A strange swap…..jets for fruit & veg?????

Palm oil for arms swap from now
New Straits Times (Malaysia) August 7, 2002
By Chong Chee Seong

MUAR, Tues. – Countries that intend to supply arms to Malaysia must accept palm oil as part of the payment from now on, Defence Minister Datuk Seri Najib Razak said today.

The Goverment had decided that any import of weaponry would be
negogiated on a contra basis, using primary commodities, preferably palm oil, as part of the deal.

“In short they must buy our palm oil if any arms deal is to be
successfully negotiated.”

Najib added that the recent acquisition of submarines for the Royal
Malaysian Navy which cost an estimated RM1 billion was concluded on the basis of contra payments which involved the purchase of palm oil.

“The percentage of purchase varies. Some could buy up to 50 per cent worth of palm oil in relation to the equipment purchased. In fact, a certain country had agreed to buy up to 35 per cent worth of palm oil from the sale of submarines to the country which was estimated at RM1 billion,”
he added.

Najib, who is also the Umno vice-president, said the Government was
always looking for ways to assist oil palm growers and farmers to ensure that the prices of the commodities were maintained.

He was speaking to reporters after opening the annual general meeting of the Muar South Farmers Association at Sungai Sudah, 30km from here.

“Through the latest decision new markets for palm oil have emerged and this can result in better prices for the farmers,” he said.

Any country that failed to uphold the contract agreement (to buy palm oil) would have to pay damages to Malaysia.

“This concept will work very well and the sale of palm oil is constantly assured. It also checks the outflow of Malaysian currency and the inflow of the foreign exchange,” he added.

He also said that transfer of technology could also be included in
future arms purchase deals.

“Assuming we are interested in certain technology that a country has,
then we can negogiate the price of the deal on the premise of lesser
percentage of purchase of our palm oil. Each contract will vary.”

He said in all weekly Cabinet meeting, the price of local commodities,
especially palm oil, was brought up for discussion.

Najib called on oil palm growers and farmers to change their mindset by
using new technologies to maximise productivity in food stuffs. This would
certainly reduce the annual food import bill of about RM11 billion.