Turkey wastes $50m in cancelled missile deal with France

PanARMENIAN.Net - A cancelled deal that Turkey had signed for the purchase of 19,000 short-range missiles from France has caused more harm to the Turkish economy than was initially thought, a Defense Ministry official said.

The official, speaking on the condition of anonymity, told Today's Zaman that a $50 million investment, which the Turkish Mechanical and Chemical Industry Corporation (MKEK) had made to produce missiles as part of the cancelled deal, was wasted because the facility it constructed for that purpose has remained idle since the late 1990s.

In 1998 Turkey agreed with France on the purchase of 19,000 short-range missiles for 400 million euros. As part of that deal, Turkey made a payment of 280 million euros, almost three-quarters of the total amount, but only received 3,600 missiles. When those delivered missiles were tested at the Land Forces Command (KKK) in Ankara, it was discovered that the missiles were defective and could not hit their targets. Although France was notified of the test results, operational missile deliveries started to miss deadlines and Turkey consequently cancelled the deal in 2004. Upon Turkey's application, the International Court of Arbitration ruled in favor of Turkey in 2009, but by that time Turkey had lost a decade trying to compensate losses rather than strengthening its defense industry.

This recent revelation by the ministry official has added to Turkey's woes as it reveals that the country not only lost time but also money with the $50 million investment following this failed missile purchase attempt.