MercoPress. South Atlantic News Agency

Lockheed to build Harrier replacement.

What is believed to be the world's biggest ever arms deal -- the contract for the new supersonic joint strike aircraft for the United States and to replace Britain's Harrier jump jet -- has been awarded to Lockheed Martin in preference to Boeing, after tests of demonstrator aircraft from both companies.

Harriers which played a vital role in the recapture of the Falkland Islands from the Argentines in 1982 are to be phased out by 2012 to be replaced themulti-role, all -weather Joint Strike Fighter (JSF). The British Government has indicated it will buy 150 of the aircraft for carrier and land-based operations.

The new sea-borne aircraft would be flown from the two large aircraft carriers the Government has said it will order in the next few years to replace the carrier which fought in the Falklands Conflict, HMS Invincible, and her sister ships, HMS Ark Royal and HMS Illustrious. Illustrious is leading the British task force off Oman, and is now being adapted for possible helicopter-borne special forces operations against the Taleban in Afghanistan.

The Ministry of Defence will decide next year which of two versions of the aircraft it will choose -- either the Short Take Off/ Vertical Landing (STOVL) variant of JSF, or the Carrier Variant (CV). The Pentagon has plans to buy up to 3,000 of the new aircraft at a cost of 300-billion dollars, replacing the F-16 and the US Navy version of the Harrier, the AV8B manufactured in the United States.

The decision to award the contract to Lockheed Martin was announced at the Pentagon in Washington in the presence of British Defence Procurement Minister, Lord Bach. He said: " The Joint Strike Fighter will use advanced stealth technology combining the agility of a light fighter with the punch of a bomber, and the versatility to operate from the Royal Navy's new carriers as well as from land. It has the potential to be the keystone of Joint Force Harrier, the flexible new force set up as part of our Strategic Defence Review. It is set to be the largest military acquisition programme in history.

"Our continuing participation alongside the US in this programme is thus of major benefit both to Britain's Armed Forces and British industry. British industry has gained its place in the Lockheed Martin team on merit in a demanding competitive environment, and now has a tremendous opportunity to show what it can do".

About 70 UK companies could secure work worth £27 billion (39 billion dollars), creating as many as 8,500 jobs, with additional potential from overseas