F-16s - The Unjust Settlement
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On Friday December 18, 1998 President Bill Clinton telephoned Prime Minister Mohammad Nawaz Sharif and confirmed the final settlement of the long outstanding dispute of the illegally held 28 F-16 fighters. This clearly was the outcome of the meeting in early December in Washington between the Pakistani Prime Minister and the American President. On December 19 at a press conference the delighted Prime Minister announced that the long pending F-16 issue was resolved, and it was a concrete outcome of his recent Washington visit. He said that the US will refund US $ 466.97 million by the end of December 1998, after deducting service charges. 'The settlement of the F-16 issue has removed the major irritant in Pak-US relations' declared the PM adding that the F-16 dispute has been resolved to the satisfaction of Pakistan. Praising the US President he said that, 'Bill Clinton has gone out of the way to resolve the issue of F-16 fighters, and has honoured his commitment like a statesman. The two sides have closed the issue and this matter is behind us now'. So far so good, but is this a just and fair settlement. It is suspected that Uncle Sam's sudden 'generosity' to conditionally release blocked money is contingent to undertakings by Pakistan to sign CTBT by September 1999, moratorium by Pakistan on the production of fissile material, possible understanding to UN inspections after signing the CTBT; and an end to further missile or nuclear tests. All this adds to the roll back of Pakistan's nuclear programme? And what about the immense damage caused to the Pakistan Air Force by the non-supply of the 71 F-16 multi-role fighters, which were being paid for under the terms of bilateral agreements? Is it a just settlement and fair payment after the arbitrary decision to dishonour Pak-US Peacegate III and Peacegate IV agreements which required delivery of seventy one (71) F-16-A multirole fighters to Pakistan Air Force, with deliveries starting in 1992? Immense damage has been caused to the fighting potential of the PAF by the arbitrary blockade of the F-16 fighters and the small and unimpressive payment in lieu of the F-16 fighters. This so called final settlement is not in the interest of Pakistan's national security.
Prime Minister's remark that the issue is closed and the matter is behind us now is not easy to digest by many Pakistanis who for a decade have suffered the agony of this US high-handedness. The F-16 saga is a tale of broken promises, violation of international commercial agreements, international law and business and trade conventions and ethics. Slamming the highly discriminatory harmful Pressler Amendment only on Pakistan, when India and Israel already had nuclear weapon capability, and several states were at par or ahead in nuclear development, to say the least was unfair. It has damaged Pakistan economically and militarily. After the Pressler Law, US attitude towards Pakistan was of intimidation and coercion to force Pakistan to scrap its nuclear development; while towards India US policy was of benevolent appeasement. This unjust and prejudiced US policy has harmed Pakistan and has damaged Pakistan Air Force. It has benefited Pakistan's enemies.
After ten years of injustice United States has agreed to pay Pakistan the arrears of US$ 658 million paid for by Pakistan as instalments for 71 F-16 fighters. In 1993 when payments were stopped US $ 658 had already been paid to General Dynamics the original manufacturers of the F-16 fighters. General Dynamics informed Pakistan that the received amount of $ 658 was sufficient only for 28 F-16 fighters and spares already delivered by vendors. As the US resiled on delivery of the aircraft, the payments were stopped in 1993.
Payments to General Dynamics should have been stopped after the Pressler Amendment was slammed in 1990, and GOP was told by the US Administration that F-16's would never be delivered to Pakistan. The government at the time did not consult the PAF, and pressed on with the payment of instalments, disregarding the fact that the massive amount being paid was likely to go down the drain. It is in order to suggest that a government 'white paper' be issued on the subject of the grisly F-16 deal with the US, and why payments were continued after US refusal to honour Peacegate III and IV agreements.
The heldup amount of $ 658 million is being paid without interest from 'judgements funds' of US Treasury at the discretion of the US President. The interest itself could be between 150 to 200 million US dollars. Pakistan reportedly had received USD 157 million in cash earlier. But the payment of the remainder US$ 501 is not being made in full. Now Pakistan will receive only dollars 466.97 million. Dollars 326.97 million will be paid in cash, while dollars 140 million will be given in the form of unwanted wheat. This unwanted wheat will be delivered over a period of two years to benefit American farmers. US Dollars 34.5 million are being arbitrarily deducted as 'service charges'. As regards interest on $ 658 million the Prime Minister explained that, 'US laws do not permit payment of interest against claims. Even if Pakistan goes to the court in the US for the payment of interest, the court would not have granted it'.
According to Lanny Davis of Patton and Boggs the law firm hired to sue the US government, it was the lawsuit threat which forced the US Administration to resolve the F-16 issue. Frankly it is the pressure-persuasion of Prime Minister Nawaz Sharif and the spectre of threatened law suit by Pakistan which prompted the US to resolve the matter expeditiously. The matter to sue the US in a court of law in that country to recover the interest should not be shelved, it should be pursued. US authorities be asked to return the hefty amount of $ 34.5 million being pocketed as 'service charges'. The settlement of the F-16 issue is a positive outcome of Prime Minister's Washington visit, but the US should not be allowed to take away a large chunk as 'service charge' and swallow the interest.
The PM is thankful to Bill Clinton for the payment, inspite of non-payment of interest and deduction of very heavy 'service charges' because the country is badly cash strapped. While the payment is a matter of some satisfaction, it is vital that this amount should not be fittered away. This amount was paid for the purchase of F-16 fighters, and considering the sorry state of the PAF, the received amount be spent in full or in part for the re-building of Pakistan Air Force. During the last ten years PAF capabilities have become impaired because of the Pressler Law, and lack of government effort to re-equip the PAF with modern aircraft. India has been investing heavily in the India Air Force and presently the balance of air power is dangerously in favour of Bharat. During the parleys with President Clinton the Prime Minister took up the existing conventional military imbalance in South Asia. He rightly told the US President that this weakness had increased Pakistan's dependence on nuclear weapons. It is good to learn that President Clinton gave the assurance of support to Pakistan to correct the imbalance of conventional weapons in South Asia. Pakistani defence policy makers should realize that weak air force means weak defence. The returned funds allocated for F-16's earlier, may be re-allocated to the PAF for the procurement or in-country manufacture of fighter aircraft that it so badly needs.
