ABSTRACT

To overcome the impact of cuts in US military spending after the Cold War ended, some big defense contractors turned to increased weapons sales abroad. Although both the president George Bush and Bill Clinton administrations piously called for restraint in the international arms trade, foreign sales have soared, satisfying the separate goals of the government, worried about unemployment, and the defense industry, seeking customers. McDonnell Douglas is a case in point. The most glaring example of unintended consequences of arms shipments to an "ally" was the massive US sale of $19.5 billion worth of weaponry to Iran between 1972 and 1978. Senator Mark Hatfield and Representative Cynthia McKinney in 1995 introduced for the legislation that would set standards for US arms sales abroad. This chapter discusses these standards in detail. It then reviews the political problems that are caused by the arms sales to the peaceful and democratic countries like Finland and Switzerland.