Brian Hobbs, PMP’s Post

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PhD Candidate, Virginia Tech | Offsets, Countertrade, Industrial Participation | Researcher & Project Leader

Offsets history in aviation — complications with providing F-5 aircraft to Switzerland in 1975 through Foreign Military Sales (FMS) turned into policy and precedence against the U.S. Government assisting with defense industry offsets from 1978. The DoD co-signed for responsibility with Northrop on fulfilling offsets for these F-5s in 1975. Northrop was slow and did not meet deadlines, so the DoD had to settle penalties on obligations to Switzerland. Result — in 1978, Deputy Secretary of Defense Charles Duncan issued the ‘Duncan Memorandum’, institutionalizing a 'hands off' perspective toward offsets. Since then, DoD policy became presidential policy in 1990, and was implemented in federal statute by Congress in 1992. Basic policy says no agency of the U.S. Government will encourage or commit U.S. firms to offsets in defense equipment transactions with foreign governments … unless, as an exception, the president says it’s OK. There have been some exceptions. Even so, the ‘hands off’ policy is still largely based on the spirit of the original ‘Duncan Memorandum’. It's good to see these aircraft continuing their service. https://lnkd.in/eXrUBJ3H

The first of the F-5 Tiger fighters bought from Switzerland by the Marine Corps to serve as aggressors arrives in the USA

The first of the F-5 Tiger fighters bought from Switzerland by the Marine Corps to serve as aggressors arrives in the USA

https://www.zona-militar.com

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