Boeing's New Best Friend

Just months away from its April 1999 admission to NATO, Hungary has bought or been licensed to buy at least $80 million in arms from the U.S. In converting its weaponry from antiquated Soviet-era technology to NATO technology, Hungary faces several crucial issues.

U.S. arms sales in the Clinton years Direct government sales Government-approved sales (scale in millions of dollars)

Following the Cold War, Hungary has continued to transfer Soviet-made arms equipment to other countries. These sales have helped offset the economic depression brought about by the drastic downscaling of its defense industry. But like fellow NATO rookies Poland and the Czech Republic, it faces huge new expenses as it tries to make its military more compatible with NATO. Hungary, to its credit, has made it clear that it will not increase its arms arsenal as a result of its accession to NATO; in fact, it actually plans to reduce its number of tanks and guns. But Hungary has also provided real estate for a NATO airbase, and according to the Economist, Boeing is looking to get its foot in the door as Hungary's major arms supplier.

-- Monica Mehta

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