Trump’s new arms sales push a potential boon to US defense contractors

OPEN FOR BUSINESS: President Trump likes to brag that America makes the best weapons, and almost always makes a sales pitch for U.S. allies to buy American at every meeting with a foreign leader. This week with Japan’s Prime Minister Shinzo Abe, Trump previewed his new arms sales policy, which is meant to make it much easier for other countries to buy military equipment from U.S. companies. “If they’re our allies, we are going to help them get this very important, great military equipment. And nobody, nobody makes it like the United States. It’s the best in the world by far.”

CUTTING RED TAPE: The White House yesterday released details of the new Conventional Arms Transfer Policy, which goes far beyond the effort by President Obama in 2014 to ease restrictions on arms sales. The State Department will now lead a review with support from the defense, commerce and energy departments and within 60 days will provide recommendations to streamline procedures and clarify regulations. “It would be, in some cases, years before orders would take place because of bureaucracy with Department of Defense, State Department,” Trump said Wednesday. “We are short-circuiting, that, it’s now going to be a matter of days.

KILLER DRONES: The new policy would also make it easier for U.S. companies to market unmanned aerial systems, commonly known as drones. “Although the U.S. leads the way in UAS technology, overly restrictive policies enacted by the previous administration have accelerated an undesirable outcome,” White House trade adviser Peter Navarro said in a conference call with reporters.

“Strategic competitors like China are aggressively marketing to and making sales in international markets that are forecast to be worth more than $50 billion a year within the next decade. Already, we are seeing Chinese replicas of American UAS technology deployed on the runways in the Middle East. In June, at the Paris Air Show, China’s Chengdu Aircraft Group featured its Wing Loong II medium-altitude, long-endurance UAS, a clear knockoff of General Atomics Reaper,” Navarro said. “Bottom line, the policies of the previous administration enabled that, and this administration, consistent with its national security strategy and national defense strategy, is changing that policy.”

WHO BENEFITS: Companies that stand to benefit from the new policy include Boeing, Lockheed Martin, Raytheon, General Dynamics and Northrop Grumman, according to an analysis by Reuters. The lifting of some restrictions on drone sales could also potentially benefit Textron and Kratos Defense and Security Solutions, which market smaller armed drones internationally.

HUMAN RIGHTS CONCERNS: One of the factors that slowed the approval of arms sales under Obama was the concern over how the weapons, especially killer drones, might be employed. “We absolutely look at human rights as one of a set of considerations that we look at. Every sale we do is done on a case-by-case basis,” said Tina Kaidanow, a State Department official overseeing arms export agreements. “We look at democracy, at governance, at human rights, at economic development, at security, at the creation of U.S. jobs and American prosperity. We look at all those things. This is a balanced policy.”

HOTLINE UP, DEMAND DROPPED: As South Korean President Moon Jae-in prepares for his face-to-face meeting with North Korea’s Kim Jong Un one week from today, in the border truce village of Panmunjom there are more signs of the thaw between the two Koreas.

For the first time ever, a telephone hotline has been installed between Seoul’s presidential Blue House and Pyongyang’s powerful State Affairs Commission. A successful test call was conducted today, and the two leaders plan to speak over the communications channel sometime before next week’s summit, according to the AP.

Also, South Korea’s president says Kim has now dropped his demand that all U.S. troops leave the Korean Peninsula and instead is seeking security guarantees and for the U.S. to end its “hostile” policy.

POMPEO PICKS UP A BIG VOTE: Meanwh,ile the man who would be the point man on Korea, right behind negotiator-in-chief Trump, has moved a hair closer to confirmation. Democratic Sen. Heidi Heitkamp says she will vote for CIA Director Mike Pompeo to become secretary of state. Pompeo needs at least one Democrat because Republican Sen. Rand Paul is opposing his nomination, Sen. John McCain is still absent battling brain cancer, and Sen. Jeff Flake is said to be undecided.

Good Friday morning and welcome to Jamie McIntyre’s Daily on Defense, compiled by Washington Examiner National Security Senior Writer Jamie McIntyre (@jamiejmcintyre), National Security Writer Travis J. Tritten (@travis_tritten) and Senior Editor David Brown (@dave_brown24). Email us here for tips, suggestions, calendar items and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email and we’ll add you to our list. And be sure to follow us on Twitter @dailyondefense.

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HAPPENING TODAY: At the Pentagon this afternoon, Defense Secretary Jim Mattis welcomes Japanese Defense Minister Itsunori Onodera. At these events, the Pentagon press pool typically gets to ask one or two questions after welcoming remarks, and Mattis typically gives one or two sentence answers.

SIMMERING BORDER DISPUTE: Mattis may be asked about the feud between California Gov. Jerry Brown and Trump, but expect the preternaturally apolitical Mattis to stay out of it. Trump initially praised Brown’s participation in the plan to send up to 4,000 troops to the border to beef up security, apparently unaware that Brown was barring his troops from enforcing immigration laws. But yesterday as the ink was drying on an agreement between California and the Department of Homeland security, a furious Trump threatened to withdraw federal funding.

“Governor Jerry Brown announced he will deploy ‘up to 400 National Guard Troops’ to do nothing. The crime rate in California is high enough, and the Federal Government will not be paying for Governor Brown’s charade. We need border security and action, not words!” Trump tweeted.

UNDERCUT AGAIN: It was the second time in a week that a top Cabinet official said one thing in public, only to have the president countermand the announcement 24 hours later. DHS Secretary Kirstjen Nielsen had just thanked Brown late Wednesday, in a tweet. “Just spoke w @JerryBrownGov about deploying the @USNationalGuard in California. Final details are being worked out but we are looking forward to the support. Thank you Gov Brown!,” the tweet said.

Perhaps Nielsen and U.S. Ambassador to the U.N. Nikki Haley, who was similarly undercut Monday over the announcement of Russia sanctions, should have lunch together.

EMPTY THREAT? The National Guard troops deployed to the border are under control of their respective governors, but the Pentagon had agreed to foot the bill. Trump seems to be withdrawing that funding, even though the papers have already been signed. When I threw a question about this to chief Pentagon spokesperson Dana White at the end of yesterday’s briefing, she did not indicate there had been any change.

“The Pentagon will continue to support the Department of Homeland Security as they identify their needs and their requirements. We are in a support role,” White said. “The Department of Defense will stand ready to support DHS.” Trump administration officials and the state of California fell silent on Thursday after the president’s Twitter tirade.

HEADING TO ANNAPOLIS: Trump tweeted this morning: “So exciting! I have agreed to be the Commencement Speaker at our GREAT Naval Academy on May 25th in Annapolis, Maryland. Looking forward to being there.” Presidents traditionally rotate among the service academies each year. Last year he spoke at the Coast Guard Academy commencement.

NO EVIDENCE TRANSGENDER TROOPS HURT MORALE: The uniformed leaders of the Navy and Marine Corps said Thursday they have heard no reports that transgender troops have disrupted cohesion in their units or caused morale or disciplinary problems. Gen. Robert Neller, the Marine Corps commandant, testified to the Senate Armed Services Committee that the only issues reported up to him involved some of the service’s 27 transgender troops being unavailable for duty due to medical treatment. “So, for commanders, some of them have said ‘No, it’s not a problem at all.’ Others have said there is a lot of time where this individual may or may not be available,” Neller told the committee. Adm. John Richardson, the chief of naval operations, said “I am not aware of any issues” when he was asked about any reports of unit cohesion, disciplinary or morale problems.

SECURING SYRIA: Also during his Senate testimony, Neller said some enduring military force will be needed in Syria to guard against the resurgence of the Islamic State. “Someone has got to be there,” Neller said during questioning by Sen. Lindsey Graham about the threat from the terrorist group. The role could be filled by allies but the United States has unique military capabilities to fill the job of stabilizing the war-torn country, Neller said.

“In order to get to some sort of a political settlement at Geneva or elsewhere, we have to have stability and if the decision were made that our partners were to come in there — we cannot create a vacuum because it will be filled by someone we don’t want, and so I think that would be part of the negotiation as to who would be in there,” Neller said. “But I would agree with you, there has to be stability.” Trump has indicated he wants to pull U.S. troops from the country following a defeat of the Islamic State.

9/11 SUSPECT NABBED: The Pentagon confirmed yesterday that Mohammad Haydar Zammar, a Syrian-born German national, was captured more than a month ago by U.S.-backed forces in Syria. “Zammar was named in the 9/11 Commission Report as an ‘outspoken, flamboyant Islamist’ who extolled ‘the virtues of violent jihad,’” said Eric Pahon, a Pentagon spokesman. “This terrorist was captured during a unilateral operation by the Syrian Democratic Forces. We are working with our SDF partners to obtain additional details.”

SPEAKING OF ARMS SALES: The Pentagon had a pointed, although unstated message yesterday for Turkey, which says it plans to buy a sophisticated air defense system from Russia known as the S-400. “The Russian manufactured air defense systems were totally ineffective,” said Dana White, the Pentagon’s chief spokesperson.“Russia and the regime demonstrated the ineffectiveness of their systems again two days later, when those systems engaged accidentally,” she said.

Piling on was Lt. Gen. Kenneth McKenzie, who admitted that the Russians didn’t try to shoot down allied cruise missiles with their S-400 system, but noting Syria did, using Russian technology. “The rest of Syrian air defense capability, which is completely Russian-made, Russian-designed, Russian-supported, engaged extensively and comprehensively failed,” he said. “The Russians didn’t do anything, although they’re very closely allied to all the systems that the Syrians deployed to no effect.”

The U.S. opposed Turkey’s plan to acquire the Russian system, which would be incompatible with NATO hardware. “We have talked to the Turks about the issue of interoperability,” White said. “But ultimately the Turks have to decide what’s in their best strategic interest.”

LET’S BE FRANK: We’re going to institute a name change for Joint Staff Director Lt. Gen. McKenzie, who is listed on all the Pentagon’s official announcements as “Lt. Gen. Kenneth F. McKenzie Jr.” The F is for Frank, and yesterday in a hallway conversation, the three-star general confirmed that Frank is what he goes by, and what everyone calls him at the Pentagon. So Frank it is, just as we call James Mattis, Jim.

THE RUNDOWN

Defense News: US Army stops accepting AH-64E helicopters from Boeing in ‘critical safety’ row

Reuters: North Korea seeks ‘complete denuclearization,’ Moon says; U.S. vows pressure

Defense Tech: DoD Officials Erred About Weapons, Fighters Used in Syria Strike Mission

New York Times: Missile Strikes Are Unlikely to Stop Syria’s Chemical Attacks, Pentagon Says

Defense News: House Democrats want war authorization repeal, but path is unclear

Air Force Times: Air Force space acquisition center to undergo major reorg this fall

Business Insider: North Korea appears to be caving to Trump before he even meets with Kim Jong Un

AP: Southwest Airlines pilot pushed Navy boundaries for flying

Daily Beast: Russia Accidentally Sabotages Its Internet

Army Times: Army unit retracts memo touting VA benefits for soldiers due to bad anthrax vaccines

Defense One: The US Military Will Award $10 million to the Company That Can Launch Satellites on Short Notice

USNI News: CNO: Navy to Restore Readiness Levels by 2022 After Years of Insufficient Funding

DoD Buzz: After Joining US on Syria Strikes, France, UK Push for Allied Strategy

Politico: Bridenstine narrowly confirmed to lead NASA

Calendar

FRIDAY | APRIL 20

6 a.m. 44050 Woodridge Parkway. Washington, D.C. Chapter “Swing for Freedom” Invitation for Golf Outing benefiting USO-Metro. ndia.org

8 a.m. 300 First St. SE. Extended Nuclear Deterrence and Missile Defense Challenges in NATO and Asia-Pacific. mitchellaerospacepower.org

10 a.m. 1789 Massachusetts Ave. NW. From Spark Tank to think tank: A conversation with Secretary of the Air Force Heather Wilson. aei.org

10 a.m. 1300 Pennsylvania Ave. NW. Ground Truth Briefing: The U.S. and Syria: What’s Next? wilsoncenter.org

12 noon. 1201 Pennsylvania Ave. NW. China’s Growing Influence in the Indian Ocean: Implications for the U.S. and Its Regional Allies. hudson.org

MONDAY | APRIL 23

11 a.m. 529 14th St. NW. Washington’s Shifting Syria Policy: Implications for U.S.-Turkey Relations. press.org

12:15 p.m. 740 15th St. NW. ISIS in North Africa: Past and Future Trajectories. newamerica.org

6 p.m. 1777 F St. NW. Foreign Minister Mohammad Javad Zarif on U.S.-Iran Relations. cfr.org

TUESDAY | APRIL 24

7 a.m. 2425 Wilson Blvd. AUSA Hot Topic Series: Army Contracts with Bruce Jette, Assistant Secretary of the Army for Acquisition, Logistics and Technology. ausa.org

8 a.m. 2401 M St. NW. Defense Writers Group Breakfast with Deputy Secretary of Defense Pat Shanahan.

8 a.m. 300 First St. SE. Strategic Deterrence Breakfast Series: The Nuclear and Missile Defense Dimension. mitchellaerospacepower.org

9 a.m. Cryptocurrencies and Sanctions Breakfast (invitation only). defenddemocracy.org

9:30 a.m. Dirksen G-50. Hearing on the Posture of the Department of the Air Force with Secretary Heather Wilson and Gen. David Goldfein, Chief Of Staff. armed-services.senate.gov

10 a.m. Dirksen 342. Hearing on Mitigating America’s Cybersecurity Risk. hsgac.senate.gov

10 a.m. Dirksen 419. Nominations Hearing with Adm. Harry Harris, to be the Ambassador to Australia. foreign.senate.gov

10 a.m. 1616 Rhode Island Ave. NW. Putin’s New Strategic Systems: Plans, Realities, and Prospects. csis.org

12 noon. 1201 Pennsylvania Ave. NW. NATO’s Cyber Defense Strategy Ahead of the 2018 Brussels Summit. hudson.org

12 noon. Hart 216. Responding to Russia. defensepriorities.org

3:30 p.m. 1030 15th Street NW. Developing a Strategy to Deter Russian Nuclear ‘De-escalation’ Strikes. atlanticcouncil.org

5:30 p.m. 1177 15th St. NW. Book Launch Event: “Army of None: Autonomous Weapons and the Future of War” by Paul Scharre. cnas.org

5:30 p.m. 1616 Rhode Island Ave. NW. Schieffer Series: China and North Korea – What’s Next? csis.org

5:30 p.m. 1779 Massachusetts Ave. NW. The Battle for the New Libya. carnegieendowment.org

WEDNESDAY | APRIL 25

8 a.m. 300 First St. SE. Strategic Deterrence Breakfast Series on China: Emerging Peer Danger. mitchellaerospacepower.org

9 a.m. 1616 Rhode Island Ave. NW. Global Fragmentation in Cyber Policy. csis.org

11:30 a.m. 1667 K St. NW. Human-Machine Teaming for Future Ground Forces. csbaonline.org

12 noon. 1030 15th St. NW. Iraq’s Upcoming Elections: Likely Outcomes and Impact on US-Iraqi Relations. atlanticcouncil.org

1 p.m. House 140. Hearing on the Fiscal Year 2019 Department of Defense Posture and Budget with Defense Secretary Jim Mattis; Gen. Joseph Dunford, Chairman of the Joint Chiefs of Staff; and DOD Comptroller David Norquist. appropriations.house.gov

1:30 p.m. 1300 Pennsylvania Ave. NW. New Year, New Strategy: Shifting Policies on North Korea in 2018. wilsoncenter.org

2:30 p.m. 2301 Constitution Ave. NW. Afghanistan in 2020: Is Peace Possible? usip.org

THURSDAY | APRIL 26

9 a.m. Rayburn 2212. House Armed Services Markup of H.R. 5515 – National Defense Authorization Act for Fiscal Year 2019 – Subcommittee on Readiness.

9 a.m. 1775 Massachusetts Ave. NW. 21st Century Security Forum: The National Defense Strategy and its global impact with Gen. Robert Neller, Commandant of the Marine Corps. brookings.edu

9:30 a.m. Hart 216. Hearing on the Department of Defense Budget Posture with Secretary Jim Mattis; Gen. Joseph Dunford, Chairman of the Joint Chiefs of Staff; and DOD Comptroller David Norquist. armed-services.senate.gov

10 a.m. Rayburn 2118. House Armed Services Markup of H.R. 5515 – National Defense Authorization Act for Fiscal Year 2019 – Subcommittee on Emerging Threats and Capabilities.

11 a.m. Rayburn 2212. House Armed Services Markup of H.R. 5515 – National Defense Authorization Act for Fiscal Year 2019 – Subcommittee on Military Personnel.

12 noon. 1000 Massachusetts Ave. NW. Risky Business: The Role of Arms Sales in U.S. Foreign Policy. cato.org

12:30 p.m. Rayburn 2118. House Armed Services Markup of H.R. 5515 – National Defense Authorization Act for Fiscal Year 2019 – Subcommittee on Tactical Air and Land Forces.

1:30 p.m. Rayburn 2212. House Armed Services Markup of H.R. 5515 – National Defense Authorization Act for Fiscal Year 2019 – Subcommittee on Seapower and Projection Forces.

3 p.m. Rayburn 2118. House Armed Services Markup of H.R. 5515 – National Defense Authorization Act for Fiscal Year 2019 – Subcommittee on Strategic Forces.

3:30 p.m. 1201 Pennsylvania Ave. NW. Iran: As Anti-Government Protests Continue, Can the U.S. Help Maintain Momentum? hudson.org

5 p.m. 1030 15th St. NW. Investing in Iraq: Reconstruction and the Role of the Energy Sector with Fareed Yasseen, Iraqi Ambassador to the United States. atlanticcouncil.org

FRIDAY | APRIL 27

8 a.m. 300 First Street SE. The Nuclear Deterrent Breakfast Series: Connecting Arms Control to Strategic Deterrent Requirements. mitchellaerospacepower.org

10 a.m. 1300 Pennsylvania Ave. NW. Maritime Security in the Polar Regions: Legal Perspectives from the United States and China. wilsoncenter.org

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QUOTE OF THE DAY
“We cannot create a vacuum, because it’ll be filled by somebody that we don’t want.”
Marine Corps Commandant Gen. Robert Neller telling Congress that pulling U.S. troops out of Syria too soon would be a mistake.

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