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LOOKING AHEAD
27.04.2008

April 23, 2008 (the date of publication in Russian)

Alexander Rublev

WASHINGTON PLAYS A SHELL GAME WITH POLAND

The Poles demand a $4 billion indemnity

In 1990, preparing for entry in NATO, the Polish government decided to equip the national armed forces with modern aviation technique corresponding with the standards of the Alliance. Lacking the necessary financial possibilities for direct purchase of US fighters, the Poles decided to buy them on the installment plan. At the same time, Poland was planning to use the $3.5 billion contract (amounting to $4.7 billion under the terms of the credit agreement) for the needs of domestic economy. The government announced a tender, promising the contract to the company that would provide most advantageous conditions of an offset deal which would allow Warsaw to undertake large-scale investments.

The list of bidders included Lockheed Martin (US), Dassault Aviation (France) and the consortium of SAAB (Sweden) and BAE Systems (UK). Though Lockheed's F-16 fighter possessed not the best technical characteristics, the American corporation was declared winner of the contest. It was officially explained that Lockheed promised the best financial conditions. In February 2003, the contract was officially signed.

The offset program (generally, a form of reciprocal trade suggesting possibilities to invest capitals in exchange for certain market advantages) promised a range of scientific and technological cooperation. Poland was supposed to achieve a multitude of US-designed know-hows in high technologies, along with grants for industrial implementation of modern technological solutions, and education programs for Polish specialists and businessmen in the United States.

At that time, in 2003, the agreement gained a powerful propagandist effect, greatly increasing sympathies with the United States and thus paving the way for Lech Kaczynski in the presidential campaign. The Poles were looking forward to a rain of investments pour on their nation. Polish entrepreneurs queued for participation in the offset program, foretasting direct contracts with US specialists.

These hopes proved to be void. Arriving in the United States, the Poles found out that their patrons are not going to offer them any privileges. The promises of free transfer of technologies were tranquilly forgotten. Know-hows were instead proposed for market prices.

In other aspects of cooperation, things went from bad to worse. The high-tech education problem was never realized, as well as the program of establishing business incubators.

Washington's promises to open South American markets for Polish goods turned a swindle as well. Aircrafts, produced in Melce, never reached the "warm countries", as Polish companies were ousted from the deals without explanation.

That was not yet the whole disappointment. In the framework of the offset program, the Americans had also promised to find major private investors ready to finance new Polish high tech producing companies. After a while, Polish authorities were explained that such enthusiasts haven't come up.

Consultations on programs of improvement of managerial qualification, provided by US friends through phone communication, appeared to be similarly useless. The American advice had nothing to do with the European market practice. Poland's objections were responded with a threat of closing the whole program of cooperation. The Ministry of Economy preferred to concede, realizing that the text of agreement was arranged on the pattern of a one-sided game, allowing only the US side to sue the partner for incompliance with conditions.

Only after the defeat of Kaczynski's party in the national elections, the Polish Government started to investigate the conditions of the deal and its implementation. Today, Poland's Audit Chamber is seeking legal arguments for raising claims to the US side amounting to $4 billion.

At the same time, Polish expert will try to make sure that the swindle not repeat in the scheduled contracts on purchase of Spike missiles and CASA military transport aircrafts from the United States. Warsaw is committed to secure itself from a new swindle.

This story is pretty instructive. Ukrainian politicians, diplomats and experts, eagerly dragging their nation into NATO, should learn Polish lessons. In case Washington treats Poland, the reputed stronghold of US interests in Europe, in this way, what is Ukraine going to count upon?


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