rejected proposals that the United States declare it would never be the first to use nuclear weapons, aides said.
Mr. Obama’s new strategy — which would annul or reverse several initiatives by the Bush administration — will be contained in a nearly completed document called the Nuclear Posture Review, which all presidents undertake. Aides said Secretary of DefenseRobert M. Gates will present Mr. Obama with several options on Monday to address unresolved issues in that document, which have been hotly debated within the administration.
First among them is the question of whether, and how, to narrow the circumstances under which the United States will declare it might use nuclear weapons — a key element of nuclear deterrence since the cold war.
Mr. Obama’s decisions on nuclear weapons come as conflicting pressures in his defense policy are intensifying. His critics argue that his embrace of a new movement to eliminate nuclear weapons around the world is naïve and dangerous, especially at a time of new nuclear threats, particularly from Iran and North Korea. But many of his supporters fear that over the past year he has moved too cautiously, and worry that he will retain the existing American policy by leaving open the possibility that the United States might use nuclear weapons in response to a biological or chemical attack, perhaps against a nation that does not possess a nuclear arsenal.
That is one of the central debates Mr. Obama must resolve in the next few weeks, his aides say.
Many elements of the new strategy have already been completed, according to senior administration and military officials who have been involved in more than a half-dozen Situation Room debates about it, and outside strategists consulted by the White House.
As described by those officials, the new strategy commits the United States to developing no new nuclear weapons, including the nuclear bunker-busters advocated by the Bush administration. But Mr. Obama has already announced that he will spend billions of dollars more on updating America’s weapons laboratories to assure the reliability of what he intends to be a much smaller arsenal. Increased confidence in the reliability of American weapons, Vice President Joseph R. Biden Jr. said in a speech in February, would make elimination of “redundant” nuclear weapons possible.
“It will be clear in the document that there will be very dramatic reductions — in the thousands — as relates to the stockpile,” according to one senior administration official whom the White House authorized to discuss the issue this weekend. Much of that would come from the retirement of large numbers of weapons now kept in storage.
Other officials, not officially allowed to speak on the issue, say that in back-channel discussions with allies, the administration has also been quietly broaching the question of whether to withdraw American tactical nuclear weapons from Europe, where they provide more political reassurance than actual defense. Those weapons are now believed to be in Germany, Italy, Belgium, Turkey and the Netherlands.
At the same time, the new document will steer the United States toward more non-nuclear defenses. It relies more heavily on missile defense, much of it arrayed within striking distance of the Persian Gulf, focused on the emerging threat from Iran. Mr. Obama’s recently published Quadrennial Defense Review also includes support for a new class of non-nuclear weapons, called “Prompt Global Strike,” that could be fired from the United States and hit a target anywhere in less than an hour.
The idea, officials say, would be to give the president a non-nuclear option for, say, a large strike on the leadership of Al Qaeda in the mountains of Pakistan, or a pre-emptive attack on an impending missile launch from North Korea. But under Mr. Obama’s strategy, the missiles would be based at new sites around the United States that might even be open to inspection, so that Russia and China would know that a missile launched from those sites was not nuclear — to avoid having them place their own nuclear forces on high alert.
But the big question confronting Mr. Obama is how he will describe the purpose of America’s nuclear arsenal. It is far more than just an academic debate.
Some leading Democrats, led by Senator Dianne Feinstein of California, chairwoman of the Senate Intelligence Committee, have asked Mr. Obama to declare that the “sole purpose” of the country’s nuclear arsenal is to deter nuclear attack. “We’re under considerable pressure on this one within our own party,” one of Mr. Obama’s national security advisers said recently.
But inside the Pentagon and among many officials in the White House, Mr. Obama has been urged to retain more ambiguous wording — declaring that deterring nuclear attack is the primary purpose of the American arsenal, not the only one. That would leave open the option of using nuclear weapons against foes that might threaten the United States with biological or chemical weapons or transfer nuclear material to terrorists.
Any compromise wording that leaves in place elements of the Bush-era pre-emption policy, or suggests the United States could use nuclear weapons against a non-nuclear adversary, would disappoint many on the left wing of his party, and some arms control advocates.
“Any declaration that deterring a nuclear attack is a ‘primary purpose’ of our arsenal leaves open the possibility that there are other purposes, and it would not reflect any reduced reliance on nuclear weapons,” said Daryl G. Kimball, the executive director of the Arms Control Association. “It wouldn’t be consistent with what the president said in his speech in Prague” a year ago, when he laid out an ambitious vision for moving toward the elimination of nuclear weapons.
Mr. Obama’s base has already complained in recent months that he has failed to break from Bush era national security policy in some fundamental ways. They cite, for example, his stepped-up use of drones to strike suspected terrorists in Pakistan and his failure to close the Guantánamo Bay detention facility by January as Mr. Obama had promised.
While Mr. Obama ended financing last year for a new nuclear warhead sought by the Bush administration, the new strategy goes further. It commits Mr. Obama to developing no new nuclear weapons, including a low-yield, deeply-burrowing nuclear warhead that the Pentagon sought to strike buried targets, like the nuclear facilities in North Korea and Iran. Mr. Obama, officials said, has determined he could not stop other countries from seeking new weapons if the United States was doing the same.
Still, some of Mr. Obama’s critics in his own party say the change is symbolic because he is spending more to improve old weapons.
At the center of the new strategy is a renewed focus on arms control and nonproliferation agreements, which were largely dismissed by the Bush administration. That includes an effort to win passage of the Comprehensive Test Ban Treaty, which was defeated during the Clinton administration and faces huge hurdles in the Senate, and revisions of the Nuclear Nonproliferation Treaty to close loopholes that critics say have been exploited by Iran and North Korea.
Mr. Obama’s reliance on new, non-nuclear Prompt Global Strike weapons is bound to be contentious. As described by advocates within the Pentagon and in the military, the new weapons could achieve the effects of a nuclear weapon, without turning a conventional war into a nuclear one. As a result, the administration believes it could create a new form of deterrence — a way to contain countries that possess or hope to develop nuclear, biological or chemical weapons, without resorting to a nuclear option.
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