IFPTE Urges Senator McCain to Bring Transparency to His Role in the Air Force's $40 Billion Tanker Contract to French-Based EADS/AIRBUS
Key Questions Senator McCain Needs to Address on the Tanker Issue on the Eve of his Trip to Paris
FOR IMMEDIATE RELEASE:
Thursday, March 20, 2008
Contact: Matt Biggs
(240) 535-3321
On the eve of his trip to France to meet with President Sarkozy, the International Federation of Professional & Technical Engineers (IFPTE) urges Senator John McCain to clarify his role in the Air Force's decision to award the $40 billion aerial refueling tanker to French-based EADS/AIRBUS.
"You can't be the champion for honest and open government and have EADS lobbyists working for your presidential campaign while pressuring the Air Force to make exemptions for a foreign contractor that accepts illegal subsidies to compete unfairly with U.S. companies," said Paul Shearon, IFPTE Secretary Treasurer.
Published reports indicate that Senator McCain took an active role in the Air Force's recent decision to award the $40 billion contract to build their next generation of aerial refueling tankers to the EADS Company, resulting in the outsourcing of 44,000 American jobs. The IFPTE represents over 80,000 workers, including more than 20,000 workers at the Boeing Company.
In letters to Undersecretary of Defense Gordon England and Secretary of Defense Gates, Senator McCain pushed for modifications and exemptions to the contract that allowed EADS to bypass restrictions that prevent domestic companies like Boeing from selling military technologies like missile defense systems to enemy states such as Iran.
Bowing under extreme pressure from McCain, the Air Force made changes to the original RFP that allowed EADS to use billions in anti-competitive subsidies from the European Union to finance the development of their tanker aircraft. The U.S. Trade Representative has filed the largest lawsuit ever before the World Trade Organization, claiming that these subsidies violate international trade laws.
"Why the Air Force changed its own contracting rules to give this illegally subsidized foreign company unfair advantages, handing it a plum U.S. defense contract funded by American taxpayers and outsourcing 44,000 good manufacturing jobs in the process is beyond any American's comprehension," added Shearon.
Additionally, news reports have recently surfaced regarding three top campaign advisers to Sen. McCain that lobbied on behalf of the EADS tanker during the selection process. One of them, former Texas Rep. Tom Loeffler reportedly remained on the EADS payroll while serving as McCain for President national finance Chairman. Below is a list of questions that IFPTE believes should be posed to Sen. McCain regarding the tanker contract:
1. Will you make available, to the media, all of your Senate office's personal staff and Armed Services Committee staff correspondence, memos and schedules of meetings with EADS lobbyists to put to rest all questions regarding your office's involvement in the Air Force's tanker related contracting procedures?
2. You have previously stated that you had nothing to do with the tanker contract, except to insist that it be fair, open and transparent. However, there have been reports that you sent multiple letters to Deputy Defense Secretary England requesting that specific changes be made to the Air Force's criteria. How does the removal of an arms control provision, intended to halt the proliferation of weapons to America's enemies, ensure that the competition is fair, open and transparent?
3. You also requested that the Air Force remove questions and language regarding subsidies allegedly received by EADS. The practice of receiving subsidies, like those allegedly given to EADS by the European Union, is condemned by the international community due to the fact that it gives one competitor an unfair advantage. How did the removal of this language do anything but give EADS an unfair advantage?
4. During your struggle to pass campaign finance reform, you often made reference to the need to remove even the "appearance of impropriety." There are some who have questioned the substantial contributions that you have received from EADS and their lobbyists for your presidential bid. Doesn't this seem to have at least the appearance of impropriety?
5. Four key members of your Presidential campaign worked directly on behalf of the EADS Company in their bid to win the tanker contract. Has there been any discussion of dismissing these members of your staff to assure the American public that you are committed to removing all appearances of impropriety?
Read IFPTE's Press Release.
Read the December 1, 2006 letter from Senator McCain to Secretary Gates (during his confirmation), which notes that an overly restrictive Berry Amendment and ITAR may hinder competition to replace the refueling tanker.
Read the March 11, 2008 AFP article.
Read the September 8, 2006 letter Senator McCain sent to Deputy Defense Secretary Gordon England asking that the Air Force ignore and remove from the RFP the case that the United States brought against the European Union involving unfair advantages to Airbus through illegal subsidies to the French company.
See Request for Proposals (RFP) and RFP Summary.
Read a list of McCain advisors having ties to Airbus, along with the contributions to the Senator's Presidential campaign.
