Conventional Arms Transfers to Developing Nations, 1992-1999.

[The following are extracts from an unclassified report of conventional arms transfers to developing nations as published under the above title by the Library of Congress on August 18, 2000. Macro data on worldwide arms transfer agreements and deliveries are also included. The selections included herein begin with a discussion of major research findings regarding the dollar value of both arms transfer agreements and arms deliveries to the developing countries from 1992 through 1999. These findings are all cross-referenced to comparative data tables which are presented following the textual material. Special attention is given to the roles of the United States, the former Soviet Union, and China as arms suppliers, and to identification of the leading Third World arms recipient nations. The report concludes with a listing of the type and quantity of weapons delivered to developing nations by major arms suppliers from 1992-1999. Copies of the complete document are available from the Foreign Affairs and National Defense Division, Congressional Research Service, The Library of Congress, Washington DC 20540].

Introduction

This report provides unclassified background data from U.S. government sources on transfers of conventional arms to developing nations by major suppliers for the period 1992 through 1999. It also includes some data on world-wide supplier transactions. It updates and revises the report entitled Conventional Arms Transfers to Developing Nations, 1991-1998, published by the Congressional Research Service (CRS) on August 4, 1999 (CRS Report RL30275).

The data in the report illustrate how global patterns of conventional arms transfers have changed in the post-Cold War and post-Persian Gulf War years. Relationships between arms suppliers and recipients continue to evolve in response to changing political, military, and economic circumstances. Despite global changes since the Cold War's end, the developing world continues to be the primary focus of foreign arms sales activity by conventional weapons suppliers. During the period of this report, 1992-1999, conventional arms transfers to developing nations have comprised 68.3 percent of the value of all international arms transfers. In 1999, arms transfer agreements, which represent orders for future delivery, with developing countries rose significantly from 1998 totals, comprising 68 percent of the value of an such agreements globally. The portion of agreements with developing countries constituted 66.4 percent of all agreements globally from 1996-1999. Deliveries of conventional arms to developing nations, from 1996-1999, constituted 77.9 percent of all international arms deliveries. In 1999, arms deliveries to developing nations constituted 66.8 percent of the value of all such arms deliveries worldwide.

The data in this new report completely supercede all data published in previous editions. Since these new data for 1992-1999 reflect potentially significant updates to and revisions in the underlying databases utilized for this report, only the data in this most recent edition should be used. The data are expressed in U.S. dollars for the calendar years indicated, and adjusted for inflation. U.S. commercially licensed arms exports are incorporated in the main delivery data tables, and noted separately. Excluded are arms transfers by any supplier to subnational groups.

Calendar Year Data Used

All arms transfer and arms delivery data in this report are for the calendar year or calendar year period given. This applies to both U.S. and foreign data alike. United States government departments and agencies publish data on U.S. arms transfers and deliveries but generally use the United States fiscal year as the computational time period for these data. (A U.S. fiscal year covers the period from October 1 through September 30). As a consequence, there are likely to be distinct differences noted in those published totals using a fiscal year basis and those provided in this report which use a calendar year basis for its figures. Details regarding data used are outlined in footnotes at the bottom of Tables 1, 2, 8, and 9.

Constant 1999 Dollars

Throughout this report values of arms transfer agreements and values of arms deliveries for all suppliers are expressed in U.S. dollars. Values for any given year generally reflect the exchange rates that prevailed during that specific year. In many instances, the report converts these dollar amounts (current dollars) into constant 1999 dollars. Although this helps to eliminate the distorting effects of U.S. inflation to permit a more accurate comparison of various dollar levels over time, the effects of fluctuating exchange rates are not neutralized. The deflators used for the constant dollar calculations in this report are those provided by the U.S. Department of Defense and are set out at the bottom of Tables 1, 2, 8, and 9. Unless otherwise noted in the report, all dollar values are stated in constant terms. Because all regional data tables are composed of four-year aggregate dollar totals (1992-1995 and 1996-1999), they must be expressed in current dollar terms. Where tables rank leading arms suppliers to developing nations or leading developing nation recipients using four-year aggregate dollar totals, these values are expressed in current dollars.

Definition of Developing Nations and Regions

The developing nations category, as used in this report, includes all countries except the United States, Russia, European nations, Canada, Japan, Australia, and New Zealand. A listing of countries located in the regions defined for the purpose of this analysis--Asia, Near East, Latin America, and Africa-is provided at the end of the report.

Major Findings

General Trends in Arms Transfers Worldwide

The value of all arms transfer agreements worldwide (to both developed and developing nations) in 1999 was nearly $30.3 billion. This is a clear increase in arms agreements values over 1998. This total, however, is substantially lower than those reached in the early 1990s, the period of post-Persian Gulf War rearmament. (Chart 1) (Table 8A).

In 1999, the United States led in arms transfer agreements worldwide, making agreements valued at nearly $11.8 billion (38.9 percent of all such agreements), up from $10.3 billion in 1998. Russia ranked second with $4.8 billion in agreements (15.9 percent of these agreements globally), up notably from $2.6 billion in 1998. Germany ranked third, even as its arms transfer agreements worldwide dropped from $5.1 billion in 1998 to $4 billion in 1999. The United States, Russia and Germany, collectively made agreements in 1999 valued at nearly $20.6 billion, 68 percent of all international arms transfer agreements made by all suppliers (Tables 8A and 8B).

For the period 1996-1999, the total value of all international arms transfer agreements (about $115.3 billion) has been notably less than the worldwide value during 1992-1995 ($150.4 billion), a decline of 23.3 percent. As the worldwide arms transfer agreement totals have declined, those with the developing world have declined to a smaller degree. During the period 1992-1995, developing world nations accounted for 69.7 percent of the value of all arms transfer agreements made worldwide. During 1996-1999, developing world nations accounted for 66.4 percent of all arms transfer agreements made globally. In 1999, developing nations accounted for 68 percent of an arms transfer agreements made worldwide (Table 8A).

In 1999, the United States ranked first in the value of all international arms deliveries, making $18.4 billion in such deliveries or over 54 percent. This is the eighth year in a row that the United States has led in global arms deliveries, reflecting, in particular, implementation of arms transfer agreements made during and in the aftermath of the Persian Gulf war. The United Kingdom ranked second in worldwide arms deliveries in 1999, making $4.5 billion in such deliveries. Russia ranked third in 1999, making $2.7 billion in such deliveries. These top three suppliers of arms in 1999 collectively delivered $25.6 billion, 75.3 percent of all arms delivered worldwide by all suppliers in that year. (Tables 9A and 9B).

The value of all international arms deliveries in 1999 was nearly $34 billion. This is a decrease in the total value of arms deliveries from the previous year ($36.4 billion), and the second lowest total of the last eight years. The total value of such arms deliveries worldwide in 1996-1999 ($150.3 billion) was an increase in the value of arms deliveries by all suppliers worldwide from 1992-1995 (about $145.9 billion). (Tables 9A and 9B).

Developing nations from 1996-1999 accounted for 77.9 percent of the value of an international arms deliveries. In the earlier period, 1992-1995, developing nations accounted for 72.6 percent of the value of all arms deliveries worldwide. Most recently, in 1999, developing nations collectively accounted for 66.8 percent of the value of all international arms deliveries Tables 2A, 9A and 9B.

There continues to be intense competition among major weapons suppliers. Yet, the limited resources of most developing nations to expend on weapons, and the need of many selling nations to secure cash for their weapons, also places constraints on significant expansion of the arms trade. Developed nations are likely to continue to seek to protect important elements of their own national military industrial bases, and, as a result, are likely to limit their weapons purchases from one another. In these circumstances, those nations that effectively restructure and consolidate their defense industries seem most likely to be the key players in the emerging international arms marketplace. Some traditional arms supplying nations may further deem it necessary to engage in more joint production ventures or in multinational mergers, such as some German and French defense firms did in forming EADS (European Aeronautic, Defense and Space Company) in 1999, to sustain the competitiveness and viability of their national defense industrial sectors.

Various weapons exporters are seeking to maintain and expand arms sales to nations and regions where they have competitive advantages due to prior political/military ties to the prospective buyers. New arms sales opportunities may yet develop with some European nations in the new century due to the expansion of NATO. To date, this has not occurred to any notable degree. The limited financial resources of the new NATO members has been an important impediment to significant new arms purchases by them. Consequently, these nations are likely, in the near term, to focus on upgrades of existing weapons systems in ways that require fewer major expenditures by their governments.

As individual nations in the Near East, Asia, and Latin America attempt to replace older military equipment, it is possible that additional notable arms sales may result. Nonetheless, a large part of the developing world has not recovered fully from recent international financial problems. The 1997-1998 fall in the price of crude oil, now reversed, created great financial difficulties for some Persian Gulf states. Saudi Arabia found itself in significant financial straits, in light of the various obligations it undertook during and after the 1990-1991 Persian Gulf War, its domestic spending programs, and the magnitude of the costs associated with its weapons procurement program. Although since 1999, the price of crude oil has risen significantly, that fact does not necessarily mean that most major oil producing nations in the developing world will soon launch new, expensive, weapons procurements. The United Arab Emirates (U.A.E.) has made measured and significant purchases of advanced military hardware, part icularly combat aircraft. The U.A.E. has been in sound financial condition, and this circumstance has made it a prime client for major arms suppliers, while giving it significant leverage in bargaining over final weapons contracts.

The financial crisis in Asia in 1997 led to a major curtailment of planned weapons purchases by several nations in that region, and had the additional effect of reducing the income of other developing countries dependent on trade with Asia. While the economic situation in Asia appears to have stabilized, the improved financial environment has not resulted in full restoration of arms procurement plans underway in key Asian nations at the time they fell into financial difficulties. Although some Latin American countries have expressed interest in modernizing older items in their military inventories, domestic budget constraints have so far curtailed implementation of these programs. A lack of necessary national funds and the paucity of financing credits has also led many developing nations to curtail or defer purchases of additional weaponry. Given the present international economic environment, it seems likely that major weapons purchases will be made by more affluent developing countries, and that the remain der of the arms trade will be based on the support and maintenance of existing weapons systems and related equipment, and/or significant upgrades of these systems and equipment, where feasible.

General Trends in Arms Transfers to Developing Nations

The value of all arms transfer agreements with developing nations in 1999 was nearly $20.6 billion. This was the highest total, in real terms, since 1996. The total value of new arms transfer agreements with developing nations has generally declined since 1992 (Chart 1) (Table 1A). In 1999, the value of all arms deliveries to developing nations ($22.7 billion) was a substantial decrease from the value of 1998 deliveries values ($26.5 billion), and the lowest total of the last eight years (Table 2A).

Recently, from 1996-1999, the United States, Russia, and France have dominated the arms market in the developing world, with the United States ranking first each of the last two years in the value of arms transfer agreements. From 1996-1999, the United States made $25.7 billion in arms transfer agreements with developing nations, 33.6 percent of all such agreements. Russia, the second leading supplier during this period, made $14.3 billion in arms transfer agreements or 18.7 percent. France, the third leading supplier, made nearly $9 billion or 11.7 percent of all such agreements with developing nations during these years. In the earlier period (1992-1995) the United States ranked first with nearly $43.3 billion in arms transfer agreements with developing nations or 41.3 percent; France made $26.2 billion in agreements or 25 percent. Russia made nearly $13 billion in arms transfer agreements during this period or 12.3 percent (Table 1A).

Throughout the 1990s, most arms transfers to developing nations were made by two to three major suppliers in any given year. The United States has ranked either first or second among these suppliers every year from 1992-1999. France has been a consistent competitor for the lead in arms transfer agreements with developing nations, ranking first in 1994 and 1997, and second in 1992, 1993, and 1998, although Russia has ranked second or third during the 1996-1999 period. As competition over the international arms market intensifies, France seems more likely to rank higher in arms deals with developing nations than Russia. As a supplier nation, Russia has more significant limitations in its prospective arms client base than other major western suppliers. Arms suppliers like the United Kingdom and Germany, from time to time, may conclude significant orders with developing countries. At the turn of a new century, however, the United States seems best positioned to lead in new arms agreements with developing nations . Furthermore, it seems likely that very expensive weapons orders from individual developing countries will be sporadic in the near term. Consequently, the overall level of the arms trade is likely to remain generally flat for the foreseeable future, with annual sales totals well below those of the Persian Gulf War period.

Suppliers in the tier below the United States, France, Russia, and the United Kingdom, such as Germany, China, other European, and non-European suppliers, have been participants in the arms trade with developing nations at a much lower level. They are, nonetheless, capable, of making an occasional arms deal of a significant nature. However, most of their annual arms transfer agreements totals during 1992-1999 are at comparatively low levels. Few of these countries are likely to be major suppliers of advanced weaponry on a sustained basis. With a few exceptions, most of them are more likely to make sales of less sophisticated and less expensive military equipment (Tables 1A, 1F, 1G, 2A, 2F, and 2G).

United States

In 1999, the total value, in real terms, of United States arms transfer agreements with developing nations rose to about $8.1 billion from $6.4 billion in 1998. The U.S. share of the value of all such agreements was 39.2 percent in 1999, a slight increase from 38.3 percent in 1998 (Chart 1), and (Tables 1A and 1B).

The high value of U.S. arms transfer agreements with developing nations is attributable to major purchases by key U.S. clients in the Near East, and to a lesser extent in Asia, together with continuation of well established defense support arrangements with such purchasers. U.S. transactions with these buyers in 1999 included not only the sale of new weapons systems, but the upgrading of existing ones, and provision of various spare parts, ammunition, ordnance, training, and support services. Among major weapons systems sold in 1999 by the United States were fifty F-16D fighter aircraft to Israel for over $2 billion and 24 Fl6C/D fighter aircraft to Egypt for about 1 billion. Egypt also purchased an M1A1 Abrams main battle tank package for co-production of 100 tanks. In Asia, the United States sold Singapore 8 AH-64D Apache helicopters for about $400 million. Taiwan also purchased CH-47SD Chinook helicopters and two E-2 Hawkeye AEW aircraft. Although such sales of new weapons systems were an important elemen t of the U.S. sales totals for 1999, the sale of spare parts, upgrades to existing systems, munitions, training, and support services still accounted for a very significant part of overall U.S. arms orders, reflecting the large number of nations in the developing world that have acquired and continue to use American military equipment.

Russia

The total value of Russia's arms transfer agreements with developing nations rose notably from about $2.3 billion in 1998 to $4.1 billion in 1999, placing it second in such agreements with the developing world. Russia's share of all developing world arms transfer agreements increased as well, rising from 13.4 percent in 1998 to 19.9 percent in 1999 (Chart 1), (Figure 1), (Tables 1A, 1B and 1G).

Russia's s arms transfer agreements totals with developing nations declined every year from 1995 through 1998, although during this four-year period it actually ranked second among all major suppliers to developing countries, making over $14.3 billion in agreements. Its arms agreement values ranged from a high of $5.8 billion in 1995 to a low of $1.4 billion in 1993 (in constant 1999 dollars). Russia's arms sales performance reflects the continuing effect of the economic and political problems stemming from the breakup of the former Soviet Union. Many of Russia's traditional arms clients are less wealthy developing nations that were once provided generous grant military assistance and deep discounts on arms purchases. After the dissolution of the Soviet Union in December 1991, Russia did not resume those practices. Russia now actively seeks to sell weapons as a means of obtaining hard currency. Although some former arms clients in the developing world continue to express interest in obtaining additional Russ ian weaponry, they have been restricted in doing so by a lack of funds to pay for the armaments they seek.

In its efforts to make lucrative new sales of conventional weapons, Russia has confronted significant difficulties as most potential cash-paying arms purchasers have been longstanding customers of the United States or major West European suppliers. These prospective arms buyers have proven reluctant to replace their weapons inventories with unfamiliar non-Western armaments when newer versions of existing equipment are readily available from their traditional suppliers, even in an era of intense competition. The difficult transition Russia has been making from the state supported and controlled industrial system of the former Soviet Union has also led some potential arms customers to question whether the Russian defense industries can be reliable suppliers of the spare parts and support services necessary for the maintenance of weapons systems they sell abroad.

Nevertheless, because Russia has had a wide variety of weaponry to sell, from the most basic to the highly sophisticated, and despite the internal problems evident in the Russian defense industrial sector, various developing countries still view Russia as a potential source of their military equipment. Accordingly, Russia has made strong efforts to gain arms agreements with developing nations that can pay cash for their purchases, and Russian sales since 1995 indicate that Russia has had varying degrees of success in doing so. During this period, Russia made smaller arms deals with Kuwait and the United Arab Emirates for armored fighting vehicles and with Malaysia for MiG-29 fighter aircraft. Iran, primarily due to its own economic difficulties, as well as U.S. pressure on Russia, recently ceased to be a major purchaser of arms from the Russians. Iran had been a primary purchaser of Russian armaments in the early 1990s, receiving such items as MiG-29 fighter aircraft, Su-24 fighter-bombers, T-72 tanks and Ki lo class attack submarines. Iraq was once a major purchaser of advanced weaponry from Russia, but has been a lost source of orders since the Persian Gulf war.

Russia's principal arms clients since 1994 have been China and India. Among Russia's notable arms deals during the most recent years have been the sale of 40 new Su-30MK fighter aircraft to India, a major longstanding client. Various elements of a longer range plan for procurement as well as co-production of a number of advanced Russian weapons systems were agreed to with India in 1999, which are likely to result in significant aircraft, missile, and naval craft sales to the Indian government in the near future. Russia's arms supplying relationship with China began to mature in 1994. By 1996 Russia had sold China at least 72 Su-27 fighter aircraft as well as four Kilo class attack submarines. Subsequently, a licensing agreement was finalized between Russia and China, permitting the Chinese to co-produce at least 200 Su-27 aircraft. Russia also sold China two Sovremenny-class destroyers. In 1999, the Chinese purchased between 40-60 Su-30 multi-role fighter aircraft for an estimated $2 billion, and other deals for future procurement of other weapons systems were agreed to in principle. Thus it appears likely that China and India will continue to figure significantly in Russia's arms export calculus for the foreseeable future.

China

China emerged as an important arms supplier to developing nations in the 1980s, primarily due to arms agreements made with both combatants in the Iran-Iraq war. During the period of this report, the value of China's arms transfer agreements with developing nations reached its peak in 1999 at $1.9 billion. Its sales figures in 1999 resulted generally from several smaller valued weapons deals in Asia, Africa, and the Near East, rather than one or two especially large sales of major weapons systems. Pakistan continues as a key Chinese client. From 1992 through 1999, the value of China's arms transfer agreements with developing nations has averaged $860 million annually. China, more recently, has become a major purchaser of arms, primarily from Russia (Tables 1A and 1G.)

Since the late 1980s, few clients with financial resources have sought to purchase Chinese military equipment, much of which is less advanced and sophisticated than weaponry available from Western suppliers and Russia. China does not appear likely to be a major supplier of conventional weapons in the international arms market in the foreseeable future. However, reports persist in various publications that China has sold surface-to-surface missiles to Pakistan, a traditional client. Iran and North Korea have also reportedly received Chinese missile technology. These reports raise important questions about China's expressed commitment to the restrictions on missile transfers set out in the Missile Technology Control Regime (MTCR). With a need for hard currency, and with products (especially missiles) that some developing countries would like to acquire, China can present an important obstacle to efforts to stem proliferation of advanced missile systems to some areas of the developing world where political and military tensions are significant.

Major West European Suppliers

The four major West European suppliers (France, United Kingdom, Germany, and Italy), as a group, registered a significant decrease in their collective share of all arms transfer agreements with developing nations between 1998 and 1999. This group's share fell from 30.5 percent in 1998 to 16 percent in 1999. The collective value of this group's arms transfer agreements with developing nations in 1999 was $3.3 billion compared with a total of over $5.1 billion in 1998. Of these four, Germany was the principal supplier with $2 billion in agreements, an increase from $1.5 billion in 1998. The German agreement total in 1999 was primarily attributable to the sale to South Africa of four MEKO A200 patrol corvettes and three Class 209 diesel-electric submarines. France registered a significant decline in arms agreements from $2.6 billion in 1998 to $400 million in 1999. The United Kingdom also registered a notable decline in arms agreements from over $1 billion in 1998 to $500 million in 1999. Italy, meanwhile, regi stered an increase from essentially nil in 1998 to $400 million in 1999 (Tables 1A and 1B).

The four major West European suppliers, collectively, held a 30 percent share of all arms transfer agreements with developing nations during the period from 1992-1999. Since the end of the Persian Gulf War, the major West European suppliers have generally maintained a notable share of arms transfer agreements. For the 1996-1999 period, they collectively held 24 percent of all arms transfer agreements with developing nations ($18.4 billion). Individual suppliers within the major West European group have had notable years for arms agreements, especially France in 1992, 1993, 1994, and 1997 ($10.1 billion, $4.5 billion, $9 billion, and $4.8 billion respectively). The United Kingdom also had large agreement years in 1992, 1993, and 1996 ($2.1 billion, $2.6 billion, and $2.1 respectively). Germany's agreement total in 1999 of $2 billion was its highest over the last eight years. For each of these three nations, large agreement totals in a single year have reflected the conclusion of a few very large arms contract s with one or more major purchasers in the particular year (Table 1A and 1B).

The major West European suppliers have had their competitive position in weapons exports enhanced by traditionally strong government marketing support for foreign arms sales. Since they can produce both advanced and basic air, ground, and naval weapons systems, the four major West European suppliers have proven capable of competing successfully with the United States and Russia for arms sales contracts with developing nations. The relative decline in overall demand in the global arms marketplace does, however, create a more difficult environment for individual West European suppliers to secure large new contracts with developing nations on a sustained basis. Consequently, some of these suppliers may chose not to compete for some sales of certain types of weapons systems, even reducing or eliminating some categories of items they have been producing. Instead, they may embrace increasing numbers of joint production ventures with other key European weapons suppliers or even purchasers in an effort to sustain ma jor sectors of their individual defense industrial bases. The recent trend toward mergers of various European defense firms may encourage more joint ventures of this kind.

Regional Arms Transfer Agreements

The Persian Gulf War from August 1990-February 1991 played a major role in stimulating high levels of arms transfer agreements with nations in the Near East region. The war created new demands by key purchasers such as Saudi Arabia, Kuwait, the United Arab Emirates, and other members of the Gulf Cooperation Council (GCC), for a variety of advanced weapons systems. These demands were not only a response to Iraq's aggression against Kuwait, but concerns regarding perceived threats from a potentially hostile Iran. In Asia, efforts in several countries focused on upgrading and modernizing defense forces have led to important new conventional weapons sales in that region. Russia also, in the 1990s, developed a significant role as the principal supplier of advanced conventional weaponry to China. The data on regional arms transfer agreements from 1992-1999 continue to reflect the primacy of developing nations in the Near East and Asia regions as customers for conventional armaments.

Near East

The Near East has generally been the largest arms market in the developing world. In 1992-1995, it accounted for 52.1 percent of the total value of all developing nations arms transfer agreements ($48.1 billion in current dollars). During 1996-1999, the region accounted for 46.3 percent of all such agreements ($34.3 billion in current dollars).

The United States has dominated arms transfer agreements with the Near East during the 1992-1999 period with 50.9 percent of their total value ($41.9 billion in current dollars). France was second during these years with 26.6 percent ($21.9 billion in current dollars). Recently, from 1996-1999, the United States accounted for 49.3 percent of arms agreements with this region (over $16.9 billion), while France accounted for 20.4 percent of the region's agreements ($7 billion in current dollars), representing most of the arms transfer agreements by the major West European suppliers with the Near East.

Asia

Asia has generally been the second largest developing world arms market. In the earlier period (1992-1995), Asia accounted for 40.4 percent of the total value of an arms transfer agreements with developing nations ($37.3 billion in current dollars). During 1996-1999, the region accounted for 37.6 percent of all such agreements ($27.9 billion in current dollars).

In the earlier period (1992-1995), the United States ranked first in the value of arms transfer agreements with Asia with 30.6 percent. Russia ranked second with 22.3 percent. The major West European suppliers, as a group, made 32.2 percent of this region's agreements in 1992-1995. In the later period (1996-1999), Russian ranked first in Asian agreements with 37 percent, on the strength of major combat aircraft sales to China and India. The United States ranked second with 23.9 percent. The major West European suppliers, as a group, made 20.8 percent of this region's agreements in 1996-1999.

Leading Developing Nations Arms Purchasers

Saudi Arabia has been, by a clear margin, the leading developing world arms purchaser from 1992-1999, making arms transfer agreements totaling $28.9 billion during these years (in current dollars). In the 1992-1995 period, the value of its arms transfer agreements was high ($21.8 billion in current dollars). From 1996-1999, however, the total value of Saudi Arabia's arms transfer agreements dropped significantly to $7.1 billion (in current dollars). This decline resulted from Saudi debt obligations stemming from the Persian Gulf era, coupled with a significant fall in Saudi revenues caused by the notable decline in the market price of its oil. The total value of all arms transfer agreements with developing nations from 1992-1999 was $166.1 billion in current dollars. Saudi Arabia alone was responsible for 17.4 percent of all developing world arms transfer agreements during these eight years. In the most recent period, 1996-1999, Saudi Arabia ranked third in arms transfer agreements by developing nations behi nd the United Arab Emirates ($7.7 billion in current dollars) and India ($7.3 billion in current dollars), yet still accounted for nearly 10 percent of the value of all developing world arms transfer agreements ($7.1 billion out of $73.9 billion in current dollars) (Table 1 and 11).

The values of the arms transfer agreements of the top ten developing world recipient nations in both the 1992-1995 and 1996-1999 periods accounted for the major portion of the total developing nations arms market. During 1992-1995, the top ten recipients collectively accounted for 76.3 percent of all developing world arms transfer agreements. During 1996-1999, the top ten recipients collectively accounted for 64.3 percent of all such agreements. Arms transfer agreements with the top ten developing world recipients, as a group, totaled $15.9 billion in 1999 or 77.3 percent of all arms transfer agreements with developing nations in that year. This reflects the continued concentration of major arms purchases by developing nations within a few countries (Tables 1 and 1I.)

South Africa ranked first among all developing world recipients in the value of arms transfer agreements in 1999, concluding $3.3 billion in such agreements. Egypt ranked second in agreements in 1999 at $2.6 billion. Israel ranked third with $2.3 billion in agreements.

Saudi Arabia was the leading recipient of arms deliveries among developing world recipients in 1999, receiving $6.9 billion in such deliveries. Saudi Arabia alone received 30.4 percent of the total value of all arms deliveries to developing nations in 1999. Taiwan ranked second in arms deliveries in 1999 with $2.6 billion. Israel ranked third with $2 billion (Table 2).

Arms deliveries to the top ten developing nation recipients, as a group, were valued at $18.2 billion, or 80.3 percent of all arms deliveries to developing nations in 1999. Six of these top ten recipients were in Asia (Table 2).

Weapons Types Recently Delivered to Near East Nations

Regional weapons delivery data reflect the diverse sources of supply of conventional weaponry available to developing nations. Even though the United States, Russia, and the four major West European suppliers dominate in the delivery of the fourteen classes of weapons examined, it is also evident that the other European suppliers and some non-European suppliers, including China, are capable of being leading suppliers of selected types of conventional armaments to developing nations (Table 3).

Weapons deliveries to the Near East, the largest purchasing region in the developing world, reflect the substantial quantities and types delivered by both major and lesser suppliers. The following is an illustrative summary of weapons deliveries to this region for the period 1996-1999.

United States

* 393 tanks and self-propelled guns

* 1,576 APCs and armored cars

* 4 minor surface combatants

* 91 supersonic combat aircraft

* 62 helicopters

* 799 surface-to-air missiles

* 57 anti-ship missiles

Russia

* 290 tanks and self-propelled guns

* 510 APCs and armored cars

* 1 submarine

* 20 supersonic combat aircraft

* 60 helicopters

* 140 surface-to-air missiles

China

* 5 guided missile boats

* 10 supersonic combat aircraft

* 300 surface-to-air-missiles

* 160 anti-ship missiles

Major West European Suppliers

* 270 tanks and self-propelled guns

* 390 APCs and armored cars

* 2 major surface combatants

* 15 minor surface combatants

* 8 guided missile boats

* 2 submarines

* 30 supersonic combat aircraft

* 10 anti-ship missiles

All Other European Suppliers

* 120 tanks and self-propelled guns

* 110 artillery

* 1,230 APCs and armored cars

* 2 major surface combatants

* 5 minor surface combatants

* 20 supersonic combat aircraft

* 30 helicopters

All Other Suppliers

* 3 minor surface combatants

* 20 surface-to-surface missiles

Large numbers of major combat systems were delivered to the Near East region from 1996-1999, in particular, tanks and self-propelled guns, armored vehicles, minor surface combatants, artillery pieces, supersonic combat aircraft, helicopters, air defense and anti-ship missiles. The United States made significant deliveries of supersonic combat aircraft to the region. Russia, the United States, and European suppliers in general were the principal suppliers of tanks and self-propelled guns. Three of these weapons categories--supersonic combat aircraft, helicopters, and tanks and self-propelled guns--are especially costly and are an important portion of the dollar values of arms deliveries of the United States, Russia, and European suppliers to the Near East region during the 1996-1999 period. The cost of naval combatants is also generally high, and suppliers of such systems during this period had their delivery value totals notably increased due to these transfers. Some of the less expensive weapons systems del ivered to the Near East are deadly and can create important security threats within the region. In particular, from 1996-1999, China delivered to the Near East region 160 anti-ship missiles, while the United States delivered 57. China also delivered 5 guided missile boats to the Near East, while the major West European suppliers collectively delivered 8 guided missile boats. Other non-European suppliers delivered 20 surface-to-surface missiles.

United States Commercial Arms Exports

The United States commercial deliveries data set out below are included in the main data tables for deliveries in this report. They are presented separately here to provide an indicator of their overall magnitude in the U.S. aggregate deliveries totals for the world and for developing nations. The United States is the only major arms supplier that has two distinct systems for the export of weapons: the government-to-government foreign military sales (FMS) system, and the licensed commercial export system. It should be noted that data maintained on U.S. commercial sales agreements and deliveries are incomplete, and not collected or revised on an on-going basis, making them significantly less precise than those for the U.S. EMS program--which accounts for the overwhelming portion of U.S. conventional arms transfer agreements and deliveries involving weapons systems. There are no official compilations of commercial agreement data comparable to that for the FMS program maintained on an annual basis. Once an expo rter receives from the State Department a commercial license authorization to sell--valid for four years--there is no current requirement that the exporter provide to the State Department, on a systematic and ongoing basis, comprehensive details regarding any sales contract that results from the license approval, including if any such contract is reduced in scope or cancelled. Nor is the exporter required to report that no contract with the prospective buyer resulted. Annual commercial deliveries data are obtained from shipper's export documents and completed licenses returned from ports of exit by the U.S. Customs Service to the Office of Defense Trade Controls (PM/DTC) of the State Department, which makes the final compilation of such data. This process for obtaining commercial deliveries data is much less systematic and much less timely than that taken by the Department of Defense for government-to-government FMS transactions. Recently, efforts have been initiated by the U.S. government to improve the time liness and quality of U.S. commercial deliveries data. The values of U.S. commercial arms deliveries to all nations and deliveries to developing nations for fiscal years 1992-1999, in current dollars, according to the U.S. State Department, were as follows:

Fiscal Year Commercial Deliveries  Commercial Deliveries
                 (Worldwide)      (to Developing Nations)
   1992        $2,667,000,000         $1,522,000,000
   1993        $3,808,000,000         $2,921,000,000
   1994        $3,339,000,000         $2,155,000,000
   1995        $3,173,000,000         $1,804,000,000
   1996        $1,563,000,000           $696,000,000
   1997        $1,818,000,000         $1,141,000,000
   1998        $2,045,000,000           $797,000,000
   1999          $654,000,000           $321,000,000

Worldwide Arms Transfer Agreements and Deliveries Values, 1992-1999

Tables, 8, 8A, and 8B and 9, 9A and 9B, provide the total dollar values for arms transfer agreements and arms deliveries worldwide in the same format and detail as do Tables 1, lA and lB and Tables 2,2A and 2B for arms transfer agreements with and arms deliveries to developing nations.

Total Worldwide Arms Transfer Agreements Values, 1992-1999

Table 8 shows the annual current dollar values of arms transfer agreements worldwide. Since these figures do not allow for the effects of inflation, they are, by themselves, of limited use. They provide, however, the data from which Tables 8A (constant dollars) and 8B (supplier percentages) are derived. Some of the more notable facts reflected by these data are summarized below. Unless otherwise noted, dollar values are expressed in constant 1999 U.S. dollars.

* The United States ranked first among all suppliers to the world in the value of arms transfer agreements from 1996-1999, and first for the entire period form 1992-1999 (Figure 1).

* Russia ranked second among all suppliers to the world in the value of arms transfer agreements from 1996-1999, and third from 1992-1999.

* France ranked third among all suppliers to the world in the value of arms transfer agreements from 1996-1999, and second from 1992-1999.

* The United Kingdom ranked fourth among all suppliers to the world in the value of arms transfer agreements from 1996-1999, and fourth from 1992-1999.

In 1999, the value of all arms transfer agreements worldwide was nearly $30.3 billion. This is the highest total for arms transfer agreements in any year since 1996, and an increase over 1998 which totaled $28.3 billion.

* In 1999, the United States was the leader in arms transfer agreements with the world, making about $11.8 billion in such agreements, or 38.9 percent of all arms transfer agreements. Russia ranked second with $4.8 billion in arms transfer agreements, or 15.9 percent of all arms transfer agreements. Germany ranked third with $4 billion or 13.2 percent. United States agreements increased from $10.3 billion in 1998 to about $11.8 billion in 1999. France's arms transfer agreements fell significantly from about $3.4 billion 1998 to $900 million in 1999.

* The United States, Russia and Germany, the top three arms suppliers to the world in 1999-respectively-ranked by the value of their arms transfer agreements-collectively made agreements in 1999 valued at nearly $20.6 billion, 68 percent of all arms transfer agreements made with the world by all suppliers.

* The total value of all arms transfer agreements worldwide from 1996-1999 ($115.3 billion) was notably less than the value of arms transfer agreements by all suppliers worldwide from 1992-1995 ($150.4. billion), a decline of 23.3 percent (Figure 1).

* During the period from 1992-1995, developing world nations accounted for 69.7 percent of all arms transfer agreements made world wide. During 1996-1999, developing world nations accounted for 66.4 percent of all agreements made worldwide (Figure 1).

* In 1999, developing nations were recipients of 68 percent of all arms transfer agreements made worldwide (Figure 1).

Total Worldwide Delivery Values 1992-1999

Table 9 shows the annual current dollar values of arms deliveries (items actually transferred) worldwide by major suppliers from 1992-1999. The utility of these data is that they reflect transfers that have occurred. They provide the data from which tables 9A(constant dollars) and 9B (supplier percentages) are derived. Some of the more notable facts illustrated by these data are summarized below. Unless otherwise noted the dollar values are expressed in constant 1999 U.S. dollars.

* In 1999, the United States ranked first in the value of arms deliveries worldwide, making nearly $18.4 billion in such deliveries. This is the eighth year in a row that United States has led in such deliveries, reflecting implementation of arms agreements concluded during and immediately after the Persian Gulf War (Figure 2).

* The United Kingdom ranked second in arms deliveries worldwide in 1999, making $4.5 billion in such deliveries.

* Russia ranked third in arms deliveries worldwide in 1999, making $2.7 billion in such deliveries.

* In 1999, the top three suppliers of arms to the world, the United States, the United Kingdom, and Russia, collectively delivered nearly $25.6 billion, 75.3 percent of all arms deliveries made worldwide by all suppliers.

* The U.S. share of all arms deliveries worldwide in 1999 was 54.1 percent, up from its 46.9 percent share in 1998. The United Kingdom's share in 1999 was 13.3 percent up from 10.7 percent in 1998. Russia's share of world arms deliveries in 1999 was 8 percent, up from 5.9 percent in 1998 (Table 9B).

* In 1999, the value of all arms deliveries worldwide was nearly $34 billion, a decline in the total value of deliveries from the previous year ($35.4 billion in constant 1999 dollars), and the lowest deliveries total since 1994 (Table 9A).

* During the period from 1992-1995, developing world nations accounted for 72.6 percent of all arms deliveries received worldwide. During 1996-1999, developing world nations accounted for 77.9 percent of all deliveries worldwide (Figure 2).

* In 1999, developing nations as recipients of arms accounted for 66.8 percent of an arms deliveries received worldwide (Figure 2).

* The total value of all arms deliveries by all suppliers worldwide from 1996-1999 ($150.3 billion) was an increase of 3 percent from the value of arms deliveries by an suppliers worldwide from 1992-1995 ($145.9 billion in constant 1999 dollars) (Figure 2) (Table 9A)

Description of Items Counted in Weapons Categories, 1992-1999

Tanks and Self-propelled Guns: This category includes light, medium, and heavy tanks; self-propelled artillery; self-propelled assault guns.

Artillery: This category includes field and air defense artillery, mortars, rocket launchers and recoilless rifles-100 mm and over; FROG launchers-l00mm and over.

Armored Personnel Carriers (APCs) and Armored Cars: This category includes personnel carriers, armored and amphibious; armored infantry fighting vehicles; armored reconnaissance and command vehicles.

Major Surface Combatants: This category includes aircraft carriers, cruisers, destroyers, frigates.

Minor Surface Combatants: This category includes minesweepers, subchasers, motor torpedo boats, patrol craft, motor gunboats.

Submarines: This category includes all submarines, including midget submarines.

Guided Missile Patrol Boats: This category includes all boats in this class.

Supersonic Combat Aircraft: This category includes all fighter and bomber aircraft designed to function operationally at speeds above Mach 1.

Subsonic Combat Aircraft: This category includes all fighter and bomber aircraft designed to function operationally at speeds above Mach 1.

Other Aircraft: This category includes all other fixed-wing aircraft, including trainers, transports, reconnaissance aircraft, and communications/utility aircraft.

Helicopters: This category includes all helicopters, including combat and transport.

Surface-to-air Missiles: This category includes all ground-based air defense missiles.

Surface-to-surface Missiles: This category includes all surface-surface missiles without regard to range, such as Scuds and CSS-2s. It excludes all anti-tank missiles and all anti-ship missiles.

Anti-ship Missiles: This category includes all missiles in this class such as the Harpoon, Silkworm, Styx and Exocet.

                    Worldwide Arms Transfer Agreements,
            1992-1999 and Suppliers' Share with Developing World
                (in millions of constant 1999 U.S. dollars)
                   Worldwide Agreements Percentage of Total with
Supplier                Value 1992-1995         Developing World
United States                    72,803                    59.40
Russia                           17,529                    73.90
France                           28,834                    90.90
United Kingdom                    6,968                    88.70
China                             2,047                   100.00
Germany                           4,898                    34.80
Italy                             2,581                    78.60
All Other European                8,877                    70.70
All Others                        5,857                    71.30
TOTAL                           150,394                    69.70
                   Worldwide Agreements Percentage of Total with
Supplier                Value 1996-1999         Developing World
United States                    41,683                    61.70
Russia                           16,080                    89.10
France                           12,326                    72.80
United Kingdom                    8,513                    55.50
China                             5,261                    92.00
Germany                           9,876                    36.90
Italy                             2,269                    45.70
All Other European               12,519                    70.50
All Others                        6,818                    66.00
TOTAL                           115,345                    66.40
                   Worldwide Agreements Percentage of Total with
Supplier                     Value 1999         Developing World
United States                    11,768                    68.60
Russia                            4,800                    85.40
France                              900                    44.40
United Kingdom                      Soo                    62.50
China                             1,900                   100.00
Germany                           4,000                    50.00
Italy                               600                    66.70
All Other European                4,600                    56.50
All Others                          900                    66.70
TOTAL                            30,268                    68.00
                   Worldwide Arms Deliveries, 1992-1999
                and Suppliers' Share with Developing World
                (in millions of constant 1999 U.S. dollars)
                          Worldwide
                   Deliveries Value Percentage of Total to
Supplier                  1992-1995       Developing World
United States                65,539                  69.53
Russia                       12,663                  89.40
France                        8,964                  57.70
United Kingdom               24,022                  96.20
China                         3,980                  97.10
Germany                       6,538                  41.10
Italy                         1,254                  44.60
All Other European           14,946                  57.40
All Others                    8,252                  59.00
TOTAL                       145,888                  72.60
                          Worldwide
                   Deliveries Value Percentage of Total to
Supplier                  1996-1999       Developing World
United States                68,503                  66.20
Russia                       10,800                  79.80
France                       19,238                  90.70
United Kingdom               22,508                  87.50
China                         2,609                  96.10
Germany                       4,871                  33.80
Italy                         1,045                  70.50
All Other European           13,017                  72.80
All Others                    7,670                  43.60
TOTAL                       150,261                  77.90
                          Worldwide Percentage of Total to
Supplier           Deliveries Value       Developing World
                               1999
United States                18,351                  61.90
Russia                        2,700                  74.10
France                        2,400                  91.70
United Kingdom                4,500                  86.70
China                           300                 100.00
Germany                       1,200                  50.00
Italy                           100                   0.00
All Other European            2,400                  75.00
All Others                    2,000                  25.00
TOTAL                        33,951                  66.80
                    Arms Transfer Agreements Worldwide
                      (supplier percentage of value)
                  1992-1995 1996-1999
U.S.                  48.4%     36.1%
All Others             9.8%     16.8%
China                  1.4%      4.6%
Major W. European     28.2%     28.6%
Russia                11.7%     13.9%
                 Arms Transfer Agreements With Developing
                      Nations, by Supplier, 1992-1999
                   (in millions of current U.S. dollars)
                       1992   1993   1994   1995   1996   1997   1998   1999
United States        12,444 14,436  6,748  4,235  6,900  3,635  6,273  8,072
Russia                1,400  1,200  3,700  5,300  4,200  3,300  2,200  4,100
France                8,600  3,900  8,100  2,400  1,100  4,600  2,500    400
United Kingdom        1,800  2,300    700    600  2,000  1,000  1,000    500
China                   600    500    600    200    800  1,300    700  1,900
Germany                 200  1,000      0    300      0    100  1,500  2,000
Italy                   500    300    200    800    300    300      0    400
All Other European    1,100    500  1,600  2,400  2,900  1,700  1,300  2,600
All Others            1,100    600    500  1,500  1,700  1,100    900    600
Total                27,644 24,736 22,148 17,735 19,900 17,035 16,373 20,572
Dollar [*] inflation
Index:               0.8516 0.8761 0.8957 0.9135 0.9329  0.953  0.973      1
(1999=1.00) [*]
                       1992-
                        1999
United States         62,743
Russia                25,400
France                31,600
United Kingdom         9,900
China                  6,500
Germany                5,100
Italy                  2,800
All Other European    14,100
All Others             8,000
Total                166,143
Dollar [*] inflation
Index:
(1999=1.00) [*]
Source: U.S. government.

Note: Developing nations category excluded the U.S., Europe, Canada, Japan, Australia and New Zealand. All data are for the calendar year given except for U. S. MAP (Military Assistance Program), IMET (International Military Education and Training), and Excess Defense Article data which are included for the particular fiscal year. All amounts given include the values of weapons, spare parts, construction, all associated services, military assistance, excess defense articles, and training programs. Statistics for foreign countries are based upon estimated selling prices. All foreign data are rounded to the nearest $100 million.

(*.)Based on Department of Defense Price Deflator 

                 Arms Transfer Agreements with Developing
                      Nations, by Supplier, 1992-1999
                (in millions of constant 1999 U.S. dollars)
                     1992   1993   1994   1995   1996   1997   1998   1999
United States      14,612 16,478  7,534  4,636  7,396  3,814  6,447  8,072
Russia              1,644  1,370  4,131  5,802  4,502  3,463  2,261  4,100
France             10,099  4,452  9,043  2,627  1,179  4,827  2,569    400
United Kingdom      2,114  2,625    782    657  2,144  1,049  1,028    500
China                 587    571    670    219    858  1,364    719  1,900
Germany               235  1,141      0    328      0    105  1,542  2,000
Italy                 587    342    223    876    322    315      0    400
All Other European  1,292    571  1,786  2,627  3,109  1,784  1,336  2,600
All Others          1,292    685    558  1,642  1,822  1,154    925    600
TOTAL              329461 28,234 24,727 19,414 21,331 17,875 16,827 20,572
                     TOTAL
                     1992-
                      1999
United States       68,989
Russia              27,272
France              35,196
United Kingdom      10,898
China                6,888
Germany              5,351
Italy                3,065
All Other European  15,104
All Others           8,678
TOTAL              181,443
                  Arms Transfer Agreement with Developing
                      Nations, by Supplier, 1992-1999
                 (expressed as a percent of total, by year)
                       1992     1993     1994     1995     1996     1997
United States       45.02 %  58.36 %  30.47 %  23.88 %  34.67 %  21.34 %
Russia               5.06 %   4.85 %  16.71 %  29.88 %  21.11 %  19.37 %
France              31.11 %  15.77 %  36.57 %  13.53 %   5.53 %  27.00 %
United Kingdom       6.51 %   9.30 %   3.16 %   3.38 %  10.05 %   5.87 %
China                1.81 %   2.02 %   2.71 %   1.13 %   4.02 %   7.63 %
Germany              0.72 %   4.04 %   0.00 %   1.69 %   0.00 %   0.59 %
Italy                1.81 %   1.21 %   0.90 %   4.51 %   1.51 %   1.76 %
All Other European   3.98 %   2.02 %   7.22 %  13.53 %  14.57 %   9.98 %
All Others           3.98 %   2.43 %   2.26 %   8.46 %   8.54 %   6.46 %
[Major West
 European [*]       40.15 %  30.32 %  40.64 %  23.12 %  17.09 %  35.22 %
TOTAL              100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 %
                       1998     1999
United States       38.31 %  39.24 %
Russia              13.44 %  19.93 %
France              15.27 %   1.94 %
United Kingdom       6.11 %   2.43 %
China                4.28 %   9.24 %
Germany              9.16 %   9.72 %
Italy                0.00 %   1.94 %
All Other European   7.94 %  12.64 %
All Others           5.50 %   2.92 %
[Major West
 European [*]       30.54 %  16.04 %]
TOTAL              100.00 % 100.00 %
(*.)Major West European catetory includes
France, United Kingdom, Germany, and Italy.
                 Arms Transfer Agreements with Developing
                            Nations, 1992-1999:
                        Leading Suppliers Compared
                   (in millions of current U.S. dollars)
Rank    Supplier    Agreements Value 1992-1995
  1  United States            37,863
  2      France               23,000
  3      Russia               11,600
  4  United Kingdom            5,400
  5      China                 1,800
  6      Italy                 1,800
  7     Germany                1,500
  8      Israel                  900
  9      Spain                   900
 10   Netherlands                700
 11     Ukraine                  700
        Supplier    Agreements Value 1996-1999
  1  United States            24,880
  2      Russia               13,800
  3      France                8,600
  4      China                 4,700
  5  United Kingdom            4,500
  6     Germany                3,600
  7     Belarus                1,500
  8     Ukraine                1,500
  9      Israel                1,500
 10      Italy                 1,000
 11      Sweden                1,000
        Supplier    Agreements Value 1992-1999
  1  United States            62,743
  2      France               31,600
  3      Russia               25,400
  4  United Kingdom            9,900
  5      China                 6,500
  6     Germany                5,100
  7      Italy                 2,800
  8      Israel                2,400
  9     Ukraine                2,200
 10     Belarus                1,700
 11   South Africa             1,500
Source: U.S. government.
Note: All foreign data are rounded to the
nearest $100 million. Where data totals
are the same, the actual rank order is
maintained.
                 Arms Transfer Agreements with Developing
                Nations in 1999: Leading Suppliers Compared
                   (in millions of current U.S. dollars)
Rank       Supplier Agreements Value 1999
   1  United States         8,072
   2         Russia         4,100
   3        Germany         2,000
   4          China         1,900
   5         Sweden           700
   6        Belgium           600
   7 United Kingdom           500
   8          Italy           400
   9         France           400
  10        Ukraine           300
  11         Canada           200
Source: U.S. government.
Note: All foreign data are rounded to the
nearest $100 million.
Where data totals are the same, the
actual rank order in maintained
                  Arms Transfer Agreements of Developing
                   Nations, 1992-1999: Agreements by the
                    Leading Recipients (in millions of
                           current U.S. dollars)
Rank  Recipient   Agreement Value 1992-1995
   1 Saudi Arabia           21,800
   2    Taiwan              13,300
   3    U.A.E.               7,300
   4    China                7,000
   5    Kuwait               6,100
   6    Israel               3,300
   7    Egypt                3,100
   8   Malaysia              3,000
   9   Pakistan              2,800
  10 South Korea             2,700
      Recipient   Agreements Value 1996-1999
   1    U.A.E.               7,700
   2    India                7,300
   3 Saudi Arabia            7,100
   4    Egypt                6,700
   5    Israel               4,500
   6    China                3,900
   7 South Africa            3,400
   8 South Korea             2,700
   9    Taiwan               2,100
  10   Pakistan              2,100
      Recipient   Agreements Value 1992-1999
   1 Saudi Arabia           28,900
   2    Taiwan              15,400
   3    U.A.E.              15,000
   4    China               10,900
   5    Egypt                9,800
   6    India                8,600
   7    Israel               7,800
   8    Kuwait               7,200
   9   Malaysia              4,900
  10   Pakistan              4,900
Source: U.S. government.
Note: All foreign data are rounded to the
nearest $100 million. Where data totals are
the same, the rank order is maintained.
                 Arms Deliveries to Developing Nations, by
                            Supplier, 1992-1999
                   (in millions of current U.S. dollars)
                         1992   1993   1994   1995   1996   1997   1998
United States           9,564 10,804  8,531 11,401  9,872 11,565 10,974
Russia                  2,600  2,100  1,400  2,700  2,200  2,200  1,900
France                  1,100    800    700  2,000  2,900  5,700  6,000
United Kingdom          5,400  3,800  4,700  4,900  5,800  5,900  3,300
China                   1,000  1,100    600    700    600  1,000    500
Germany                   200    600    800    800    400    100    500
Italy                     100      0    200    200    100    600      0
All Other European      1,800  1,300  2,200  2,300  2,300  3,100  1,900
All Others              1,100  1,100  1,000  1,100  1,100    900    700
TOTAL                  22,864 21,604 20,131 26,101 25,272 31,065 25,774
Dollar inflation index
(1999=1.00) [*]
                       0.8516 0.8761 0.8957 0.9135 0.9329  0.953  0.973
                                TOTAL
                                1992-
                         1999    1999
United States          11,366  84,077
Russia                  2,000  17,100
France                  2,200  21,400
United Kingdom          3,900  37,700
China                     300   5,800
Germany                   600   4,000
Italy                       0   1,200
All Other European      1,800  16,700
All Others                500   7,500
TOTAL                  22,666 195,477
Dollar inflation index
(1999=1.00) [*]
                            1

Source: U.S. government. Note: Developing nations category excludes the United States, Russia, Europe, Canada, Japan, Australia, and New Zealand. All data are for the calendar year given, except for U.S. MAP (Military Assistance Program), IMET (International Military Education and Training), Excess Defense Articles, and commercially licensed deliveries, which are included for the particular fiscal year. All amounts given include the values of weapons, spare parts, construction, all associated services, military assistance, excess defense articles, and training programs. Statistics for foreign countries are based upon estimated selling prices. All foreign data are rounded to the nearest $100 million.

(*.)Based on Department of Defense Price Deflator.

                       Arms Deliveries to Developing
                      Nations, by Supplier, 1992-1999
                (in millions of constant 1999 U.S. dollars)
                     1992   1993   1994   1995   1996   1997   1998   1999
United States      11,231 12,332  9,524 12,481 10,582 12,135 11,279 11,366
Russia              3,053  2,968  2,345  2,956  2,358  2,308  1,953  2,000
France              1,292    913    782  2,189  3,109  5,981  6,166  2,200
United Kingdom      6,341  6,164  5,247  5,364  6,217  6,191  3,392  3,900
China               1,174  1,256    670    766    643  1,049    514    300
Germany               235    685    893    876    429    105    514    600
Italy                 117      0    223    219    107    630      0      0
All Other European  2,114  1,484  2,456  2,518  2,465  3,253  1,953  1,800
All Others          1,292  1,256  1,116  1,204  1,179    944    719    500
TOTAL              26,848 27,056 23,257 28,573 27,090 32,597 26,489 22,666
                     TOTAL
                     1992-
                      1999
United States       90,929
Russia              19,940
France              22,632
United Kingdom      42,816
China                6,372
Germany              4,336
Italy                1,296
All Other European  18,043
All Others           8,211
TOTAL              214,576
                       Arms Deliveries to Developing
                      Nations, by Supplier, 1992-1999
                (expressed as a percent of total, by year)
                             1992     1993     1994     1995     1996
United States             41.83 %  50.01 %  42.38 %  43.38 %  39.06 %
Russia                    11.37 %   9.72 %   6.95 %  10.34 %   8.71 %
France                     4.81 %   3.70 %   3.48 %   7.66 %  11.48 %
United Kingdom            23.62 %  17.59 %  23.35 %  18.77 %  22.95 %
China                      4.37 %   5.09 %   2.98 %   2.68 %   2.37 %
Germany                    0.87 %   2.78 %   3.97 %   3.07 %   1.58 %
Italy                      0.44 %   0.00 %   0.99 %   0.77 %   0.40 %
All Other European         7.87 %   6.02 %  10.93 %   8.81 %   9.10 %
All Others                 4.81 %   5.09 %   4.97 %   4.21 %   4.35 %
[Major West European [*]  29.74 %  24.07 %  31.79 %  30.27 %  36.40 %
TOTAL                    100.00 % 100.00 % 100.00 % 100.00 % 100.00 %
                             1997     1998    1999
United States             37.23 %  42.58 %  50.15 %
Russia                     7.08 %   7.37 %   8.82 %
France                    18.35 %  23.28 %   9.71 %
United Kingdom            18.99 %  12.80 %  17.21 %
China                      3.22 %   1.94 %   1.32 %
Germany                    0.32 %   1.94 %   2.65 %
Italy                      1.93 %   0.00 %   0.00 %
All Other European         9.98 %   7.37 %   7.94 %
All Others                 2.90 %   2.72 %   2.21 %
[Major West European [*]  39.59 %  38.02 %  29.56 %]
TOTAL                    100.00 % 100.00 % 100.00 %
(*)Major West European category includes
France, United Kingdom, Germany, and Italy.
             Arms Deliveries to Developing Nations, 1992-1999:
                        Lending Suppliers Compared
                   (in millions of current U.S. dollars)
Rank    Supplier    Deliveries Value 1992-1995
   1 United States            40,300
   2 United Kingdom           18,800
   3     Russia                8,800
   4     France                4,600
   5     China                 3,400
   6    Germany                2,400
   7     Sweden                2,000
   8     Israel                1,800
   9     Canada                1,000
  10  South Africa               700
  11     Spain                   600
        Supplier    Deliveries Value 1996-1999
   1 United States            43,777
   2 United Kingdom           18,900
   3     France               16,800
   4     Russia                8,300
   5     Sweden                2,500
   6     China                 2,400
   7    Germany                1,600
   8    Ukraine                1,500
   9     Israel                1,000
  10    Belarus                1,000
  11  Netherlands                900
        Supplier    Deliveries Value 1992-1999
   1 United States            84,077
   2 United Kingdom           37,700
   3     France               21,400
   4     Russia               17,100
   5     China                 5,800
   6     Sweden                4,400
   7    Germany                4,000
   8     Israel                2,800
   9    Ukraine                1,800
  10     Canada                1,600
  11  South Africa             1,500
Source: U.S. government.
Note: All foreign data are rounded to the nearest
$100 million. Where data totals are the same,
the rank order is maintained.
                 Arms Deliveries to Developing Nations in
                     1999: Leading Suppliers Compared
                   (in millions of current U.S. dollars)
Rank   Recipient    Deliveries Value 1999
   1 United States         11,366
   2 United Kingdom         3,900
   3     France             2,200
   4     Russia             2,000
   5    Germany               600
   6     Sweden               500
   7    Ukraine               400
   8    Belarus               300
   9     China                300
  10     Israel               200
  11    Bulgaria              200
Source: U.S. government.
Note: All foreign data are rounded to
the nearest $100 million. Where data
totals are the same, the actual
rank order is maintained.
             Arms Deliveries to Developing Nations, 1992-1999
                          The Leading Recipients
                   (in millions of current U.S. dollars)
Rank  Recipient   Deliveties Value 1992-1995
   1 Saudi Arabia          31,300
   2    Egypt               5,800
   3    Taiwan              4,400
   4 South Korea            4,100
   5    Kuwait              3,300
   6    U.A.E.              3,300
   7     Iran               3,000
   8    China               2,800
   9    Israel              2,700
  10   Malaysia             2,000
      Recipient   Deliveries Value 1996-1999
   1 Saudi Arabia          34,800
   2    Taiwan             16,200
   3 South Korea            4,700
   4    U.A.E.              4,500
   5    Israel              4,500
   6    Kuwait              4,300
   7    Egypt               3,900
   8    China               3,100
   9   Pakistan             2,400
  10    India               2,000
Rank  Recipient   Deliveiies Value 1992-1999
   1 Saudi Arabia          66,100
   2    Taiwan             20,600
   3    Egypt               9,700
   4 South Korea            8,800
   5    U.A.E.              7,800
   6    Kuwait              7,600
   7    Israel              7,200
   8    China               5,900
   9     Iran               4,700
  10   Pakistan             4,200
Source: U.S. government
Note: All foreign data are rounded to the
nearest $100 million. Where data totals are
the same, the actual rank order is maintained.
                   Numbers of Weapons Delivered by Major
                      Suppliers to Developing Nations
Weapons Category             U.S. Russia China Major West All Other    All
                                                 European  European Others
1992-1995
Tanks and Self-Propelled
 Guns                       1,623    540   310         90       610    170
Artillery                     260    480   410        270     1,150    280
APCs and Armored Cars       2,091  1,460    40        450     2,150    270
Major Surface Combatants        0      0     5         43         0      2
Minor Surface Combatants       44     13    11         53        29     50
Guided Missile Boats            0      0    14          4         0      2
Submarines                      0      4     0          7         0      0
Supersonic Combat Aircraft    265     70   110          0        60     40
Subsonic Combat Aircraft       92      0     0        100         0      0
Other Aircraft                 43     20    70         80       260     80
Helicopters                   283    210     0        140       100     20
Surface-to-Air Missiles     1,619  1,600   330      3,260       750    350
Surface-to-Surface Missiles     0      0    30          0         0    110
Anti-Ship Missiles            439     20   140         60         0      0
1996-1999
Tanks and Self-Propelled
 Guns                         869    370   240        320     1,260     50
Artillery                     183    200    50        110       300    160
APCs and Armored Cars       1,705    690   120        810     1,540     80
Major Surface Combatants        3      0     1         17         3      0
Minor Surface Combatants       33      3    22         30        41     49
Guided Missile Boats            0      0     9         12         0      3
Submarines                      0      4     0          7         0      2
Supersonic Combat Aircraft    375    130    80        110       110     30
Subsonic Combat Aircraft        2      0     0         50        30     30
Other Aircraft                 45     30    60         50       180    160
Helicopters                   159    220     0         40       110     30
Surface-to-Air Missiles       907  1,910   790        560     2,060    250
Surface-to-Surface Missiles     0      0     0          0         0     30
Anti-Ship Missiles            220     70   190         70         0     10
Source: U.S. government.

Note: Developing nations category excludes the U.S., Russia, Europe, Canada, Japan, Australia and New Zealand. All data are for calendar years given. Major West European includes France, United Kingdom, Germany, and Italy totals asan aggregate figure. Data relating to surface-to-surface and anti-ship missiles by foreign suppliers are estimates based on a variety of sources having a wide range of accuracy. As such, individual data entries in these two weapons delivery categories are not necessarily definitive.

                 Arms Transfer Agreements with the World,
                  by Supplier, 1992-1999 (in millions of
                           current U.S. dollars)
                        1992   1993   1994   1995   1996   1997   1998   1999
United States         20,644 21,524 12,792  8,872 11,111  7,341 10,024 11,768
Russia                 1,800  2,400  4,000  7,500  4,700  3,500  2,500  4,800
France                 9,000  5,000  8,700  2,600  2,600  5,000  3,300    900
United Kingdom         1,800  2,800    700    800  4,300  1,000  2,000    800
China                    500    500    600    200  1,000  1,300    900  1,900
Germany                1,300  1,300  1,200    500    100    600  5,000  4,000
Italy                    500    400    200  1,200    400    300    900    600
All Other European     1,700    900  2,400  2,900  3,800  2,000  1,700  4,600
All Others             1,200  1,100    800  2,100  3,000  1,400  1,200    900
TOTAL                 38,444 35,924 31,392 26,672 31,011 22,441 27,524 30,268
Dollar inflation
index (1999=1.00) [*] 0.8516 0.8761 0.8957 0.9135 0.9329 0.9530  0.973
                        TOTAL
                        1992-
                         1999
United States         104,076
Russia                 31,200
France                 37,100
United Kingdom         14,200
China                   6,900
Germany                14,000
Italy                   4,500
All Other European     20,000
All Others             11,700
TOTAL                 243,676
Dollar inflation
index (1999=1.00) [*]
Source: U.S. government

Note: All data are for the calendar year given except for U.S. MAP (Military Assistance Program) and IMET (International Military Education and Training), and Excess Defense Articles, which are included for the particular fiscal year. All amounts given include the values of weapons, spare parts, construction, all associated services, military assistance, excess defense articles, and training programs. Statistics for foreign countries are based upon estimated selling prices. All foreign data are rounded to the nearest $100 million.

(*.)Based on Department of Defense Price Deflator.

                Arms Transfer Agreements with the World, by
                            Supplier, 1992-1999
                (in millions of constant 1999 U.S. dollars)
                     1992   1993   1994   1995   1996   1997   1998   1999
United States      24,241 24,568 14,282  9,712 11,910  7,703 10,302 11,768
Russia              2,114  2,739  4,466  8,210  5,038  3,673  2,569  4,800
France             10,568  5,707  9,713  2,846  2,787  5,247  3,392    900
United Kingdom      2,114  3,196    782    876  4,609  1,049  2,055    800
China                 587    571    670    219  1,072  1,364    925  1,900
Germany             1,527  1,484  1,340    547    107    630  5,139  4,000
Italy                 587    457    223  1,314    429    315    925    600
All Other European  1,996  1,027  2,679  3,175  4,073  2,099  1,747  4,600
All Others          1,409  1,256    893  2,299  3,216  1,469  1,233    900
TOTAL              45,143 41,004 35,047 29,198 33,242 23,548 28,288 30,268
                     TOTAL
                     1992-
                      1999
United States      114,486
Russia              33,609
France              41,160
United Kingdom      15,481
China                7,308
Germany             14,773
Italy                4,839
All Other European  21,397
All Others          12,675
TOTAL              265,738
                Arms Transfer Agreements with the World, by
                            Supplier, 1992-1999
                (expressed as a percent of total, by year)
                             1992     1993     1994     1995     1996
United States             53.70 %  59.92 %  40.75 %  33.26 %  35.83 %
Russia                     4.68 %   6.68 %  12.74 %  28.12 %  15.16 %
France                    23.41 %  13.92 %  27.71 %   9.75 %   8.38 %
United Kingdom             4.68 %   7.79 %   2.23 %   3.00 %  13.87 %
China                      1.30 %   1.39 %   1.91 %   0.75 %   3.22 %
Germany                    3.38 %   3.62 %   3.82 %   1.87 %   0.32 %
Italy                      1.30 %   1.11 %   0.64 %   4.50 %   1.29 %
AJI Other European         4.42 %   2.51 %   7.65 %  10.87 %  12.25 %
All Others                 3.12 %   3.06 %   2.55 %   7.87 %   9.67 %
[Major West European [*]  32.77 %  26.44 %  34.40 %  19.12 %  23.86 %
TOTAL                    100.00 % 100.00 % 100.00 % 100.00 % 100.00 %
                             1997     1998     1999
United States             32.71 %  36.42 %  38.88 %
Russia                    15.60 %   9.08 %  15.86 %
France                    22.28 %  11.99 %   2.97 %
United Kingdom             4.46 %   7.27 %   2.64 %
China                      5.79 %   3.27 %   6.28 %
Germany                    2.67 %  18.17 %  13.22 %
Italy                      1.34 %   3.27 %   1.98 %
AJI Other European         8.91 %   6.18 %  15.20 %
All Others                 6.24 %   4.36 %   2.97 %
[Major West European [*]  30.75 %  40.69 %  20.81 %]
TOTAL                    100.00 % 100.00 % 100.00 %
(*.)Major West European category includes
France, United Kingdom, Germany, and Italy.
           Arms Deliveries to the World, by Supplier, 1992-1999
                   (in millions of current U.S. dollars)
                        1992   1993   1994   1995   1996   1997   1998   1999
United States         13,309 15,177 13,501 16,000 14,713 16,487 16,620 18,351
Russia                 2,600  3,400  1,700  3,500  2,900  2,700  2,100  2,700
France                 2,100  1,500  1,300  2,800  3,600  6,100  6,400  2,400
United Kingdom         6,100  4,600  5,200  5,300  6,500  6,800  3,800  4,500
China                  1,000  1,200    600    700    600  1,000    600    300
Germany                1,000  1,600  1,600  1,600  1,300    700  1,500  1,200
Italy                    400    300    200    200    100    700    100    100
All Other European     3,900  2,400  3,400  3,500  3,400  4,000  2,700  2,400
All Others             1,700  1,800  1,900  1,900  1,700  2,100  1,600  2,000
TOTAL                 32,109 31,977 29,401 35,500 34,813 40,587 35,420 33,951
Dollar inflation
index (1999=1.00) [*] 0.8516 0.8761 0.8957 0.9135 0.9329  0.953  0.973      1
                        TOTAL
                        1992-
                         1999
United States         124,158
Russia                 21,600
France                 26,200
United Kingdom         42,800
China                   6,000
Germany                10,500
Italy                   2,100
All Other European     25,700
All Others             14,700
TOTAL                 273,758
Dollar inflation
index (1999=1.00) [*]
Source: U.S. government

Note: All data are for the calendar year given. All data are for the calendar year given except for U.S. MAP (Military Assistance Program), IMET (International Military Education and Training), Excess Defense Articles, and commercially licensed deliveries, which are included for the particular fiscal year. All amounts given include the values of weapons, spare parts, construction, all associated services, military assistance, excess defense articles, and training programs. Statistics for foreign countries are based upon estimated selling prices. All foreign data are rounded to the nearest $100 million.

(*.)Based on Department of Defense Price Deflator.

           Arms Deliveries to the World, by Supplier, 1992-1999
                (in millions of constant 1999 U.S. dollars)
                     1992   1993   1994   1995   1996   1997   1998   1999
United States      15,628 17,323 15,073 17,515 15,771 17,300 17,081 18,351
Russia              3,053  3,881  1,898  3,831  3,109  2,833  2,158  2,700
France              2,466  1,712  1,451  3,065  3,859  6,401  6,578  2,400
United Kingdom      7,163  5,251  5,806  5,802  6,968  7,135  3,905  4,500
China               1,174  1,370    670    766    643  1,049    617    300
Germany             1,174  1,826  1,786  1,752  1,394    735  1,542  1,200
Italy                 470    342    223    219    107    735    103    100
All Other European  4,580  2,739  3,796  3,831  3,645  4,197  2,775  2,400
All Others          1,996  2,055  2,121  2,080  1,822  2,204  1,644  2,000
TOTAL              37,704 36,499 32,825 38,862 37,317 42,589 36,403 33,951
                     TOTAL
                     1992-
                      1999
United States      134,043
Russia              23,463
France              27,932
United Kingdom      46,529
China                6,589
Germany             11,408
Italy                2,299
All Other European  27,963
All Others          15,922
TOTAL              296,149
            Arms Deliveries to the World, by Supplier 1992-1999
                (expressed as a percent of total, by year)
                            1992    1993    1994    1995    1996    1997
United States             41.45%  47.46%  45.92%  45.07%  42.26%  40.62%
Russia                     8.10%  10.63%   5.78%   9.86%   8.33%   6.65%
France                     6.54%   4.69%   4.42%   7.89%  10.34%  15.03%
United Kingdom            19.00%  14.39%  17.69%  14.93%  18.67%  16.75%
China                      3.11%   3.75%   2.04%   1.97%   1.72%   2.46%
Germany                    3.11%   5.00%   5.44%   4.51%   3.73%   1.72%
Italy                      1.25%   0.94%   0.68%   0.56%   0.29%   1.72%
All Other European        12.15%   7.51%  11.56%   9.86%   9.77%   9.86%
All Others                 5.29%   5.63%   6.46%   5.35%   4.88%   5.17%
[Major West European [*]  29.90%  25.02%  28.23%  27.89%  33.03%  35,23%
TOTAL                    100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
                            1998    1999
United States             46.92%  54.05%
Russia                     5.93%   7.95%
France                    18.07%   7.07%
United Kingdom            10.73%  13.25%
China                      1.69%   0.88%
Germany                    4.23%   3.53%
Italy                      0.28%   0.29%
All Other European         7.62%   7.07%
All Others                 4.52%   5.89%
[Major West European [*]  33.31%  24.15%]
TOTAL                    100.00% 100.00%
(*.)Major West European category includes
France, United Kingdom, Germany, and Italy.

Regions Identified in Arms Transfer Tables and Charts

ASIA

Afghanistan

Australia

Bangladesh

Brunei

Burma (Myanmar)

China

Fiji

India

Indonesia

Japan

Kampuchea

(Cambodia)

Kazakhstan

Kyrgyzstan

Laos

Malaysia

Nepal

New Zealand

North Korea

Pakistan

Papua New Guinea

Philippines

Pitcairn

Singapore

South Korea

Sri Lanka

Taiwan

Tajikistan

Thailand

Turkmenistan

Uzbekistan

Vietnam

NEAR EAST

Algeria

Bahrain

Egypt

Israel

Iran

Iraq

Jordan

Kuwait

Lebanon

Libya

Morocco

Oman

Qatar

Saudi Arabia

Syria

Tunisia

United Arab Emirates

Yemen

EUROPE

Albania

Armenia

Austria

Azerbaijan

Belarus

Bosnia/Herzegovina

Bulgaria

Belgium

Canada

Croatia

Czechoslovakia/

Czech Republic

Cyprus

Denmark

Estonia

Finland

France

FYR/Macedonia

Georgia

Germany

Greece

Hungary

Iceland

Ireland

Italy

Latvia

Liechtenstein

Lithuania

Luxembourg

Malta

Moldova

Netherlands

Norway

Poland

Portugal

Romania

Russia

Slovak Republic

Slovenia

Spain

Sweden

Switzerland

Turkey

Ukraine

United Kingdom

Yugoslavia/Federal Republic

AFRICA

Angola

Benin

Botswana

Burkina Faso

Burundi

Cameroon

Cape Verde

Central African Republic

Chad

Congo

Cote d'Ivoire

Djibouti

Equatorial Guinea

Ethiopia

Gabon

Gambia

Ghana

Guinea

Guinea-Bissau

Kenya

Lesotho

Liberia

Madagascar

Malawi

Mali

Mauritania

Mauritius

Mozambique

Namibia

Niger

Nigeria

Reunion

Rwanda

Senegal

Seychelles

Sierra Leone

Somalia

South Africa

Sudan

Swaziland

Tanzania

Togo

Uganda

Zaire

Zambia

Zimbabwe

LATIN AMERICA

Antigua

Argentina

Bahamas

Barbados

Belize

Bermuda

Bolivia

Brazil

British Virgin Islands

Cayman Islands

Chile

Colombia

Costa Rica

Cuba

Dominica

Dominican Republic

Ecuador

El Salvador

French Guiana

Grenada

Guadeloupe

Guatemala

Guyana

Haiti

Honduras

Jamaica

Martinique

Mexico

Montserrat

Netherlands Antilles

Nicaragua

Panama

Paraguay

Peru

St. Kitts & Nevis

St. Lucia

St. Pierre & Miquelon

St. Vincent

Suriname

Trinidad

Turks & Caicos

Venezuela