LONDON (AFX) - The multi-billion pound deal to provide Saudi Arabia with Typhoon Eurofighter jets is still ongoing, said Prime Minister Tony Blair's spokesman, contradicting reports from Riyadh claiming it had been agreed.
'They are commercial contracts. They are still in negotiation. My information is that this is still an active matter, not a closed matter,' he said.
A report in the Times newspaper quoted Saudi Foreign Minister Prince Saud al-Faisal as saying: 'It is a deal that is a good deal for both countries.'
The plan, which has taken months to negotiate, was discussed by Jack Straw, the UK Foreign Secretary, and Crown Prince Sultan, the Defence Minister, who is also considering a rival option to buy Dassault Aviation's Rafale jets, the Times said.
It added that British officials refused to reveal details until the agreement can be finalised, but it is understood that the Saudis are interested in an initial order of 24 Typhoons, as part of a package of 72 aircraft to be supplied in coming years.
Earlier this month Saudi Arabia said the deal was on course after technical committees signed relevant documents.
'The papers of the Eurofighter jets deal were signed by the (Saudi and British) technical committees on March 28,' Crown Prince Sultan bin Abdul Aziz told reporters.
The Typhoon Eurofighter is largely manufactured by BAE Systems PLC in partnership with other European countries.
The new planes will replace the Tornado warplanes that the UK supplied to Riyadh in a multi-billion-dollar deal two decades ago. newsdesk@afxnews.com fp/joy COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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