US extends deadline for military refuelling plane contracts

The US offered a significant concession to Europe in a row over a $35bn contract for air refuelling tankers yesterday by extending deadline for bids. The issue was raised with Barack Obama by the French president Nicolas Sarkozy on Tuesday at the White House. Sarkozy said he believed Obama would be fair and transparent Frances claims the competition has been biased towards the American giant Boeing. The Pentagon spokesman, Geoff Morrell, announced the 10 May deadline for bids would be extended by 60 days. EADS, the European makers of Airbus, had asked for the extension. EADS and the Northrop Gruman Corporation won the contract two years ago but the US defence secretary, Robert Gates, cancelled the deal after protests by Boeing and members of Congress The Republican senator Sam Brownback, sent a letter to Obama yesterday along with other senators objecting to the extension. "It's wrong to slow down this critical procurement process and it's wrong to delay for a foreign company that receives illegal subsidies..... It makes no sense to extend the deadline to allow a foreign consortium led by European governments to compete for an American refuelling tanker," Brownback told the Politico website.