CURRENT UPDATES: March 23, 2007

Contractors Win in the War, Arms Sales, Cluster Bombs

Happy Spring!

A few weeks ago, many of you enjoyed Bill Hartung's comedic news article "Armed Chimps Draw Mixed Reviews. NRA: "Welcome to the Club!" Neocons: "Are They Being Armed by Iran?" We're thinking of setting up a separate list for our "laugh to keep from crying" articles. Send Frida an email at berrigaf@newschool.edu if you would like to receive periodic satirical, whimsical and/or wishful articles by Bill Hartung.

Best,

Frida Berrigan
Bill Hartung

TABLE OF CONTENTS:

I. CONTRACTS SOAR ON STRENGTH OF RECORD MILITARY SPENDING
II. PROTESTS IN THE STREETS, CONGRESSIONAL OFFICES, CORPORATE HEADQUARTERS
III. ARMS SALES LARGE AND SMALL
IV. CLUSTER BOMBS: The Work Continues

I. CONTRACTS SOAR ON STRENGTH OF RECORD MILITARY SPENDING

The Bush administration has presided over one of the largest military buildups in the history of the United States, and the biggest beneficiaries of this spending boom have been major military contractors.

Counting the costs of the wars in Iraq and Afghanistan and the Department of Energy's work on nuclear weapons and naval reactors, proposed military spending for FY 2008 is $647 billion. After adjusting for inflation, this represents the highest level of military spending since World War II - higher than the peak of the Reagan buildup, higher than spending during Vietnam, and higher than the top year of the Korean conflict. Military spending has more than doubled since President Bush took office in January 2001.

This growth in overall military spending has been accompanied by comparable growth in prime contracts awarded to military firms like Lockheed Martin, Northrop Grumman and Boeing. Pentagon contracts are up from $144 billion in FY2001 to over $294 billion in FY 2006, an increase of 103%.

Measured in dollar terms, Lockheed Martin was by far the biggest beneficiary of the increase in Pentagon contracts. Between FY2005 and FY2006, Pentagon contracts to this Maryland-based company totaled over $26 billion, a $7.1 billion increase over a one-year period. Other contractors gaining $1 billion or more between FY2005 and FY2006 included Northrop Grumman ($3.1 billion), Boeing ($1.9 billion) and Raytheon ($1.0 billion). Lesser known firms like the American Body Armor and Equipment Company, the Kuwaiti Petroleum Corporation, and Tetra Tech have seen their contracts jump five- or ten-fold since 2001, in large part due to contracts linked to the Iraq war.

Stock prices are another way to measure the degree to which weapons contractors are benefitting from war increases. According to an analysis done by the War Resisters League, Lockheed Martin's stock price increased 116% since March 2003. Boeing, General Dynamics, Halliburton and L-3 Communications are among the contractors who saw their stock values jump more than 100%. During the same period, the Dow Jones Industrial Average increased by 54%, meaning that many weapons contractors enjoyed double the average increase.

TOP PENTAGON CONTRACTORS, FY 2006:

Major Beneficiaries of the Bush Administration's Military Buildup >by William D. Hartung and Frida Berrigan: http://www.worldpolicy.org/projects/arms/reports.html

PDF at http://www.worldpolicy.org/projects/arms/reports/Top_100_Report.3.07.pdf

NORTHROP GRUMMAN: On Strike

The photo in the Times on March 12th showed two middle aged women-one white, one black, holding signs in the Southern warmth. The sign said "LU 55 pipe fitters on strike for better benefits." Seven thousands workers at Northrop Grumman's Ingalls shipyard went on strike on March 8th to protest the fact that their wages and benefits have not increased apace with the sharp cost of living increases after Hurricane Katrina swept through the region. Workers make $18.32 an hour, and the $2.50 an hour increase Northrop Grumman offered was not enough to cover the increases of staples like milk-which jumped from $2.59 to $4.19 a gallon. The Times also reported that rents and housing prices have nearly doubled and that the company proposed increasing health insurance premiums by $50 a month.

Northrop Grumman, the military contractor who runs the ship-building enterprise, saw jumps of its own. But they were not in cost-they were in contracts coming in. The Pentagon recently released its annual report on top contractors and the Los Angeles-based Northrop Grumman comes in at number three-its contracts increased from $13.5 billion to $16.6 billion between 2005 and 2006-- that is a lot of gallons of milk and $2.50 an hour raises.

DEEPWATER in Hot Water

But, Northrop Grumman does have its share of troubles. Just a few days ago, the Coast Guard made an uncommon move-canceling a $600 million contract with Northrop Grumman and partner Lockheed Martin to build the Fast Response Cutter. The project has suffered delays and design flaws and the Coast Guard was criticized by government auditors for giving too much control to the contractors. The cutter boat program is part of Deepwater-- a $24 billion initiative to upgrade and or replace many of the Coast Guard's fleet.

It has been a long time since one of the military services canceled a major weapons program like the Cutter. Former Defense Secretary Donald Rumsfeld came into office with visions of cutting or scaling back many of the Pentagon's big ticket projects like the Navy's new aircraft carrier, the Air Force's next-generation fighter jet, and the Army's Comanche helicopter program. He was able to eliminate the Comanche and the Army's Crusader howitzer which would have cost more than $11 billion to build, but the rest of his plans were successfully challenged by the military services and the weapons contractors. These cuts turned out to be a drop in the bucket, as overall spending on weapons procurement and research and development (R&D) have soared during the Bush presidency.

RESOURCES:

Coast Guard Cancels Contract, Renae Merle, Washington Post, March 15, 2007 http://www.washingtonpost.com/wp-dyn/content/article/2007/03/14/AR2007031402370.html

II. PROTESTS IN THE STREETS, CONGRESSIONAL OFFICES, CORPORATE HEADQUARTERS

We have reached one more sad milestone in the war in Iraq, the end of the fourth year of military occupation that began with Shock and Awe in March 2003.

As CNN released polls that found only 32% of Americans support the war, down from 72% in the weeks immediately following the invasion on March 19, 2003, Secretary of State Condoleezza Rice said, "I would ask the American people to be patient," Rice said. "We have invested a lot. It is worth the sacrifice."

Around the country (mostly in the bitter cold), Americans said no more patience, no more investment, no more sacrifice of lives and treasure. In actions large and small, they sought to dramatize the costs and consequences of war, register their outrage, frustration and heartbreak, and communicate their fervent belief that another world is possible.

On Friday night, thousands of religious leaders and lay people filled the National Cathedral in Washington, DC for a prayer service and speakers, including Rev. Raphael G. Warnock, senior pastor at Atlanta's Ebenezer Baptist Church, who lashed out at President Bush, saying: "Mr. Bush, my Christian brother, we do need a surge in troops. We need a surge in the nonviolent army of the Lord," he said. "We need a surge in conscience and a surge in activism and a surge in truth-telling." The group then marched to the White House as snow fell and the temperature dropped, where more than 200 people were arrested trying to carry out an all-night peace vigil. For more information, visit: http://www.sojo.net/index.cfm?action=news.display_article&mode=M&NewsID=5778

For most people, Saturday was Saint Patrick's Day, but in many communities around the country, the parade became a venue for anti-war sentiment. In Colorado Springs, CO, two older women were roughed up by police after they were ordered to leave the St Patrick's Day parade. Their green t-shirts with white peace signs were so objectionable that the officers left the 65-year-old and 67-year-old women battered and bruised, and both were taken to the hospital. http://www.denverpost.com/crush/ci_5462603

Also on Saturday, perhaps as many as 20,000 anti-war demonstrators marched to the Pentagon, thousands marched in Los Angeles, tens of thousands marched in Madrid and there were smaller protests throughout the United States and in other countries, including Greece and Turkey.

On Sunday, about 3,000 people closed Market Street in San Francisco, and 3,500 marched through mid-town Manhattan.

Protests continued on Monday with a focus on the companies that are profiting from war. About fifteen people blocked the headquarters of oil-giant Chevron's in San Ramon, CA with oil barrels painted as American flags. They were later arrested. Meanwhile, demonstrators snaked through New York City's financial district at the start of the trading day, calling attention to the profits weapons manufacturers are making from the war in Iraq. Nearly 50 people were arrested blocking intersections around the New York Stock Exchange.

RESOURCES:

Visit United for Peace and Justice for information on all the demonstrations that took place to mark the anniversary: http://www.unitedforpeace.org/article.php?id=3545

Every Tuesday and Thursday, the Brookings Institute updates their IRAQ INDEX: Tracking Variables of Reconstruction & Security in Post-Saddam Iraq. This large compendium of information includes security, economic and quality of life indicators. It was last updated on March 19th http://www3.brookings.edu/fp/saban/iraq/index.pdf

For an interesting perspective on the war in Iraq and the military industrial complex, we encourage you to read "Hammers Can't Fix Computers OR Why We Lost in Iraq, Part I" by Jason Lemieux, a Marine veteran who did three tours in Iraq. It is on the website of Iraq Veterans Against the War, http://www.ivaw.org/node/568

Anthony Arnove wrote "Four Years Later... And Counting: Billboarding the Iraqi Disaster" for TomDispatch.Com. Read it at http://www.tomdispatch.com/index.mhtml?pid=176493

Vietnam and Iraq: What is different? What is the same? What lessons has the Pentagon and White House learned? What new tactics and strategies are being employed by the peace movement and anti-war activists? Associated Press reporter David Crary spoke with people active in the Vietnam-era and today, including Frida Berrigan and wrote "Iraq and Vietnam: contrasting protests." The article was carried on the AP wire and appeared in papers throughout the country today. You can read it online: http://www.signonsandiego.com/news/nation/20070320-1444-protestingwars.html

III. ARMS SALES LARGE AND SMALL

As noted above, the Iraq war and the "war on terror" have been a bonanza for U.S. weapons contractors. Now the war is providing yet another market for these companies: arms sales to Iraq. According to a March 20th article in the Washington Examiner, delivery has begun on $3 billion in U.S. armaments purchased by the Iraqi government, paid for out of Iraqi oil revenues. The article quotes a retired army officer who notes that "this is the first time they have actually started to buy our equipment in a big way." Arms purchased include armored Humvees, 5-ton trucks, air surveillance radars and M-4 and M-16 rifles. The switch to U.S.-produced rifles from AK-47s is good news for Sen. Lindsey Graham (R-SC), who pushed for this move several years ago but was rebuffed. M-16s are produced under license in South Carolina at a facility run by the Belgian arms maker FN Herstal.

Meanwhile, beyond Iraq, the Boston Globe reports that "the State Department and the Pentagon are quietly seeking congressional approval for significant new military sales to U.S. allies in the Persian Gulf region" as "part of a broader American strategy to contain Iranian influence." (Farah Stockman, "U.S. Looks to Sell Arms to Gulf to Try to Contain Iran; Congressional OK Needed," Boston Globe, March 21, 2007). Systems mentioned in the article include Lockheed Martin Littoral combat ships for Saudi Arabia and Northrop Grumman E-2D Hawkeye 2000 radar planes for the United Arab Emirates.

If guns, planes and ships aren't a big enough export market, how about submarine-launched ballistic missiles (SLBMs)? The UK Parliament's recent decision to approve a new generation of Trident submarines with updated missiles and new warheads offers a potential market for Lockheed Martin, which builds the Trident SLBM and also controls a stake in Britain's Atomic Weapons Establishment (AWE), which will be producing the new warheads. Assuming the deal is not stopped - a big if, given how unpopular it is within the Labor Party and among a growing network of citizen activists - London would buy into Lockheed Martin's upgrade program for the Trident missile to the tune of billions of dollars.

There are many groups working on the Trident issue, including:

The Campaign for Nuclear Disarmament in the UK (http://www.cnduk.org/pages/campaign/ntdtrep.html and BASIC-- British American Security Information Council (http://www.basicint.org/nuclear/beyondtrident/index.htm)

Last but definitely not least, our colleagues Rachel Stohl, Matt Schroeder, and Dan Smith have produced an excellent, highly readable volume on the issue of small arms and light weapons. With funding for small arms destruction on the rise and consideration of a global Arms Trade Treaty firmly on the agenda of the United Nations and key governments, the time is ripe for activists, educators, and policymakers to educate themselves on this issue. This book is definitely the place to start!

The Small Arms Trade: A Beginner's Guide Rachel Stohl of the Center for Defense Information, Matthew Schroeder of the Federation of American Scientists, and Dan Smith of the Friends Committee on National Legislation have recently completed their THE SMALL ARMS TRADE: A BEGINNERS GUIDE. Learn more at http://fas.org/asmp/

IV. CLUSTER BOMBS: The Work Continues

As the Leahy-Feinstein bill aimed at ensuring that U.S. cluster bombs aren't used in civilian areas, and prevent the use of unreliable cluster bombs with a high failure rate sits before Congress, the British government has taken a larger and more radical step to ban its armed forces from using cluster weapons that are not equipped with self destruct mechanisms.

The Agence France-Presse reports that on Tuesday, March 20th the British Ministry of Defence announced that in the future, British troops will only be allowed to use "smart" cluster bombs with features such as self-destruct mechanisms if they fail to explode on initial impact. In a written statement, Defence Secretary Des Browne told Parliament, "It is our duty to make sure our forces have the equipment they need to do the job we ask of them. At the same time, we should strive to reduce civilian casualties to the minimum. Military commanders are first to point out that modern conflicts are in large part about winning hearts and minds." He added that the British government hoped other countries would now follow Britain's lead.

Belgium banned the use of cluster munitions last year, and in February, 46 countries pledged to seek a treaty banning cluster bombs by next year. Japan, Poland and Romania refused to sign the accord. Israel and the United States did not take part in the conference.

Peace Action has an action alert that might help you push it too. Senators Dianne Feinstein (D-CA), Patrick Leahy (D-VT), Barbara Mikulski (D-MD) and Bernard Sanders (I-VT) have co-sponsored S. 594, which would ensure that U.S. cluster bombs aren't used in civilian areas, and prevent the use of unreliable cluster bombs with a high failure rate.

Peace Action suggests incorporating a few of the following facts into your letter:

• Combining the first and second Gulf Wars, the total number of unexploded bomblets in the region is approximately 1.2 million. An estimated 1,220 Kuwaitis and 400 Iraqi civilians have been killed since 1991.
• In Iraq in 2003, 13,000 cluster bombs with nearly 2 million bomblets were used.
• In Afghanistan in 2001, 1,228 cluster bombs with 248,056 bomblets were used. Between October 2001 and November 2002, 127 civilians were killed, 70 percent of them under the age of 18.
• Between nine and 27 million unexploded cluster bombs remain in Laos from U.S. bombing campaigns in the 1960s and 1970s. Approximately 11,000 people, 30 percent of them children, have been killed or injured since the war ended.
• Most recently, it is estimated that Israel dropped 4 million bomblets in southern Lebanon, and 1 million of these bomblets failed to explode. Reports indicate that Hezbollah retaliated with cluster bomb strikes of its own.
• The Red Cross and former UN Secretary-General Kofi Annan have called for the prohibition of cluster bomb use in populated areas. Also, countries such as Belgium, Germany, and Norway have stopped using and procuring cluster bombs.

To send a letter to your Senator, visit, http://ww2.peaceactionwest.org/campaign/?campaign_KEY=6815

To read more about cluster weapons, visit:
http://sfgate.com/cgi-bin/article.cgi?file=/c/a/2007/01/07/ING2INDCJ91.DTL