US arms buyer rejects protectionism charge

WASHINGTON, March 12 | Fri Mar 12, 2010 2:49pm EST

WASHINGTON, March 12 (Reuters) - The top U.S. arms buyer said no protectionism was involved in the potential $50 billion refueling-aircraft competition that Europe's EADS (EAD.PA) quit this week along with Northrop Grumman Corp (NOC.N).

"We value the contribution of the European industry to the choices we can make as a department," Ashton Carter, under secretary of defense for acquisition, told reporters at the Pentagon.

"There is no protectionism going on and so forth. It's important to us. The wider technology base and the wider industrial base is good for the Department of Defense," he said.

EADS' and Northrop's boycott left Chicago-based Boeing Co (BA.N) the sole remaining bidder to start building a new fleet of U.S. Air Force tankers, which are used to refuel other planes in mid-air. EADS and Northrop complained that the bidding rules were skewed to favor Boeing, a charge echoed by several European leaders.

(Reporting by David Alexander and Jim Wolf)

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