Fears voiced earlier this week that British Aerospace would be hit hard by the Government’s arms embargo against Indonesia have been played down by the company.
The delivery of nine Hawk jets has been held up by the suspension. The planes are part of a £300m deal for 16 Hawks, seven of which have already been delivered.
If the Hawk sales are eventually cancelled, rather than suspended as at present, any losses that BAe suffers would be covered by the Export Credits Guarantee Department.
A BAe spokesman said: `We do not know how we are affected by the Government’s embargo yet, but it won’t cause any problem for Wharton [BAe’s Lancashire site where Hawks are built].’
Hawk aircraft delivered under previous contracts with BAe were flown over East Timor last week in defiance of Indonesian government promises to Britain that they would not be used.
* In the wake of the situation in East Timor, Indonesia did not attend this week’s Defence Systems & Equipment International show in Chertsey, Surrey.
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