U.S. opposes British plan to privatize defense labs

WASHINGTON -- The United States could downgrade defense relations with London in the wake of concerns over British plans to privatize defense research laboratories.

U.S. sources referred to plans by the British Defense Ministry to sell a majority of the Defense and Research Agency, which, among other things, is responsible for germ warfare.

U.S. officials said they would not share secrets with a private company. Dera, with 12,000 employees, is one of the largest research organizations in Europe.

The Clinton administration stopped a plan to sell a majority of Dera last year.

"We have not abandoned our plans," a British Defense Ministry statement said. "We intend to go ahead with the public-private partnership."