McNair Paper 36, Explaining and Influencing Chinese Arms Transfers, February 1995

58. Stockholm International Peace Research Institute, SIPRI Yearbook 1992: World Armaments and Disarmament, pp. 272-73. For example, from 1987 until 1991, the developing world spent almost $110 billion on conventional arms imports. However, over this same time, the industrialized world's total was about $67 billion. Even France, which has vigorously promoted and subsidized its arms industries, imported $1.7 billion in weapons during these five years. Nor was the Soviet Union completely self-sufficient as it purchased in excess of $3 billion in arms from 1987 to 1991.

59. Ethan B. Kapstein, "Introduction: Explaining Arms Collaboration," ed. Ethan Kapstein, Global Arms Production: Policy Dilemmas for the 1990's (New York: University Press of America, 1992), p. 4.

60. David J. Louscher and Michael D. Salomone, "Brazil and South Korea: Two Cases of Security Assistance and Indigenous Production Development," ed. David J. Louscher and Michael D. Salomone, Marketing Security Assistance: New Perspectives on Arms Sales (Lexington, Massachusetts: D.C. Heath and Company, 1987) p. 144, and Michael W. Chinworth, Inside Japan's Defense: Technology, Economics & Strategy (New York: Brassey's (US), Inc., 1992), pp. 26-29.

61. Defense Security Assistance Agency official, personal interview, Washington, D.C., Nov. 25, 1992.

62. Edward A. Kolodziej, "Arms Transfers and International Politics: The Interdependence of Independence," ed. Stephanie G. Neuman and Robert E. Harkavy, Arms Transfers in the Modern World (New York: Praeger Publishers, 1979), pp. 12-13.

63. Noboru Yamaguchi, "The Future of the U.S.-Japan Security Relationship," Japan and the United States: Troubled Partners in a Changing World, (New York: Brassey's (US), Inc., 1991), pp. 44-56.

64. Ingemar Dorfer, "Arms Deals: When, Why, and How?", ed. Stephanie G. Neuman and Robert E. Harkavy, Arms Transfers in the Modern World (New York: Praeger Publishers, 1979), pp. 206-14.

65. Andrew L. Ross, "On Arms Acquisitions and Transfers," ed. Edward A. Kolodziej and Patrick M. Morgan, Security and Arms Control, Vol. 1: A Guide to National Policymaking (New York: Greenwood Press, 1989), pp. 97-115. For instance, the number of Third World producers of any of the four major weapons systems increased from four in 1950 to twenty-six by 1980. (p. 109).

66. Krause, pp. 88-89, and Stockholm International Peace Research Institute, SIPRI Yearbook 1992: World Armaments and Disarmament, p. 309.

67. Grant T. Hammond, "The Role of Offsets in Arms Collaboration," ed. Ethan B. Kapstein, Global Arms Production: Policy Dilemmas for the 1990's (New York: University of America Press, 1992), pp. 205-15. To illustrate, the 1982 sale of the McDonnell-Douglas/Northrop F-18 to Canada entailed offset agreements valued at over 100% of the purchase price. (p. 209). Also, see Tracy E. DeCourcy, "Countertrade and the Arms Trade in the 1980s," ed. David J. Louscher and Michael D. Salomone, Marketing Security Assistance: New Perspectives on Arms Sales (Lexington, Massachusetts: D.C. Heath and Company, 1987), pp. 165-84.

68. In fact, only in areas of relatively simple equipment, such as artillery and minor surface combatants, did the Big Five and other European producers see their market shares eroded. See Grimmett, p. 77. The major arms producers still account for the sale of most high price items, such as aircraft (a category which alone accounted for the over 50% of the value of arms sales to the Third World during the 1970's and 1980's). See Michael Brzoska and Thomas Ohlson, Arms Transfers to the Third World, 1971-1985 (Oxford: Oxford University Press, 1987), p. 2.