Wednesday, January 04, 2006

Congress Drops 'Buy America' for Military Tankers

A defense bill approved by Congress would allow open competition for a multibillion-dollar contract to supply refueling tankers for the Air Force.

President Bush is expected to sign the measure, squelching an earlier House-approved bill that would have helped The Boeing Co. by keeping the Pentagon from buying military equipment from the parent company of European jet maker Airbus SAS.

Boeing lost the lucrative tanker contract in 2004 amid an ethics scandal.

"Buy America" language had been inserted by Rep. Duncan Hunter, R-Calif., chairman of the House Armed Services Committee. However, Hunter agreed to remove the provision last month at the request of Senate leaders and administration officials, who said it could spark retaliatory measures by other countries and limit Pentagon flexibility. Congress voted final passage Dec. 21.......

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