US backs up billion-dollar arms deal with Australia

The United States government on Monday approved a deal between the U.S. firms and Australia. This is to allow the United States firms to sell its close ally Australia US$1.22 billion in air-to-air missiles and support equipment.

According to CHANNEL NEWSASIA, the United States government approved an agreement between the U.S. firms and Australia on April 25. The deal would enable the U.S. firms to sell its close partner Australia US$1.22 billion in air-to-air missiles. This will also allow the retail of support equipments to Australia.

The chief contractor for the major shipment will be based in Arizona arms giant Raytheon. It has been said that Raytheon produces the AIM-120D medium-range missile.

In fact, up to 450 of the weapons will arm the Royal Australian Air Force. This will provide the "RAAF additional air-to-air intercept capability and increase interoperability with the US Air Force," the US Defense Security Cooperation Agency mentioned via Dailymail UK.

The Defense Security Cooperation also notified the Congress of the possible deal in a statement on Monday. Moreover, the Australian government has requested up to 450 advanced medium-range AIM-120D air-to-air missiles manufactured by the Arizona-based Raytheon. The AMRAAM missiles would be utilized by the Royal Australian Air Force's F/A-18, E/A-18G, and F-35 aircraft, the DSCA statement revealed.

The Australian government also requested related equipment and support, as reported by BUSINESS INSIDER. The approximated value of the entire defense equipment is $1.08 billion, while the total value of the deal was put at $1.22 billion. "This proposed sale will contribute to the foreign policy and national security of the United States by helping improve the security of a strategic partner and major contributor to political stability, security and economic development in the Pacific region and globally," the statement of DSCA added.

Meanwhile, Australia remains the main ally in the Asia Pacific region and has contributed to forces to allied counter-terror operations in Afghanistan and Iraq. Moreover, DSCA also vowed that the sale would not alter the military balance of the region.

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