U.S. blocks technology transfer needed for Turkey-Boeing deal

ANKARA Ñ Turkey's military has been struck by another disagreement with the United States over the transfer of defense technology.

The latest tiff regards Turkey's request for technology from the U.S. firm Boeing, the frontrunner in Ankara's airborne early-warning control system. The project calls for six aircraft in an estimated $1.5 billion deal.

Turkish defense sources said the United States has blocked Ankara's request for the transfer of technology required for Turkish companies to participate in the AEW program. The tender contains detailed requirements for offsets and local production.

This is the third time in three months that Ankara and Washington are arguing over the issue of transfer of technology. The United States has blocked the transfer of sensitive data regarding the F-16 as well as the AH-Z1 King Cobra attack helicopter.

The sources said the U.S. move to block technology transfer has harmed negotiations between Ankara and Boeing. They said without a resolution of the issue Ankara cannot sign a contract with Boeing.

Boeing defeated a group composed of the U.S. Raytheon and Israel Aircraft Industries for the AEW project. But Turkish sources said Washington would have the same power to block Raytheon from offering technology denied by Boeing.

The AEW project was one of the few big ticket procurement programs retained by Ankara amid the fiscal crisis that has rocked the country since February.

In an unrelated development, the state-owned Israel Aircraft Industries has delivered the first upgraded F-4 Phantom jets to the Turkish Air Force. Turkey signed a $600 million deal for the upgrade of 54 F-4E jets.