• Iran, Syria, N. Korea block first global treaty to control $70 billion arms trade

    Maysun / EPA, file

    Syrian Army fighters preparing themselves to shoot against Syrian Army positions in Aleppo, Syria, March 11.

    By Louis Charbonneau, Reuters

    UNITED NATIONS -- Iran, Syria and North Korea on Friday prevented the adoption of the first international treaty to regulate the $70 billion global conventional arms trade, complaining that it was flawed and failed to ban weapons sales to rebel groups.

    To get around the blockade, British U.N. Ambassador Mark Lyall Grant sent the draft treaty to Secretary-General Ban Ki-moon and asked him on behalf of Mexico, Australia and a number of others to put it to a swift vote in the General Assembly.

    U.N. diplomats said the 193-nation General Assembly could put the draft treaty to a vote as early as Tuesday.

    The head of the U.S. delegation, Assistant Secretary of State Thomas Countryman, told a group of reporters, "We look forward to this treaty being adopted very soon by the United Nations General Assembly."

    He declined to predict the result of a vote but said it would be a "substantial majority" in favor.

    "A good, strong treaty has been blocked," said Britain's chief delegate, Joanne Adamson. "Most people in the world want regulation and those are the voices that need to be heard."

    "This is success deferred," she added.

    The point of an arms trade treaty is to set standards for all cross-border transfers of conventional weapons.

    It would also create binding requirements for states to review all cross-border arms contracts to ensure arms will not be used in human rights abuses, terrorism or violations of humanitarian law.

    NRA: Treaty threatens gun rights
    Arms control activists and human rights groups say a treaty is needed to halt the uncontrolled flow of arms and ammunition that they say fuels wars, atrocities and rights abuses.

    "The world has been held hostage by three states," said Anna Macdonald, an arms control expert at humanitarian agency Oxfam. "We have known all along that the consensus process was deeply flawed and today we see it is actually dysfunctional."

    "Countries such as Iran, Syria and DPRK (North Korea) should not be allowed to dictate to the rest of the world how the sale of weapons should be regulated," she added. 

    The National Rifle Association opposes the treaty and has vowed to fight to prevent its ratification if it reaches Washington. The NRA says the treaty would undermine domestic gun-ownership rights.

    The American Bar Association, an attorneys' lobby group, has said that the treaty would not impact the right to bear arms.

    Jim Watson / AFP - Getty Images

    Demonstrators from Amnesty International call for a global arms treaty in a protest outside the White House, March 22.

    The main reason the arms trade talks took place at all is that the United States - the world's biggest arms exporter - reversed U.S. policy on the issue after President Barack Obama was first elected and decided in 2009 to support an arms treaty.

    Iranian President Mahmoud Ahmadinejad had told Iran's Press TV that Tehran supported the arms trade treaty. But Iranian U.N. Ambassador Mohammad Khazaee told the conference that he could not accept the treaty in its current form.

    "It is a matter of deep regret that genuine efforts of many countries for a robust, balanced and non-discriminatory treaty were ignored.,” he said.

    One of those flaws was its failure to ban sales of weapons to groups that commit "acts of aggression," ostensibly referring to rebel groups, he said. The current draft does not ban transfers to armed groups but says all arms transfers should be subjected to rigorous risk and human rights assessments first.

    Syrian Ambassador Bashar Ja'afari echoed the Iranian concerns. "Unfortunately our national concerns were not taken into consideration," he said.

    North Korea's delegate voiced similar complaints, suggesting it was a discriminatory treaty.

    Russia and China made clear they would not have blocked it but voiced serious reservations about the text and its failure to get consensus.

    A Russian delegate told the conference that Moscow would have to think hard about signing it if it were approved.

    If adopted by the General Assembly, the pact will need to be signed and ratified by at least 50 states to enter into force.

    Related:

    'Not good enough': Rights groups blast draft of arms trade treaty

    North Korea is no 'paper tiger', warns US official as regime puts rockets on standby

    Israel to grill Obama over possible military strike on Iran

    Copyright 2013 Thomson Reuters. Click for restrictions.

  • Russia will be big loser if Assad falls, analysts say

    Fighting continued for a fifth day near key government installations, indicating that Syrian President Bashar al-Assad's control is faltering. As the opposition advances, Russia and China still refuse to support a resolution calling for tougher sanctions. NBC's Ayman Mohyeldin reports.

    By Robert Windrem, NBC News

    If Bashar Assad is dislodged from power in Syria, as seems increasingly likely, Russia stands to be the biggest loser in both international prestige and lost arms sales, U.S. analysts tell NBC News.

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     “They are scrambling to hold on to the few allies they have,” Charles  Kupchan, a senior fellow with the Council on Foreign Relations and the author of “No Man’s World,” a book about a world order unanchored by superpowers, said of the Russians. “They’re in an extremely awkward position  --  supporting a regime that is considered beyond the pale by most of the world  -- and as a consequence are selling arms and vetoing  resolutions that are needed steps to stop the killing.”

    On Thursday, Russia and China vetoed a U.N. Security Council resolution threatening  sanctions against the Assad regime. U.S. Ambassador to the U.N. Susan Rice called the actions, “dangerous and deplorable,” and argued  on the “Andrea Mitchell Report” on MSNBC that it runs against their “long-term interests.”

    Diplomats across the globe voiced their frustrations at the United Nations this morning over the decision by Russia and China to veto a resolution that would have imposed new sanctions on Syria. Amb. Susan Rice discusses.

    Indeed,  those who have meet with members of the Syrian rebel army say no nation, not even Iran, Assad’s closest ally in the region, is as reviled as Russia, which has supplied the regime with many of the armaments used to attack the rebels and shell villages.

    Kupchan says that Russia doesn’t seem to care because it’s dealing with what it considers larger issues of geopolitics.  “What’s driving  Russia’s position is Moscow’s deep discomfort at what happened in Libya and (its determination) that it not again sanction civilian protection as pretext for regime change,” he said.

    Former Russian President Dmitry Medvedev, who according to diplomatic officials felt personally betrayed by U.S. President Barack Obama after agreeing to U.N. resolutions permitting the use of force to protect Libyan civilians, only to see it used to overthrow their long-time ally, Moammar Gadhafi.

    “Their second motivation, more explicit , is  to salvage influence. To put it mildly, their influence has waned in the Middle East and Central Asia ," added Kupchan. “So, they’re scrambling to hold on to the few allies they have.”

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    Assad reportedly directs troops from tribal heartland as rebels flood capital

    William Hartung, an arms analyst for the Center for International Policy, says there may be another, more commercial reason for Russia’s support: Syria is one of Moscow’s biggest arms customers in the Middle East, and while purchases by other regional buyers  have declined , Damascus’ appetite for first Soviet and then Russian weaponry has never wavered.

    “Syria is among a handful of big buyers left for Russia,” said Hartung, who notes that former customers like Saddam Hussein and Gadhafi have left the world stage. The U.S. and Europe also are making inroads with Russia’s biggest client, India, while China is manufacturing more of its own armaments. “How do you replace China, India, Iraq, Libya and now Syria?” Hartung asks.

    In fact, Syrian arms purchases  from Russia have dramatically increased over the past several years, according to documentation  from the Stockholm International Peace Research Institute  (SIPRI) and interviews with arms experts.

    Ho / AFP - Getty Images

    A July 2012 handout picture released by the official Syrian Arab News Agency (SANA) , shows Syrian military attack helicopters firing missiles during army maneuvers at an undisclosed location in Syria.

    “Most of Russian exports to Syria over the 2001-2011 period were in the past three years,” said Hartung. “The data shows $187 million (in sales) in 2009;  $294 million in 2010; and $246 million in 2011.”  Over the past decade, Russia transferred weapons worth $857 million to Syria, about 70 percent of the total weapons Syria received in that period.  Other suppliers were Belarus ($196 million), Iran ($109 million), and North Korea ($40 million).

    Major weapons sent by Russia to Assad’s government, according to SIPRI, included 2,000 anti-tank missiles, including 200 Igla-SA-18 "Grouse" models, which have been fired from vehicles, helicopters and  ships against rebel fighters; 868  surface-to-air missiles; 24 MiG fighter planes with 300 air-to-air missiles; 36 trainer/combat aircraft; as well as helicopters and artillery. Those numbers do not count the small arms the Syrian military and security forces receive from Russia.

    Politically, it’s a symbiotic relationship, Hartung said of the Syrian purchases. “Some of this is about cementing  relationships,  hoping the Russians will bail them out in a pinch.”

    There have been conflicting reports on Russia’s willingness to continue sales.  In early July, the deputy director of a body that supervises the country's arms trade was quoted as saying, Russia  would suspend arms sales to Syria.

    “While the situation in Syria is unstable, there will be no new deliveries of arms there," Vyacheslav Dzirkaln told journalists at the Farnborough Airshow in Britain, Russia's Interfax news agency reported. But no one else in the Russian government would confirm the deputy minister’s comments, leaving open the possibility that Russia will continue to resupply Assad’s military and security forces.

    'Strengthening Putin's hand'
    Kupchan said continuing the arms sales might benefit Russian President Vladimir Putin.

     “I do think that in the big scheme of things, the sale of arms is a drop in the bucket financially,” he said. “It matters more in domestic politics, within the decision-making process. Arms merchants and generals are weighing in. It’s not a decisive role but it helps Putin to have them in his camp.

    “It’s all about strengthening Putin's hand by standing up to the West.”

    But Hartung said that no matter what the end game in Syria, Russia will come out a loser. Either the client state will be in the hands of the anti-Russian rebels or remain in chaos for months, or even years.

     Still, Kupchan said, Russia may still play a positive role in ushering in the post-Assad era.

    “It’s conceivable the Russians play a role in the end game,” he said. “They cannot be exceedingly pleased the way this is gone.  I can see the Russians facilitating Assad’s departure.  I just don’t see him winding up in a dacha or gated community outside Moscow.  Probably, more like somewhere in the Arab world or Africa.”

    Wherever he goes, Russia’s influence in Syria is likely to go with him.

    Robert Windrem is a senior investigative producer for NBC News.

     

     

  • Russian shipment of attack helicopters for Syria halted off Scotland

    While world leaders try to tackle the global debt crisis at the G20 summit in Mexico, all eyes are focusing on relations between President Obama and Russia's Vladimir Putin in the face of the Syria crisis. NBC's Chuck Todd reports.

    By Alastair Jamieson, msnbc.com

    Updated at 11:00 a.m. ET: A ship carrying military helicopters and missiles from Russia to Syria was halted off the coast of Scotland on Tuesday after its British insurers canceled the vessel’s cover, prompting it to turn back.

    The MV Alaed was carrying weapons and Mi25 helicopters from the Russian port of Kaliningrad, the Daily Telegraph reported.

    The vessel has been closely monitored by intelligence agencies since Secretary of State Hillary Clinton last week said such shipments were adding to the arsenal of weaponry available in Syria, which has spiraled into civil war.

    Britain's Foreign Office said no physical intervention had been made to prevent the ship's progress. However, Foreign Secretary William Hague told lawmakers on Tuesday that the vessel had "turned back now apparently toward Russia." That could not be independently verified as the ship appeared to have turned off its Automatic Identification System (AIS) equipment in the early hours of Monday.

    Clinton last week said  Moscow had "dramatically" escalated the crisis in Syria by sending attack helicopters there. The State Department acknowledged later the helicopters she accused Moscow of sending were actually refurbished ones already owned by the Assad regime, but Russia was clearly annoyed, and the spat further fueled tensions between the two countries over Syria. It was not immediately clear whether the helicopters aboard the MV Alaed were the ones to which Clinton had been referring. 

    The British marine insurer, Standard Club, said it had withdrawn cover from the ship’s owner, Femco, a Russian cargo line. 

    Arms shipments from Russia to Syria are not prohibited by the United Nations because attempts to impose sanctions have been vetoed by allies of Damascus, including Moscow.

    However, a European Union arms embargo outlaws the "transfer or export" of arms and any related "brokering" services such as insurance to Syria by EU members, including Britain.

    "We were made aware of the allegations that the Alaed was carrying munitions destined for Syria," the company said in a statement. "We have already informed the ship owner that their insurance cover ceased automatically in view of the nature of the voyage." 

    “Having its insurance withdrawn will be a problem for the MV Alaed," said Liz McMahon, senior reporter on insurance for maritime specialist, Lloyd's List. "It could make entering other ports difficult."


    The Soviet-era helicopters onboard MV Alaed were returning to Syria after being sent to their Russian manufacturer, Mil, for servicing and repairs, the Telegraph reported.

    NBC News first reported last week that Russia is preparing to send troops to Syria in the event that it needs to protect personnel and remove equipment from its naval facility in the Mediterranean port of Tartus.

    Syria is Moscow's firmest foothold in the Middle East and buys weapons from Russia worth billions of dollars. It also hosts the Russian navy's only permanent warm-water port outside the former Soviet Union.

    Russia has used its U.N. Security Council veto to dilute Western efforts to condemn Syrian President Bashar Assad and secure his exit from power, arguing that deposing a government using external pressure is unacceptable.

    More world news from msnbc.com and NBC News:

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  • Report: Iran using passenger jets to smuggle weapons to Syria, Lebanon

    By msnbc.com staff

    Iran’s government has repeatedly used commercial aircraft to smuggle weapons and explosives to Syria and Lebanon, the German broadcaster ZDF reported Wednesday.

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    ZDF, citing Western security sources and unspecified information it said it had obtained, reported that  Iran Air and Yas Air, both based in Iran, have repeatedly used aircraft designated as passenger planes to transport weapons to Damascus and Beirut.  It was not clear from the report what type of weaponry was involved.

    ZDF, a content partner of NBC News, said the weapons were supposedly ordered by Iran’s Revolutionary Guard, which supports the regime of Syrian dictator Bashar al-Assad and the terrorist group Hezbollah in Lebanon.

    U.S. officials have long accused Tehran of using commercial aircraft to smuggle weapons to Hezbollah. 

    ZDF noted that there had been one previous shipment of arms seized aboard an Iranian airliner. In March 2011, it said, Turkish security officials in Diyabarkier found weapons and explosives on board a Yas Air passenger jet. The freight was supposedly scheduled to be shipped to Damascus.

    Click here to read an English translation of the ZDF article.

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  • US nuke upgrade to trigger new arms race with Russia?

    By F. Brinley Bruton, msnbc.com

    LONDON - Plans to upgrade the estimated 180 American tactical nuclear weapons in western Europe are expensive, dangerous and likely to trigger a dangerous reaction from Russia, according to a new report.

    "Modernization ... will be a form of expensive nuclear escalation by default which can be expected to draw a hostile reaction from Moscow," said the study by the European Leadership Network (ELN) think tank, which was released on Thursday.

    NATO is preparing to replace aging aircraft and antiquated free-fall nuclear bombs with precision-guided warheads carried by modern U.S. aircraft, according to the report by Edmond Seay, a former arms control adviser to NATO's U.S. mission. 


    The weapons to be replaced were "originally deployed to help NATO counter massive Soviet conventional force superiority in central Europe" and are now "widely seen to have no real military purpose or value," according to a summary of the report.

    The American government will be replacing these "relics of the Cold War" with precision guidance systems at a cost of $4 billion, in spite of swinging defense spending cuts, the report said.

    European countries will also have to pay large amounts to replace the defense system, the summary adds: 

    European countries, whose pilots are trained to deliver the B-61s to target, are also facing expensive decisions to replace the relevant aircraft, which are now coming to the end of their effective service lives. Each replacement aircraft – (the US F-35 Joint Strike Fighter) – is slated to cost from $90 million to just over $110 million.

    The nuclear force modernisation plans, if carried through, will therefore produce a “formidable increase in nuclear capabilities for NATO in Europe”, rendering these weapons more credibly usable in war-fighting scenarios with Russia.

    The newly formed think tank includes a number of high-profile figures on its executive board, including former Russian Foreign Minister Igor Ivanov, and former foreign or defense ministers from NATO member countries such as France, Spain, Norway, Germany, Turkey and the United Kingdom, among others.

    (To read the full report on ELN's site click here)

    Russia has shown that it is acutely aware of NATO's plans. The country's military chief of staff said in early May that Russia could launch preemptive strikes against future NATO missile defense facilities in Europe if sufficiently threatened.

    The warning indicated that Russian President Vladimir Putin will hold out U.S. plans for an anti-missile shield as a big barrier to better relations and, specifically, to Kremlin approval of deeper nuclear arms cuts. 

    Washington says the shield is meant to counter a potential threat from Iran and poses no risk to Russia. Moscow maintains that it could give the West the capability to intercept Russian intercontinental ballistic missiles, upsetting the strategic equilibrium between the former Cold War foes. 

    Reuters contributed to this report.

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  • Pakistan tests nuclear-capable missile as arms race intensifies

    ISPR via EPA

    A picture released by the Pakistani military shows the test-launch of a Shaheen-1A ballistic missile from an undisclosed location on Wednesday.

    By Alastair Jamieson, msnbc.com, and Fakhar ur Rehman, NBC News

    Pakistan successfully test-fired a nuclear-capable ballistic missile on Wednesday, the military said, less than a week after rival India tested a missile capable of delivering nuclear warheads as far as Beijing and Eastern Europe.

    Pakistan's Shaheen-1A is an intermediate range ballistic missile, capable of reaching targets in India. A defense official told NBC News that it had a range of about 1500 km (932 miles).

    The missile's impact point was in the Indian Ocean. The defense official told NBC News that it had "hit a target in the sea."

    The New York Times reported on Thursday that India’s launch of its own Agni 5 ballistic missile, capable of reaching Beijing and Shanghai, gained it entry to the small club of nations with long-range nuclear capability, including China, Britain, France, Russia, Israel and the United States.

    Slideshow: Pakistan: A nation in turmoil

    Mohammad Sajjad / AP

    Images of daily life, political pursuits, religious rites and deadly violence.

    Launch slideshow

    It said the successful test of the weapon – dubbed the "China Killer" by India’s media -- marked the latest escalation of an arms race in Asia, where the assertiveness and rising military power of China has rattled the region and prompted a forceful response from the Obama administration.

    China wary as US, Philippines stage war games

    India and Pakistan have fought three full-scale wars since they were carved out of British India as independent nations in 1947.

    They conduct missile tests regularly and inform each other in advance.

    20 April: India announced the successful test launch of a new nuclear-capable missile that would give it the ability to strike the major Chinese cities of Beijing and Shanghai for the first time. Msnbc.com's Dara Brown reports.

    Pakistan conducted nuclear tests in May 1998, shortly after India conducted similar tests. U.S. intelligence estimates last year put the number of nuclear weapons deployed by Pakistan at 90 to 110.

    Analysts say the strategic U.S. ally's nuclear arsenal is the fastest-growing in the world. Pakistan, like neighboring India, is not a signatory to the nuclear non-proliferation treaty (NPT).

    Standoff at 'world's highest battlefield' leaves 140 dead in tragedy

    News website dawn.com said Pakistan’s arsenal includes short, medium and long range missiles named after Muslim conquerors.

    It said President Asif Ali Zardari and Prime Minister Yousuf Raza Gilani congratulated the scientists working on the program over the success of the missile test.

    Reuters contributed to this report.

  • India test-fires 'China killer' missile capable of reaching Beijing, Europe

    India announced the successful test launch of a new nuclear-capable missile that would give it the ability to strike the major Chinese cities of Beijing and Shanghai for the first time. Msnbc.com's Dara Brown reports.

    By Alastair Jamieson and msnbc.com news services

    Updated at 3:45 a.m. ET: India test-fired a nuclear-capable, long-range missile capable of reaching deep inside China and Europe Thursday, television stations showed, putting the emerging Asian power into an elite club of nations with intercontinental nuclear defense capabilities.

    A scientist at the launch site said the launch was successful, minutes after television images showed the rocket blasting through clouds from an island off India's east coast.

    Footage showed the rocket, with a range of more than 3,100 miles, blasting through clouds from an island off India's east coast. The defense minister said the test was "immaculate." 

     

    "Today's launch represents another milestone in our quest for our security, preparedness and to explore the frontiers of science," Prime Minister Manmohan Singh said in a congratulatory message to the scientists who developed the rocket. 

    The Agni-V missile is expected to become fully operational as early as 2014 after several more tests, The Times of India reported. It has a range of more than 3,100 miles, according to a BBC report.

    Named after Hindu god of fire
    The LA Times reported that the 50-ton, 55-foot three-stage rocket is named after the Hindu god of fire.  However, it said the missile had been dubbed the "China killer" by the Indian press.  

    The launch, which was flagged well in advance, has attracted none of the criticism from the West faced by hermit state North Korea for a failed bid to send up a similar rocket last week.

    But China noted the launch with disapproval.

    "The West chooses to overlook India's disregard of nuclear and missile control treaties,'' China's Global Times newspaper said in an editorial published before the launch, which was delayed a day due to bad weather at the test site.

    RNGS / Reuters

    "India should not overestimate its strength,'' said the paper, which is owned by the Chinese Communist Party's main mouthpiece the People's Daily.

    Fast emerging as a world economic power, India is keen to play a larger role on the global stage and has long angled for a permanent seat on the Security Council. In recent years it has emerged as the world's top arms importer as it upgrades equipment for a large but outdated military. 

    "It is one of the ways of signaling India's arrival on the global stage, that India deserves to be sitting at the high table," Harsh Pant, a defense expert at King's College, London, said, describing the launch as a "confidence boost." 

    NATO said on Wednesday it did not consider India a threat. The U.S. State Department said India's non-proliferation record was "solid,'' while urging restraint. 

    Reuters contributed to this report.

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  • 10 companies profiting most from war

    Lockheed Martin / Getty Images

    The F-22 Raptor is among the many military products made by Lockheed Martin

    By Michael B. Sauter and Charles B. Stockdale, 24/7 Wall St.

     

    Global sales of arms and military services by the 100 largest defense contractors increased in 2010 to $411.1 billion, according to the Stockholm International Peace Research Institute. The increase reflects a decade-long trend of growing military spending. Since 2002, total arms sales among the 100 largest arms manufacturers have increased 60 percent.

    The institute recently published its annual report on the leading arms producing companies in the world -- SIPRI Top 100. The report identifies the largest companies in the sector and provides each company’s arms sales as a percentage of its total sales. Based on the report, 24/7 Wall St. identified the 10 companies with the highest revenue from arms sales. These companies alone account for $230 billion -- over half of all arms sales that year.

    While many industries continued to suffer in 2010 as a result of the financial crisis, leaders in the arms and military services were largely unaffected. According to SIPRI arms industry expert Susan Jackson, when sales dropped, it was not because of the financial crisis. Instead, Jackson notes that loss in sales was due to “the withdrawal of foreign troops from Iraq and the subsequent expected decrease in related equipment sales.”

    The composition of the 10 largest manufacturers reflects the state of modern warfare. More and more, battles are fought remotely through air surveillance and strikes rather than on-the-ground combat. As a consequence, seven of the 10 largest companies are among the leading aerospace companies. Surveillance and battlefield communications also are increasingly important in modern warfare. All of the companies in the top 10 have significant electronics divisions.

    Of the 100 companies on the list, 44 are based in the U.S., including Boeing, Northrop Grumman and Lockheed Martin. The American companies account for more than 60 percent of arms sales revenue of the 100 manufacturers. Seven of SIPRI’s top 10 are American, one is British, one is Italian and one is a multinational EU conglomerate. The U.S. federal government has contract deals with all seven American companies. These seven are among the top 10 U.S. federal contractors by amount procured, according to the government’s Federal Procurement Data System.

    24/7 Wall St.: The 10 most expensive weapons in the world 

    24/7 Wall St.’s analysis of the SIPRI 100 includes revenue for arms sales for 2007, 2009 and 2010, as well as percentage of company revenue from arms sales, employees, industry and applicable military division. 24/7 Wall St. also included history of each company and notable weapons systems manufactured.

    These are the companies profiting most from war.

    1. Lockheed Martin 

    • Arms sales 2010: $35.73 billion
    • Total sales 2010: $45.80 billion
    • Arms sales as pct. of total sales: 78 percent
    • Total profit: $2.93 billion
    • Total employment: 132,000
    • Sector: Aircraft, Electronics, Missiles, Space

    Lockheed Martin is the largest arms-producing and military services company in the world, with nearly $3 billion more in arms sales than second place BAE Systems. Although military sales make up the majority of its revenue, it is significantly less than many other major arms-producers, including BAE’s 95 percent share. In addition to being the world’s largest arms-seller, Lockheed is also the largest federal contractor in the U.S. by a large margin. In 2010, the company’s government contracts totaled nearly $36 billion. Lockheed produces a number of major products, including the Trident missile and the F-16 and F-22 fighter jets. Despite being the largest military service company on this list, Lockheed is only the fourth-largest company by overall sales among the companies featured on this list. In 2007, the Lockheed was the third-largest arms producer.

    2. BAE Systems

    • Arms sales 2010: $32.88 billion
    • Total sales 2010: $34.61 billion
    • Arms sales as pct. of total sales: 95 percent
    • Total profit: $1.67 billion
    • Total employment: 98,200
    • Sector: Aircraft, Artillery, Electronics, Missiles, Military vehicles, Small arms/ammunition, Ships

    BAE Systems is an aerospace and defense contractor based in the UK. The company has a major U.S. subsidiary, BAE Systems, Inc., which by itself would be the seventh-largest weapons manufacturer in the world. The British company was formed in 1999 through the merger of Marconi Electronics (which was at the time a subsidiary of GE) and British Aerospace. BAE produces weapons systems in nearly every major military category, including aircraft, defense electronics, vehicles, naval vessels and small arms. Among the company’s notable contributions are the M2/M3 Bradley fighting vehicle, the F-35 Joint Strike Fighter, the Type 45 destroyer and the Astute-class nuclear submarine. In 2010, 95 percent of its revenue came from arms sales, $32.88 billion in all.

    3. Boeing 

    • Arms sales 2010: $31.36 billion
    • Total sales 2010: $64.31 billion
    • Arms sales as pct. of total sales: 49 percent
    • Total profit: $3.31 billion
    • Total employment: 160,500
    • Sector: Aircraft, Electronics, Missiles, Space

    As recently as 2007, Boeing was the largest arms producer in the world. By 2008, it had fallen behind Lockheed Martin and U.K.-based BAE Systems. The aerospace and defense company remains one of the largest in the world, however. Boeing is the second-largest aircraft producer in the world by deliveries, behind only Airbus. It is also the second-largest U.S. government contractor, procuring just under $19.5 billion in contracts in 2010. Major products produced by the company include the KC-767, an aerial refueling tanker, and the F-15 fighter jet. Boeing made less in arms sales in 2010 than it did in 2009, although arms sales made up a larger amount of total sales -- two percentage points, to be exact -- in 2010 compared to 2009. Even in 2010, however, only 49 percent of revenue came from arms sales, which is among the lowest rates among companies on this list.

    A24/7 Wall St.: Eight reasons gas will hit $5 this year

    4. Northrop Grumman 

    • Arms sales 2010: $28.15 billion
    • Total sales 2010: $34.76 billion
    • Arms sales as pct. of total sales: 81 percent
    • Total profit: $2.05 billion
    • Total employment: 117,100
    • Sector: Aircraft, Electronics, Missiles, Ships, Space

    Northrop Grumman is the fourth-largest weapons contractor in the U.S. The company, which is based in Falls Church, Va., is one of the leaders in aerospace technology and the leading producer of naval vessels in the world. The company manufactures Nimitz-class carriers that are the current flagships of the U.S. Navy. And over the next few years it is also set to build the new, $9.7 billion Gerald R. Ford-class supercarriers. Northrop Grumman also develops radar systems for aircraft and ground defense, sensor systems for a variety of vehicles and several unmanned aircraft and drones. Weapons systems sales accounted for 81 percent of company revenue in 2010. Arms sales grew by approximately $3.5 billion between 2007 and 2010.

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    5. General Dynamics

    • Arms sales 2010: $23.94 billion
    • Total sales 2010: $32.47 billion
    • Arms sales as pct. of total sales: 74 percent
    • Total profit: $2.62 billion
    • Total employment: 90,000
    • Sector: Artillery, Electronics, Military vehicles, Small arms/ammunition, Ships

    General Dynamics is an American defense company that deals in aerospace, combat systems, information systems and technology, and marine systems. Although the company has been around since 1952, it has enjoyed a resurgence beginning in the 1990s, thanks largely to a number of mergers. Since 1997 General Dynamics says it has acquired more than 50 companies. Over this same period, its revenue increased from $4 billion to more than $32 billion. It also added more than 60,000 employees to its workforce. Currently, 74 percent of the company’s sales are arms sales. General Dynamics owns Electric Boat and Bath Iron Works, two of the largest naval vessel builders in the world. General Dynamics is notable known for its Ohio-class ballistic missile submarine, the Seawolf-class submarine, the M1 Abrams tank and the Arleigh-Burke-class destroyer.

    Click here to read the rest of the companies profiting the most from war.

     

  • UN team has 'serious concerns' about Iran's nuclear program

    NBC's Andrea Mitchell reports.

    By msnbc.com staff and news services

    Updated at 3:16 p.m. ET: VIENNA -- Iran has rapidly ramped up production of higher-grade enriched uranium over the last few months, the U.N. nuclear agency said Friday, in a confidential report that feeds concerns about how quickly the Islamic republic could produce an atomic bomb.

    The report by the International Atomic Energy Agency also said Iran had failed to give a convincing explanation about a quantity of missing uranium metal. Diplomats say the amount unaccounted for is large enough to be used for experiments in arming a nuclear missile.

    "The Agency continues to have serious concerns regarding possible military dimensions to Iran's nuclear program," the Vienna-based U.N. body said in a quarterly report about Iran issued to its member states.

    Israel, which has threatened Iran with pre-emptive strikes on its nuclear sites, had no immediate comment on the report. Germany, which has backed tough new sanctions on Iran, said it was further cause for concern.

    "Germany is very concerned about the latest report from the IAEA. We think Iran should understand the key to ending sanctions is in their own hands, they have a duty to cooperate with the international community," said German Foreign Minister Guido Westerwelle.

    The Islamic republic's rapid expansion of work which can have both civilian and military purposes underlines that it has no intention of backing down in a long-running row with the West that has sparked fears of war in the Middle East.

    Tehran says its nuclear program is exclusively for civilian purposes and denies it aims to make atomic weapons.

    Iran thwarted investigation into nuclear program, UN watchdog says

    The confidential IAEA report said Iran has, since late last year, tripled output of uranium refined to a level that brings it significantly closer to potential bomb material, an official familiar with the agency's probe said.

    Making clear the two sides were far apart, it said there were major differences on how to tackle the issue and that Iran had dismissed the IAEA's concerns as "unfounded." No further meetings are planned.

    The setback increased concerns of a downward spiral towards conflict between Iran and the West, and sent oil prices higher.

    IAEA Director General Yukiya Amano urged Iran in the report to provide "early access" to Parchin, a military site near Tehran seen as central to the agency's investigations into possible military aspects of Iran's nuclear work.

    The failure of the two-day IAEA visit could hamper any resumption of wider nuclear negotiations between Iran and six world powers - the United States, China, Russia, Britain, France and Germany - as the sense grows that Tehran feels it is being backed into a corner.

    The IAEA report said Iran had carried out a significant expansion of activities at its main enrichment plant near the central city of Natanz, and also increased work at the Fordow underground facility.

    Enriched uranium can be used to fuel nuclear power plants, which is Iran's stated aim, or provide material for bombs if refined much further, which the West suspects is Tehran's ultimate plan.

    At Natanz, the IAEA report said 52 cascades - each containing around 170 centrifuges - were now operating, up from 37 in November.

    At Fordow, almost 700 centrifuges are now refining uranium to a fissile concentration of 20 percent and preparations are under way to install many more, the report said.

    Fordow is of particular concern for the West and Israel as Iran is shifting the most sensitive aspect of its nuclear work - refining uranium to a level that takes it significantly closer to potential bomb material - to the site.

    Estimated to be buried beneath 80 meters (265 feet) of rock and soil, it gives Iran better protection against any Israeli or U.S. military strikes.

    The report said Iran had now produced nearly 110 kg of uranium enriched to 20 percent since early 2010. Western experts say about 250 kg is needed for a nuclear weapon, although it would need to be enriched much further.

    An IAEA report in November suggested Iran had pursued military nuclear technology helped to precipitate the latest sanctions by the European Union and United States.

    Iran last month said it had started to refine uranium to a fissile concentration of 20 percent - compared with the 3.5 percent it mainly produces at Natanz and which is used for nuclear power plants - at Fordow.

    Nuclear bombs require uranium enriched to 90 percent, but Western experts say much of the effort required to get there is already achieved once it reaches 20 percent concentration, shortening the time needed for any nuclear weapons "break-out."

    Reuters and The Associated Press contributed to this report.

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  • Rebels plead for weapons to make their vision of post-Assad Syria happen

    International pressure is mounting on Syrian leader Bashar Assad, as diplomats from about 80 nations gather in Tunisia to discuss the crisis. NBC's Richard Engel reports.

    By msnbc.com staff and news services

    The main opposition Syrian National Council outlined on Friday its vision for a post-Assad Syria, and appealed for the weapons required to make that happen.

    The SNC announced it was proposing an interim presidential council of national leaders and a truth and reconciliation committee at a meeting of the “Friends of Syria” group of 70 Western and Arab nations in Tunisia Friday.

    Secretary of State Hillary Clinton said ahead of the meeting that rebel fighters would become “increasingly capable,” saying they will “from somewhere, somehow, find the means to defend themselves as well as begin offensive measures."

    And, in her opening remarks to the conference, Clinton said the regime of President Bashar Assad had "ignored every warning, squandered every opportunity and broken every agreement."

    The Friends of Syria group is demanding an immediate cease-fire so humanitarian aid can be delivered to Syrians who have suffered under a yearlong assault, especially those in the city of Homs, which has been under bombardment for three weeks.

    "If the Assad regime refuses to allow this life-saving aid to reach civilians, it will have ever-more blood on its hands," Clinton said, noting the same was true of nations like Russia and China, which are supporting Assad.

    Clinton: Syria rebels will get arms 'somehow'

    According to a copy of his speech to the meeting, SNC leader Burhan Ghalioun called for the continuation of the uprising until Assad was ousted or handed over power as per an Arab League plan.

    BBC News reported that the SNC said countries should be allowed to supply arms to aid rebel fighters if President Bashar Assad’s government refuses to stop attacking civilians and accept the terms of an Arab League peace deal.

    Red Cross tries to help injured reporters in Homs, Syria

    However a Syrian opposition source told Reuters on Friday that Western and other countries were already turning a blind eye to weapons purchases by Syrian exiles.

    The source said exiles were already smuggling light arms, communications equipment and night vision goggles to rebels inside Syria.

    While speaking to a group in London on Thursday, U.S. Secretary of State Hillary Clinton discusses the violent situation in Syria and the future of President Bashar Assad.

    Syrian opposition supporters were also trying to find ways to bring anti-aircraft and anti-tank weapons to the Free Syrian Army, which is composed mainly of Syrian soldiers who have defected and volunteer civilians, the source added.

    Hamas ditches Assad
    The Hamas prime minister of Gaza Ismail Haniyeh said after Friday prayers at Egypt's Al-Azhar Mosque that Hamas commends "the brave Syrian people that are moving toward democracy and reform."

    Assad has long hosted and supported leaders of the Islamic militant movement, which rules the Gaza Strip, but the group has significantly reduced the presence of its exiled leaders in Syria since the start of the 11-month-old uprising against the Syrian regime.

    Some of the top Hamas leaders are now spending most of their time in Qatar, Egypt and Lebanon, as the group tries to distance itself from Assad's brutal crackdown on opponents.

    As efforts were being made to get weapons to the rebels, Turkey's Foreign Minister Ahmet Davutoglu called on the world to find ways to deny the Syrian government "the means with which to perpetrate atrocities against the Syrian people."

    "We must seek ways and means of enforcing an arms embargo upon the regime," Davutoglu told the Friends of Syria meeting Friday.

    Syrian rebels have tried to fight back, but they are losing the battle after being outnumbered and outgunned. NBC's Richard Engel reports.

    There was drama as the conference got under way at the Palace Hotel in Tunis, when several hundred pro-Assad protesters breached the grounds, forcing Clinton to be diverted to her hotel and delaying her appearance at the meeting. Police wielding batons stopped them getting inside the hotel itself and drove them out the parking lot after about 15 minutes.

    GOP rivals back arming Syria's rebels

    According to the copy of his speech, Ghalioun said that after Assad was gone there should be the "formation of a presidential council composed of national leaders and the formation of a transitional government of political, military and technocratic figures who have not fought against the revolution."

    NYT: US should help Syria rebels, McCain says

    He also proposed the creation of a council that would address the abuses of the Assad regime and prevent any political or sectarian reprisals.

    "The committee will work to reconcile and restore the sense of nationalism and human values that have been lacking during this crisis," he said. The transitional period would end with elections to a parliament that would draw up a new constitution.

    NYT: As others isolate Syria, Chavez ships fuel to it

    Qatar’s Foreign Minister Sheikh Hamad bin Jassim al-Thani said in a speech at the meeting Friday that an Arab force should be created to impose peace in Syria and allow aid to get in.

    "There is a need to create an Arab force and open humanitarian corridors to provide security to the Syrian people," he said.

    Reuters and The Associated Press contributed to this report.

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