The malign influence of Sen. John McCain could again undermine the indispensable procurement of refueling tanker aircraft.
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But what if the Air Force again listens to McCain and the EUnuchs who want us to ignore mission requirements in favor of competition?
The 1,000-page June 30 ruling by World Trade Organization is on the U.S. complaint which calls out French, German, British and Spanish government aid, specifically including subsidization of the A330-200 from which their tanker offer is derived. Among the many subsidies are “launch aid” loans — LA — and “member supplied financing” — MSF.
The report concludes that the U.S. has proved its allegations that the LA and MSF subsidies given Airbus, including those directly related to the A330-200, are illegal under international trade agreements.
One of the fallacious arguments McCain has made over the past few years is that no one can define how much the subsidies mean to the Air Force competition. But is it logically impossible? Hardly. The Air Force must calculate and include the subsidies in accordance with a few simple principles.
The first is to ignore John McCain, who has bluffed and blustered in Airbus’s favor. The Air Force isn’t the Free Trade Force.
Second, the Air Force should reject pressure to exclude the subsidy issue on the basis of the coming appeal of the June 30 ruling by the EUnuchs.
Third, the WTO report shows French subsidies of the A330-200 to amount to 7.8 billion French francs. At the time that France converted to the euro at the end of 2001, the exchange rate was 7.36 francs per dollar.
The calculation is then simple. At 7.36 francs per dollar, the 7.8 billion franc subsidy means $1.05 billion in subsidies to the A-330/200.
The Air Force should calculate the subsidy provided to the 179 aircraft Airbus offers as follows: divide the $1.05 billion by the sum of the number of A-330/200’s sold so far (578, according to the Airbus website) and the 179 offered to the Air Force, which is a total of 757 ($1,387,054 per aircraft). Multiplied by the 179 aircraft offered, the Air Force should add $248,282,670 to the price bid by Airbus.
Free trade is one thing, fair trade another. I’m for fair trade. Especially where the French are concerned.
A man of faith in a godless age is hitting Americans where it hurts.
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
In Britain, defending your property can get you life.
The debacle of this president’s administration is both a cause and a symptom of the decline of American values. Unless Congress impeaches him, that decline will go on unchecked. An eminent jurist surveys the damage and assesses the chances for the recovery of our culture.
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
The American Christmas, like the songs that celebrate it, makes room for everybody under the rainbow. Is that why so many people seem to be hostile to it?
Was the President done in by the economy, or by the politics of the economy?
H/T to National Review Online