US to sell Australia SM-2 missiles

WASHINGTON - The Pentagon has notified Congress of a proposed sale to Australia of up to 175 SM-2 Block IIIA surface-to-air defensive missiles.

The proposed sale, valued at up to US$315 million ($452 million) if all options are exercised, would provide Australia continued anti-aircraft defence capabilities for its Navy, the notice said. Australia already has SM-1 Standard missiles.

The Pentagon's Defence Security and Cooperation Agency, which oversees foreign arms sales, said Australia requested a possible sale of up to 175 SM-2 missiles, built by Raytheon, up to 30 telemetry missiles and various spare parts.

"It is vital to the US national interest to assist the Royal Australian Navy in modernising its surface combatant fleet so as to maintain a strong and ready self-defence capability and contribute to an acceptable military balance in the area," DSCA said in a statement about the notification.

It said the sale would also help maintain the US Navy's production base and would improve interoperability between US and Australian forces.

DSCA said the other principal contractor would be General Dynamics Corp.

The proposed missile sale follows notification to Congress last week of a proposed sale to Australia of three MK 7 AEGIS shipboard combat weapons systems, a deal valued at up to US$350 million.

Congress has 30 days to block the sale, although such action is rare.

- REUTERS