Conventional Arms Transfers to Developing Nations, 1994-2001. (Legislation & Policy).

[The following are extracts from the unclassified report of Conventional Arms Transfers to Developing Nations as published under the above title by the Library of Congress on August 6, 2002. 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 1994 through 2001. 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 in the 1994-2001 time period. 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.]

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 of 1994 through 2001. It also includes some data on world-wide supplier transactions. It updates and revises the report entitled Conventional Arms Transfers to Developing Nations, 1993-2000, published by the Congressional Research Service (CRS) on Aug 16, 2001 (CRS Report RL3 1083).

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, 1994-2001, conventional arms transfer agreements (which represent orders for future delivery) to developing nations have comprised 68.3 percent of the value of all international arms transfer agreements. The portion of agreements with developing countries constitute 65.8 percent of all agreements globally from 1998-2001. In 2001, arms transfer agreements with developing countries accounted for 60.5 percent of the value of all such agreements globally. Deliveries of conventional arms to developing nations, from 1998-200 1, constituted 68.7 percent of all international arms deliveries. In 2001, arms deliveries to developing nations constituted 67.6 percent of the value of all such arms deliveries worldwide.

The data in this report completely supercede all data published in previous editions. Since these new data for 1994-2001 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 published 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 unpublished totals using a fiscal year basis and those provided in this report which use a calendar year basis for its figures. Details regarding data use are outlined in footnotes at the bottom of Tables 1, 2, 8, and 9.

Constant 2001 Dollars

Throughout this report values of arms transfer agreements and value 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 2001 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 (1994-1997 and 1998-2001), they must be expressed in current dollar terms. Where tables rank leading arms suppliers t o 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

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

Arms Transfer Values

The values of arms transfers (or deliveries) in this report refer to the total values of arms sales (or deliveries as the case may be) of weapons and ammunition, military spare parts, military construction, military assistance and training programs, and all associated services.

Major Findings

General Trends in Arms Transfers Worldwide

The value of all arms transfer agreements worldwide (to both developed and developing nations) in 2001 was nearly $26.4 billion. This is a substantial decrease in arms agreements values over 2000, and is the first time since 1997 that total arms agreements decreased from the previous year (Chart 1)(Table 8A).

In 2001, the United States led in arms transfer agreements worldwide, making agreements valued at nearly $12.1 billion (45.8 percent of all such agreements), down from $18.9 billion in 2000. Russia ranked second with $5.8 billion in agreements (22 percent of these agreements globally), down notably from $8.4 billion in 2000. France ranked third, its arms transfer agreements worldwide falling notably from $4.3 billion in 2000 to $2.9 billion in 2001. The United States, Russia and France, collectively made agreements in 2001 valued at nearly $20.8 billion, 78.8 percent of all international arms transfer agreements made by all suppliers (Figure 1)(Tables 8A, 8B, and 8D).

For the period 1998-2001, the total value of all international arms transfer agreements (about $133.1 billion) was slightly higher than the worldwide value during 1994-1997 ($128.2 billion), an increase of 3.7 percent. During the period 1994 1997, developing world nations accounted for 70.8 percent of the value of all arms transfer agreements made worldwide. During 1998-2001, developing world nations accounted for 65.8 percent of all arms transfer agreements made globally. In 2001, developing nations accounted for 60.5 percent of all arms transfer agreements made worldwide (Figure 1)(Table 8A).

In 2001, the United States ranked first in the value of all international arms deliveries, making $9.7 billion in such deliveries or 45.6 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 2001, making $4 billion in such deliveries. Russia ranked third in 2001, making $3.6 billion in such deliveries. These top three suppliers of arms in 2001 collectively delivered $17.3 billion, 81.2 percent of all arms delivered worldwide by all suppliers in that year (Figure 2)(Tables 9A, 9B, and 9D).

The value of all international arms deliveries in 2001 was $21.3 billion. This is a substantial decrease in the total value of arms deliveries from the previous year ($32.6 billion), and by far the lowest total of the last eight years. The total value of such arms deliveries worldwide in 1998-2001($134.9 billion) was a notable decrease in the value of arms deliveries by all suppliers worldwide from 1994-1997 ($165.8 billion) (Figure 2)(Tables 9A and 9B)(Charts 7 and 8).

Developing nations from 1998-2001 accounted for 68.7 percent of the value of all international arms deliveries. In the earlier period, 1994-1997, developing nations accounted for 70 percent of the value of arms deliveries worldwide. In 2001, developing nations collectively accounted for 67.6 percent of the value of all international arms deliveries (Figure 2)(Tables 2A, 9A, and 9B).

Most recently, many developing nations have curtailed their expenditures on weaponry primarily due to their limited financial resources. This has only served to intensify competition among major arms suppliers for available arms contracts. Given the tenuous state of the global economy, even some prospective arms purchasers with significant financial resources have been cautious in making major new weapons purchases. To meet their military requirements, in current circumstances, a number of developing nations have placed a greater emphasis on upgrading existing weapons systems while deferring purchases of new and costlier ones. These countries have also, in several instances, chosen to focus on the absorption of major items previously obtained.

Developed nations have continued to seek to protect important elements of their own national military industrial bases. As a consequence, these nations have limited their own arms purchases from one another, with the exception of cases where they are involved in the joint production or development of specific weapons systems. The changing dynamics of the international arms marketplace has led several arms supplying nations to restructure and consolidate their defense industries due to competitive pressures. Several traditional arms supplying nations have found it necessary to join in multinational mergers or joint production ventures to maintain the viability of important elements of their national defense industrial sectors. Still other arms suppliers have chosen to focus on specialized niche markets where they have a competitive advantage in the sale of a specific category of weaponry.

Many weapons exporting nations have continued to focus their sales efforts on nations and regions where they have distinct competitive advantages due to longstanding political and military relationships with the prospective buyers. Within Europe, the potential exists for a series of new arms sales to nations that were formerly part of the Warsaw Pact and are now members of NATO, or have membership in prospect. This new market for arms is currently limited by the prospective buyers' lack of significant financial resources. However, competition has been strong between U.S. and European companies, as these prospective customers have the potential to partially offset sales declines elsewhere.

Notable new arms sales may occur with specific countries in the Near East, Asia, and Latin America in the next few years. A significant factor will be the health of the international economy. Various nations in the developed world wish to replace older military equipment. Yet the developing world as a whole has barely recovered from the Asian financial crisis of the late 1990's and the notable fluctuations in the price of crude oil in the last few years. Traditionally high profile weapons purchasers in Asia and the Near East were greatly affected by these events and consequently have been very cautious in seeking new arms agreements. Economic as well as military considerations have factored heavily in their decisions, and this seems likely to be the case for the immediate future.

Despite the fact that some Latin American, and to a lesser extent, African states have expressed interest in modernizing older items in their military inventories, the state of their domestic economies continues to constrain their weapons purchases. Developing nations, in many instances, continue to be dependent on financing credits and favorable payment schedules from suppliers in order to be able to make major arms purchases. This circumstance seems likely to continue to limit major weapons orders by the less affluent nations in the developing world, while enhancing the attractiveness to sellers of arms agreements with those countries that have sufficient resources to purchase weaponry without recourse to seller-supplied credit.

General Trends in Arms Transfers to Developing Nations

The value of all arms transfer agreements with developing nations in 2001 was $16 billion. This was the lowest annual total, in real terms, during the 8-year period from 1994-2001. The total value of new arms transfer agreements with developing nations had increased for the last two years (Chart 1)(Figure 1)(Table 1A). In 2001, the value of all arms deliveries to developing nations ($14.4 billion) was a substantial decrease from the value of 2000 deliveries ($22.1 billion), and the lowest total by far of the last eight years (Charts 7 and 8)(Figure 2)(Table 2A).

Recently, from 1998-2001, the United States and Russia have dominated the arms market in the developing world, with the United States ranking first each of the last four years in the value of arms transfer agreements. From 1998-2001, the United States made nearly $35.7 billion in arms transfer agreements with developing nations, 40.8 percent of all such agreements. Russia, the second leading supplier during this period, made over $19.8 billion in arms transfer agreements or 22.6 percent. France, the third leading supplier, from 1998-2001 made $6.3 billion or 7.2 percent of all such agreements with developing nations during these years. In the earlier period (1994-1997) the United States ranked first with $24 billion in arms transfer agreements with developing nations or 26.5 percent; Russia made over $20.2 billion in arms transfer agreements during this period or 22.3 percent. France made over $18.6 billion in agreements or 20.5 percent (Table 1A).

During the period from 1994-2001, 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 nearly every year from 1994-200 1. The exception was 1997 when the U.S. ranked a close third to Russia. France has been a strong competitor for the lead in arms transfer agreements with developing nations, ranking first in 1994 and 1997, and second in 1998, while Russia has ranked first in 1995, and second in 1996, 1997, 1999, 2000 and 2001. Despite France's larger traditional client base for armaments, Russia's more recent successes in securing new arms orders suggests that Russia may continue to rank higher in the value of new arms agreements than France, at least for the near term. Russia has had more significant limitations in its prospective arms client base than other major suppliers. Most of Russia's largest value arms transfer agreements in recent years have been with two countries, China and India. However, the Russian government has noted that it intends to adopt more flexible credit and payment arrangements for its prospective customers in the developing world to secure more orders for its weaponry. It remains to be seen whether Russia's new approach to arms marketing will achieve its intended results.

Arms suppliers like the United Kingdom and Germany, from time to time, may conclude significant orders with developing countries, based on either long-term supply relationships or their having specialized weapons systems they will readily provide. Yet, the United States still appears best positioned to lead in new arms agreements with developing nations. New and very costly weapons purchases from individual developing countries seem likely to be limited in the near term, given the tenuousness of the international economy. The overall level of the arms trade with developing nations may actually decline in the near term, despite some costly purchases likely to be made by more wealthy developing countries.

Other suppliers in the tier below the United States, Russia and France, such as China, other European, and non-European suppliers, have been participants in the arms trade with developing nations at a much lower level. These suppliers are, however, capable of making an occasional arms deal of a significant nature. Yet most of their annual arms transfer agreements values totals during 1994-2001 are comparatively low, and based upon smaller transactions of generally less sophisticated equipment. Few of these countries are likely to be major suppliers of advanced weaponry on a sustained basis (Tables 1A, 1F, 1G, 2A, 2F, and 2G).

United States

In 2001, the total value in real terms of United States arms transfer agreements with developing nations fell significantly to $7 billion from $13 billion in 2000. Nevertheless, the U.S. share of the value of all such agreements was 43.6 percent in 2001, compared to a 46.3 percent share in 2000, a nominal decline (Charts 1, 3 and 4)(Figure 1)(Tables 1A and 1B).

The value of U.S. arms transfer agreements with developing nations in 2001 was primarily attributable to major purchases by key U.S. clients in the Near East, and to a much lesser extent in Asia. These arms agreement totals also reflect a continuation of well established defense support arrangements with these and other purchasers worldwide. U.S. agreements with its clients in 2001 include not only some highly visible sales of major weapons systems, but also a continuation of the upgrading of existing ones. The U.S. totals also reflect agreements for a wide variety of spare parts, ammunition, ordnance, training, and support services. Among major weapons systems sold by the United States to Israel in 2001 were 52 new production F-16D combat fighter aircraft, associated equipment and services for over $1.8 billion, as well as 6 AH-64 Apache Longbow helicopters. Egypt made an agreement in excess of $500 million for an M1 A1 Abrams main battle tank co-production deal. Another notable United States agreement in 2 001 was a $379 million contract with Singapore for 12 AH-64D Apache helicopters. The United States also concluded agreements for the sale of various missile systems to clients in both the Near East and Asia. These sales included: 111 ATACM missiles and launch systems for South Korea; 50 AIM-120C AMRAAM missiles for Singapore and 48 AIM-120C AMRAAM missiles for Israel; 150 HARM AGM-88C missiles for the United Arab Emirates; and 71 Harpoon missiles for Taiwan.

In addition to these U.S. agreements for the sale of new weapons systems, it must be emphasized that the sale of munitions, upgrades to existing systems, spare parts, training and support services to developing nations worldwide account for a very substantial portion of total value of U.S. arms transfer agreements. This fact reflects the large number of countries in the developing, and developed, world that have acquired and continue to utilize a wide range of American weapons systems, and have a continuing requirement to support, modify, as well as replace, these systems.

Russia

The total value of Russia's arms transfer agreements with developing nations in 2001 was $5.7 billion, a notable decline from $8.3 billion in 2000, but it still placed second in such agreements with the developing world. Russia's share of all developing world arms transfer agreements increased, rising from 29.6 percent in 2000 to 35.7 percent in 2001 (Charts 1, 3, and 4) (Figure 1)(Tables 1A, 1B, and 1G).

Russia's arms transfer agreements totals with developing nations have been notable for the last four years. During the 1998-2001 period, Russia ranked second among all suppliers to developing countries, making $19.8 billion in agreements. Its arms agreement values have ranged from a high of $8.3 billion in 2000 to a low of $2.3 billion in 1998 (in constant 2001 dollars). Russia's arms sales totals reflect its continuing efforts to overcome the effects 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. Following the dissolution of the Soviet Union in December 1991, Russia did not immediately resume those financing and sales practices. Russia has consistently sought to sell weapons as a means of obtaining hard currency. While some former arms clients in the developing world have continued to expres s interest in obtaining Russian weaponry, they have been restricted in doing so by a lack of funds to pay for the armaments they seek. Recently, Russian leaders have begun an effort to facilitate procurement of Russian weapons by providing more flexible and creative financing and payment options. Russia, has also frequently found it necessary to agree to licensed production of major weapons systems as a condition of sales with its two principal clients in recent years, India and China. Such agreements with these nations have accounted for a large portion of Russia's arms transfer agreement totals since the mid-1990s, and seem likely to do so for at least the near term.

The efforts of Russia to make lucrative new sales of conventional weapons continue to confront significant difficulties. This is due in large measure because 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. Russia's difficult transition 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. In late 2000, Russia served public notice that it again intended to pursue major arms sales with Iran, despite objections from the United States. Iran in the early 1990s was a primary purchaser of Russian armaments, receiving such items as MiG-29 fighter aircraft, Su-24 fighter-bombers, T-72 tanks, and Kilo class attack submarines. Within the last year there have been a series of on-going discussions between Iran and Russia that could result in major conventional arms orders from Iran totaling in the billions of dollars. It should also be noted that Russia would clearly pursue new major weapons deals with Iraq, once one of its largest customers, if current U.N. sanctions on Iraq that ban Iraqi arms purchases ar e lifted.

Russia's principal arms clients since 1994 have been India and China. Elements of a long range plan for procurement as well as co-production of a number of advanced Russian weapons systems were agreed to with India in 1999, 2000 and 2001. These agreements are likely to result in significant aircraft, missile, and naval craft agreements with India and deliveries to the Indian government in the years to come. In early 2001, Russia concluded an agreement with India for the procurement and licensed production of 310 T-90 main battle tanks for about $700 million. Russia's arms supplying relationship with China began to mature in the early to mid-1990s. Since 1996 Russia has sold China at least 72 Su-27 fighter aircraft. Subsequently, a licensed production 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, with associated missile systems, and four Kilo class attack submarines, with further sales of such naval systems in prospect. In 1999, the Chinese purchased between 40-60 Su-30 multi-role fighter aircraft for an estimated $2 billion, and deals for future procurement of other weapons systems were agreed to in principle. In 2001, Russia sold China about 40 Su-30 MKK fighter aircraft for over $1.5 billion, and a number of S-300 PMU-2 SAM (SA-10) systems for $400 million. A variety of other contracts were reached with China for upgrades, spare parts, and support services associated with existing weapons systems previously sold by Russia. In light of these major weapons deals, it seems likely that India and China will figure significantly in Russia's arms export program for some years to come.

Russia has also continued to make smaller arms agreements inside and outside of Asia. In 2001, Russia sold South Korea about $600 million in helicopters and other military equipment to help retire existing Russian debts. Russia also sold Mig-29 fighters to Burma and Yemen in 2001.

China

China emerged as an important arms supplier to certain developing nations in the 1980s, primarily due to arms agreements made with both combatants in the Iran and Iraq war. From 1994 through 2001, the value of China's arms transfer agreements with developing nations has averaged over $1 billion annually. During the period of this report, the value of China's arms transfer agreements with developing nations reached its peak in 1999 at $2.7 billion. Its sales figures that year 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. In 2001, China's arms transfer agreements total was $600 million, ranking it third among all suppliers to developing nations. In 2001, a major part of China's arms agreements total was based on the sale of F-7 fighter aircraft to Pakistan. China has also made various smaller valued agreements in 2001 with Sub-Saharan African nations. China, more recently, has become a maj or purchaser of arms, primarily from Russia (Tables 1A, 1G and 1H)(Chart 3).

From the late 1980s onward, 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 did supply Silkworm anti-ship missiles to Iran, as well as other less advanced conventional weapons. Yet China does not appear likely to be a major supplier of conventional weapons in the international arms market in the foreseeable future. More sophisticated weaponry is available from other suppliers such as Russia, or major Western weapons exporters. A noteworthy exception is missiles. Reports persist in various publications that China has sold surface-to-surface missiles to Pakistan, a long-standing client. Iran and North Korea have also reportedly received Chinese missile technology. Continuing reports of this nature raise important questions about China's stated commitment to the restrictions on missile transfers set out in the Missile Technology Control Regime (MTCR), includi ng its pledge not to assist others in building missiles that could deliver nuclear weapons. Since it has a continuing need for hard currency, and has some military 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, and where some nations are seeking to develop asymmetric military capabilities.

Major West European Suppliers

The four major West European suppliers (France, United Kingdom, Germany, and Italy), as a group, registered a decline in their collective share of all arms transfer agreements with developing nations between 2000 and 2001. This group's share fell from 11.5 percent in 2000 to 3.1 percent in 2001. The collective value of this group's arms transfer agreements with developing nations in 2001 was $500 million compared with a total of over $3.2 billion in 2000. Of these four, France was the leading supplier with $400 million in agreements in 2001, a substantial decline from $2.2 billion in 2000. An important portion of the French agreement total in 2001 was attributable to a contract with Saudi Arabia to make upgrades to its French-supplied Shahine SAM missile system. Germany registered a significant decline in arms agreements from over $1 billion in 2000 to essentially nil in 2001. Both the United Kingdom and Italy have failed to conclude notable arms transfer agreements with the developing world in 2000 and 2001 (Charts 3 and 4)(Tables lA and 1B).

The four major West European suppliers, collectively, held about a 22.6 percent share of all arms transfer agreements with developing nations during the period from 1994-2001. During the period soon after the Persian Gulf war, the major West European suppliers generally maintained a notable share of arms transfer agreements. More recently this share has declined. For the 1998-2001 period, they collectively held 15.6 percent of all arms transfer agreements with developing nations ($13.7 billion). Individual suppliers within the major West European group have had notable years for arms agreements, especially France in 1994, 1995, and 1997 ($9.6 billion, $2.9 billion, and $4.8 billion respectively). The United Kingdom also had a large agreement year in 1996 ($3.1 billion), and at least $1 billion in 1997, 1998, and 1999. Germany concluded arms agreements totaling at least $1 billion in 1998, 1999, and 2000, with its highest total at $1.7 billion in 1999. For each of these three nations, large agreement totals i n one year have usually reflected the conclusion of very large arms contracts with one or more major purchasers in that particular year (Tables lA and 1B).

The major West European suppliers have traditionally had their competitive position in weapons exports enhanced by 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 competed successfully for arms sales contracts with developing nations against both the United States, which has tended to sell to several of the same clients, and with Russia, which has sold to nations not traditional customers of the U.S. The demand for U.S. weapons in the global arms marketplace, from a large established client base, has created 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 have begun to phase out production of certain types of weapons systems, and have increasingly sought to join joint production ventures with other key European weapons suppliers or even client countries in an effort to sustain major sectors of their individual defense industrial bases. Projects such as the Eurofighter is but one major example. Other European suppliers have also adopted the strategy of cooperating in defense production ventures with the United States such as the Joint Strike Fighter, to both meet their own requirements for advanced combat aircraft, and to share in profits that result from future sales of the American plane.

Regional Arms Transfer Agreements

The Persian Gulf War from August 1990-February 1991 played a major role in further stimulating already 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. Egypt and Israel continued their modernization and increased their weapons purchases from the United States. The Gulf States' arms purchase demands were not only a response to Iraq's aggression against Kuwait, but a reflection of 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. In the 1990s, Russia became the principal supplier of advanced conventional weaponry to China, while maintaining its position as principal supplier to India. The data on regional ar ms transfer agreements from 1994-2001 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 1994-1997, it accounted for 47.9 percent of the total value of all developing nations arms transfer agreements ($37.3 billion in current dollars). During 1998-2001, the region accounted for 46.5 percent of all such agreements ($38.2 billion in current dollars) (Tables 1C and 1D).

The United States dominated arms transfer agreements with the Near East during the 19942001 period with 53.5 percent of their total value ($40.4 billion in current dollars). France was second during these years with 21.1 percent ($15.9 billion in current dollars). Recently, from 1998-2001, the United States accounted for 70.7 percent of arms agreements with this region ($27 billion in current dollars), while Russia accounted for 8.6 percent of the region's agreements ($3.3 billion in current dollars) (Chart 5)(Tables 1C and 1E).

Asia

Asia has generally been the second largest developing world arms market. In the earlier period (1994-1997), Asia accounted for 42.2 percent of the total value of all arms transfer agreements with developing nations ($32.9 billion in current dollars). During 1998-2001, the region accounted for 38.6 percent of all such agreements ($31.6 billion in current dollars) (Tables 1C and 1D).

In the earlier period (1994-1997), Russia ranked first in the value of arms transfer agreements with Asia with 42.6 percent. The United States ranked second with 18.2 percent. The major West European suppliers, as a group, made 20.4 percent of this region's agreements in 1994-1997. In the later period (1998-2001), Russia ranked first in Asian agreements with 44.2 percent, primarily due to major combat aircraft sales to India and China. The United States ranked second with 18.5 percent. The major West European suppliers, as a group, made 18.6 percent of this region's agreements in 1998-2001 (Chart 6)(Table 1E).

Leading Developing Nations Arms Purchasers

The United Arab Emirates was the leading developing world arms purchaser from 1994-2001, making arms transfer agreements totaling $16 billion during these years (in current dollars). In the 1994-1997 period, Saudi Arabia ranked first in arms transfer agreements at $12.4 billion (in current dollars). From 1998-2001, however, the total value of Saudi Arabia's arms transfer agreements dropped dramatically to $1.7 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 oil over an extended period in the 1990s. The total value of all arms transfer agreements with developing nations from 1994-2001 was $161.9 billion in current dollars. The United Arab Emirates (U.A.E.) alone was responsible for 9.9 percent of all developing world arms transfer agreements during these eight years. In the most recent period, 1998-2001, the U.A.E. ranked first in arms trans fer agreements with developing nations ($10.8 billion in current dollars). India ranked second during these years ($7.2 billion in current dollars). The U.A.E. from 1998-2001 accounted for 13 percent of the value of all developing world arms transfer agreements ($10.8 billion out of $83.4 billion in current dollars) (Tables 1, 1H, 1I and 1J).

The values of the arms transfer agreements of the top ten developing world recipient nations in both the 1994-1997 and 1998-2001 periods accounted for the largest portion of the total developing nations arms market. During 1994-1997, the top ten recipients collectively accounted for 64.8 percent of all developing world arms transfer agreements. During 1998-2001, the top ten recipients collectively accounted for 52.5 percent of all such agreements. Arms transfer agreements with the top ten developing world recipients, as a group, totaled $11.6 billion in 2001 or 72.7 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, 1I and 1J).

Israel ranked first among all developing world recipients in the value of arms transfer agreements in 2001, concluding $2.5 billion in such agreements. China ranked second in agreements in 2001 at $2.1 billion. Egypt ranked third with $2 billion in agreements. Six of these top ten recipients were in the Near East region (Table 1J).

Saudi Arabia was the leading recipient of arms deliveries among developing world recipients in 2001, receiving $4.8 billion in such deliveries. Saudi Arabia alone received 33.3 percent of the total value of all arms deliveries to developing nations in 2001. China ranked second in arms deliveries in 2001 with $2.2 billion. Taiwan ranked third with $1.2 billion (Tables 2 and 2J).

Arms deliveries to the top ten developing nation recipients, as a group, were valued at $14.4 billion, or 81.2 percent of all arms deliveries to developing nations in 2001. Six of these top ten recipients were in Asia; the other four were in the Near East (Tables 2 and 2J).

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 (Tables 3-7).

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 1998-2001 from Table 5.

United States

182 tanks and self-propelled guns
254 APCs and armored cars
81 supersonic combat aircraft
42 helicopters
278 surface-to-air missiles
57 anti-ship missiles

Russia

240 tanks and self-propelled guns
410 APCs and armored cars
30 supersonic combat aircraft
40 helicopters
30 anti-ship missiles

China

1 guided missile boat
170 surface-to-air- missiles
100 anti-ship missiles

Major West European Suppliers

280 tanks and self-propelled guns
70 APCs and armored cars
1 minor surface combatant
10 guided missile boats
3 submarines
10 supersonic combat aircraft
30 helicopters
160 anti-ship missiles

All Other European Suppliers

270 tanks and self-propelled guns
240 APCs and armored cars
1 major surface combatant
3 minor surface combatants
30 supersonic combat aircraft
20 helicopters
280 surface-to-air missiles

All Other Suppliers

30 APCs and armored cars
8 minor surface combatants
30 surface-to-surface missiles
10 anti-ship missiles

Large numbers of major combat systems were delivered to the Near East region from 19982001, specifically, tanks and self-propelled guns, armored vehicles, minor surface combatants, 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, and APCs and armored cars. 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 by the United States, Russia, and European suppliers to the Near East region during the 1998-2001 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 delivered to the Near East are deadly and can create important security threats within the region. In particular, from 1998-2001, China delivered to the Near East region 100 anti-ship missiles, the major West European suppliers delivered 160, while the United States delivered 57. China also delivered one guided missile boat to the Near East, while the major West European suppliers collectively delivered 10 guided missile boats and one minor surface combatant. Other non-European suppliers delivered 30 surface-to-surface missiles, a weapons category not delivered by any of the other major weapons suppliers during this period.

United States Commercial Arms Exports

The United States commercial deliveries data set out below in this report are included in the main data tables for deliveries worldwide and for deliveries to developing nations collectively. They are presented separately here to provide an indicator of their overall magnitude in the U.S. aggregate deliveries totals to the world and to all 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. FMS 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 tha t for the FMS program maintained on an annual basis. Once an exporter 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 on-going 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, effort s have been initiated by the U.S. government to improve the timeliness 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 1994-2001, in current dollars, according to the U.S. State Department, were as follows:

             Commercial Deliveries   Commercial Deliveries
Fiscal Year       (Worldwide)       (to Developing Nations)

   1994         $3,339,000,000           $818,000,000
   1995         $3,173,000,000           $850,000,000
   1996         $1,563,000,000           $418,000,000
   1997         $1,818,000,000           $503,000,000
   1998         $2,045,000,000           $402,000,000
   1999           $654,000,000           $125,000,000
   2000           $478,000,000            $86,000,000
   2001           $821,000,000           $348,000,000

Summary of Data Trends, 1994-2001

Tables 1 through 1J present data on arms transfer agreements with developing nations by major suppliers from 1994-2001. These data show the most recent trends in arms contract activity by major suppliers. Delivery data, which reflect implementation of sales decisions taken earlier, are shown in Tables 2 through 2J. Tables 8, 8A, 8B, 8C, and 8D provide data on worldwide arms transfer agreements from 1994-2001, while Tables 9, 9A, 9B, 9C, and 9D provide data on worldwide arms deliveries during this period. To use these data regarding agreements for purposes other than assessing general trends in seller/buyer activity is to risk drawing conclusions that can be readily invalidated by future events-precise values and comparisons, for example, may change due to cancellations or modifications of major arms transfer agreements. These data sets reflect the comparative order of magnitude of arms transactions by arm suppliers with recipient nations expressed in constant dollar terms, unless otherwise noted.

What follows is a detailed summary of data trends from the tables in the report. The summary statements also reference tables and/or charts pertinent to the point(s) noted.

Total Developing Nations Arms Transfer Agreement Values

Table 1 shows the annual current dollar values of arms transfer agreements with developing nations. Since these figures do not allow for the effects of inflation, they are, by themselves, of somewhat limited use. They provide, however, the data from which Table 1A (constant dollars) and Table 1B (supplier percentages) are derived. Some of the more noteworthy facts reflected by these data are summarized below.

* The value of all arms transfer agreements with developing nations in 2001 was $16 billion. This was the lowest total, in real terms, for arms transfer agreements with developing nations for the S-year period from 1994-2001 (Tables 1 and 1A)(Chart 1).

* The total value of United States agreements with developing nations fell significantly from $13 billion in 2000 to $7 billion in 2001. Nevertheless, the United States' share of all developing world arms transfer agreements only decreased from 46.3 percent in 2000 to 43.6 percent in 2001 (Tables 1A and 1B)(Chart 3).

* In 2001, the total value, in real terms, of Russian arms transfer agreements with developing nations declined notably from the previous year, falling from $8.3 billion in 2000 to $5.7 billion in 2001. Yet the Russian share of all such agreements rose from 29.6 percent in 2000 to 35.7 percent in 2001 (Charts 3 and 4)(Tables 1A and 1B).

* The four major West European suppliers, as a group (France, United Kingdom, Germany, Italy), registered a decrease in their collective share of all arms transfer agreements with developing nations between 2000 and 2001. This group's share fell from 11.5 percent in 2000 to 3.1 percent in 2001. The collective value of this group's arms transfer agreements with developing nations in 2000 was $3.2 billion compared with a total of $500 million in 2001 (Tables 1A and 1B)(Charts 3 and 4).

* France registered a substantial decrease in its share of all arms transfer agreements with developing nations, falling from 7.8 percent in 2000 to 2.5 percent in 2001. The value of its agreements with developing nations declined from $2.2 billion in 2000 to $400 million in 2001 (Tables 1A and 1B).

* In 2001, the United States ranked first in arms transfer agreements with developing nations at $7 billion. Russia ranked second at $5.7 billion, while China ranked third at $600 million (Charts 3 and 4)(Tables 1A, 1B, and 1G).

Regional Arms Transfer Agreements, 1994-2001

Table 1C gives the values of arms transfer agreements between suppliers and individual regions of the developing world for the periods 1994-1997 and 1998-2001. These values are expressed in current U.S. dollars. (1) Table 1D, derived from Table 1C, gives the percentage distribution of each supplier's agreement values within the regions for the two time periods. Table 1E, also derived from Table 1C, illustrates what percentage share of each developing world region's total arms transfer agreements was held by specific suppliers during the years 1994-1997 and 1998-2001. Among the facts reflected in these tables are the following:

Near East

The Near East has generally been the largest regional arms market in the developing world. In 1994-1997, it accounted for 47.9 percent of the total value of all developing nations arms transfer agreements ($37.3 billion in current dollars). During 1998-2001, the region accounted for 46.5 percent of all such agreements ($38.2 billion in current dollars) (Tables 1C and 1D).

The United States has dominated arms transfer agreements with the Near East during the 1994-2001 period with 53.5 percent of their total value ($40.4 billion in current dollars). France was second during these years with 21.1 percent ($15.9 billion in current dollars). Most recently, from 1998-2001, the United States accounted for 70.7 percent of all arms transfer agreements with the Near East region ($27 billion in current dollars). Russia accounted for 8.6 percent of agreements with this region ($3 billion in current dollars) during the 1998-2001 period (Chart 5)(Tables 1C and 1E).

For the period 1994-1997, the United States concluded 64.6 percent of its developing world arms transfer agreements with the Near East. In 1998-2001, the U.S. concluded 79.2 percent of its agreements with this region (Table 1D).

For the period 1994-1997, the four major West European suppliers collectively made 62.3 percent of their developing world arms transfer agreements with the Near East. In 1998-2001, the major West Europeans made 29.1 percent of their arms agreements with the Near East (Table 1D). For the period 1994-1997, France concluded 81.1 percent of its developing world arms transfer agreements with the Near East. In 1998-2001, France made 51.7 percent of its agreements with the Near East (Table 1D).

For the period 1994-1997, the United Kingdom concluded 28.6 percent of its developing world arms transfer agreements with the Near East. In 1998-2001, the United Kingdom made 10 percent of its agreements with the Near East (Table 1D).

For the period 1994-1997, China concluded 40.6 percent of its developing world arms transfer agreements with the Near East. In 1998-2001, China made 16.3 percent of its agreements with the Near East (Table 1D).

For the period 1994-1997, Russia concluded 15.3 percent of its developing world arms transfer agreements with the Near East. In 1998-2001, Russia made 17.4 percent of its agreements with the Near East (Table 1D).

In the earlier period (1994-1997), the United States ranked first in arms transfer agreements with the Near East with 35.9 percent. France ranked second with 34.6 percent. Russia ranked third with 7.2 percent. The major West European suppliers, as a group, made 38.6 percent of this region's agreements in 1994-1997. In the later period (1998-2001), the United States ranked first in Near East agreements with 70.7 percent. Russia ranked second with 8.6 percent. France ranked third with 7.9 percent. The major West European suppliers, as a group, made 9.7 percent of this region's agreements in 1998-2001. (Table 1E)(Chart 5).

Asia

Asia has generally been the second largest arms market in the developing world. In the 1994-1997 period, Asia accounted for 42.2 percent of all arms transfer agreements with developing nations ($32.9 billion in current dollars). In the more recent period, 1998-2001, it accounted for 38.6 percent of all developing nations arms transfer agreements ($31.6 billion in current dollars)(Tables 1C and 1D).

In the earlier period, 1994-1997, Russia ranked first in arms transfer agreements with Asia with 42.6 percent. The United States ranked second with 18.2 percent. The major West European suppliers, as a group, made 20.4 percent of this region's agreements in 1994-1997. In the later period, 1998-2001, Russia ranked first in Asian agreements with 44.2 percent, primarily due to major aircraft and naval vessel sales to India and China. The United States ranked second with 18.5 percent. The major West European suppliers, as a group, made 18.6 percent of this region's agreements in 1998-2001 (Chart 6) (Table 1E).

Latin America

In the earlier period, 1994-1997, the United States ranked first in arms transfer agreements with Latin America with 21.4 percent. France ranked second with 8.4 percent. The major West European suppliers, as a group, made 26.8 percent of this region's agreements in 1994-1997. In the later period, 1998-2001, the United States ranked first with 35.5 percent. Russia ranked second with 9.2 percent. All other non-European suppliers collectively made 36.9 percent of the region's agreements in 1998-2001. Latin America registered a significant decline in the total value of its arms transfer agreements from 1994-1997 to 1998-2001, falling from about $6 billion in the earlier period to $3.3 billion in the latter (Tables 1C and 1E).

Africa

In the earlier period, 1994-1997, Russia ranked first in agreements with Africa with 33.7 percent ($600 million in current dollars). China ranked second with 16.8 percent. The major West European suppliers, as a group, made 22.5 percent of the region's agreements in 1994-1997. The United States made 4.6 percent. In the later period, 1998-2001, Germany ranked first in agreements with 17.8 percent ($1.6 billion). Russia ranked second with 15.6 percent ($1.4 billion). The major West European suppliers, as a group, made 34.4 percent of this region's agreements in 1998-2001. All other European suppliers collectively made 33.3 percent ($3 billion). The United States made 1.2 percent. Africa registered a substantial increase in the total value of its arms transfer agreements from 1994-1997 to 1998-2001, rising from $1.8 billion in the earlier period to $9 billion in the latter (in current dollars). The notable rise in the level of arms agreements reflected, to an important degree, South Africa's new defense procure ment program (Tables 1C and 1E).

Arms Transfer Agreements With Near East 1994-2001: Suppliers And Recipients

Table 1H gives the values of arms transfer agreements with the Near East nations by suppliers or categories of suppliers for the periods 1994-1997 and 1998-2001. These values are expressed in current U.S. dollars. They are a subset of the data contained in Table 1 and Table 1G. Among the facts reflected by this Table are the following:

* For the most recent period, 1998-200 1, the principal purchasers of U.S. arms in the Near East region, based on the value of agreements were: the United Arab Emirates (U.A.E.) ($6.6 billion); Israel ($2.5 billion), Egypt ($1.7 billion), and Saudi Arabia ($600 million). The principal purchasers of Russian arms were: the U.A.E. ($1 billion), Iran ($900 million), Yemen ($500 million) and Algeria ($400 million). The principal purchasers of arms from China were Egypt ($400 million), and Algeria and Yemen ($100 million each). The principal purchasers of arms from the four major West European suppliers, as a group, were: the U.A.E. ($2.6 billion), Saudi Arabia and Syria ($300 million each). The principal purchasers of arms from all other European suppliers collectively were Saudi Arabia ($800 million), Algeria ($400 million), and the U.A.E. ($300 million). The principal purchasers of arms from all other suppliers combined were Libya and the U.A.E. ($300 million each).

* For the period from 1998-2001, the United Arab Emirates (U.A.E.) made $10.8 billion in arms transfer agreements. The United States ($6.6 billion), the major West Europeans, collectively, ($2.6 billion), and Russia ($1 billion) were its largest suppliers. Saudi Arabia made $1.7 billion in arms transfer agreements. Its principal suppliers were: the United States ($600 million), the four major West European suppliers, as a group, ($300 million), and all other European suppliers collectively, excluding the four major Europeans ($800 million). Egypt made $2.6 billion in arms transfer agreements. Its major supplier was the United States ($1.7 billion). Israel made $2.5 billion in arms transfer agreements. Its principal supplier was the United States ($2.5 billion).

* The total value of arms transfer agreements by China with Iran fell from $900 million to nil during the period from 1994-1997 to 1998-2001. The value of Russia's arms transfer agreements with Iran rose from $200 million in the earlier period to $900 million from 1998-2001, reflecting the reestablishment of their arms supply relationship.

* The value of arms transfer agreements by the United States with Saudi Arabia fell significantly from the 1994-1997 period to the 1998-2001 period, declining from $4 billion in the earlier period to $600 million in the later period. Saudi Arabia still made 35.3 percent of its arms transfer agreements with the United States during 1998-2001. Meanwhile, arms transfer agreements with Saudi Arabia by the major West European suppliers also decreased significantly from 1994-1997 to 1998-2001, falling from $6.5 billion to $300 million.

Arms Transfers to Developing Nations, 1994-2001: Agreements With Leading Recipients

Table 1I gives the values of arms transfer agreements made by the top ten recipients of arms in the developing world from 1994-2001 with all suppliers collectively. The Table ranks recipients on the basis of the total current dollar values of their respective agreements with all suppliers for each of three periods 1994-1997, 1998-2001 and 1994-2001. Among the facts reflected in this Table that the U.A.E. has been the leading developing world purchaser of arms from 1994-2001, making agreements totaling $16 billion during these years. The total value of all arms transfer agreements with developing nations from 1994-2001 was $161.9 billion in current dollars. The U.A.E. alone was responsible for over 9.9 percent of all developing world arms transfer agreements during these years. In the most recent period-1998-200 1-the U.A.E ranked first in arms transfer agreements by developing nations ($10.8 billion in current dollars). India ranked second ($7.2 billion in current dollars). The U.A.E. accounted for about 13 p ercent of all developing world arms transfer agreements during this period ($10.8 billion out of nearly $83.4 billion in current dollars) (Tables 1, 1B, 11 and 1J). During 1994-1997, the top ten recipients collectively accounted for 64.8 percent of all developing world arms transfer agreements. During 1998-2001, the top ten recipients, collectively accounted for 52.5 percent of

all such agreements (Tables 1 and 1I).

Arms Transfers to Developing Nations in 2001: Agreements With Leading Recipients

Table 1J names the top ten developing world recipients of arms transfer agreements in 2001. The Table ranks these recipients on the basis of the total current dollar values of their respective agreements with all suppliers in 2001. Among the facts reflected in this Table are the following:

* Israel ranked first among all developing nations recipients in the value of arms transfer agreements in 2001, concluding $2.5 billion in such agreements. China ranked second with $2.1 billion. Egypt ranked third with $2 billion.

* Six of the top ten developing world recipients of arms transfer agreements in 2001 were in the Near East. Four were in Asia.

* Arms transfer agreements with the top ten developing world recipients, as a group, in 2001 totaled $11.6 billion or 72.7 percent of all such agreements with the developing world, reflecting a continuing concentration of developing world arms purchases among a few nations (Tables 1 and 1J).

Developing Nations Arms Delivery Values

Table 2 shows the annual current dollar values of arms deliveries (items actually transferred) to developing nations by major suppliers from 1994-2001. The utility of these particular data is that they reflect transfers that have occurred. They provide the data from which Table 2A (constant dollars) and Table 2B (supplier percentages) are derived. Some of the more notable facts illustrated by these data are summarized below.

* In 2001 the value of all arms deliveries to developing nations ($14.4 billion) was a notable decrease in deliveries values from the previous year, ($22.1 billion in constant 2001 dollars) (Charts 7 and 8)(Table 2A).

* The U.S. share of all deliveries to developing nations in 2001 was 41.7 percent, up from 39.3 percent in 2000. In 2001, the United States, for the eighth year in a row, ranked first in the value of arms deliveries to developing nations (in constant 2001 dollars), reflecting continuing implementation of Persian Gulf War era arms transfer agreements. The second leading supplier was Russia. Russia's share of all deliveries to developing nations in 2001 was 23.6 percent, up notably from 14.1 percent in 2000. The United Kingdom's share of all arms deliveries to developing nations in 2001 was 22.9 percent, up from 22.1 percent in 2000. The share of major West European suppliers deliveries to developing nations in 2001 was 24.3 percent, down notably from 32.5 percent in 2000 (Tables 2A and 2B).

* The total value of all arms deliveries by all suppliers to developing nations from 1998-2001 ($92.6 billion in constant 2001 dollars) was substantially lower than the value of arms deliveries by all suppliers to developing nations from 1994-1997 ($116 billion in constant 2001 dollars) (Table 2A).

* During the years 1994-2001, arms deliveries to developing nations comprised 69.4 percent of all arms deliveries worldwide. In 2001, the percentage of arms deliveries to developing nations was 67.6 percent of all arms deliveries worldwide (Tables 2A and 9A)(Figure 2).

Regional Arms Delivery Values, 1994-2001

Table 2C gives the values of arms deliveries by suppliers to individual regions of the developing world for the periods 1994-1997 and 1998-2001. These values are expressed in current U.S. dollars. (2) Table 2D, derived from Table 2C, gives the percentage distribution of each supplier's deliveries values within the regions for the two time periods. Table 2E, also derived from Table 2C, illustrates what percentage share of each developing world region's total arms delivery values was held by specific suppliers during the years 1994-1997 and 1998-2001. Among the facts reflected in these tables are the following:

Near East

The Near East has generally led in the value of arms deliveries received by the developing world. In 1994-1997, it accounted for 59.8 percent of the total value of all developing nations deliveries ($60.2 billion in current dollars). During 1998-2001 the region accounted for 56 percent of all such deliveries ($48.8 billion in current dollars) (Tables 2C and 2D).

For the period 1994-1997, the United States made 64.9 percent of its developing world arms deliveries to the Near East region. In 1998-2001, the United States made 61 percent of its developing world arms deliveries to the Near East region (Table 2D).

For the period 1994-1997, the United Kingdom made 85.4 percent of its developing world arms deliveries to the Near East region. In 1998-2001, the United Kingdom made 84.7 percent of its developing world arms deliveries to the Near East region (Table 2D).

For the period 1997-2001, 55.7 percent of France's arms deliveries to the developing world were to the Near East region. In the more recent period, 1998-2001, 49.6 percent of France's developing world deliveries were to nations of the Near East region (Table 2D).

For the period 1994-1997, Russia made 30.8 percent of its developing world arms deliveries to the Near East region. In 1998-2001, Russia made 17.6 percent of such deliveries to the Near East (Table 2D).

In the earlier period, 1994-1997, the United States ranked first in the value of arms deliveries to the Near East with 40.9 percent (nearly $24.6 billion in current dollars). The United Kingdom ranked second with 30.1 percent ($18.1 billion in current dollars). France ranked third with 11.5 percent ($6.9 billion in current dollars). The major West European suppliers, as a group, held 42 percent of this region's delivery values in 1994-1997. In the later period (1998-2001), the United States ranked first in Near East delivery values with 46.3 percent ($22.6 billion in current dollars). The United Kingdom ranked second with 27.3 percent ($13.3 billion in current dollars). France ranked third with 11.3 percent ($5.5 billion in current dollars). The major West European suppliers, as a group, held 41 percent of this region's delivery values in 1998-2001 (Tables 2C and 2E).

Asia

The Asia region has generally ranked second in the value of antis deliveries from most suppliers in both time periods. In the earlier period, 1994-1997, 32.4 percent of all arms deliveries to developing nations were to those in Asia ($32.6 billion in current dollars). In the later period, 1998-2001, Asia accounted for 36.6 percent of such arms deliveries ($31.9 billion in current dollars). For the period 1998-2001, Italy made 80 percent of its developing world deliveries to Asia. Russia made 70.4 percent of its developing world arms deliveries to Asia. China made 52.6 percent of its developing world deliveries to Asia, while France made 48.7 percent (Tables 2C and 2D).

In the period from 1994-1997, the United States ranked first in the value of arms deliveries to Asia with 33.7 percent ($11 billion in current dollars). Russia ranked second with 16.9 percent ($5.5 billion in current dollars). France ranked third with 15.4 percent ($5 billion in current dollars). The major West European suppliers, as a group, held 32.9 percent of this region's delivery values in 1994-1997. In the period from 1998-2001, the United States ranked first in Asian delivery values with 39.5 percent ($12.6 billion in current dollars). Russia ranked second with 23.8 percent ($7.6 billion in current dollars). France ranked third with 16.9 percent ($5.4 billion in current dollars). The major West European suppliers, as a group, held 27 percent of this region's delivery values in 1998-2001 (Tables 2C and 2E).

Latin America

In the earlier period, 1994-1997, the value of all arms deliveries to Latin America was $5.1 billion. The United States ranked first in the value of arms deliveries' to Latin America with 43.5 percent ($2.2 billion in current dollars). The United Kingdom ranked second with 7.8 percent ($400 million in current dollars). The major West European suppliers, as a group, held 17.5 percent of this region's delivery values in 1994-1997. In the later period, 1998-2001, the United States ranked first in Latin American delivery values with 59.2 percent ($1.7 billion in current, dollars). Russia, France and Germany tied for second with 6.8 percent each. The major West European suppliers, as a group, held 13.6 percent of this region's delivery values in 1998-2001. During 1998-2001, the value of all arms deliveries to Latin America was $2.9 billion, a substantial decline from the $5.1 billion deliveries total for 1994-1997 (Tables 2C and 2E).

Africa

In the earlier period, 1994-1997, the value of all arms deliveries to Africa was $2.7 billion. Russia ranked first in the value of arms deliveries to Africa with 22.1 percent ($600 million in current dollars). China ranked second with 11.1 percent ($300 million in current dollars).The major West European suppliers, as a group, held 14.7 percent of this region's delivery values in 1994-1997. The United States held 4.3 percent. In the later period, 1998-2001, Russia ranked first in African delivery values with 31.5 percent ($1.1 billion in current dollars). China ranked second with 14.3 percent ($500 million in current dollars). The major West European suppliers, as a group, held 2.9 percent. The United States held 2.6 percent. The other European suppliers collectively held 28.6 percent ($1 billion in current dollars). During this later period, the value of all arms deliveries to Africa increased from $2.7 billion to nearly $3.5 billion (in current dollars) (Tables 2C and 2E).

Arms Deliveries to Developing Nations, 1994-2001: Leading Suppliers Compared

Table 2F gives the values of arms deliveries to developing nations from 1994-2001 by the top eleven suppliers. The Table ranks these suppliers on the basis of the total current dollar values of their respective deliveries to the developing world for each of three periods 1994-1997, 19982001, and 1994-2001. Among the facts reflected in this Table are the following:

* The United States ranked first among all suppliers to developing nations in the value of arms deliveries from 1998-2001 ($37.2 billion), and first for the entire period from 1994-2001 ($74.9 billion).

* The United Kingdom ranked second among all suppliers to developing nations in the value of arms deliveries from 1998-2001 ($15.7 billion), and second for the entire period from 1994-2001 ($37 billion).

* France ranked third among all suppliers to developing nations in the value of arms deliveries from 1998-2001 ($11 billion), and third for the entire period from 1994-2001 ($23.3 billion).

Arms Deliveries With Developing Nations in 2001: Leading Suppliers Compared

Table 2G ranks and gives for 2001 the values of arms deliveries to developing nations of the top ten suppliers in current U.S. dollars. Among the facts reflected in this Table are the following:

* The United States, the United Kingdom and Russia, the year's top three arms suppliers-ranked by the value of their arms deliveries collectively made deliveries in 2001 valued at $12.7 billion, 88.2 percent of all arms deliveries made to developing nations by all suppliers.

* In 2001, the United States ranked first in the value of arms deliveries to developing nations, making $6 billion in such agreements, or 41.7 percent of them.

* Russia ranked second and the United Kingdom third in deliveries to developing nations in 2001, making $3.4 billion and $3.3 billion in such deliveries' respectively.

* China ranked fourth in arms deliveries to developing nations in 2001, making $400 million in such deliveries, while Israel ranked fifth with $200 million in deliveries.

Arms Deliveries to Near East, 1994-2001: Suppliers and Recipients

Table 2H gives the values of arms delivered to Near East nations by suppliers or categories of suppliers for the periods 1994-1997 and 1998-2001. These values are expressed in current U. S. dollars. They are a subset of the data contained in Table 2 and Table 2C. Among the facts reflected by this Table are the following:

* For the most recent period, 1998-2001, the principal arms recipients of the United States in the Near East region, based on the value of their arms deliveries were Saudi Arabia ($12.8 billion), Israel ($3.8 billion), Egypt ($3.1 billion), and Kuwait ($1.5 billion). The principal arms recipients of Russia were Iran ($500 million), Algeria ($400 million), Syria and the U.A.E. ($300 million each). The principal arms recipient of China was Kuwait ($200 million). The principal arms recipients of the four major West European suppliers, as a group, were Saudi Arabia ($14.6 billion), the U.A.E. ($2 billion), Qatar ($1.2 billion), and Israel ($900 million). The principal arms recipient of all other European suppliers collectively was Saudi Arabia ($1.8 billion). The principal arms recipient of all other suppliers, as a group, was Jordan ($200 million).

* For the period 1998-2001, Saudi Arabia received $29.3 billion in arms deliveries. Its principal suppliers were the United States ($12.8 billion), and the four major West Europeans, as a group ($14.6 billion). Israel received $4.8 billion in arms deliveries. Its principal supplier was the United States ($3.8 billion). Egypt received $3.5 billion in arms deliveries. Its principal supplier was the United States ($3.1 billion). The U.A.E. received $3.4 billion in arms deliveries. Its principal suppliers were the four major West Europeans, as a group ($2 billion). Kuwait received $2.4 billion in arms deliveries. Its principal suppliers were the United States ($1.5 billion), and the four major West Europeans collectively, ($600 million). Iran received $900 million in arms deliveries. Its principal supplier was Russia ($500 million).

* The value of United States arms deliveries to Saudi Arabia declined from $13.9 billion in 1994-1997 to $12.8 billion in 1998-2001, as implementation of orders placed during the Persian Gulf War era continued to be concluded.

* The value of Russian arms deliveries to Iran declined from the 1994-1997 period to the 1998-2001 period. Russian arms deliveries fell from $700 million to $500 million.

* Chinese arms deliveries to Iran dropped dramatically from 1994-1997 to 1998-2001, falling from $900 million in 1994-1997 to $100 million in 1998-2001.

Arms Deliveries to Developing Nations, 1994-2001: The Leading Recipients

Table 2I gives the values of arms deliveries made to the top ten recipients of arms in the developing world from 1994-2001 by all suppliers collectively. The Table ranks recipients on the basis of the total current dollar values of their respective deliveries from all suppliers for each of three periods-1994-1997, 1998-2001 and 1994-2001. Among the facts reflected in this Table are the following:

* Saudi Arabia and Taiwan were the top two developing world recipients of arms from 1994-2001, receiving deliveries valued at $65 billion and $20.7 billion, respectively, during these years. The total value of all arms deliveries to developing nations from 1994-2001 was $189.8 billion in current dollars (see Table 2). Thus, Saudi Arabia and Taiwan were responsible for 34.2 percent and 10.9 percent, respectively, of all developing world deliveries during these years-together 45.1 percent of the total. In the most recent period-1998-2001-Saudi Arabia and Taiwan ranked first and second in the value of arms received by developing nations ($29.3 billion and $10.1 billion, respectively, in current dollars). Together, Saudi Arabia and Taiwan accounted for 44.9 percent of all developing world arms deliveries ($39.4 billion out of nearly $87.7 billion-the value of all deliveries to developing nations in 1998-2001 (in current dollars).

* For the 1998-2001 period, Saudi Arabia alone received $29.3 billion in arms deliveries (in current dollars) or 33.4 percent of all deliveries to developing nations during this period.

* During 1994-1997, the top ten recipients collectively accounted for 76.9 percent of all developing world arms deliveries. During 1998-2001, the top ten recipients collectively accounted for 74.6 percent of all such deliveries (Tables 2 and 2I).

Arms Transfers to Developing Nations in 2001: Agreements With Leading Recipients

Table 2J names the top ten developing world recipients of arms transfer agreements in 2001. The Table ranks these recipients on the basis of the total current dollar values of their respective agreements with all suppliers in 2001. Among the facts reflected in this Table are the following:

* Saudi Arabia was the leading recipient of arms deliveries in 2001 among developing nations, receiving $4.8 billion in such deliveries, or 33.3 percent. China ranked second with $2.2 billion. Taiwan ranked third with $1.2 billion (Tables 2 and 2J).

* Arms deliveries in 2001 to the top ten developing nation recipients, collectively, constituted $11.7 billion, or 81.2 percent of all developing nations deliveries. Six of the top ten arms recipients in the developing world in 2001 were in the Asia region; four were in the Near East (Tables 2 and 2J).

Selected Weapons Deliveries to Developing Nations, 1994-2001

Other useful data for assessing arms transfers are those that indicate who has actually delivered specific numbers of specific classes of military items to a region. These data are relatively "hard" in that they reflect actual transfers of military equipment. They have the limitation of not giving detailed information regarding either the sophistication or the specific name of the equipment delivered. However, these data show relative trends in the delivery of important classes of military equipment and indicate who the leading suppliers are from region to region over time. Data in the following tables set out actual deliveries of fourteen categories of weaponry to developing nations from 1994-2001 by the United States, Russia, China, the four major West European suppliers as a group, all other European suppliers as a group, and all other suppliers as a group (Tables 3, 4, 5, 6, and 7).

A note of caution is warranted regarding the quantitative data within these specific tables. Aggregate data on weapons categories delivered by suppliers do not provide precise indices of the quality and/or quantity of the weaponry delivered. The history of recent conventional conflicts suggests that quality and/or sophistication of weapons can offset quantitative advantage. Further, these data do not provide an indication of the relative capabilities of the recipient nations to use effectively the weapons delivered to them. Superior training, coupled with good equipment, tactical proficiency, and sound logistics may, in the last analysis, be a more important factor in a nation's ability to engage successfully in conventional warfare than the size of its weapons inventory.

Worldwide Arms Transfer Agreements and Deliveries Values, 1994-2001

Tables 8, 8A, and SB and Tables 9, 9A and 9B, provide the total dollar values for arms transfer agreements and arms deliveries worldwide for the years 1994-2001 in the same format and detail as do Tables 1, 1A and 1B and Tables 2, 2A and 2B for arms transfer agreements with and arms deliveries to developing nations. Tables 8C, 8D, 9C and 9D provide a list of the top eleven arms suppliers to the world based on the total values (in current dollars) of their arms transfer agreements with and arms deliveries worldwide during calendar years 1994-1997, 1998-2001, and 2001. These tables are set out in the same format and detail as Tables 1F, 2F 1G. and 2G for arms transfer agreements with and arms deliveries to developing nations respectively.

Total Worldwide Arms Transfer Agreements Values, 1994-2001

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 SA (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 2001 U.S. dollars.

* The United States ranked first among all suppliers to the world in the value of arms transfer agreements from 1998-2001, and first for the entire period form 1994-2001 (Figure 1) (Table 8C).

* Russia ranked second among all suppliers to the world in the value of arms transfer agreements from 1998-2001, and second from 1994-2001.

* France ranked third among all suppliers to the world in the value of arms transfer agreements from 1998-2001, and third from 1994-2001.

* In 2001, the value of all arms transfer agreements worldwide was $26.4 billion. This is the lowest total for worldwide arms transfer agreements for any year since 1997.

* In 2001, the United States was the leader in arms transfer agreements with the world, making $12.1 billion in such agreements, or 45.8 percent of all arms transfer agreements. Russia ranked second with $5.8 billion in arms transfer agreements, or 22 percent of all arms transfer agreements. France ranked third with $2.9 billion or 11.1 percent. United States agreements' decreased significantly notably from $18.9 billion in 2000 to $12.1 billion in 2001, although the U.S. share of agreements only fell from 47.3 percent to 45.8 percent. Russia's arms transfer agreements also fell significantly from $8.4 billion in 2000 to $5.8 billion in 2001 (Tables 8A, 8B, and 8D).

* The United States, Russia and France, the top three arms suppliers to the world in 2001 respectively-ranked by the value of their arms transfer agreements collectively made agreements in 2001 valued at nearly $20.8 billion, 78.8 percent of all arms transfer agreementsmade with the world by all suppliers.

* The total value of all arms transfer agreements worldwide from 1998-2001 ($133.1 billion) was slightly higher than the value of arms transfer agreements by all suppliers worldwide from 1994-1997 ($128.2 billion), an increase of 3.9 percent (Figure 1).

* During the period from 1994-1997, developing world nations accounted for 70.8 percent of all arms transfer agreements made worldwide. During 1998-2001, developing world nations accounted for 65.8 percent of all agreements made worldwide (Figure 1).

* In 2001, developing nations were recipients of 60.5 percent of all arms transfer agreements made worldwide (Figure 1).

Total Worldwide Delivery Values 1994-2001

Table 9 shows the annual current dollar values of arms deliveries (items actually transferred) worldwide by major suppliers from 1994-2001. 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 2001 U.S. dollars.

* In 2001, the United States ranked first in the value of arms deliveries worldwide, making $9.7 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. The U.S. total is a substantial decline from 2000 when its delivery values totaled over $13.5 billion (Figure 2) (Tables 9A and 9D).

* The United Kingdom ranked second in arms deliveries worldwide in 2001, making $4 billion in such deliveries.

* Russia ranked third in arms deliveries worldwide in 2001, making $3.6 billion in such deliveries.

* In 2001, the top three suppliers of arms to the world, the United States, the United Kingdom, and Russia, collectively delivered nearly $17.3 billion, 81.2 percent of all arms deliveries made worldwide by all suppliers (Table 9D).

* The U.S. share of all arms deliveries worldwide in 2001 was 45.6 percent, up slightly from its 41.6 percent share in 2000. The United Kingdom's share in 2001 was 18.8 percent up from 17.9 percent in 2000. Russia's share of world arms deliveries in 2001 was 16.9 percent, up from 11.5 percent in 2000 (Table 9B).

* In 2001, the value of all arms deliveries worldwide was over $21.3 billion, a significant decline in the total value of deliveries in 2000 ($32.6 billion in constant 2001 dollars), and the lowest deliveries total by far during the entire period from 1994-2001 (Chart 7) (Table 9A).

* During the period from 1994-1997, developing world nations accounted for 70 percent of all arms deliveries received worldwide. During 1998-2001, developing world nations accounted for 68.7 percent of all deliveries worldwide (Figure 2).

* In 2001, developing nations as recipients of arms accounted for 67.6 percent of all arms deliveries received worldwide (Figure 2).

* The total value of all arms deliveries by all suppliers worldwide from 1998-2001 ($134.9 billion) was a significant decrease from the value of arms deliveries by all suppliers worldwide from 1994-1997 ($165.8 billion in constant dollars), a decline of 18.6 percent (Figure 2)(Table 9A).

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Table 1

Arms Transfer Agreements With Developing Nations, By Supplier, 1994-2001

(in Millions of Current U.S. Dollars)

                           1994    1995    1996    1997    1998    1999

United States             6,663   4,158   6,691   3,212   6,403   8,239
Russia                    3,500   6,600   4,100   3,300   2,100   3,300
France                    8,100   2,500   1,100   4,300   2,500     900
United Kingdom              700     600   2,700   1,000   1,000   1,000
China                       800     200     900   1,300     700   2,500
Germany                       0     200     100     100   1,500   1,600
Italy                       100     700     300     500       0     700
All Other European        1,600   1,700   3,000   1,600   1,400   4,400
All Others                  500   1,600   2,000   2,100   1,200   1,000

Total                    21,963  18,258  20,891  17,412  16,803  23,639

* Dollar Inflation
   Index: (2001 = 1.00)  0.8401  0.8572  0.8756  0.8947  0.9158  0.9376

                           2000    2001  1994-2001

United States            12,499   6,956     54,821
Russia                    8.000   5,700     36,600
France                    2,100     400     21,900
United Kingdom                0       0      7,000
China                       600     600      7,600
Germany                   1,000       0      4,500
Italy                         0     100      2,400
All Other European        1,200     800     15,700
All Others                1,600   1,400     11,400

Total                    26,999  15,956    161,921

* Dollar Inflation
   Index: (2001 = 1.00)  0.9617       1

Source: U.S. government.

Note: Developing nations category excludes the U.S., Europe, Canada,
Japan, Australia, and New Zealand. All data are for the calendar year
given except for U.S. Military Assistance Program (MAP), International
Military Education and Training (IMET), 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, miltary 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. The Untied States total in 2000 includes a $6.432 billion
licensed commercial agreement with the United Arab Emirates for 80 F-16
aircraft.

* Based on Department of Defense price Deflator.

Table 1A

Arms Transfer Agreements With Developing Nations, By Supplier, 1994-2001
(In Millions of constant 2001 U.S. Dollars)

                      1994    1995    1996    1997    1998    1999

United States        7,931   4,851   7,642   3,590   6,992   8,787
Russia               4,166   7,699   4,683   3,688   2,293   3,520
France               9,642   2,916   1,256   4,806   2,730     960
United Kingdom         833     700   3,084   1,118   1,092   1,067
China                  952     233   1,028   1,453     764   2,666
Germany                  0     233     114     112   1,638   1,706
Italy                  119     817     343     559       0     747
All Other European   1,905   1,983   3,426   1,788   1,529   4,693
All Others             595   1,867   2,284   2,347   1,310   1,067

Total               26,143  21,299  23,860  19,461  18,348  25,213

                      2000    2001  1994-2001

United States       12,997   6,956     59,746
Russia               8,319   5,700     40,068
France               2,184     400     24,894
United Kingdom           0       0      7,894
China                  624     600      8,320
Germany              1,040       0      4,843
Italy                    0     100      2,685
All Other European   1,248     800     17,372
All Others           1,664   1,400     12,534

Total               28,076  15,956    178,356

Table 1B

Arms Transfer Agreements With Developing Nations, By Supplier, 1994-2001

(Expressed as a Percent of Total, By Year)

                          1994     1995     1996     1997     1998

United States           30.34%   22.77%   32.03%   18.45%   38.11%
Russia                  15.94%   36.15%   19.63%   18.95%   12.50%
France                  36.88%   13.69%    5.27%   24.70%   14.88%
United Kingdom           3.19%    3.29%   12.92%    5.74%    5.95%
China                    3.64%    1.10%    4.31%    7.47%    4.17%
Germany                  0.00%    1.10%    0.48%    0.57%    8.93%
Italy                    0.46%    3.83%    1.44%    2.87%    0.00%
All Other European       7.28%    9.31%   14.36%    9.19%    8.33%
All Others               2.28%    8.76%    9.57%   12.06%    7.14%

Major West European *   40.53%   21.91%   20.11%   33.88%   29.76%

Total                  100.00%  100.00%  100.00%  100.00%  100.00%

                          1999     2000     2001

United States           34.85%   46.29%   43.59%
Russia                  13.96%   29.63%   35.72%
France                   3.81%    7.78%    2.51%
United Kingdom           4.23%    0.00%    0.00%
China                   10.58%    2.22%    3.76%
Germany                  6.77%    3.70%    0.00%
Italy                    2.96%    0.00%    0.63%
All Other European      18.61%    4.44%    5.01%
All Others               4.23%    5.93%    8.77%

Major West European *   17.77%   11.48%    3.14%

Total                  100.00%  100.00%  100.00%

* Major West European category includes France, United Kingdom, Germany,
Italy.

Table 1C

Regional Arms Transfer Agreements, by Supplier, 1994-2001

(In Millions of Current U.S. Dollars)

                                Asia                 Near East

                       1994-1997  1998-2001  1994-1997  1998-2001

United States              5,979      5,848     13,387     26,991
Russia                    14,000     14,000      2,700      3,300
France                     2,400      2,300     12,900      3,000
United Kingdom             2,900      1,100      1,400        200
China                      1,500      2,700      1,300        700
Germany                      200      2,400          0        100
Italy                      1,200        100        100        400
All Other Euroean          2,100      1,400      3,200      2,300
All Others                 2,600      1,800      2,300      1,200

Major West European *      6,700      5,900     14,400      3,700

Total                     32,879     31,648     37,287     38,191

                           Latin America               Africa

                       1994-1997  1998-2001  1994-1997  1998-2001

United States              1,276      1,155         82        104
Russia                       300        300        600      1,400
France                       500          0        100        500
United Kingdom               400          0        200        700
China                        100          0        300        900
Germany                      300          0          0      1,600
Italy                        400          0        100        300
All Other Euroean          2,000        600        200      3,000
All Others                   700      1,200        200        500

Major West European *      1,600          0        400      3,100

Total                      5,976      3,255      1,782      9,004

Source: U.S. Government.

Note: All foreign data are rounded to the nearest $100 million. The
United States total for Near East in 1998-2001 includes a $6,432 billion
licensed commercial agreement with the United Arab Emirates in 2000 for
80 F-16 aircraft.

* Major West European category included France, United Kingdom, Germany,
Italy.

Table 1D

Percentage of Each Supplier's Agreements Value by Region, 1994-2001

                                Asia                 Near East
                       1994-1997  1998-2001  1994-1997  1998-2001

United States           28.85%     17.15%     64.60%     79.16%
Russia                  79.55%     73.68%     15.34%     17.37%
France                  15.09%     39.66%     81.13%     51.72%
United Kingdom          59.18%     55.00%     28.57%     10.00%
China                   46.88%     62.79%     40.63%     16.28%
Germany                 40.00%     58.54%      0.0%       2.44%
Italy                   66.67%     12.50%      5.56%     50.00%
All Other European      28.00%     19.18%     42.67%     31.51%
All Other               44.83%     38.30%     39.66%     25.53%

Major West European *   29.00%     46.46%     62.34%     29.13%

Total                   42.19%     38.55%     47.85%     46.52%

                           Latin America               Africa
                       1994-1997  1998-2001  1994-1997  1998-2001

United States            6.16%      3.39%      0.40%      0.31%
Russia                   1.70%      1.58%      3.41%      7.37%
France                   3.14%      0.00%      0.63%      8.62%
United Kingdom           8.16%      0.00%      4.08%     35.00%
China                    3.13%      0.00%      9.38%     20.93%
Germany                 60.00%      0.00%      0.00%     39.02%
Italy                   22.22%      0.00%      5.56%     37.50%
All Other European      26.67%      8.22%      2.67%     41.10%
All Other               12.07%     25.33%      3.45%     10.64%

Major West European *    6.93%      0.00%      1.73%     24.41%

Total                    7.67%      3.96%      2.29%     10.97%

                               Total
                       1994-1997  1998-2001

United States           100.00%    100.00%
Russia                  100.00%    100.00%
France                  100.00%    100.00%
United Kingdom          100.00%    100.00%
China                   100.00%    100.00%
Germany                 100.00%    100.00%
Italy                   100.00%    100.00%
All Other European      100.00%    100.00%
All Other               100.00%    100.00%

Major West European *   100.00%    100.00%

Total                   100.00%    100.00%

* Major West European category includes France, United Kingdom, Germany,
Italy.

Table 1E

Percentage of Total Agreements Value by Supplier to Regions, 1994-2001

                               Asia                 Near East

                       1994-1997  1998-2001  1994-1997  1998-2001
United States           18.18%       18.48%     35.90%     70.67%
Russia                  42.58%       44.24%      7.24%      8.64%
France                   7.30%        7.27%     34.60%      7.86%
United Kingdom           8.82%        3.48%      3.75%      0.52%
China                    4.56%        8.53%      3.49%      1.83%
Germany                  0.61%        7.58%      0.00%      0.26%
Italy                    3.65%        0.32%      0.27%      1.05%
All Other European       6.39%        4.42%      8.58%      6.02%
All Others               7.91%        5.69%      6.17%      3.14%

Major West European *   20.38%       18.64%     38.62%      9.69%

Total                  100.00%      100.00%    100.00%    100.00%

                            Latin America              Africa

                       1994-1997     1998-2001  1994-1997  1998-2001
United States           21.35%        35.48%      4.60%      1.16%
Russia                   5.02%         9.22%     33.67%     15.55%
France                   8.37%         0.00%      5.61%      5.55%
United Kingdom           6.69%         0.00%     11.22%      7.77%
China                    1.67%         0.00%     16.84%     10.00%
Germany                  5.02%         0.00%      0.00%     17.77%
Italy                    6.69%         0.00%      5.61%      3.33%
All Other European      33.47%        18.43%     11.22%     33.32%
All Others               1.71%        36.87%     11.22%      5.55%

Major West European *   26.77%         0.00%     22.45%     34.43%

Total                  100.00%       100.00%    100.00%    100.00%

* Major West European category included France, United Kingdom,
Germanny, and Italy.

Table 1F

Arms Transfer Agreements with Developing Nations, 1994-2001 Leading
Supplier Compared

(In Millions of Current 2001 U.S. Dollars)

Rank     Supplier     Agreements Value
                         1994-1997

 1    United States        20,724
 2        Russia           17,500
 3        France           16,000
 4    United Kingdom        5,000
 5        China             3,200
 6     South Africa         2,400
 7       Ukraine            1,700
 8        Italy             1,600
 9        Israel            1,100
 10    Netherlands          1,100
 11      Belarus            1,100

Rank     Supplier     Agreements Value
                         1998-2001

 1    United States        34,097 *
 2        Russia           19,100
 3        France            5,900
 4        China             4,400
 5       Germany            4,100
 6        Sweden            2,200
 7    United Kingdom        2,000
 8        Israel            1,800
 9       Ukraine            1,300
 10      Belarus            1,000
 11       Italy               800

Rank     Supplier     Agreements Value
                         1994-2001

1     United States        54,821 *
2         Russia           36,600
3         France           21,900
4         China             7,600
5     United Kingdom        7,000
6        Germany            4,500
7        Ukraine            3,000
8      South Africa         2,900
9         Israel            2,900
10        Sweden            2,600
11        Italy             2,400

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.

* The United States total includes a $6.432 bilion licensed commercial
agreement with the United Arab Emirates in 2000 for 80 F-16 aircraft.

Table 1G

Arms Transfer Agreements with Developing Nations in 2001 Leading
Suppliers Compared

(In Millions of Current U.S. Dollars)

Rank    Supplier     Agreements Value 2001

1     United States          6,956
2        Russia              5,700
3         China                600
4        Israel                500
5        France                400
6        Brazil                300
7         Egypt                200
8         Spain                200
9      South Korea             100
10       Romania               100
11       Ukraine               100

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.

Table 1H

Arms Transfer Agreements with Near East, by Supplier

(In Millions of Current U.S. Dollars)

1994-1997

                                                  All
Recipient                        Major West     Other     All
Country     U.S.  Russia  China  European *  European  Others   Total

Algeria        0     600    100           0       500     100   1,300
Bahrain      200       0      0           0         0       0     200
Egypt      4,000     400      0         100       200     100   4,800
Iran           0     200    900         100       400     100   1,600
Iraq           0       0      0           0         0       0       0
Israel     4,300       0      0         100         0     300   4,700
Jordan       300       0      0           0         0     100     400
Kuwait       500     800    200         700       100       0   2,300
Lebanon      100       0      0         100         0       0     200
Libya          0       0      0           0       100     100     200
Morocco        0       0      0         300       100     100     500
Oman           0       0      0         400       100     100     600
Qatar          0       0      0       2,200         0       0   2,200
Saudi      4,000       0      0       6,500       500   1,400  12,400
 Arabia
Syria          0     200      0           0       100       0     300
Tunisia        0       0      0           0         0       0       0
U.A.E.       200     500      0       3,800       700       0   5,200
Yemen          0       0    100         200       400       0     700

1998-2001

                                                  All
Recipient                        Major West     Other     All
Country     U.S.  Russia  China  European *  European  Others   Total

Algeria        0     400    100           0       400     100   1,000
Bahrain      100       0      0           0         0       0     100
Egypt      1,700     300    400         100       100       0   2,600
Iran           0     900      0           0       100     200   1,200
Iraq           0       0      0           0       100       0     100
Israel     2,500       0      0           0         0       0   2,500
Jordan       100       0      0         100         0     100     300
Kuwait       300     100      0           0         0     200     600
Lebanon        0       0      0           0         0       0       0
Libya          0     100      0           0       100     300     500
Morocco        0       0      0           0       200       0     200
Oman           0       0      0           0       100       0     100
Qatar          0       0      0           0         0       0       0
Saudi        600       0      0         300       800       0   1,700
 Arabia
Syria          0     100      0         300       100       0     500
Tunisia        0       0      0           0         0       0       0
U.A.E. **  6,600   1,000      0       2,600       300     300  10,800
Yemen          0     500    100           0       100       0     700

Source: U.S. Government.

Note: 0=data less than $50 million or nil. All data are rounded to
nearest $100 million.

* Major West European includes France, United Kingdom, Germany, and
Italy totals as an aggregate Figure.

** The United States total for 1998-2001 includes a $6.432 billion
licensed commercial agreement with the United Arab Emirates in 2000 for
80 F-16 aircraft.

Table 1I

Arms Transfer Agreements of Developing Nations, 1994-2001: Agreements by
the Leading Recipients

(In Millions of Current U.S. Dollars)

                    Agreements
                      Value
Rank   Recipient    1994-1997

 1    Saudi Arabia   12,400
 2       China        7,200
 3       India        5,200
 4       U.A.E.       5,200
 5       Egypt        4,800
 6       Israel       4,700
 7    South Korea     3,600
 8      Pakistan      3,100
 9     Indonesia      2,400
 10      Kuwait       2,300

                    Agreements
                      Value
Rank   Recipient    1998-2001

 1       U.A.E        10,800 *
 2       India         7,200
 3       China         6,700
 4    South Africa     5,100
 5       Egypt         2,600
 6      Pakistan       2,500
 7       Israel        2,400
 8      Malaysia       2,300
 9     Singapore       2,200
 10   South Korea      2,000

                    Agreements
                      Value
Rank   Recipient    1994-2001

 1       U.A.E.       16,000 *
 2    Saudi Arabia    14,100
 3       China        13,900
 4       India        12,400
 5       Egypt         7,400
 6       Israel        7,200
 7    South Korea      5,600
 8      Pakistan       5,600
 9    South Africa     5,300
 10     Malaysia       4,000

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.

* The U.A.E. total includes a $6.432 billion licensed commercial
agreement with the United States in 2000 for 80 F-16 aircraft.

Table 1J

Arms Transfer Agreements of Developing Nations in 2001: Agreements by
Leading Recipients (In Millions of Current U.S. Dollars)

Rank   Recipient    Agreements Value 2001

 1       Israel             2,500
 2       China              2,100
 3       Egypt              2,000
 4    Saudi Arabia            900
 5    South Korea             800
 6       U.A.E.               700
 7       India                700
 8        Iran                700
 9     Singapore              700
 10      Kuwait               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.

Table 2

Arms Transfer Agreements With Developing Nations, By Supplier, 1994-2001

(In Millions of Current U.S. Dollars)

                           1994    1995    1996    1997    1998    1999

United States             7,083  10,402   9,639  10,645  10,451  12,343
Russia                    1,500   3,000   2,500   2,200   1,900   2,400
France                      700   2,300   3,200   6,100   6,400   2,900
United Kingdom            4,700   4,900   5,800   5,900   3,300   4,400
China                       600     800     700   1,000     500     300
Germany                     900   1,100     700     400     200     700
Italy                       200     100     100     400     200     400
All Other European        2,200   2,300   2,300   3,100   2,000   2,000
All Others                1,100   1,100   1,300   1,200     800     800

Total                    18,983  26,002  26,239  30,945  25,751  26,243

* Dollar Inflation
   Index: (2001 = 1.00)  0.8401  0.8572  0.8756  0.8947  0.9158  0.9376

                           2000    2001  1994-2001

United States             8,359   6,006     74,928
Russia                    3,000   3,400     19,900
France                    1,500     200     23,300
United Kingdom            4,700   3,300     37,000
China                       600     400      4,900
Germany                     400       0      4,400
Italy                       300       0      1,700
All Other European        1,700     600     16,200
All Others                  700     500      7,500

Total                    21,259  14,406    189,829

* Dollar Inflation
   Index: (2001 = 1.00)  0.9617       1

Source: U.S. government.

Note: Developing nations category excludes the U.S. Europe, Canada,
Japan, Australia, and New Zealand. All data are for the calendar year
given except for U.S. Military Assistance Program (MAP), International
Military Education and Training (IMET), 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, miltary 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. The United States total in 2000 includes a $6.432 billion
licensed commercial agreement with the United Arab Emirates for 80 F-16
aircraft.

* Based on Department of Defense price Deflator.

Table 2A

Arms Transfer Agreements With Developing Nations, By Supplier, 1994-2001

(In Millions of Constant 2001 U.S. Dollars)

                      1994    1995    1996    1997    1998    1999

United States        8,431  12,135  11,008  11,898  11,412  13,164
Russia               1,786   1,750   3,426   2,459   2,075   2,560
France                 833   2,683   3,655   6,818   6,988   3,093
United Kingdom       5,595   5,483   6,624   6,594   3,603   4,693
China                  714     933     799   1,118     546     320
Germany              1,071   1,283     799     447     218     747
Italy                  238     117     114     447     218     427
All Other European   2,619   2,683   2,627   3,465   2,184   2,133
All Others           1,309   1,283   1,485   1,341     874     853

Total               22,596  28,350  30,537  34,587  28,118  27,990

                      2000    2001  1994-2001

United States        8,692   6,006     82,746
Russia               3,119   3,400     20,575
France               1,560     200     25,830
United Kingdom       4,887   3,300     40,779
China                  624     400      5,454
Germany                416       0      4,981
Italy                  312       0      1,873
All Other European   1,768     600     18,079
All Others             728     500      8,373

Total               22,106  14,406    208,690

Table 2B

Arms Deliveries to Developing Nations, by Supplier, 1994-2001

(Expressed as a Percent of Total, by Year)

                          1994     1995     1996     1997     1998

United States           37.31%   40.00%   36.74%   34.40%   40.58%
Russia                   7.90%   11.54%    9.53%    7.11%    7.38%
France                   3.69%    8.85%   12.20%   19.71%   24.85%
United Kingdom          24.76%   18.84%   22.10%   19.07%   12.82%
China                    3.16%    3.08%    2.67%    3.23%    1.94%
Germany                  4.74%    4.23%    2.67%    1.29%    0.78%
Italy                    1.05%    0.38%    0.38%    1.29%    0.78%
All Other European      11.59%    8.85%    8.77%   10.02%    7.77%
All Others               5.79%    4.23%    4.95%    3.88%    3.11%

Major West European *   34.24%   32.30%   37.35%   41.36%   39.23%

Total                  100.00%  100.00%  100.00%  100.00%  100.00%

                          1999     2000     2001

United States           47.03%   39.32%    4.69%
Russia                   9.15%   14.11%   23.60%
France                  11.05%    7.06%    1.39%
United Kingdom          16.77%   22.11%   22.91%
China                    1.14%    2.82%    2.78%
Germany                  2.67%    1.88%    0.00%
Italy                    1.52%    1.41%    0.00%
All Other European       7.62%    8.00%    4.16%
All Others               3.05%    3.29%    3.47%

Major West European *   32.01%   32.46%   24.30%

Total                  100.00%  100.00%  100.00%

* Major West European category includes France, United Kingdom, Germany,
Italy.

Table 2C

Regional Arms Deliveries by Supplier, 1994-2001

(In Millions of Current U.S. Dollars)

                                Asia                 Near East
                       1994-1997  1998-2001  1994-1997  1998-2001

United States             10,964     12,613     24,617     22,596
Russia                     5,500      7,600      2,800      1,900
France                     5,000      5,400      6,900      5,500
United Kingdom             2,600      2,300     18,100     13,300
China                      1,600      1,000      1,100        400
Germany                    2,600        100        200      1,000
Italy                        500        800        100        200
All Other European         2,300      1,000      5,600      3,400
All Others                 1,500      1,100        800        500

Major West European *     10,700      8,600     25,300     20,000

Total                     32,564     31,913     60,217     48,796

                           Latin America               Africa
                       1994-1997  1998-2001  1994-1997  1998-2001

United States              2,230      1,743        116         92
Russia                       200        200        600      1,100
France                       300        200        200          0
United Kingdom               400          0        100        100
China                        100          0        300        500
Germany                      200        200          0          0
Italy                          0          0        100          0
All Other European         1,100        400        300      1,000
All Others                   600        200      1,000        700

Major West European *        900        400        400        100

Total                      5,130      2,943      2,716      3,492

Source: U.S. Government.

Note: All foreign data are rounded to the nearest $100 million.

* Major West European category included France, United Kingdom, Germany,
Italy.

Table 2D

Percentage of Supplier Deliveries Value by Region, 1994-2001

                               Asia                Near East
                       1994-1997  1998-2001  1994-1997  1998-2001

United States           28.91%     34.05%     64.91%     61.00%
Russia                  60.44%     70.37%     30.77%     17.59%
France                  40.32%     48.65%     55.65%     49.55%
United Kingdom          12.26%     14.65%     85.38%     84.71%
China                   51.61%     52.63%     35.48%     21.05%
Germany                 86.67%      7.69%      6.67%     76.92%
Italy                   71.43%     80.00%     14.29%     20.00%
All Other European      24.73%     17.24%     60.22%     58.62%
All Others              38.46%     44.00%     20.51%     20.00%

Major West European *   28.69%     29.55%     67.83%     68.73%

Total                   32.36%     36.62%     59.84%     55.99%


                           Latin America            Africa
                       1994-1997  1998-2001  1994-1997  1998-2001

United States            5.88%      4.71%      0.31%      0.25%
Russia                   2.20%      1.85%      6.59%     10.19%
France                   2.42%      1.80%      1.61%      0.00%
United Kingdom           1.89%      0.00%      0.47%      0.64%
China                    3.23%      0.00%      9.68%     26.32%
Germany                  6.67%     15.38%      0.00%      0.00%
Italy                    0.00%      0.00%     14.29%      0.00%
All Other European      11.83%      6.90%      3.23%     17.24%
All Others              15.38%      8.00%     25.64%     28.00%

Major West European *    2.41%      1.37%      1.07%      0.34%

Total                    5.10%      3.38%      2.70%      4.01%


                               Total
                       1994-1997  1998-2001

United States           100.00%    100.00%
Russia                  100.00%    100.00%
France                  100.00%    100.00%
United Kingdom          100.00%    100.00%
China                   100.00%    100.00%
Germany                 100.00%    100.00%
Italy                   100.00%    100.00%
All Other European      100.00%    100.00%
All Others              100.00%    100.00%

Major West European *   100.00%    100.00%

Total                   100.00%    100.00%


* Major West European category includes France, United Kingdom, Germany,
Italy.

Table 2E

Percentage of Total Agreements Value by Supplier to Regions, 1994-2001

                                Asia                 Near East
                       1994-1997  1998-2001  1994-1997  1998-2001

United States             33.66%     39.52%     40.88%     46.31%
Russia                    16.89%     23.81%      4.65%      3.89%
France                    15.35%     16.92%     11.46%     11.27%
United Kingdom             7.98%      7.21%     30.06%     27.26%
China                      4.91%      3.13%      1.83%      0.82%
Germany                    7.98%      0.31%      0.33%      2.05%
Italy                      1.54%      2.51%      0.17%      0.41%
All Other European         7.06%      3.13%      9.30%      6.97%
All Others                 4.61%      3.45%      1.33%      1.02%

Major West European *     32.86%     26.95%     42.01%     40.99%

Total                    100.00%    100.00%    100.00%    100.00%

                           Latin America             Africa
                       1994-1997  1998-2001  1994-1997  1998-2001

United States             43.47%     59.23%      4.27%      2.63%
Russia                     3.90%      6.80%     22.09%     31.50%
France                     5.85%      6.80%      7.36%      0.00%
United Kingdom             7.80%      0.00%      3.68%      2.86%
China                      1.95%      0.00%     11.05%     14.32%
Germany                    3.90%      6.80%      0.00%      0.00%
Italy                      0.00%      0.00%      3.68%      0.00%
All Other European        21.44%     13.59%     11.05%     28.64%
All Others                11.70%      6.80%     36.82%     20.05%

Major West European *     17.54%     13.59%     14.73%      2.86%

Total                    100.00%    100.00%    100.00%    100.00%

* Major West European category included France, United Kingdom, Germany,
and Italy.

Table 2F

Arms Deliveries to Developing Nations, 1994-2001: Leading Supplier
Compared

(In Millions of Current U.S. Dollars)

                        Agreements
Rank     Supplier     Value 1994-1997

 1    United States       37,769
 2    United Kingdom      21,300
 3        France          12,300
 4        Russia           9,200
 5       Germany           3,100
 6        China            3,100
 7        Sweden           2,400
 8        Israel           1,600
 9     South Africa        1,000
 10       Canada           1,000
 11    Netherlands         1,000

                        Agreements
Rank     Supplier     Value 1998-2001

 1    United States       37,159
 2    United Kingdom      15,700
 3        France          11,000
 4        Russia          10,700
 5        China            1,800
 6        Sweden           1,700
 7       Ukraine           1,400
 8       Germany           1,300
 9        Italy              900
 10       Israel             900
 11      Belarus             800

                        Agreements
Rank     Supplier     Value 1994-2001

 1    United States       74,928
 2    United Kingdom      37,000
 3        France          23,300
 4        Russia          19,900
 5        China            4,900
 6       Germany           4,400
 7        Sweden           4,100
 8        Israel           2,500
 9       Ukraine           2,400
 10       Italy            1,700
 11      Belarus           1,700

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.

Table 2G

Arms Deliveries to Developing Nations in 2001: Leading Suppliers
Compared

(In Millions of Current U.S. Dollars)

                      Deliveries
Rank     Supplier     Value 2001

 1    United States     6,006
 2        Russia        3,400
 3    United Kingdom    3,300
 4        China           400
 5        Israel          200
 6        France          200
 7       Ukraine          200
 8       Belgium          100
 9     South Korea        100
 10      Slovakia         100

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.

Table 2H

Arms Deliveries to Near East, By Supplier (In Millions of Current U.S.
Dollars)

1994-1997

                                                   All
Recipient                         Major West     Other     All
Country      U.S.  Russia  China  European *  European  Others   Total

Algeria         0     400    100           0     4,200     100   9,500
Bahrain       300       0      0           0         0       0     300
Egypt       4,700     400      0         100       300     100   5,600
Iran            0     700    900         100       300     100   2,100
Iraq            0       0      0           0         0       0       0
Israel      1,700       0      0         200         0     200   2,100
Jordan        200       0      0           0         0     100     300
Kuwait      2,700     800      0       1,300       100       0   4,900
Lebanon       100       0      0           0         0       0     100
Libya           0       0      0           0         0     100     100
Morocco       200       0      0         200       100       0     500
Oman            0       0      0       1,000       100     100   1,200
Qatar           0       0      0         700         0       0     700
Saudi      13,900       0    100      18,900     3,700       0  36,500
 Arabia
Syria           0       0      0           0       100     200     300
Tunisia       100       0      0           0       100       0     200
U.A.E.        600     300      0       2,900       300     200   4,300
Yemen           0       0    200           0       300     100     600

1998-2001

                                                   All
Recipient                         Major West     Other     All
Country      U.S.  Russia  China  European *  European  Others   Total

Algeria         0     400    100           0       400       0     900
Bahrain       600       0      0           0         0       0     600
Egypt       3,100     200      0         100         0     100   3,500
Iran            0     500    100         100       200       0     900
Iraq            0       0      0           0         0       0       0
Israel      3,800       0      0         900         0     100   4,800
Jordan        300       0      0           0         0     200     500
Kuwait      1,500       0    200         600         0     100   2,400
Lebanon         0       0      0           0         0       0       0
Libya           0       0      0           0       100     100     200
Morocco       100       0      0           0       200     100     400
Oman            0       0      0           0         0     100     100
Qatar           0       0      0       1,200         0       0   1,200
Saudi      12,800       0      0      14,600     1,800     100  29,300
 Arabia
Syria           0     300      0         100       100       0     500
Tunisia         0       0      0           0         0       0       0
U.A.E.        600     300      0       2,000       500       0   3,400
Yemen           0       0      0         100       100     100     300

Source: U.S. Government.

Note: 0=data less than $50 million or nil. All data are rounded to
nearest $100 million.

* Major West European includes France, United Kingdom, Germany, and
Italy totals as an aggregate figure.

Table 2I

Arms Deliveries to Developing Nations, 1994-2001: The Leading Recipients

(In Millions of Current U.S. Dollars)

Rank   Recipient    Deliveries Value
                       1994-1997

 1    Saudi Arabia       36,500
 2       Taiwan          10,600
 3       Egypt            5,600
 4    South Korea         4,900
 5       Kuwait           4,900
 6       U.A.E.           4,300
 7       China            2,900
 8        Iran            2,100
 9       Israel           2,100
 10     Malaysia          2,100

Rank   Recipient    Deliveries Value
                       1998-2001

 1    Saudi Arabia       29,300
 2       Taiwan          10,100
 3       China            5,100
 4       Israel           4,800
 5    South Korea         4,700
 6       Egypt            3,500
 7       U.A.E.           3,400
 8       Kuwait           2,400
 9      Malaysia          2,100
 10      India            2,000

Rank   Recipient    Deliveries Value
                       1994-2001

 1    Saudi Arabia       65,000
 2       Taiwan          20,700
 3    South Korea         9,600
 4       Egypt            9,100
 5       China            8,000
 6       U.A.E.           7,700
 7       Kuwait           7,300
 8       Israel           6,900
 9      Malaysia          4,200
 10    Indonesia          3,100

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.

Table 2J

Arms Deliveries to Developing Nations in 2001: The Leading Recipients

(In Millions of Current U.S. Dollars)

                    Deliveries
Rank   Recipient    Value 2001

1     Saudi Arabia    4,800
2        China        2,200
3        Taiwan       1,200
4     South Korea       900
5        Egypt          700
6        Israel         600
7        India          500
8        Kuwait         400
9       Pakistan        200
10     Sri Lanka        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

Table 3

Numbers of Weapons Delivered by Major Suppliers to Developing Nations

1994-1997

                                                     Major West
Weapons Category                U.S.  Russia  China    European


Tanks and Self-Propelled Guns  1,657     200    170         310
Artillery                        195     450    100         150
APCs and Armored Cars          3,043   1,200     90         900
Major Surface Combatants           3       2      4          47
Minor Surface Combatants          55      12     11          39
Guided Missile Boats               0       0     21           4
Submarines                         0       5      0           8
Supersonic Combat Aircraft       201     100     80          30
Subsonic Combat Aircraft          69      10      0          50
Other Aircraft                    37      60     70          50
Helicopters                      207     280      0          60
Surface-to-Air Missiles        1,674   2,020    560       1,230
Surface-to-Surface Missiles        0       0      0           0
Anti-Ship Missiles               491      70    240          40

                               All Other     All
Weapons Category                European  Others


Tanks and Self-Propelled Guns        550      60
Artillery                            260     610
APCs and Armored Cars              2,700     100
Major Surface Combatants               2       1
Minor Surface Combatants              33      42
Guided Missile Boats                   0       5
Submarines                             0       2
Supersonic Combat Aircraft            70      70
Subsonic Combat Aircraft              30      20
Other Aircraft                       240      80
Helicopters                           90      50
Surface-to-Air Missiles            2,440     330
Surface-to-Surface Missiles            0      10
Anti-Ship Missiles                     0      10

1998-2001

                                                     Major West
Weapons Category                U.S.  Russia  China    European

Tanks and Self-Propelled Guns    462     300    290         360
Artillery                        228     220    190          20
APCs and Armored Cars            317     830    400         220
Major Surface Combatants           8       3      0           5
Minor Surface Combatants           2       2     25          24
Guided Missile Boats               0       0      1          14
Submarines                         0       4      0           6
Supersonic Combat Aircraft       311     210     60          70
Subsonic Combat Aircraft           2      10      0          40
Other Aircraft                    47      70     70          30
Helicopters                      153     300     10          50
Surface-to-Air Missiles        1,506     960    510       1,720
Surface-to-Surface Missiles        0       0      0           0
Anti-Ship Missiles               301     180    120         250

                               All Other     All
Weapons Category                European  Others

Tanks and Self-Propelled Guns      1,600     140
Artillery                            560     940
APCs and Armored Cars                670     670
Major Surface Combatants               9       4
Minor Surface Combatants             100      57
Guided Missile Boats                   0       0
Submarines                             1       0
Supersonic Combat Aircraft            90      80
Subsonic Combat Aircraft              10      20
Other Aircraft                        90      70
Helicopters                          110      10
Surface-to-Air Missiles            1,180     190
Surface-to-Surface Missiles            0      30
Anti-Ship Missiles                     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 as an 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.

Table 4

Number of Weapons Delivered by Major Suppliers to Asia and the Pacific

1994-1997

                                                     Major West
Weapons Category                U.S.  Russia  China    European

Tanks and Self-Propelled Guns    325      30    170           0
Artillery                         32     380     70          50
APCs and Armored Cars             55      40     90         290
Major Surface Combatants           1       2      4          38
Minor Surface Combatants          12      12      6          13
Guided Missile Boats               0       0      6           0
Submarines                         0       2      0           8
Supersonic Combat Aircraft        85      90     70          20
Subsonic Combat Aircraft          30      10      0          50
Other Aircraft                    20      20     50          40
Helicopters                       72      70      0          20
Surface-to-Air Missiles          221   1,130    240       1,130
Surface-to-Surface Missiles        0       0      0           0
Anti-Ship Missiles               192      70     90           0

                               All Other     All
Weapons Category                European  Others

Tanks and Self-Propelled Guns        210      40
Artillery                             40     460
APCs and Armored Cars                130      70
Major Surface Combatants               1       1
Minor Surface Combatants               0      23
Guided Missile Boats                   0       0
Submarines                             0       2
Supersonic Combat Aircraft             0      60
Subsonic Combat Aircraft              10      10
Other Aircraft                       100      30
Helicopters                           30      20
Surface-to-Air Missiles               90      50
Surface-to-Surface Missiles            0      10
Anti-Ship Missiles                     0       0

1998-2001

                                                     Major West
Weapons Category                U.S.  Russia  China    European

Tanks and Self-Propelled Guns    280      40     90           0
Artillery                        193      10    140           0
APCs and Armored Cars             48     250    360          30
Major Surface Combatants           6       3      0           3
Minor Surface Combatants           0       2     16           7
Guided Missile Boats               0       0      0           0
Submarines                         0       4      0           2
Supersonic Combat Aircraft       230     140     40          60
Subsonic Combat Aircraft           0       0      0          40
Other Aircraft                     4      50     30          10
Helicopters                       75     170      0          10
Surface-to-Air Missiles        1,228     940    330       1,630
Surface-to-Surface Missiles        0       0      0           0
Anti-Ship Missiles               235     150     20          60

                               All Other     All
Weapons Category                European  Others

Tanks and Self-Propelled Guns        230      20
Artillery                             50     500
APCs and Armored Cars                 90     170
Major Surface Combatants               0       4
Minor Surface Combatants               8      31
Guided Missile Boats                   0       0
Submarines                             1       0
Supersonic Combat Aircraft            10      70
Subsonic Combat Aircraft               0       0
Other Aircraft                         0      30
Helicopters                           10       0
Surface-to-Air Missiles              100      20
Surface-to-Surface Missiles            0       0
Anti-Ship Missiles                     0       0

Source: U.S. Government.

Note: Asia and Pacific category excludes Japan, Australia and New
Zealand. All data are for calendar years given. Major West European
includes France, United Kingdom, Germany, and Italy totals as an
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.

Table 5

Numbers of Weapons Delivered by Major Suppliers to Near East

1994-1997

                                                     Major West
Weapons Category                U.S.  Russia  China    European

Tanks and Self-Propelled Guns  1,332     130      0         280
Artillery                        124      40     30          10
APCs and Armored Cars          2,926     700      0         390
Major Surface Combatants           0       0      0           2
Minor Surface Combatants          13       0      3          19
Guided Missile Boats               0       0     15           2
Submarines                         0       3      0           0
Supersonic Combat Aircraft       116      10     10          10
Subsonic Combat Aircraft           0       0      0           0
Other Aircraft                     3      20     10           0
Helicopters                       72      90      0          20
Surface-to-Air Missiles        1,358     140    130           0
Surface-to-Surface Missiles        0       0      0           0
Anti-Ship Missiles               287       0    150          20

                               All Other     All
Weapons Category                European  Others

Tanks and Self-Propelled Guns        220       0
Artillery                            140      60
APCs and Armored Cars              1,950       0
Major Surface Combatants               1       0
Minor Surface Combatants              18       3
Guided Missile Boats                   0       0
Submarines                             0       0
Supersonic Combat Aircraft            20       0
Subsonic Combat Aircraft               0       0
Other Aircraft                        50      40
Helicopters                           30       0
Surface-to-Air Missiles                0      20
Surface-to-Surface Missiles            0       0
Anti-Ship Missiles                     0       0

1998-2001

                                                     Major West
Weapons Category                U.S.  Russia  China    European

Tanks and Self-Propelled Guns    182     240      0         280
Artillery                          6      20     30           0
APCs and Armored Cars            254     410     40          70
Major Surface Combatants           0       0      0           0
Minor Surface Combatants           0       0      0           1
Guided Missile Boats               0       0      1          10
Submarines                         0       0      0           3
Supersonic Combat Aircraft        81      30      0          10
Subsonic Combat Aircraft           0       0      0           0
Other Aircraft                    21      10     10           0
Helicopters                       42      40      0          30
Surface-to-Air Missiles          278      20    170           0
Surface-to-Surface Missiles        0       0      0           0
Anti-Ship Missiles                57      30    100         160

                               All Other     All
Weapons Category                European  Others

Tanks and Self-Propelled Guns        270      10
Artillery                              0       0
APCs and Armored Cars                240      30
Major Surface Combatants               1       0
Minor Surface Combatants               3       8
Guided Missile Boats                   0       0
Submarines                             0       0
Supersonic Combat Aircraft            30       0
Subsonic Combat Aircraft               0       0
Other Aircraft                        30       0
Helicopters                           20       0
Surface-to-Air Missiles              280      10
Surface-to-Surface Missiles            0      30
Anti-Ship Missiles                     0      10

Source: U.S. Government.

Note: All data for calendar years given. Major West European includes
France, United Kingdom, Germany, and Italy totals as an 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 theses to
weapons delivery categories are not necessarily definitive.

Table 6

Numbers of Weapons Delivered by Major Suppliers to Latin America

1994-1997

                                                    Major West
Weapons Category               U.S.  Russia  China    European

Tanks and Self-Propelled Guns     0       0                 20
Artillery                        38       0      0          80
APCs and Armored Cars            57      30      0          20
Major Surface Combatants          2       0      0           7
Minor Surface Combatants         28       0      0           6
Guided Missile Boats              0       0      0           2
Submarines                        0       0      0           0
Supersonic Combat Aircraft        0       0      0           0
Subsonic Combat Aircraft         39       0      0           0
Other Aircraft                    6      20      0           0
Helicopters                      63      70      0           0
Surface-to-Air Missiles          95     750    190          60
Surface-to-Surface Missiles       0       0      0           0
Anti-Ship Missiles               12       0      0          20

                               All Other     All
Weapons Category                European  Others

Tanks and Self-Propelled Guns         40      10
Artillery                             10      30
APCs and Armored Cars                530      10
Major Surface Combatants               0       0
Minor Surface Combatants              12       7
Guided Missile Boats                   0       4
Submarines                             0       0
Supersonic Combat Aircraft            40      10
Subsonic Combat Aircraft              20       0
Other Aircraft                        20       0
Helicopters                           10      10
Surface-to-Air Missiles            1,390     260
Surface-to-Surface Missiles            0       0
Anti-Ship Missiles                     0      10

1998-2001

                                                    Major West
Weapons Category               U.S.  Russia  China    European

Tanks and Self-Propelled Guns     0       0      0          80
Artillery                        29       0      0          20
APCs and Armored Cars            15       0      0         120
Major Surface Combatants          2       0      0           2
Minor Surface Combatants          0       0      4           2
Guided Missile Boats              0       0      0           4
Submarines                        0       0      0           1
Supersonic Combat Aircraft        0       0      0           0
Subsonic Combat Aircraft          2       0      0           0
Other Aircraft                   14      10      0          20
Helicopters                      36      20      0          10
Surface-to-Air Missiles           0       0     10          90
Surface-to-Surface Missiles       0       0      0           0
Anti-Ship Missiles                9       0      0          30

                               All Other     All
Weapons Category                European  Others

Tanks and Self-Propelled Guns        320       0
Artillery                             50      50
APCs and Armored Cars                 40       0
Major Surface Combatants               8       0
Minor Surface Combatants              85       0
Guided Missile Boats                   0       0
Submarines                             0       0
Supersonic Combat Aircraft             0       0
Subsonic Combat Aircraft               0      20
Other Aircraft                        40      30
Helicopters                           20       0
Surface-to-Air Missiles              460       0
Surface-to-Surface Missiles            0       0
Anti-Ship Missiles                     0       0

Source: U.S. Government.

Note: All data for calendar years given. Major West European includes
France, United Kingdom, Germany, and Italy totals as an 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 theses two
weapons delivery categories are not necessarily definitive.

Table 7

Number of Weapons Delivered by Major Suppliers to Africa

1994-1997

                                                    Major West
Weapons Category               U.S.  Russia  China    European

Tanks and Self-Propelled Guns     0      40      0          10
Artillery                         1      30      0          10
APCs and Armored Cars             5     430      0         200
Major Surface Combatants          0       0      0           0
Minor Surface Combatants          2       0      2           1
Guided Missile Boats              0       0      0           0
Submarines                        0       0      0           0
Supersonic Combat Aircraft        0       0      0           0
Subsonic Combat Aircraft          0       0      0           0
Other Aircraft                    8       0     10          10
Helicopters                       0      50      0          20
Surface-to-Air Missiles           0       0      0          40
Surface-to-Surface Missiles       0       0      0           0
Anti-Ship Missiles                0       0      0           0

                               All Other     All
Weapons Category                European  Others

Tanks and Self-Propelled Guns         80      10
Artillery                             70      60
APCs and Armored Cars                 90      20
Major Surface Combatants               0       0
Minor Surface Combatants               3       9
Guided Missile Boats                   0       1
Submarines                             0       0
Supersonic Combat Aircraft            10       0
Subsonic Combat Aircraft               0      10
Other Aircraft                        70      10
Helicopters                           20      20
Surface-to-Air Missiles              960       0
Surface-to-Surface Missiles            0       0
Anti-Ship Missiles                     0       0

1998-2001

                                                    Major West
Weapons Category               U.S.  Russia  China    European

Tanks and Self-Propelled Guns     0      20    200           0
Artillery                         0     190     20           0
APCs and Armored Cars             0     170      0           0
Major Surface Combatants          0       0      0           0
Minor Surface Combatants          2       0      5          14
Guided Missile Boats              0       0      0           0
Submarines                        0       0      0           0
Supersonic Combat Aircraft        0      40     20           0
Subsonic Combat Aircraft          0      10      0           0
Other Aircraft                    8       0     30           0
Helicopters                       0      70     10           0
Surface-to-Air Missiles           0       0      0           0
Surface-to-Surface Missiles       0       0      0           0
Anti-Ship Missiles                0       0      0           0

                               All Other     All
Weapons Category                European  Others

Tanks and Self-Propelled Guns        780     110
Artillery                            460     390
APCs and Armored Cars                300     470
Major Surface Combatants               0       0
Minor Surface Combatants               4      18
Guided Missile Boats                   0       0
Submarines                             0       0
Supersonic Combat Aircraft            50      10
Subsonic Combat Aircraft              10       0
Other Aircraft                        20      10
Helicopters                           60      10
Surface-to-Air Missiles              340     160
Surface-to-Surface Missiles            0       0
Anti-Ship Missiles                     0       0

Source: U.S. Government

Note: All data are for calendar years given. Major West European
includes France, United Kingdom, Germany, and Italy totals as an
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.

Table 8

Arms Transfer Agreements with the World, by Supplier, 1994-2001

(In millions of current U.S. dollars)

                        1994    1995    1996    1997    1998    1999

United States         12,409   8,808  10,686   6,947  10,193  11,872
Russia                 3,800   7,500   4,600   3,500   2,400   4,200
France                 8,700   2,700   2,500   4,700   3,300   1,500
United Kingdom           700     800   5,000   1,000   2,000   1,300
China                    800     200     900   1,300   1,100   2,500
Germany                1,400     400     200     600   5,000   3,600
Italy                    100     900     400     500     900     900
All Other European     2,400   2,200   3,900   1,900   1,900   6,200
All Others               700   2,100   3,300   2,300   1,800   1,200

Total                 31,009  25,608  31,486  22,747  28,593  33,272

Dollar inflation      0.8401  0.8572  0.8756  0.8947  0.9158  0.9376
 index (2001=1.00) *

                        2000    2001  1994-2001

United States         18,205  12,088     91,208
Russia                 8,100   5,800     39,900
France                 4,100   2,900     30,400
United Kingdom           600     400     11,800
China                    600     600      8,000
Germany                1,100   1,000     13,300
Italy                    100     200      4,000
All Other European     3,800   1,700     24,000
All Others             1,900   1,700     15,000

Total                 38,505  26,388    237,608

Dollar inflation      0.9617       1
 index (2001=1.00) *

Source; U.S. Government.

Note: 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 articles, which are included for the
particular fiscal year. All amounts given include the values of weapons
and ammunition, military spare parts, military construction, excess
defense articles, military assistance and training programs, and all
associated service. Statistics for foreign countries are based upon
estimated selling prices. All foreign data are rounded to the nearest
$100 million. The U.S. total in 2000 includes a $6.432 billion licensed
commercial agreement with the United Arab Emirates for 80 F-16 aircraft.

* Based on Department of Defense Price Deflator.

Table 8A

Arms Transfer Agreements with the World, by Supplier, 1994-2001

(In Millions of Constant 2001 U.S. Dollars)

                      1994    1995    1996    1997    1998    1999

United States       14,771  10,275  12,204   7,765  11,130  12,662
Russia               4,523   8,749   5,254   3,912   2,621   4,480
France              10,356   3,150   2,855   5,253   3,603   1,600
United Kingdom         833     933   5,710   1,118   2,184   1,387
China                  952     233   1,028   1,453   1,201   2,666
Germany              1,666     467     228     671   5,460   3,840
Italy                  119   1,050     457     559     983     960
All Other European   2,857   2,566   4,454   2,124   2,075   6,613
All Others             833   2,450   3,769   2,571   1,965   1,280

Total               36,910  29,873  35,959  25,426  31,222  35,488

                      2000    2001  1994-2001

United States       18,930  12,088     99,825
Russia               8,423   5,800     43,762
France               4,263   2,900     33,980
United Kingdom         624     400     13,189
China                  624     600      8,757
Germany              1,144   1,000     14,476
Italy                  104     200      4,432
All Other European   3,951   1,700     26,340
All Others           1,976   1,700     16,544

Total               40,039  26,388    261,305

Table 8B

Arms Transfer Agreements with the World, by Supplier, 1994-2001

(Expressed as a Percent of Total, by Year)

                          1994     1995     1996     1997     1998

United States           40.02%   34.40%   33.94%   30.54%   35.65%
Russia                  12.25%   29.29%   14.61%   15.39%    8.39%
France                  28.06%   10.54%    7.94%   20.66%   11.54%
United Kingdom           2.26%    3.12%   15.88%    4.40%    6.99%
China                    2.58%    0.78%    2.86%    5.72%    3.85%
Germany                  4.51%    1.56%    0.64%    2.64%   17.49%
Italy                    0.32%    3.51%    1.27%    2.20%    3.15%
All Other European       7.74%    8.59%   12.39%    8.35%    6.64%
All Others               2.26%    8.20%   10.48%   10.11%    6.30%
Major West European *   35.15%   18.73%   25.73%   29.90%   39.17%

Total                  100.00%  100.00%  100.00%  100.00%  100.00%

                          1999     2000     2001

United States           35.68%   47.28%   45.81%
Russia                  12.62%   21.04%   21.98%
France                   4.51%   10.65%   10.99%
United Kingdom           3.91%    1.56%    1.52%
China                    7.51%    1.56%    2.27%
Germany                 10.82%    2.86%    3.79%
Italy                    2.70%    0.26%    0.76%
All Other European      18.63%    9.87%    6.44%
All Others               3.61%    4.93%    6.44%
Major West European *   21.94%   15.33%   17.06%

Total                  100.00%  100.00%  100.00%

* Major West European category includes France, United Kingdom, Germany,
and Italy.

Table 8C

Arms Transfer Agreements with the World, 1994-2001: Leading Suppliers
Compared

(In Millions of Current U.S. Dollars)

Rank     Supplier     Agreements Value
                         1994-1997

 1    United States        38,850
 2        Russia           19,400
 3        France           18,600
 4    United Kingdom        7,500
 5        China             3,200
 6       Germany            2,600
 7        Israel            2,500
 8     South Africa         2,500
 9        Italy             1,900
 10      Ukraine            1,700
 11    Netherlands          1,500

Rank     Supplier     Agreements Value
                         1998-2001

  1   United States        52,358 *
  2       Russia           20,500
  3       France           11,800
  4      Germany           10,700
  5       China             4,800
  6   United Kingdom        4,300
  7       Sweden            3,600
  8       Israel            2,800
  9       Spain             2,200
 10       Italy             2,100
 11      Ukraine            1,900

Rank     Supplier     Agreements Value
                         1994-2001

 1    United States        91,208 *
 2        Russia           39,900
 3        France           30,400
 4       Germany           13,300
 5    United Kingdom       11,800
 6        China             8,000
 7        Israel            5,300
 8        Sweden            4,600
 9        Italy             4,000
 10      Ukraine            3,600
 11    South Africa         3,000

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.

* The U.S. total includes a $6.432 billion licensed commercial
agreement with the United Arab Emirates in 2000 for 80 F-16 aircraft.

Table 8D

Arms Transfer Agreements with the World in 2001: Leading Suppliers
Compared

(In Millions of Current U.S. Dollars)

Rank    Suppliers     Agreements Value 2001

 1    United States          12,088
 2        Russia              5,800
 3        France              2,900
 4       Germany              1,000
 5        Israel                700
 6        China                 600
 7    United Kingdom            400
 8        Spain                 400
 9        Sweden                400
 10       Brazil                300
 11    South Korea              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.

Table 9

Arms Deliveries to the World, by Supplier, 1994-2001

(In Millions of Current U.S. Dollars)


                          1994    1995    1996    1997    1998    1999

United States           13,328  15,933  14,833  16,522  16,886  18,209
Russia                   1,800   3,500   3,200   2,500   2,100   3,000
France                   1,200   3,000   3,800   6,700   7,100   3,600
United Kingdom           5,200   5,300   6,500   6,800   3,800   5,000
China                      600     800     700   1,100     600     400
Germany                  1,700   2,000   1,900   1,200   1,500   2,100
Italy                      200     200     100     400     200     600
All Other European       3,500   3,500   3,400   4,400   3,200   2,900
All Others               1,900   2,000   1,900   2,400   1,700   2,200

Total                   29,428  36,233  36,333  42,022  37,086  38,009

Dollar inflation        0.8401  0.8572  0.8756  0.8947  0.9158  0.9376
 index (2001 = 1.00) *

                                            Total
                          2000    2001  1994-2001

United States           13,019   9,702    118,432
Russia                   3,600   3,600     23,300
France                   2,000   1,000     28,400
United Kingdom           5,600   4,000     42,200
China                      700     500      5,400
Germany                  1,200     100     11,700
Italy                      500       0      2,200
All Other European       2,800   1,100     24,800
All Others               1,900   1,300     15,300

Total                   31,319  21,302    271,732

Dollar inflation        0.9617       1
 index (2001 = 1.00) *

Source: U.S. Governmment.

Note: 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 and ammunition, military
spare parts, military construction, excess defense articles, military
assistance and training programs, and all associated services.
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.

Table 9A

Arms Deliveries to the World by Supplier, 1994-2001

(In Millions of Constant 2001 U.S. Dollars)


                      1994    1995    1996    1997    1998    1999

United States       15,865  18,587  16,940  18,467  18,439  19,421
Russia               2,143   4,083   3,655   2,794   2,293   3,200
France               1,428   3,500   4,340   7,489   7,753   3,840
United Kingdom       6,190   6,183   7,423   7,600   4,149   5,333
China                  714     933     799   1,229     655     427
Germany              2,024   2,333   2,170   1,341   1,638   2,240
Italy                  238     233     114     447     218     640
All Other European   4,166   4,083   3,883   4,918   3,494   3,093
All Others           2,262   2,333   2,170   2,682   1,856   2,346

Total               35,030  42,268  41,494  46,967  40,495  40,540

                                        Total
                      2000    2001  1994-2001

United States       13,537   9,702    130,958
Russia               3,743   3,600     25,511
France               2,080   1,000     31,430
United Kingdom       5,823   4,000     46,701
China                  728     500      5,985
Germany              1,248     100     13,094
Italy                  520       0      2,410
All Other European   2,912   1,100     27,649
All Others           1,976   1,300     16,925

Total               32,567  21,302    300,663

Table 9B

Arms Deliveries to the World, by Supplier 1994-2001

(Expressed as a Percent of Total, By Year)

                          1994     1995     1996     1997     1998

United States           45.29%   43.97%   40.83%   39.32%   45.53%
Russia                   6.12%    9.66%    8.81%    5.95%    5.66%
France                   4.08%    8.28%   10.46%   15.94%   19.14%
United Kingdom          17.67%   14.63%   17.89%   16.18%   10.25%
China                    2.04%    2.21%    1.93%    2.62%    1.62%
Germany                  5.78%    5.52%    5.23%    2.86%    4.04%
Italy                    0.68%    0.55%    0.28%    0.95%    0.54%
All Other European      11.89%    9.66%    9.36%   10.47%    8.63%
All Others               6.46%    5.52%    5.23%    5.71%    4.58%

Major West European *   28.20%   28.98%   33.85%   35.93%   33.98%

Total                  100.00%  100.00%  100.00%  100.00%  100.00%

                          1999     2000     2001

United States           47.91%   41.57%   45.55%
Russia                   7.89%   11.49%   16.90%
France                   9.47%    6.39%    4.69%
United Kingdom          13.15%   17.88%   18.78%
China                    1.05%    2.24%    2.35%
Germany                  5.53%    3.83%    0.47%
Italy                    1.58%    1.60%    0.00%
All Other European       7.63%    8.94%    5.16%
All Others               5.79%    6.07%    6.10%

Major West European *   29.73%   29.69%   23.94%

Total                  100.00%  100.00%  100.00%

* Major West European category includes France, United Kingdom, Germany,
and Italy.

Table 9C

Arms Deliveries to the World, 1994-2001: Leading Suppliers Compared

(In Millions of Current U.S. Dollars)

Rank     Supplier     Deliveries Value 1994-1997

 1    United States             60,616
 2    United Kingdom            23,800
 3        France                14,700
 4        Russia                11,000
 5       Germany                 6,800
 6        Sweden                 3,900
 7        China                  3,200
 8        Israel                 2,300
 9        Canada                 1,600
 10       Spain                  1,500
 11    Netherlands               1,300

Rank     Supplier     Deliveries Value 1998-2001

 1    United States             57,816
 2    United Kingdom            18,400
 3        France                13,700
 4        Russia                12,300
 5       Germany                 4,900
 6        Sweden                 2,500
 7        China                  2,200
 8       Ukraine                 1,900
 9        Israel                 1,800
 10       Italy                  1,300
 11      Belarus                   900

Rank     Supplier     Deliveries Value 1994-2001

 1    United States            118,432
 2    United Kingdom            42,200
 3        France                28,400
 4        Russia                23,300
 5       Germany                11,700
 6        Sweden                 6,400
 7        China                  5,400
 8        Israel                 4,100
 9       Ukraine                 2,900
 10       Italy                  2,200
 11       Canada                 1,900

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.

Table 9D

Arms Deliveries to the World in 2001: Leading Suppliers Compared

(In Millions of Current U.S. Dollars)

Rank     Supplier     Deliveries Value
                            2001

 1    United States        9,702
 2    United Kingdom       4,000
 3        Russia           3,600
 4        France           1,000
 5        China              500
 6        Israel             300
 7       Ukraine             200
 8       Slovakia            100
 9       Belgium             100
 10       Greece             100
 11    South Korea           100

Source: U.S. Government.

Note: All foreign data are rounded to the nearest $100 million. Where
data total are the same, the actual rank order is maintained.

Figure 1

Worldwide Arms Transfer Agreements, 1994-2001 and Suppliers' Share with
Developing World (In Millions of Constant 2001 U.S. Dollars)

Worldwide Agreements   Percentage of
                        Total with
Supplier              Value 1994-1997  Developing World

United States             45,015            53.30
Russia                    22,438            90.20
France                    21,614            86.20
United Kingdom             8,594            66.70
China                      3,666           100.00
Germany                    3,032            15.00
Italy                      2,185            84.10
All Other European        12,001            75.80

All Others                 9,623            73.70

Total                     128,168           70.80

Worldwide Agreements  Percentage of Total with
      Supplier            Value 1998-2001       Developing World

United States                  54,810                65.20
Russia                         21,324                93.00
France                         12,366                50.70
United Kingdom                  4,595                47.00
China                           5,091                91.40
Germany                        11,444                38.30
Italy                           2,247                37.70
All Other European             14,339                57.70

All Others                      6,921                78.60

Total                         133,137                65.80

Worldwide Agreements  Percentage of Total with
      Supplier               Value 2001         Developing World

United States                  12,088                57.50
Russia                          5,800                98.30
France                          2,900                13.80
United Kingdom                    400                 0.00
China                             600               100.00
Germany                         1,000                 0.00
Italy                             200                50.00
All Other European              1,700                47.00

All Others                      1,700                82.40

Total                          26,388                60.50

Figure 2

Worldwide Arms Deliveries, 1994-2001 and Suppliers' Share with
Developing world (In Millions of Constant 2001 U.S. Dollars)

                       Worldwide      Percentage of Total to
Supplier            Deliveries Value     Developing World
                       1994-1997

United States            69,859               62.20
Russia                   12,675               74.30
France                   16,757               83.50
United Kingdom           27,396               88.70
China                     3,675               97.00
Germany                   7,868               45.80
Italy                     1,032               88.80
All Other European       17,050               66.80
All Others                9,447               57.40
Total                   165,759               70.00

                       Worldwide       Percentage of
Supplier            Deliveries Value      Total to
                       1998-2001      Developing World

United States            61,099            64.30
Russia                   12,836            86.90
France                   14,673            80.70
United Kingdom           19,305            85.40
China                     2,310            81.80
Germany                   5,226            26.40
Italy                     1,378            69.40
All Other European       10,599            63.10
All Others                7,478            39.50
Total                   134,904            68.70

                    Worldwide    Percentage of
                    Deliveries      Total to
Supplier            Value 2001  Developing World

United States          9,702         61.90
Russia                 3,600         94.40
France                 1,000         20.00
United Kingdom         4,000         82.50
China                    500         80.00
Germany                  100          0.00
Italy                      0          0.00
All Other European     1,100         54.50
All Others             1,300         38.50
Total                 21,302         67.60

Chart 2

Arms Transfer Agreements Worldwide

(Supplier Percentage of Value)

                   1994-1997  1998-2001

China                 2.9%       3.8%
Major W. European    27.6%      23.0%
Russia               17.5%      16.0%
U.S.                 35.1%     41.20%

All Others           16.9%      16.0%

Note: Table made from pie chart

Chart 3

Arms Transfer Agreements With Developing Nations

(Supplier Percentage of Value)

                    2000    2001

China               2.2%    3.8%
U.S.               46.3%   43.6%
Major W. European  11.5%    3.1%
Russia             29.6%  35.70%

All Others         10.4%   13.8%

Note: Table made from pie chart

Chart 5

Arms Transfer Agreements With Near East

(Supplier Percentage of Value)

                   1994-1997  1998-2001

China                14.8%      1.8%
Major W. European    38.6%      9.7%
Russia                7.2%      8.6%
U.S.                 35.9%     70.7%

All Others            3.5%      9.2%

Note: Table made from pie chart

Chart 6

Arms Transfer Agreements With Asia

(Supplier Percentage of Value)

                   1994-1997  1998-2001

Russia               42.6%      44.2%
U.S.                 18.2%      18.5%
All Others           14.3%      10.1%
China                 4.6%       8.5%
Major W. European    20.4%      18.6%

Note: Table made from pie chart

(1.) Because these regional data are composed of four-year aggregate dollar totals, they must be expressed in current dollar terms.

RELATED ARTICLE: 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

Iran

Iraq

Israel

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'lvoire

Djibouti

Equatorial Guinea

Ethiopia

Gabon

Gambia

Ghana

Guinea

Guinea-Bissau

Kenya

Lesotho

Liberia

Madagascar

Malawi

Mali

Mauritania

Mauritius

Mozambique

Namibia

Niger

Migeria

Reunion

Rwanda

Senegal

Seychelles

Sierra Leone

Somalia

South Africa

Sudan

Swiaziland

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

Parguay

Peru

St. Kitts and Nevis

St. Lucia

St. Pierre and Miquelon

St. Vincent

Suriname

Trinidad

Turks and Caicos

Venezuela