U.S. replaces Bush plan for Europe missile shield

By Jeff Mason and Adam Entous

WASHINGTON (Reuters) - President Barack Obama on Thursday scrapped a Bush-era missile defense plan for Europe that Russia had bitterly opposed and offered what he said would be faster, more flexible defense systems to protect against Iran.

In a move that could spur fears of resurgent Kremlin influence, Obama said he had approved recommendations from U.S. military leaders to shift focus to defending against Iran's short- and medium-range missiles.

"This new approach will provide capabilities sooner, build on proven systems and offer greater defenses against the threat of missile attack," Obama said, dropping plans of his White House predecessor George W. Bush for ground-based interceptors in Poland and a related radar site in the Czech Republic.

Under the new plan, the U.S. would initially deploy ships with missile interceptors and in a second phase would field land-based defense systems.

Russian President Dmitry Medvedev hailed the decision, which removed an issue clouding U.S. efforts to enlist Russian support on Afghanistan, Iran and nuclear arms control.

"We value the U.S. president's responsible approach toward implementing our agreements," Medvedev said in an address shown on national television. "I am ready to continue the dialogue."

Critics accused the White House of dangerous weakness.

Senator John McCain, the Republican presidential candidate who lost to Obama in 2008, blasted the move as "seriously misguided" and former U.S. ambassador to the United Nations John Bolton, a leading Bush-era hawk, was scathing.

"It's just unambiguously a bad decision," Bolton said. "Russia and Iran are the big winners. I just think it's a bad day for American national security."

The Bush administration had proposed the system amid concerns Iran was trying to develop nuclear warheads it could mount on long-range missiles. But Russia saw it as a threat to its own missile defenses and overall security.

Obama's move toward a more flexible shield for Europe was good news for Lockheed Martin Corp, the Pentagon's No. 1 supplier, and Raytheon Co, the world's biggest missile maker. They build much of the hardware on which the revamped approach relies. It was bad news for Boeing Co, prime contractor for the canceled installation of 10 two-stage ground-based interceptors in Poland.

THE NEW APPROACH

Outlining Obama's new approach, Defense Secretary Robert Gates said the United States would deploy Aegis-equipped ships with interceptors capable of shooting down ballistic missiles to defend both European allies and U.S. forces.

Gates said land-based defense systems would be fielded in a second phase starting in about 2015.

"Those who say we are scrapping missile defense in Europe are either misinformed or misrepresenting the reality of what we are doing," Gates said.