France and Saudi Arabia have signed arms contracts worth $3.5 billion providing for the purchase in France of planes, tanks, electronic equipment and sophisticated missiles. French sources said here yesterday the contracts also cover France’s participation in the Arab arms industry now being set up in Egypt.
The basic contract provides for the acquisition in France of AMX-30 tanks and an anti-aircraft umbrella consisting of a wide network of radar installations, ground-to-air missiles and helicopters. Saudi Arabia, the sources said, is also interested in Dassault’s new Mirage-2000 combat plane which might be ordered should the U.S. refuse to go ahead with the sale of the F-15s promised to Saudi Arabia by the Carter Administration. The Mirage-2000 is described as similar to the F-15.
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