U.S. approves sale of bombs to NATO under pilot project
WASHINGTON, Aug 11 (Reuters) - The U.S. State Department has approved the potential sale of precision guided munitions and equipment worth $231 million to NATO's support and procurement agency, under a pilot program where the organization acts as a lead buyer for member countries, the Pentagon said on Thursday.
The U.S. government last year announced a two-year project aimed at making it easier for NATO and member countries to share costs and buy weapons as a group as they struggle to stretch scarce defense budgets.
U.S. arms sales have historically been conducted with individual countries rather than alliances, in part because of concern about transfers of technology to third parties.
But group procurements could help NATO meet U.S. demands for NATO members to bolster spending on defense.
The U.S. Defense Security Cooperation Agency, which implements foreign arms sales, said the weapons would be transferred to eight countries including Spain, Portugal and Denmark.
"The proposed sale improves NATO members' capability to meet current and future ground threats with precision," the agency said.
Boeing Co and Raytheon Co will be the principal contractors for the sale, the agency said in a notice to lawmakers posted on its website. (Reporting by Idrees Ali, editing by G Crosse)
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