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That’s not exactly true as to how we do FMS.Yes. Yes. The question is still is BAE paying back the British taxpayer for the IP. The British gov paid BAE for the IP. BAE sold that IP plus some of their own to Irving/Lockheed and Canada is paying for it. That is my question. They may not be paying back the British treasury for all the reason you list. But I thought maybe that is reason for some of cost down for the batch two ships.
In the USA FMS sales put some of the money goes to the US government to pay back some of the R&D money the US spent developing the weapon system etc. This is on top of the cost of system from the manufacturer. Example is M1777 purchased by Canada. Another famous example was the waving by the US government of R&D costs of the CF18 when Canada purchased the aircraft. We got a great deal!
I’m on my phone and don’t want to write an essay - but FMS pricing isn’t variable on R&D returns.