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Pentagon Has $327 Billion Export Backlog, Sees Drone Demand

The Pentagon is processing a record backlog of $327 billion in arms exports and is speeding up the clearance process to meet the rising demand for drones, said Vice Admiral Bill Landay, head of the agency responsible for weapons exports.

“We have in excess of 13,000 active cases with more than 165 countries and institutions,” adding up to about $327 billion, he said today at a Pentagon news briefing ahead of the Paris Air Show, which begins June 20.

The agency, which oversees U.S. foreign arms sales, is forecasting fiscal 2011 exports of $46.1 billion, a 45 percent increase from the previous year. Between 2005 and 2010, the agency delivered $96 billion of weapons and military systems to countries around the world, said Landay, who is director of the Pentagon’s Defense Security Cooperation Agency.

To meet a growing demand for U.S.-made unmanned aerial systems, the agency plans to speed up the exports process by getting pre-approval for countries that may have an interest in the drones, he said.

“We believe unmanned systems is an area of significant interest around the world,” Landay said. “We know U.S. manufacturers have a great desire to sell” drones to other countries and demand for these systems is rising after countries have seen how the U.S. uses drones for “fighting and surveillance,” he said.

Pre-Approvals

The most commonly used U.S. drones include the Reaper and Predator systems made by San Diego-based General Atomics Aeronautical Systems and the Global Hawk surveillance drone made by Los Angeles-based Northrop Grumman Corp. (NOC)

Getting pre-approvals from U.S. agencies, such as the departments of State and Commerce, to release military technology to potential foreign drone buyers would help the U.S. “be faster and more ahead of the game” when countries express an interest in buying, Landay said.

The agency is also planning to get clearances in anticipation of orders for other military equipment such as electronic warfare systems, Landay said.

To contact the reporter on this story: Gopal Ratnam in Washington at gratnam1@bloomberg.net.

To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net

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